2013 GSA Region 4 Customer Workshop 1 GSA Public Buildings Service 2013 GSA Region 4 Customer Workshop

Initiating the Request 2 GSA Public Buildings Service Initiating the Request

Getting the Ball Rolling… The GSA Space Request Process Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA May 1, 2013

4 GSA Public Buildings Service WHY? WHAT? WHERE? HOW? The 4 Questions of Space Requests…

5 GSA Public Buildings Service WHY? Why do you need to initiate a space request? –Several drivers for needing a space action: Need new space in a market where it does not currently exist Need additional space (expansion) Need to scale back on existing space (reduction) Current space is insufficient for safe & effective operations Current lease expiring, creating need to relocate

6 GSA Public Buildings Service WHAT? Once you determine that you have a need for a space action, what should you include in your request to GSA? –Total square footage required (and what kind) –Total parking required –Delineated area desired for space If outside the CBD, provide a justification –Timeframe in which the space action is needed –Any special needs/requirements –Contact information

7 GSA Public Buildings Service WHERE? Once you’ve gathered your information, send it to GSA… Standard Form (SF) 81 Letter

8 GSA Public Buildings Service HOW? Once GSA receives your request for a space action, the first thing that must be done is to make an initial determination: Federal space or leased space? Though similar, the procedures and guidelines for pursuing space in a federally-owned facility or a private-owned lease are different. In order to make this determination, GSA Region 4 goes through a specific process, and this is how it works…

How continued 9 GSA Public Buildings Service First, let’s answer the question, “why do we have to make this determination?” Executive Order 12072, “Federal Space Management” –Requires all Executive agencies that have a mission requirement to locate in an urban area to give first consideration to locating into Federal facilities in central business districts, and/or adjacent areas of similar character Also, it’s good, responsible usage of the taxpayers’ investment in our Federally-owned inventory

How continued 10 GSA Public Buildings Service Once the space request is sent to the R4 space request mailbox, it is logged into CARTS (Customer Account Response Tracking System) R4 Portfolio Mgt and R4 Leasing divisions are notified of the request R4 Portfolio Mgt examines the federal inventory to determine if federal space exists that can potentially meet the customer’s requirements

How continued 11 GSA Public Buildings Service If federal space exists, request is turned over to a Federal Realty Specialist (FRS) FRS provides customer agency with letter acknowledging GSA’s proposal to house space requirements in federal space, including basic schedule of milestones and contact information Available Federal space is then evaluated with customer agency to verify whether or not the space is suitable

How continued 12 GSA Public Buildings Service If the Federal space identified is deemed acceptable to the customer, the Federal space delivery process is continued through completion and occupancy R4 Leasing will coordinate corresponding lease actions (like extensions on existing leases to be vacated), if any If the Federal Space identified is deemed unacceptable to the customer, and no other Federal space exists, the FRS turns over the request to R4 Leasing

How continued 13 GSA Public Buildings Service R4 Leasing Contracting Officer/Leasing Specialist (LCO/LS) takes the request and initiates the lease acquisition process and proceeds with “Tab 1” LCO/LS will provide customer with letter acknowledging GSA’s decision to pursue leased space for customer, including basic schedule of milestones and contact information

Strategies for Southeast Sunbelt & Beyond Workplace+ Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA May 1, 2013

The way people work today is vastly different than 20 years ago. Yet the workplace remains largely unchanged. Work is rapidly becoming more virtual than present. Work policy is shifting to performance/process rather than presence. The Case for Workplace Strategy

PBS WorkPlace PMO Why?  Traditional space doesn’t support current ways of working  Solitary, sedentary, paper-based work is in decline  Limited space variety + limited employee interaction + underutilized space = impact to real estate value and mission delivery  Continuing strain on resources…real estate cost vs FTE for mission delivery

PBS WorkPlace PMO Drivers  OMB’s “No Net New” Policy  June 2010 Presidential Memo  Telework Enhancement Act  Congress (FY Budget)  Environment - Going Green  Shifts in Workforce  Freeze the Footprint

