VALUATION PROGRAMS OVERVIEW Real Property Valuation Division GSA - Public Buildings Service Office of Portfolio Management and Customer Engagement Nicholas S. Hufford, MAI, CAE Director, Chief Appraiser July 2019

Context – U.S. Federal Real Estate 640,000,000 acres Federally-owned 28% Percent of the 2.27 billion acres of US land Major Land-holding Agencies Department of Interior Bureau of Land Management; Fish and Wildlife Service; National Park Service Department of Agriculture – Forest Service Department of Defense (Army Corps of Engineers, Navy…) Department of State – Overseas Buildings Operations Agencies have varying purposes and missions Varying authorities – acquisition and disposition GSA - Public Buildings Service – only 3,766 acres More buildings than land A Million people work in our buildings www.gsa.gov/publicbuildingsservice

U.S. Agencies – Appraisal needs GSA – public buildings Department of Justice – eminent domain Department of Agriculture; Department of Interior – land, landmarks US Army Corps of Engineers; Navy (Naval Facilities Command) – military and civilian projects Department of Energy – Bonneville Power – power distribution, other Internal Revenue Service – tax enforcement and review Department of State – overseas facilities Appraisal needs differ, but agencies share: Contracting regulations Issues and concerns The same pool of contract appraisers Goal - best value for the Government (and the taxpayer) States, US Financial and Lending institutions have appraisal functions – but not in-house. Residential properties; State and local governments and DOTs. Missions differ, but numerous agencies require appraisal services. Issues and concerns – qualified contractor pool, quality control, production

Eisenhower Executive Office Building, Washington, DC Mission: “Deliver value and savings in real estate, acquisition, technology, and other mission-support services across Government.” Our primary purpose is to make Government more efficient. The Government is our customer, but savings for the taxpayer is our goal. Strategic Goals Save taxpayer money through better management of federal real estate. We will deliver cost savings and value for taxpayers through smart asset management while also providing cutting-edge workplace solutions that help agencies fulfill their important missions. Establish GSA as the premier provider of efficient and effective acquisition solutions across the federal government. We will lead acquisition and procurement strategies that help agencies access inventive and effective commercial solutions, make it easier to do business with Government, and use our buying power to drive cost savings. Improve the way federal agencies buy, build and use technology. We will lead the charge to modernize government's approach to technology products and services. We will guide agencies through innovative and efficient technology deployment to meet their missions and fulfill the needs of Americans in a rapidly evolving and complex world. Design and deliver expanded shared services within GSA and across the federal government to improve performance and save taxpayer money. We will transform administrative services in government by leading the consolidation of common mission-support processes and services across the government. Implementing this best practice will make these services better, faster, and more affordable while allowing government agencies to dedicate more resources to their missions. Eisenhower Executive Office Building, Washington, DC 1871-1878 GSA.gov

Public Buildings Service (PBS) Some other GSA Business lines: 5,253 employees; 11 Regions + Central Office Non Sign ll; Lead Pencil Studio Edward J. Schwartz CH annex San Diego, CA Federal Acquisition Service (FAS) Fleet Management Technology Transformation Services Office of Government-wide Policy Some other GSA Business lines:

Public Buildings Service (PBS) What do we do at PBS? We are designers, builders and operators of award-winning courthouses, border stations, federal office buildings, laboratories, and data processing centers. We are leaders in energy conservation, sustainability, recycling, and historic preservation—maintaining more than 470 historic properties We are repairers and renovators of facilities. We house over 100 child care centers. We donate and sell real estate for federal agencies. We commission artwork for new federal buildings and conserve a substantial inventory of New Deal art. Eagle door detail, Federal Building and U.S. Custom House, Denver, Colorado Carol Highsmith We work with and manage a huge, exceptionally diverse portfolio of Federal assets. About 1M people work in our buildings. Federal Center South - Seattle

GSA – Public Buildings Service Real Property Valuation Division Nicholas S. Hufford, MAI, CAE Director; Chief Appraiser NOAA Satellite and Operations Facility Suitland, MD 1800 F Street NW, Suite 5150 Washington DC 20405   202.501.2055 office 202.631.2751 cell Nicholas.hufford@gsa.gov UNITED STATES LAND PORT OF ENTRY, WARROAD, MINNESOTA

Public Buildings Service (PBS) Office of Portfolio Management and Customer Engagement Establishes and manages national valuation policy, procedures, guidance and standards; provide strategic direction and management of capital investment and leasing programs; sets strategic direction for PBS asset and portfolio management; and develops & reviews PBS policies related to space pricing, space occupancies, and customer rent bills. Christopher Bond CH, Jefferson City, MO 2011; LEED Gold Real Property Valuation Division Supports GSA's mission by providing timely, accurate and unbiased real estate valuation and market information, bringing clarity to informed decision making. Understanding Markets Understanding Our Assets Understanding Value Customer engagement works with Federal customer/tenant partners on every aspect of their real estate and business support needs, through Service Delivery Excellence. GSA.gov GSA.gov/pbs

