1. Real Estate Services for Government 2013 DES Training Conference & Trade Show Presented by Seth Wallace October 30, 2013 1

2. 1. Role and responsibilities of RES 2. Funding and Mission 3. State-wide Strategies 4. Solicitation for New Space 5. Lease Renewal Process 6. Conclusion 2 Agenda

3. RES R ESPONSIBILITIES Provides real estate services to state agencies, boards, commissions and educational institutions Manages approximately 1,000 leases of state-owned and privately-leases space Portfolio consists of over 12 million square feet of office, warehouse, lab, classroom and other types of space Value is over $180 million in annual rent payments Political subdivisions and other public agencies may request assistance. 3

4. Funding is based on a fee-for-service model—hourly rate or commission based on size of project Focus is on: Housing customers in safe, efficient, cost effective space that meets their needs Minimizing risk for the State Encouraging energy efficiency Transactional management 4 Focus

5. Improve overall efficiency of portfolio Develop consistent lease transaction standards, policies and practices Provide more effective management of resources Explore aggressive portfolio management techniques Create space efficiencies in workplace design Provide tools and solutions to support “mobile government” 5 State-wide strategy

6. Initiate/Define: Solicitation Team Meeting  Review process, agree to roles and approve project schedule.  Review pre-design, and unique requirements.  Identify if additional subject matter experts are needed.  Review, finalize and post solicitation documents Develop and Distribute Request for Proposal  Pre-proposal conference (required for projects over 20,000 sf).  Administrative screening of proposals to ensure that basic requirements are met Site Visits / Technical Evaluations  Each eligible site visited and presentations heard  Documents and discusses pertinent details and observations.  Discussion regarding alignment of evaluations and requirements of proposals.  Documents essential differences in proposals. 6 Solicitation for New Space

7. Qualified proposers issued an invitation to negotiate  Final proposals, including incentives and inducements entered into Cost Calculator.  Proposals ranked from highest to lowest based on cost. Final Evaluation Meeting  Side-by-side comparison of cost proposal to evaluation criteria to determine ranking from best value to least value.  Applies Blocking & Stacking (if applicable).  Determines ranking of best value proposals and recommendation of Apparent Successful Proposal. Consistent with statute, OFM approval needed if highest ranking proposal is:  Over $1 million annually  Over 10 years in duration  New or planned construction 7 Solicitation for New Space

8. New process developed through blending the principles of Lean methodology with Six Sigma More effective approach to lease management 8 New Lease Renewal Process

9. 100% of leases will be renewed before lease expiration 100% of leases will be consistent with customer budget at market rates. 100% of customer survey receiving consistent, timely, quality service. 100% of customers satisfied with renewal process communication. 100% of customers contacted 24 months in advance of lease expiration to “initiate” renewal process. 9 New Lease Renewal Process Goals and Metrics

10. 10 Renewal Milestones

11. Seth Wallace Department of Enterprise Services Seth.wallace@des.wa.gov 360-407-9291 www.des.wa.gov Questions 11