PBS WorkPlace PMO Key Objectives  SAVE taxpayer dollars  Create a PLACE where people want to come to work  Encourage and support COLLABORATION  Improve PRODUCTIVITY  Produce ENERGY & carbon savings

PBS WorkPlace PMO Challenges  FUNDING  Change Management  Information Technology  Acoustics  HR Policies  Continuity of Operations

PBS WorkPlace PMO Workplace Solutions  Right-size spaces  Move to an open-plan (when appropriate)  Consider desk-sharing (when appropriate)  Provide the correct mix of individual and collaborative spaces  Try, modify, and adopt using labs and pilots

PBS WorkPlace PMO Current Efforts/Lessons Learned  Martin Luther King, JR. FB FAS/PBS Space plus mobility Goal of complete GSA consolidation in reduced footprint Balance of building as marketable space to other Fed agencies Change management Union engagement  GSA Mobile Work Lab (Sam Nunn Atlanta Federal Center) Try it before you buy it test opportunity  National WP+ engagements in Region 4 USDA NASS – Athens EPA (SNAFC)

PBS WorkPlace PMO A New Vision Support the ways people work as INDIVIDUALS and TEAMS. Gain shared understanding of CULTURE, VALUES, & VISION. Support the different WORK STYLE PREFERENCES of multiple generations. Support formal and informal INTERACTIONS and COLLABORATION Enhance the transfer and exchange of KNOWLEDGE in the workplace.

PBS WorkPlace PMO Keys to Success  Put People First – Get everyone involved  Focus on how people work, not what they do  Right size individual, support, & collaborative spaces

PBS WorkPlace PMO Moving Forward  GSA wants to partner with you and consult to help you find the solution for you. Questions?/Contacts:  National: Chuck Hardy, National Program Executive, PBS; , Sharon Wall, National Program Executive, FAS; ,  Region 4: John M. Dennis, Regional PBS WP+ Executive; , Shea Brannen, Regional PBS WP+ Coordinator; , Dave Hofstetter, Director, Client Solutions PBS; , Maurice Kornegay, Mobility Specialist, FAS; , Sandra Meekins, Mobility Specialist, FAS; ,

Federal Space 25 GSA Public Buildings Service Federal Space

R. Jahmal Overton, R4 Portfolio Management Federal Realty Team Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA May 1, 2013

27 GSA Public Buildings Service We Are…. The Federal Realty Team resides in Portfolio Management Closely aligned with Asset Management to provide quality space for agencies within the federal inventory. Maintain Occupancy Agreements (OAs), outleases, parking in federally-owned space and to notify Spatial Data Management of all changes for input of layouts and locations into the inventory system. Aim to always provide excellent customer service to our customers

The Process Federal Realty Specialist (FRS) reaches out to the client agency to discuss the project and next steps FRS works with the agency, property manager, and asset manager to identify suitable federal space within a federal building Scope of Work (SOW) and project requirements → IGE First generation space vs. second generation space FRS, Spatial Data Management(SDM) team, Asset Manager, Design & Construction, Client Solutions → internal 28 GSA Public Buildings Service

The Process, cont’d Draft OA to client agency for signature Asset manager submits a BA54 folder for approval if BA54 funds are needed RWA??? The Service Centers Division and/or Design and Construction Division (depending on complexity and dollar amount) execute build-out Final OA to client agency for signature Agency takes possession of the space – OA becomes active 29 GSA Public Buildings Service

Duration of Occupancy OA Maintenance During the Life of an OA –The Federal Realty Specialist is the POC –Common agency inquiries during OA cycle: OA expiration dates Copies of OA (freeze the footprint, general inquiries, etc.) Combining OAs (when there are multiple OAs for one agency in a single building) FPS charges Expansions/reductions/space releases –Some of these projects funded by RWA Space reassignments (moving space from one OA to another, etc. – usually agency driven change due to classification/budget reasons) 30 GSA Public Buildings Service

