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LEASE CONSTRUCTION

LEASE CONSTRUCTION. ACQUISITION PROCESS Brian Whelan Laura Strohbach . FEDERAL VS. LEASE SIMILARITIES. Notice at fedbizopps.gov Required if >= 10,000 square feet Variety of procurement approaches Option to use 2 Phase Design-Build Davis Bacon wage rates

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LEASE CONSTRUCTION

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  1. LEASE CONSTRUCTION ACQUISITION PROCESS Brian Whelan Laura Strohbach

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  18. SITE SELECTION • Preferred method--PBS obtains no cost assignable site option, OR • 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 • ESAs in owned projects funded by PBS • ESAs in lease projects funded by lessor • 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 priorto 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 aminimum 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 processof 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 identity of other offerors • The content of other offerors’ proposals • The ranking of other offerors • The evaluation of other offerors, or • 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. 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 • 202.208.0664 Check out gsa.gov/leasing

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