U.S. General Services Administration Reimbursable Work Authorizations Background Public Buildings Service Reimbursable Services Division Office of Facilities Management & Services Programs General Services Administration May 2010

2 About Us Ashlee Carlson and Steve Sacco Reimbursable Services Division Established January 2009 Program and Finance functions separated Areas of Focus Policy Management Customer Analysis & Outreach Data Management & Process Improvement

3 Managing RWA Business $4.4 Billion business annually $2.9 Billion in UFCO (FY09 year end) Approx $1.5 Billion across 12,000 new RWAs accepted annually $856 Million in Recovery Act (ARRA) RWAs Anticipated Approx $428 Million accepted to date (5/2/2010) Approx $428 Million additional anticipated

4 Managing Reimbursable Services How can we work smarter, not harder? How can we proactively manage our Customer’s business needs? What can we do to standardize customer reporting? How can we provide easy access to information for our customers?

5 What Are Customers Telling Us?  Top RWA Customer Issues:  RWA policy inconsistently applied  RWA billing is not detailed enough  RWA communication –RWA receipt vs. acceptance –Funding balances –Project status –RWA close-out

6 Improvements to Reimbursable Services Program Management Implemented a National, Standard Workflow Tool: the RWA Entry and Tracking Application (RETA) Enhanced the Process: Consistency and Communication (letters) Improved the Bill – easier to read, more details Additional improvements coming soon… Fee Consistency – Automated 4% Fee in July 2009 to avoid inconsistent, lump sum fee charges

7 Accountability: Developed Performance Measures to change behavior Training: Ongoing efforts to educate employees and customers (Level I/II/III) Audit findings: taking corrective actions to fix all outstanding audit problems Continuing to implement changes based upon customer feedback Improvements to Reimbursable Services Program Management con’t

8 When Do Customers Use RWAs?  Alterations to existing space  Above Tenant Improvement costs  Above standard services (e.g. overtime utilities)

9 What is an RWA?  RWA Definition Agreement between GSA and customer whereby PBS agrees to provide materials and services and the customer agency agrees to reimburse GSA Provides written documentation of a formal agreement (GSA Form 2957) Identifies specific needs of customer agency and establishes financial arrangements

10 Types of RWAs  Recurring:  When above-standard service costs cannot be readily identified and separated from standard operating costs –Example: Overtime utilities where service is not separately metered and/or billed from “9 to 5” utilities –One fiscal year limit  Non-recurring:  When above-standard service costs can be specifically identified and separated –Example: Overtime utilities where service is separately metered and/or billed –Example: Alterations –Example: Consulting or Estimating

11 Types of RWAs  R-type  Example: overtime utilities  Recurring  Charged over the duration of the service  Closed at end of fiscal year  C-type  Example: utilities for private retail tenants space on first floor of Federal building  Recurring  Non-Federal Customer  Must be prepaid

12 Types of RWAs  A-type  Example: construction and/or design services  Non-recurring, one time need  Non-prospectus repair and alteration when associated with federally owned property only  Funding of project shared by both customer (RWA) and GSA  N-type  Example: space changes in owned or leased Space  Non-recurring, one time need  Non-prospectus repair and alteration

13 Types of RWAs  B-type  Example: tenant funded work associated with a prospectus project  Non-recurring, one time need  RWA is associated with any prospectus project (leased or owned), regardless of RWA amount  F-type  Example: changing key locks  Non-recurring, good for maximum of one fiscal year  Small, miscellaneous items  Purchase limits apply: –Up to $250,000 for year (per RWA), up to $25,000 per project

14 Types of RWAs  E-type  Example: move associated with declared natural disaster  Non-recurring  FEMA mission assignments  D-type  Example: high school prom in a federal building  Non-recurring  Non-Federal customer  Must be prepaid

15 GSA Policies & Guidelines  GSA RWA Form 2957  Need signatures from both the Customer and GSA  RWA File Requirements: –All Signed RWA forms (including amendments) –Copies of the cost estimate –All correspondence between the GSA & customer  Authorized amount on the RWA form must match the cost estimate  RETA allows users to generate, retain, and share an electronic copy of these documents

