DPW/OPM Lease Process Improvement “LEAN”

LEAN Business Case The Goal of the leasing process is to implement the most economical and appropriate options to meet agency space requirements in a timely and efficient manner. The current process takes too long, and has too many redundant steps which do not add value.

LEAN Goal Reduce the time from the present 18 to 24 months (an average of 33 months) to a year or less.

LEAN Risks Team must deal with budgetary constraints, statutory requirements, and time management.

LEAN The Process A steering committee was created including members from DPW, OPM, SPRB and the AG’s office. The steering committee was broken down into smaller groups made up of DPW and OPM staff. The sub-groups mapped the entire current process from the 18 th month letter from DPW to submittal to SPRB (the given defined scope). FASCAP The same group then reviewed each step of the current process and after several meetings developed a new map with reduced steps, shorter time frames, etc…(DSS and DCF participated). Out of the new map came the following changes to the process.

LEAN –Administrator of Leasing & OPM Assistant Division Director meet twice a month to start, including other staff as needed. –DPW & OPM keep each other informed of relevant events or changes to status quo. –Each meeting will have an agenda with the understanding that RFS and leases will be standing items. –Each meeting will be followed-up via summarizing matters discussed and/or decisions agreed upon.

LEAN –DPW, OPM AND USER AGENCIES: –Hold joint site visits led by DPW property agent, DPW leasing planning representative and OPM representative to inspect the current space occupied by the user agency. Joint site visits allow DPW and OPM to have real time discussions and to formulate preliminary determinations as to current and future space needs of the user agency at that location. –DPW/OPM to offer advice and help fill out form(s), etc., while on site with the user agency, allowing for immediate assistance to the user agency and minimizing mistakes or misunderstandings. –Perform joint site visits in order of priority, as mutually identified in joint meetings. –Following joint site visit, communicate directions to user agency regarding what space is approved and specific due date for RFS/ISR. –USER AGENCIES CAN EXPECT: –Commence joint site visits by issuing written advance notice to user agency of date visit to occur. –Prepare and hold Implementation Plan roll-out for user agencies to educate on changes to process, answer questions (DOING THIS TODAY). –Elimination of the pre-review of draft RFS/ISR document and Verification of Vacancy form (VOV).

LEAN GENERAL ACTIONS WE ARE TAKING TO CONSOLIDATE LEASE PROCESS STEPS: –Push down decision making authority to DPW Administrator of Leasing and Property Transfer –Utilize internal DPW technical staff in the DPW facilities planning unit to assist in reviewing construction bids and cost estimates, particularly where more complex tenant improvements are contemplated. –Reduce number of parties reviewing the lease approval package at DPW –Involve DPW legal review upon receipt of signed documents from lessor to identify & resolve issues earlier in the process (see Future State Map). –Improve checklist utilized by DPW internally with goal of improving quality of reviews. –Eliminate redundant actions or documents from the lease package. –Make OPM forms and affidavits more user friendly. –DPW property agents, to the extent possible, will pre-fill forms and affidavits for lessors prior to sending lease documents to lessor for execution.

LEAN GENERAL ACTIONS WE ARE TAKING TO CONSOLIDATE LEASE PROCESS STEPS: –Revise DPW lease package checklist to identify common documentation errors to be checked and incorporate additional information to be identified by OPM to assist its review. –Eliminate OPM “money sheet” and cover memo; add OPM as a copied party to the draft SPRB memo included in lease package. –OPM modify Gift and Campaign Contribution disclosure to clarify space for “name of contractor” for State use only. OPM to pursue making certificates and affidavits (Gift and Campaign, non-discrimination, etc.) so fields may be filled out. –When internally transmitting State Standard Lease documents or priority documents at OPM, OPM real estate/facility representative will use color coded folders to visually identify when a document is a State Standard Lease or rush. –Once the terms are set, the document and the transaction are ready for OPM to review; hence, when DPW transmits the final lease documents to the lessor for execution, DPW will electronically forward the lease agreement and related documentation to OPM to initiate OPM review. Significant time should be saved by running the processes concurrently.

LEAN Parking Lot – Items for future consideration: Evaluate whether an RFS is always necessary, and if not, under what circumstances one could be eliminated Evaluate and implement where possible improvements to FACCAP with goal of increasing accuracy in identifying space needs and costs Determine whether and how DPW/OPM can improve the accuracy of employee head counts relative to individual space requests, including a cost benefit analysis to evaluate whether the value of such accuracy warrants the effort to improve OPM and DPW will collaborate on thresholds or other factors that may void the need for OPM legal review of certain documents and transactions. This conversation will take into consideration the success of the modifications to the lease process Standardize primary DPW lease and license agreements and establish protocols to facilitate modification of same when necessary or appropriate Investigate the feasibility of electronic transfer of documents to SPRB by DPW

LEAN QUESTIONS/ANSWERS