Contacts 31 GSA Public Buildings Service Federal Realty Specialist/CO - John Behizadeh Atlanta Central ABT (GA) Carolinas Columbia ABT (SC) Miami ABT (FL) Tampa ABT (FL) Federal Realty Specialist - Whitney Pack Atlanta South ABT (GA) Carolinas Charlotte ABT (NC) Louisville ABT (KY) Savannah ABT (GA) Federal Realty Specialist/CO - David Butler Atlanta North ABT (GA) Birmingham ABT (AL) Memphis ABT (MS & TN) Nashville ABT (TN)

Contacts 32 GSA Public Buildings Service R. Jahmal Overton Deputy Director, Portfolio Management

What It Is and What To Expect GSA Prospectus Program Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA May 1, 2013

GSA’s CILP & Budget Process & Schedule  Regardless of what space your agency will occupy (federally owned or leased), the potential exists for that space to be part of a “prospectus” level project.  Potential prospectus project scenarios can include: Being part of several agencies slated to occupy a future newly constructed federal building or courthouse Having space provided via a newly construction federal building in which your agency will be the sole occupant

GSA’s CILP & Budget Process & Schedule  Potential prospectus project scenarios continued: Acquiring a new office or an expansion to an existing office in a federally owned property that will receive an above-prospectus level renovation Having large amount of space provided in an existing federally-owned property via a vacant space recapture project Acquiring a large amount of space via a new leased facility, where the size of the space combined with the prevailing market rental rates create an above-prospectus annual rent commitment for the Government

GSA’s CILP & Budget Process & Schedule Question: So what constitutes a prospectus-level project? Answer: Any project that GSA PBS engages in that exceeds the prospectus threshold established by Congress/OMB: Current FY2013 Prospectus Thresholds –New Construction $2.79 Million –R&A $2.79 Million –New Lease $2.79 Million –Alts in Leased Space* $1.395 Million *Only applies to alteration projects in leased space that occur after initial occupancy The prospectus threshold designates the ceiling of GSA’s blanket authority that we cannot exceed on our own

GSA’s CILP & Budget Process & Schedule When going through the CILP process, all prospectus- level projects, with the exception of new leases, will ultimately require 2 things: Appropriation = Funding from Congress specifically for the project Authorization = Permission from Congress; specific authority to engage in a project that exceeds GSA’s normal blanket level of authority (i.e. below the prospectus threshold) New leases only require authorization

GSA’s CILP & Budget Process & Schedule  Projects determined to be above prospectus must be submitted through the GSA Capital Investment & Leasing Program (CILP).  GSA prepares for prospectus submissions two (2) years in advance of target budget year (example: FY2015 CILP issued in FY2013)  GSA Central office issues list of projects approved for submission in a given CILP year.  Regions prepare submissions typically in Spring/Summer  GSA Central Office submits CILP to OMB in the Fall; usually receives OMB “Passback” in November

GSA’s CILP & Budget Process & Schedule  Preparation of President’s FY14 budget in January 2013  President’s FY14 budget to go to Congress first Monday in February 2013  When GSA submits prospectuses to Congress, they are sent concurrently to GSA’s authorizing and appropriations committees (4 total)  ALL 4 committees must approve  President signs the FY14 budget (ideally before 10/1/2013)  Once we have an approved FY14 budget from Congress, signed by the President, and all required signed resolutions, we have an active FY14 project

Current CILP Expectations Setting realistic expectations:  In the FY11 and FY12 CILPs, GSA planned between $2-2.5 billion (incl. new construction, major R&A, and minor R&A)  In both FY11 and FY12, GSA managed to get roughly $1.5 billion included in the President’s budget  In the final FY11 Budget, GSA received $408 million in construction/R&A appropriations  In the final FY12 Budget, GSA received $330 million in construction/R&A appropriations  Going into FY13, GSA planned for less than $2 billion  Current expectations: FY13 Budget stalled in potentially year-long Continuing Resolution; very few (if any) prospectus appropriations are expected for FY13