Real Property Valuation Division Primary Program Areas Fair Market Value (FMV) Appraisal Central Office contracting and review Fair Annual Rent (FAR) Appraisal Regional contracting Central Office oversight Market Insights and Project Analytics - Central Office Disposition and Re-purpose Regional (Disposal Zones) contracting Los Angeles Courthouse

We charge agencies market rent to occupy space – Fair Annual Rent Why do we need independent appraisers? We charge agencies market rent to occupy space – Fair Annual Rent Real estate occupancy is a substantial part of agency budgets $4.2 Billion revenue annually to the Federal Buildings Fund We need the local expertise to get the values right Our Federal customers deserve and expect transparency We need independent values and market rent opinions We provide credible, independent (non-GSA!) values and rates – no apparent conflict of interest. Our workload varies – rents are appraised on a cyclical basis We have about 30 appraisal staff in 11 cities, but we have 1,631 assets - all over the US and territories We work with and manage a huge, exceptionally diverse portfolio of Federal assets. About 1M people work in our buildings. Federal Center South - Seattle Courtroom Detail Byron R. White U.S. Courthouse Denver, Colorado

Why do we use independent appraisers? We manage a diverse and complex portfolio We need your expertise! 504 Historic properties; 17 National Historic Landmarks; 31% of the inventory Mariposa Land Port of Entry Nogales, AZ Land Ports of Entry Offices: up to 2 million SF Small towns, cities and every major market US Courts Warehouse and Ware-Yards We work with and manage a huge, exceptionally diverse portfolio of Federal assets. About 1M people work in our buildings. Federal Center South - Seattle Warehouse Ware-yard Fleet Management/ Parking Lab Space

Why do we use independent appraisers? We Acquire, Build, Manage and Dispose of property for the Federal Government Eminent Domain; Site Acquisition; Rent; FMV The Yellow Book USPAP Uniform Relocation Act We work with and manage a huge, exceptionally diverse portfolio of Federal assets. About 1M people work in our buildings. Federal Center South - Seattle

How can you do appraisal work for GSA? We contract about 300 appraisals annually FAR; Rent - local projects - Regionally managed FMV; Market Value – Comprehensive analysis and reports - Central Office managed Special Projects - Regional and Central Office Federal Center South Seattle, WA We work with and manage a huge, exceptionally diverse portfolio of Federal assets. About 1M people work in our buildings. Federal Center South - Seattle US Customs House Denver, CO

Fair Annual Rent (FAR) Appraisal Program Abe Saiidifar, MAI Abe.saiidifar@gsa.gov Approximately 200 assets appraised annually Five-year cycle; (or more frequently as needed) Focus on rent – market equivalent for tenanted space;10-year term rates (long term lease) GSA’s report template, instructions and XL workbook Complexity depends on property and market Narrative – template requires analysis and support Managed by Regional Offices; Reviewed extensively for technical clarity; internal consistency; compliance with Statement of Work Four step review – 2 at Region, 2 at Central Office QUINCY CT FEDERAL BLDG CHICAGO, IL

Fair Market Value (FMV) Appraisal Program Barbara Kaczmarek, MAI Approximately 50 assets annually; Focus on critical assets; transitional; reinvestment; exchange; Rotates through the portfolio; Strategic investments Complex appraisals; narrative – comprehensive Strategic high profile projects Managed by Central Office Reviewed extensively for technical clarity;for internal consistency and compliance with Statement of Work Mostly 0ne-off bids – local expertise or known appraisers WISDOM COURTHOUSE NEW ORLEANS, LA Barbara.kaczmarek@gsa.gov

Disposal Appraisal Program Robert.Yevoli@gsa.gov Managed by five Disposal Zone offices Reviewed extensively for technical clarity; internal consistency and compliance with Statement of Work The work and property types vary broadly Some extremely complex; a few are fairly simple MILWAUKEE PIERHEAD LIGHT 1872 Poe Reef Lighthouse on Lake Huron GSA Auctions

Contracting With Federal Agencies Competition? Usually required (FAR) Small business set-asides Small business preferences Thresholds: $10,000 credit card $25,000 simple acquisition $100,000+ full acquisition plan Approved list? Varies by agency and contract type. Contract types: Individual – one-off – simplified acquisition IDIQ or BPA (fedbizops – fbo.gov) Sole source (rare) Know your contacts: CO – Contracting Officer (All contract issues) COR – Contracting Officer’s Representative (for appraisal/technical issues) Get a DUNS number: http://fedgov.dnb.com/webform/pages/CCRSearch.jsp REGISTER ON SAM.GOV https://www.sam.gov/

The Hot Buttons HIGHEST AND BEST USE MATTERS! Analyze and explain – SUPPORT Step back…is the value reasonable? Tardiness; Sloppy draft or final – quality control – inappropriate boilerplate and definitions Lack of understanding of the contracting process (SAM; Notice to proceed; invoicing, etc.) Maintaining client confidentiality Read the Statement of Work; Understand the subject Communicate with the CO/COR; Talk to us.

Celebreze Federal Building Cleveland Eisenhower Executive Office Building, DC Celebreze Federal Building Cleveland Wayne Aspinall Federal Building and U.S. Courthouse Grand Junction, CO