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Real Estate Services for Government

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

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Real Estate Services for Government

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

  2. Agenda 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

  3. RES Responsibilities • 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.

  4. Focus • 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

  5. State-wide strategy • 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”

  6. Solicitation for New Space • 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.

  7. Solicitation for New Space • 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

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

  9. New Lease Renewal ProcessGoals and Metrics • 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.

  10. Renewal Milestones

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

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