1. LEASE CONSTRUCTION ACQUISITION PROCESS Brian Whelan Laura Strohbach

2. FEDERAL VS. LEASE SIMILARITIES Notice at fedbizopps.gov Notice at fedbizopps.gov Required if >=10,000 square feet Required if >=10,000 square feet Variety of procurement approaches Variety of procurement approaches Option to use 2 Phase Design- Build Option to use 2 Phase Design- Build Davis Bacon wage rates Davis Bacon wage rates Small Business Subcontracting Plans if >=$550,000 contract value Small Business Subcontracting Plans if >=$550,000 contract value

3. FEDERAL VS. LEASE SIMILARITIES Notice at fedbizopps.gov Notice at fedbizopps.gov LEED-NC LEED-NC Minimum Silver Minimum Silver Central Contractor Registration (CCR) Central Contractor Registration (CCR) Performance Measures Performance Measures

4. FEDERAL VS. LEASE MAJOR DIFFERENCES Use SFO, not RFP Use SFO, not RFP Do not post SFO at FBO Do not post SFO at FBO Do not use FedTeds Do not use FedTeds One Design-Build project One Design-Build project Offeror assembles team Offeror assembles team Brooks Act provisions do not apply Brooks Act provisions do not apply P100 does not apply P100 does not apply

5. FEDERAL VS. LEASE MAJOR DIFFERENCES Lease Cost Relative to Market measure Lease Cost Relative to Market measure Contractor Performance System is not used….yet. Contractor Performance System is not used….yet. Online Representations and Certifications Application is not used…yet. Online Representations and Certifications Application is not used…yet.

6. FEDERAL VS. LEASE MAJOR DIFFERENCES Generally leases have shorter overall schedules Generally leases have shorter overall schedules Scoring treatment is different Scoring treatment is different Most contract risk is with lessor Most contract risk is with lessor Materials Materials Financing Financing Performance Performance

7. PROCUREMENT TYPES Lowest price, technically acceptable Lowest price, technically acceptable Meet minimum SFO requirements to be technically acceptable, OR Meet minimum SFO requirements to be technically acceptable, OR Go-No Go Factors Go-No Go Factors Best Value Trade-offs Best Value Trade-offs One Phase One Phase Two Phase Design-Build per FAR 36.3 Two Phase Design-Build per FAR 36.3

8. TWO PHASE DESIGN BUILD Phase I factors must evaluate: Phase I factors must evaluate: Experience Experience Past Performance Past Performance Other Technical Factors Other Technical Factors Design Philosophy and Approach Design Philosophy and Approach Site Plan perhaps Site Plan perhaps Phase II factors are tailored to customer and market, e.g.: Phase II factors are tailored to customer and market, e.g.: Design considerations Design considerations Security Security Environmental Considerations Environmental Considerations Price Price

9. 2 PHASE SSEB EVALUATIONS 2 PHASE SSEB EVALUATIONS Experience: Experience: Be specific—what types of similar projects are defined in SFO? Be specific—what types of similar projects are defined in SFO? More than standard resume More than standard resume SFO Paragraph to prevent “bait and switch” SFO Paragraph to prevent “bait and switch” Do not make evaluators wade through unwanted and unneeded information Do not make evaluators wade through unwanted and unneeded information

10. 2 PHASE SSEB EVALUATIONS Past Performance: Past Performance: Demonstrated by reviews provided by references Demonstrated by reviews provided by references Your responsibility to ensure references for cited project can be contacted Your responsibility to ensure references for cited project can be contacted SFO states how references will be obtained: SFO states how references will be obtained: Phone calls Phone calls Email Email Online questionnaire (for future) Online questionnaire (for future)

11. 2 PHASE SSEB EVALUATIONS Technical Factors Technical Factors SFO tells what to submit SFO tells what to submit Evaluate provided information against the factors BEFORE price is considered Evaluate provided information against the factors BEFORE price is considered <=5 most highly qualified offerors advance to Phase II <=5 most highly qualified offerors advance to Phase II Price Price Only evaluated in Phase II Only evaluated in Phase II

12. PERFORMANCE MEASURE Lease Cost Relative to Market (LCRM) reported to Congress Lease Cost Relative to Market (LCRM) reported to Congress Current goal is 9.0% below market Current goal is 9.0% below market Use SIOR and other published data to compare lease rates to market rates Use SIOR and other published data to compare lease rates to market rates No exemptions for new lease construction projects No exemptions for new lease construction projects

13. LCRM and PRICING POLICY Annual rent normally is sum of: Annual rent normally is sum of: Building Shell Building Shell Amortized Tenant Improvements Amortized Tenant Improvements Amortized Building Specific Security Amortized Building Specific Security Operating Costs Operating Costs Agencies get TI allowance locally adjusted for market Agencies get TI allowance locally adjusted for market Need offer breakout so we can bill agency accurately Need offer breakout so we can bill agency accurately

14. OFFEROR’S FEES Tenant Improvement Allowance includes all fees (PM, A/E, GC, etc.) Tenant Improvement Allowance includes all fees (PM, A/E, GC, etc.) New SFO paragraph and 1364 to evaluate these fees PRIOR to award New SFO paragraph and 1364 to evaluate these fees PRIOR to award Fees affect NPV results Fees affect NPV results

