Leased Space 1 GSA Public Buildings Service - PowerPoint Presentation

Leased Space 1 GSA Public Buildings Service Leased Space

LEASE PROCESS & LEASE REFORM OVERVIEW R4 Leasing Division, 4PR 77 Forsyth Street, SWAtlanta, GA 30303404.562.2753 www.gsa.gov/leasingMay 2013

GSA Public Buildings Service Lease Process 3

GSA Public Buildings Service Requirements Development 4

Space Request r4spacerequest@gsa.govStandard Form 81 or other approved communicationAcknowledge upon receipt 5 GSA Public Buildings Service

GSA Point of Contact Assigned to Lease Contracting Officer (LCO)/Specialist (LCS) or Project Manager GSA Public Buildings Service 6

Confirming Requirements How much space do you need? ANSI/BOMA OFFICE AREA (ABOA)What type of space do you need?How long do you anticipate occupying the space? Is there anything special or unique about your space needs?Are there any preferences we should consider? Where do you need the space?When do you need the space? GSA Public Buildings Service 7

Consider FMR Chapter 102 CICA 1984 Rural Development Act of 1972 Congressional Districts Executive Order 13006 Special Requirements Executive Order 12072 Executive Order 11988 GSA Considers 8 GSA Public Buildings Service

DOs DONTsGSA Public Buildings Service Understanding Delineated Area 9

Acquisition Strategy 10 GSA Public Buildings Service

Determine Lease Model GSA Public Buildings Service 11

Types of Lease Models telephone12 GSA Public Buildings Service Lease Model RentParametersSimplified≤ $150k Net Avg. Annual Rent Smaller Leases; Security Level I & II Succeeding/ Superseding All Levels Stay-In-Place Leases Streamlined ≤ $500k Net Annual Rent Small to Mid-Size Leases; Security Level I-III; 3 TI approaches Standard All Levels Applicable to all security & rent levels and leases not accommodated by other models. On Airport All Levels Agencies located at the airport

Agency Commitment Commitment to: The Lease Model Funding required Incorporate schedule (15 milestones) Include the draft Occupancy Agreement (OA) 13 GSA Public Buildings Service

14 GSA Public Buildings ServicePre-Solicitation

Advertising If Requirement > 10k ABOA Square FeetLCO must advertise via FedBizOppzIf Requirement < 10k ABOA Square FeetLCO must seek competition 15 GSA Public Buildings Service

Market Survey Who Should Come?GSA LCO/LCSAgency Rep with Signatory AuthorityGSA Broker (if applicable) 16GSA Public Buildings Service

Is the owner willing to modify the building to meet the requirements? If not, is the building capable of meeting those requirements? Does the building meet the agency’s mission requirements? Does the building meet the RLP requirements? Owner Building Mission and RLP Requirements Assessment Assessment 17 GSA Public Buildings Service

Decision to Solicit telephone18 GSA Public Buildings Service Make sure to put the reasons!!

19 GSA Public Buildings ServiceSolicitation

Request for Lease Proposal (RLP) & Lease 20GSA Public Buildings Service Solicitation specifics Not part of contract and drops out after award RLP The Contract Lease

Agency Specific Requirements (ASR)/Special Requirements Requirements unique to the procurement that are not captured in the RLP or Lease templatesExamples: computer room specifications, room schedules, specialty itemsLCO/S may have to edit the package supplied by the agency 21 GSA Public Buildings Service 21

Agency Concurrence Send draft to agency for review Make any necessary changes; assemble final version 22 GSA Public Buildings Service 22

Issuing an RLP Package Minimum response time is 20 calendar daysSend copy, with cover letter, to:All Offerors found capable of meeting requirementsAny party requesting a copyTenant agency (facilities) GSA Property ManagerFederal Protective Service23 GSA Public Buildings Service 23

24 GSA Public Buildings ServiceEvaluation of Offerors

LCO/S Goals Maintain good relationshipsStay on scheduleFind objective criteriaStay within your defined price rangeVerify technical complianceMake fair and reasonable determination 25 GSA Public Buildings Service 25

Technical ReviewFire Protection of Life Safety (FPLS) Scaling of Offered SpaceSeismic SafetyEnergy StarFederal Protective Service (FPS) 26GSA Public Buildings Service