16 GSA RWA Form 2957 Page 1: Customer Only

17 GSA RWA Form 2957 Page 2: GSA Only Page 3: Terms & Conditions Pages 4&5: Instructions

18 GSA Policies & Guidelines  Year-End Internal Controls Non-recurring RWA request deadline (receipt date) is established by GSA annually. In FY2009, DoD – June 15 th All Others – Sept 1 st RWAs submitted after the deadline (receipt date) may not be accepted if the request cannot be sufficiently reviewed and estimated prior to the end of the fiscal year

19 Year 1Year 2Year 3Year 4Year 5 FY2006FY2007FY2008FY2009FY2010 Period Of Contract Performance (Liquidation Period) Year 6 Appropriation Year GSA Accepts RWA 1/15/2005 Example: Single-Year Appropriation As of 9/30/2005 period of funding appropriation expires for new obligations FY2011 FY2005 As of 9/30/2010 Appropriation is cancelled by congress One-year or Annual appropriation: An appropriation that is available for obligation only during a specific fiscal year. This is the most common type of appropriation. It is also known as a “fiscal year” or “annual” appropriation. (RETA FAQs #37)* Customer appropriations are to be executed within the life of the appropriation (in this instance 1 year) for obligation & five years for expensing, at which time the appropriation is cancelled. (RWA National Policy Document Sec 3.2.2) Period Of Funding Appropriation Availability

20 RWA Phases Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Requirem ents Cost Estimate Cost Estimate Acceptan ce Execution Completion and Close-out Completion and Close-out

21 Phase 1: Requirements  Customer Submits Request  Customer contacts GSA with a bona fide need  Work together to develop requirements  Establish a fully defined scope of work Requireme nts

22  GSA Acknowledges Receipt of RWA  GSA Project Manager assigned  GSA processes RWA in pending status –Assigns RWA number –Sends “Receipt” Customer Letter Phase 1: Requirements Requireme nts

23  Description of Requested Work Summary level scope of work, including: Type of Work: Detail work to be performed Location(s) of work (e.g. building, floor, room) Should not be open-ended or vague Amount or Magnitude of Work: Square footage The number of hours of service This information goes in Block 7 Phase 1: Requirements Requireme nts

24 Created by GSA. However, if provided by customer, GSA must validate. Includes all direct costs Examples: D esign, construction management, contingencies, travel, moving, furniture, etc. Includes all indirect costs (if applicable) 4% project management fee sliding scale overhead fee or flat overhead fee of $100  Develop Cost Estimate Cost Estimate Phase 2: Cost Estimate

25  Fees: Project Management (4%)  Covers Regional oversight of delivering RWA projects –Example: Budget Analyst time entering RWAs into RETA –Example: GSA PM coordinating efforts with contractors –Example: Contracting Officer awarding/administering contracts  Fee does not apply to: –Example: Personal property costs such as Furniture, Equipment, and Supplies –Example: Moving Costs –Example: Overtime Utilities Cost Estimate Phase 2: Cost Estimate

26  Fees: GSA’s Sliding Scale  Recovers the nationwide indirect cost of managing and operating the PBS Reimbursable Services Program –Example: Reimbursable Services Division –Example: Financial Operations Division –Example: Office of Finance –Example: Managing and maintaining RWA Systems  Overhead Fee is based on actual expenses  The scale is capped at $30,000 per RWA Cost Estimate Phase 2: Cost Estimate

27  Fees: Recurring RWAs  Incur a flat overhead fee of $100 per RWA  Minimal administrative costs associated with managing recurring RWAs Cost Estimate Phase 2: Cost Estimate

28  Common Estimate Components Construction Costs & Contingencies + Architecture/Engineering (A/E) Costs + Construction Management (CM) Costs + 4% Project Management (PM) Fee + Personal Property Costs + RWA Overhead Fee (sliding scale) = Authorized Amount of RWA Cost Estimate Phase 2: Cost Estimate

29  Needed for Acceptance of RWA  Scope of Work is fully defined  Cost Estimate sufficiently supports the scope of work  Bona Fide Need is established by customer  Agency Fund Certifying Official is knowledgeable about funding authority Acceptan ce Phase 3: Acceptance

