1. 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

2. 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

3. 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

4. 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
GSA.gov

5. 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:

6. 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

7. 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
office
cell
UNITED STATES LAND PORT OF ENTRY, WARROAD, MINNESOTA

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Fair Annual Rent (FAR) Appraisal Program
Abe Saiidifar, MAI
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

15. 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

16. Disposal Appraisal Program
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

17. 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:
REGISTER ON SAM.GOV

18. 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.

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