Evaluation of Proposals Lowest cost=lowest PV Technically acceptable = satisfies RLP requirements Lowest cost technically acceptable May not be lowest offer Non-monetary award factors considered (e.g. design, experience, past performance, location) Tradeoff 27 GSA Public Buildings Service

Final Proposal Revision (FPR) FPR: last opportunity for Offeror to revise proposal prior to awardPost-FPR: no negotiations allowed; clarifications onlyPrior to the call for FPR, the LS should have at least one responsive proposal in hand 28 GSA Public Buildings Service 28

29 GSA Public Buildings ServiceEvaluation of Offerors

Recommending the Space Issue space recommendationAgency acceptanceBuilding informationFloor plan 30 Revise OA to reflect negotiated lease terms Agency must sign OA prior to lease award GSA Public Buildings Service 30

Assembling Lease 31 Lease Contract Agency’s Special Requirements (ASR) Interagency Security Criteria Specifications Lease Amendments GSA Form 3517 (General Clauses) GSA Form 3518 (Reps and Certs ) Floor plans GSA Public Buildings Service 31

Awarding the Lease Only an LCO can award a leaseLease awarded after executed by GSA & LessorProvide copy to agency 32 GSA Public Buildings Service 32

GSA Public Buildings Service Evaluation of Offerors 33

Preparing Design Intent Drawings (DIDs)? Through DID workshop or offline Lessor In-house interior designer or contract services Reimbursable cost/verify funding GSA In-house interior designer Tenant Agency 34 GSA Public Buildings Service

Simplified Model: Post-Award Per OA ad hoc clause, agency committed to “assist with development of DIDs”Lessor obligated to complete DIDs within 10 working days of awardThree versions maximumReview of Construction Drawings (CD) not required 35 GSA Public Buildings Service 35

Succeeding/Superseding: Requirements Development Client agency is satisfied with spaceMinimal alterations requiredCarpet/paint refreshScope of Work required for other improvements 36 GSA Public Buildings Service 36

Streamlined/Standard Model Features Three Tenant Improvement (TI) optionsTurnkey Pricing with Design SchematicTI AllowanceTurnkey Pricing with Pre-Award DIDs 37 GSA Public Buildings Service 37

On-Airport Model: TIs GSA contracts for build-out in most situationsLump sum funding required when airport authority cannot fund TIAirport authority may do build-out if they can provide TI funding 38 GSA Public Buildings Service 38

CD Review Process Initial construction drawings GSA and tenant agency review Final construction drawings 39 GSA Public Buildings Service 39

TI Competitive Process Lessor must demonstrate best efforts to obtain most competitive priceMinimum of two qualified contractor proposalsProposal shall be submitted in the Tenant Improvement Cost Summary (TICS) TableBids must reflect terms of lease and approved design Bids must separate shell from TI items 40 GSA Public Buildings Service 40

Negotiating the TI TI process is a negotiation LCO/S reviews line itemsShell vs TI Ensure proper documentationLease Amendment(s)OA 41 GSA Public Buildings Service 41

Granting Notice To Proceed (NTP) Only LCO can grant NTP when:Fair and reasonable determination made Lessor’s cost proposal is accepted (based on lowest bid and qualified contractor)Funds are availableMust state price agreed uponDo not state “not to exceed” 42 GSA Public Buildings Service 42

Build-out Construction kickoff and coordinationProgress inspection processChange order processFinal acceptance inspection process Project close-out43 GSA Public Buildings Service 43

44 GSA Public Buildings Service Lease Process

TurnKey Opportunity (TKO) Project close-out MeetingAgency RepresentativesGSA Representatives (LCO/S, Building Manager)FPS Lessor & Building ManagerDiscuss Roles and Responsibilities 45 GSA Public Buildings Service 45

Lease Design Process and Project Schedules Client Solutions Division 77 Forsyth Street, SWSuite 110 Atlanta, GA 30303404.331.3584www.gsa.gov May 6, 2013

47 GSA Public Buildings Service Design Process

48 GSA Public Buildings Service Design Process Components Design Intent DocumentsEstablishes your Agency’s layout and basic requirementsAgency approval required Construction DocumentsReflection of the Design Intent DocumentsAgency Review for compliance with Design Intent Documents.