Current CILP Expectations  Due to ever decreasing levels of appropriations, GSA cannot fund every project identified by the regions and requested by the client agencies.  In response to dwindling appropriations for construction and R&A, GSA’s CILP has evolved to deal with backlog in the capital project “pipeline”: Up thru FY09 – Traditional CILP Calls FY10 thru FY13 – “Directed CILP Calls” FY14 – “Decision Lens Modeling” & “Review, Refresh, READY”

Current CILP Expectations Traditional “Open” Call = GSA Regions determined on their own what their capital priorities would be, & submitted those priorities to GSA Central Office. GSA Central Office prioritized on a national level based on critical need and availability of appropriations Directed Call = GSA Central Office “directs” Regions on what projects to submit, and does not allow for non- approved submissions, except conditionally in cases of emergency or critical urgency. Designed to curtail the flood of “new start” projects and focus on projects already in the “pipeline”.

As A GSA Customer, What Can You Expect? GSA representatives will inform you if your space needs are moving toward an above-prospectus need In an effort to shorten the time required to deliver your space, GSA will work with your agency to try and find alternatives and solutions for meeting your needs in a manner that will be under prospectus, if at all possible. Current Administration Space Priorities: –Downsizing Government – GSA will help you focus on maximizing your space efficiencies, explore possibilities of increased mobility, and bringing your utilization rates in line with expectations –No Net New – Any new space acquired by an agency must be offset by space reductions somewhere else in that agency’s inventory; cannot increase the size of your total agency space

As A GSA Customer, What Can You Expect? If it is determined that your space will require prospectus-level approval: GSA will work with you to gather information necessary to scope and estimate your project, which GSA will use to prepare a thorough and detailed prospectus submission GSA will provide a projected schedule for prospectus approvals (keeping in mind that GSA has no control over OMB or Congress) GSA will keep you informed of your project’s progress through the approval process GSA will provide occupancy agreements reflecting the most current estimates on projected costs (shell and operating rent, amortized tenant improvement, parking costs, etc) and latest effective/occupancy date projections

What Can You Do To Help? If you have space involved in a GSA prospectus project…  Be ready to respond to requests from GSA for requirements, justifications, etc.  Short window for prospectus preparation  We may request information and need it quickly  Be prepared  GSA will provide schedule and budgeting estimates to help you plan on rent, relocation, etc  But be prepared for possible shifts in those plans (i.e. delays in appropriations, changes in Administration priorities, etc)  Be patient  The Capital Program is a long, slow process, and we cannot guarantee support or timeliness from our approvers (i.e. OMB & Congress)

FY14 CILP Feel free to contact:Mark Sears (404)

Under-Prospectus Project Management Design & Construction Division 77 Forsyth Street, SW Suite G-40 Atlanta, GA May 1-2, 2013

48 GSA Public Buildings Service Under-Prospectus Project Management (4PC1N) Design & Construction projects Repairs & Building Alterations FY11 & FY12 Program stats: –Total cost: $42 mil (FY11), $29 mil (FY12) –RWAs: $24 mil (FY11), $12.5 mil (FY12) –65 projects (FY11), 53 projects (FY12) –Average duration: 200 days (approx. 6 months) –on-time completion 84% (FY11), 91% (FY12)

Managing Division D&C (as opposed to Service Center): Over $150k (Simplified Acquisition Threshold) A/E design needed –Professional Services available in D&C 3 rd party CM 49 GSA Public Buildings Service

BA-54 Folder Project Process April – Asset Business Teams provide list of top 3 projects to D&C D&C prepares scopes & estimates Folder checklist(s) August – D&C delivers Folders to Portfolio & ABTs Start of new FY – projects selected for funding are announced 50 GSA Public Buildings Service

Front-end Project Planning Process Gather as much information as available Contact R4 project team as early as possible Scope/estimate development can be an iterative process –‘Pie in the sky’ & compare to budget Proper planning critical to execution 51 GSA Public Buildings Service

Front-End Planning: Scope of Work 52 GSA Public Buildings Service

Front-End Planning: Cost Estimate 53 GSA Public Buildings Service

Planning Priorities 54 GSA Public Buildings Service