15. DESIGN EXCELLENCE Draft DE SFO developed in 2000 Draft DE SFO developed in 2000 Many regions use a form of it Many regions use a form of it National Office plans to finalize documents and new construction package for more consistency National Office plans to finalize documents and new construction package for more consistency In use for FBI Field Office program In use for FBI Field Office program

16. DESIGN EXCELLENCE and SUSTAINABILITY Evaluate offeror’s architect—the lead designer Evaluate offeror’s architect—the lead designer No bait and switch No bait and switch LEED-NC Silver LEED-NC Silver Performance Specs, generally Performance Specs, generally Looking for creativity and functionality Looking for creativity and functionality Leased so balance aesthetics with marketability Leased so balance aesthetics with marketability

17. DESIGN EXCELLENCE and SUSTAINABILITY Moving toward agency specific SFOs Moving toward agency specific SFOs FBI FBI Courts Courts CIS CIS Updating “green lease” clauses Updating “green lease” clauses Go by our booth to see more examples Go by our booth to see more examples

18. SITE SELECTION Preferred method--PBS obtains no cost assignable site option, Preferred method--PBS obtains no cost assignable site option,OR Developer options site and includes as part of offer Developer options site and includes as part of offer

19. Who funds NEPA studies? EAs and EISs in federal and lease projects are funded by agency EAs and EISs in federal and lease projects are funded by agency ESAs in owned projects funded by PBS ESAs in owned projects funded by PBS ESAs in lease projects funded by lessor ESAs in lease projects funded by lessor SFO language for region to fund and recoup cost from first month(s)’ rent SFO language for region to fund and recoup cost from first month(s)’ rent

20. Frequently Asked Questions I attended a pre-bid conference for a lease construction project. Can I get a copy of the sign-in list? Yes, the contracting officer may release this information.

21. Frequently Asked Questions I was notified that my offer will advance to Phase II of the procurement. May I get a list of the others who also advanced? No, this is procurement sensitive information and cannot be released prior to award of a lease.

22. Frequently Asked Questions I want to make an offer on an SFO that requires a LEED accredited professional as a team member. I have never done this before and do not want to now. Your offer will be rejected because it fails to meet a minimum SFO requirement.

23. Frequently Asked Questions I did not advance to Phase II. What kind of information can I get at a pre-award debriefing? At a minimum, (1) The agency’s evaluation of significant elements in the offeror’s proposal; (2) A summary of the rationale for eliminating the offeror from the competition; and (3) Reasonable responses to relevant questions about whether source selection procedures contained in the solicitation, applicable regulations, and other applicable authorities were followed in the process of eliminating the offeror from the competition.

24. Frequently Asked Questions Can I get my ranking during the pre-award debriefing? No, FAR 15.505(f) prevents us from disclosing pre-award: The number of offerors The number of offerors The identity of other offerors The identity of other offerors The content of other offerors’ proposals The content of other offerors’ proposals The ranking of other offerors The ranking of other offerors The evaluation of other offerors, or The evaluation of other offerors, or Other prohibited or exempt information, e.g. trade secrets, names of references, etc. Other prohibited or exempt information, e.g. trade secrets, names of references, etc.

25. Frequently Asked Questions But, can I find out who won? We must notify unsuccessful offerors within 3 days after the date of contract award, That notices includes (i) The number of offerors solicited; (ii) The number of proposals received; (iii) The name and address of each offeror receiving an award; (iv) For leasing, normally the total contract price need be furnished in the notice; and (v) In general terms, the reason(s) the offeror’s proposal was not accepted, unless the price information in paragraph (b)(1)(iv) of this section readily reveals the reason.

26. Frequently Asked Questions I made it to Phase II. What kind of feedback should I expect after my Phase II offer is evaluated? The contracting officer should discuss deficiencies, significant weaknesses, and adverse past performance information to which the offeror has not yet had an opportunity to respond. The contracting officer also is encouraged to discuss other aspects of the offeror’s proposal that could, in the opinion of the contracting officer, be altered or explained to enhance materially the proposal’s potential for award. However, the contracting officer is not required to discuss every area where the proposal could be improved. The scope and extent of discussions are a matter of contracting officer judgment.

27. Frequently Asked Questions Recently our short-listed team was told we could bring no more than 5 people to the oral presentation. We had to hope we had selected the right 5 people to attend vs. having the freedom to bring each of the key participants. Recently our short-listed team was told we could bring no more than 5 people to the oral presentation. We had to hope we had selected the right 5 people to attend vs. having the freedom to bring each of the key participants. A limit, if any, will vary by procurement. The limit is intended to help the Government evaluate how well you understand the requirements of the SFO and what a good representation would be. A limit, if any, will vary by procurement. The limit is intended to help the Government evaluate how well you understand the requirements of the SFO and what a good representation would be.

28. QUESTIONS? Laura.Strohbach@gsa.gov Real Estate Acquisition Division Real Estate Acquisition Division 202.208.0664 202.208.0664 Check out gsa.gov/leasing