49 GSA Public Buildings Service Design Intent Documents Dimensioned Office Layout in the defined space (walls, doors and other features)Locations of Electrical, Data, Telephone outletsSpecial Requirements Defined : HVAC, Lighting, millwork, plumbing, systems furniture, etc FinishesElectrical and HVAC Load information

50 GSA Public Buildings Service Design Intent Document Three MethodsGovernment Furnished Lessor FurnishedDesign Intent Workshop

51 GSA Public Buildings Service Design Intent Document Methods Government Furnished Prepared by the AgencyAgency Cost Set Time Frame No collaboration with Design ArchitectNo independent Review

52 GSA Public Buildings Service Design Intent Document Methods Lessor FurnishedPrepared by the Lessor’s ArchitectNo Cost to Agency Code complianceLimited Collaboration (2 meetings)Drawings reviewed independently Only one Revision without additional costLessor Provided Budget Estimate

53 GSA Public Buildings Service Design Intent Document Methods Design Intent WorkshopRequires Agency PreparationVery collaborative Shorter Duration (Day vs. Weeks)Immediate revisions and feedbackMay require TravelApprovals Expected at end of Workshop

54 GSA Public Buildings Service Construction Drawing Fully detailed drawingsSpecifications for all the materials to be used.Equipment sized based on requirements in the DIDs Used to get permits

55 GSA Public Buildings Service Construction Drawings Development Based on Approved DIDsPrepared by the Lessor’s Architect and EngineerReviewed by the Government Compliance with Design Intent documentCompliance with Lease RequirementsUsed for Tenant Improvement Pricing

56 GSA Public Buildings Service Project Schedule Overview

57 GSA Public Buildings Service Project Schedule Overview Lease Expiration date is the controlling dateNotification LettersSolicitation OccupancyProject Schedule ObjectiveComplete your new project prior to current lease expiration

58 GSA Public Buildings Service Project Schedule Overview Key Activities Notification Letters Requirements and Delineated AreaLease AcquisitionDesign ConstructionRelocation

59 GSA Public Buildings Service Notification LettersLetters Customer Account Response Tracking System Notifications at the 24, 22, 20 months from Lease expiration Final Notification at the 18 months from Lease expiration Why so far in advance of the lease expiration?

60 GSA Public Buildings Service Requirements Planning Schedule (45 Days)Delineated Area Square Footage and Employee CountAgency Special RequirementsAmount of space by TypeRequirements for each Type of spaceMechanicalElectrical Architectural Customer Involvement

61 GSA Public Buildings Service Lease Acquisition Planning Schedule (165 Days)Market Survey RLP Preparation Proposal Preparation time Proposal Evaluation NegotiationsAward Customer Involvement

62 GSA Public Buildings Service DesignPlanning Schedule ( 135 Days)Design Intent Documents (DID)Construction Drawings Proposals and EvaluationNegotiations Customer Involvement

63 GSA Public Buildings Service Construction and Relocation Schedule for Construction (180 Days)Durations Vary widelyChange Orders impact the Schedule Schedule for Relocation (15 Days)Furniture and EquipmentCablingPhonesPhysical Moves Customer Involvement

64 GSA Public Buildings Service Your Role in Meeting the Schedule Provide your requirements 18 months from your current lease expirationProvide timely review comments to all documents.Minimize changes during construction Timely Acquisition of furniture, phones and cabling

65 GSA Public Buildings Service What can I do to shorten the delivery time? Provide Agency Specific Requirements early in the processLabor Relations ActivitiesFocused Scheduling (Right People Right Time) Expedited ReviewsDesign Intent WorkshopsLimiting changes during construction

66 GSA Public Buildings Service Contact Information Brian Whelan 404-331-1652Brian.whelan@gsa.gov

Information Briefing Automated Advanced Acquisition Program(AAAP) Client Solutions Division 77 Forsyth Street, SWSuite 110 Atlanta, GA 30303404.331.3584www.gsa.gov May 1, 2013

68 AgendaPurposeBackgroundIssuesConclusion QuestionsGSA Public Buildings Service

69 PurposeProvide Overview of the AAAPValue of AAAP to the Leasing Program Vision for the Future of the AAAPCurrent Status of AAAP InitiativesR4 Pilot GSA Public Buildings Service