30  Acceptance of RWA  Customer Funds Certifying Official must sign RWA Form confirming: –Funds are legally available –All unique funding and procurement requirements of the Requesting Agency have been disclosed  GSA Funds Certifier officially accepts RWA by signing RWA  Pending RWA is submitted and accepted into RETA  GSA sends “Acceptance” Letter to customer Acceptan ce Phase 3: Acceptance

31  RWA Amendments Amendments are accepted from customers, however… Changes in scope must meet 3 requirements: 1. Funds are legally available for new purpose 2. Bona Fide Need exists 3. The appropriation has not lapsed for obligational authority Agencies amend RWAs to increase or decrease RWA amount Acceptan ce Phase 3: Acceptance

32  Recovery Act (ARRA) RWAs  “Recovery Act” box (Block 13C) should be checked  Customers should follow ARRA RWA Checklist  Naming convention: prefixed as N40 (Block 2) –GSA assigns RWA number –RETA has built-in internal control for ARRA funds  Mixed Fund Projects (i.e. ARRA funds & Traditional funds): –Must complete two separate RWAs Acceptan ce Phase 3: Acceptance

33  RWA Management  Acquisition Plan established  Scheduled milestones established (if necessary)  Regular and periodic review of RWA inventory –Example: RWAs with no financial activity in last 90 days –Example: RWAs with expiring customer funding Executi on Phase 4: Execution

34  What triggers a Bill? –Inspection or Receiving Report identifies delivery of service (partial or full)  4% Project Management Fee automatically applied on top of “eligible” expenses  Overhead automatically applied to all expenses  Billing Term is identified on GSA Form 2957 –Block 9B –Monthly (M), Quarterly (Q), or Advance (A) Executi on  RWA Billing Phase 4: Execution

35  RWA Payment  Customers can make payment via: –Treasury’s IPAC System (most federal customers) –Interfund (internal GSA customers only) –Check (non-federal customers and non-IPAC customers) –Credit Card (non-federal customers; federal customers in limited cases - not preferred) Executi on Phase 4: Execution

36 Old Bill and IPAC Executi on Phase 4: Execution

37  New RWA Bill (Top half) Executi on Phase 4: Execution

38  New RWA Bill (bottom half) Executi on Phase 4: Execution

39  RWA Substantial Completion  Physical work is complete –“Punch list” items may exist, however work has been substantially complete –GSA sends “Completion” Letter to customer Completi on/ Closeout Phase 5: Completion & Closeout

40 Phase 5: Completion & Closeout  RWA Financial Closeout  All costs have been billed and all invoices have been paid –GSA sends “Closeout” Letter to customer –Agency may de-obligate remaining funds –Residual/Excess funds cannot be used for a different RWA or a new scope of work Completi on/ Closeout

41  RWA Cancellations  Customer Agency may cancel an RWA anytime before charges are incurred by PBS against an RWA –Customer must submit an Amendment to cancel the RWA  If GSA has incurred costs, GSA will bill the Customer – Any remaining funds may be de-obligated by the customer upon receipt of the “Closeout” Letter Completi on/ Closeout Phase 5: Completion & Closeout

42 RWA Customer Letter Templates **RWA Project Follow-Up Letter to be used only if needed

43 Improvements and Successes  FY2008: –Standardized Cost Estimate Template –Improved Customer Bill  FY2009: –Electronic Documentation Tool and RETA Functionality –Automated Customer Letters –4% Fee Automation

44  Education and Outreach: –Updated and enhanced RWA Level I Training (available August 2010)  Available at –Specific Competency RWA Level II and III Training  Region by Region Classroom training (April-August 2010)  Policy: –Updating National Policy Document (anticipated June 2010) Program Initiatives Going Forward

45  Process Streamlining and Systems: –External RETA Access for Customer Agencies  Read-only Documentation Tool access (anticipated August 2010)  Electronic RWA Request Submission capabilities (anticipated FY2011/2012) –Consolidating additional RWA tools into RETA Program Initiatives Going Forward

46 Customer Tools  RWA Customer Portal: –  RWA Search – –To be replaced with external RETA access  Billview Website –

47 PBS Regional RWA Network Available at

48 Questions? Process/Data Management Steven Sacco Customer Analysis/Outreach Ashlee Carlson Policy Management Lester Boggs Director Denise Funkhouser