70 BackgroundNCRStarted as the Advanced Acquisition Program (AAP) in 1991 AAAP Developed in 2005System upgrade to Salesforce in FY20121st PBS Business Application in Salesforce GSA Public Buildings Service

NCR AAAP Transactions 71*FY2012 - The AAAP online system was shutdown and upgraded to meet new security standards and the Salesforce.com platform. FY Lease AwardsABOA% of NCR Lease Awards 2009 38 857,646 58% 2010 28 788,461 33% 2011 34 981,697 40% 2012* 7 112,036 14% AAAP has awarded at least 1/3 of the lease transactions for NCR. These numbers demonstrate the high volume of deals that can be done through the AAAP. Table: Text Equivalent Table For 'Percentage of NBC (in-house) vs. AAAP Transactions' Chart: Percentage of NBC (in-house) vs. AAAP Transactions GSA Public Buildings Service

How AAAP Works Advertisement issued every month in FedBizOppsGovernment posts Request for Lease Proposals (RLP) on Salesforce Open Period - 1st through 7th of every monthLessors Create their Offers in the Salesforce ApplicationDuring the Open Period - Lessors Submit / Change / Update Offers Offers Carry Forward Month-to-Month72 GSA Public Buildings Service

Traditional vs. AAAP Procurement Traditional AAAPAdvertisement Final Proposal Revision RLP Development Lease AwardOffer SubmissionFinal Proposal RevisionLease Award 73 Traditional AAAP Advertisement 2-4 weeks 0 RLP Development 6-8 weeks 0 Offer Submission 4-6 weeks 0 Total Time Saved Approx. 12 – 18 weeks GSA Public Buildings Service

74 IssuesMarketing in each City Lessor database is critical to ensuring competitionRegional Client Agency Buy-inLowest Cost Technically AcceptableTime Savings Overcoming Fear of the Unknown GSA Public Buildings Service

Vision New Tool for Leasing SpecialistsReduce cycle timeHigher Customer Satisfaction Address smaller/ less complex lease requirements efficiently Spend less time on smaller requirementsSave money through lowest cost technically acceptable lease awardsImplement in R4 this yearProjected: 3 lease awards in FY13, 10 in FY14 75 GSA Public Buildings Service

AAAP Salesforce Application building information76 GSA Public Buildings Service

Money/Billing 77 GSA Public Buildings Service Money/ Billing

Erin Armstrong, Portfolio Management Division GSA PBS Space Pricing & Updates 77 Forsyth Street, SW Suite 130Atlanta, GA 30303404.562.1954www.gsa.gov May 1, 2013

79 GSA Public Buildings Service Today’s Conversation Topics How Rent Is PricedOwned LeasedOA Versions & Signature Requirements Definition Of “Shell”Definition Of “TI”Tenants’ Right To Release Space

How Rent Is PricedOwned Space Appraisal with applicable charges addedReturn On Investment (ROI)Leased SpacePassthrough of the underlying lease contract rent, any operating charges not included in the lease contract rent but paid by PBS, PBS lease fee, any security charges 80 GSA Public Buildings Service PDG Section 1.2, 6.1

The Occupancy AgreementComplete, concise statement of the business terms governing the relationship between PBS and the tenant agency for a specific space assignmentBilling document on which subsequent rent payments are madeBudgeting tool for customer agencyEvery occupancy must have its own OA 81 GSA Public Buildings Service PDG Section 2.1, 3.1

The 4 Parts Of Every OADescription of Space and Services Clauses (Terms and Conditions)Signature PageFinancial Summary 82 GSA Public Buildings Service PDG Section 2.1, 3.1

OA Iterations Requiring SignatureTenant agency expands or reduces space at existing location Services are added or deletedPBS or lessor agrees to fund additional TIs, which are then amortized over the remaining OA term or an extended OA termPBS or the tenant agency wishes to revise the OA terms (must mutually agree). 83 GSA Public Buildings Service PDG Section 2.1.5, 3.1.5

Administrative OA Iterations Not Requiring Signature – Cover Letter Joint use amenities added to or removed from the buildingCapital expenditures for new or enhanced security fixtures or features approved by the Facility Security Committee (FSC) added to the building housing the leaseLease extensions, if the extension is advancing only the lease expiration date and there are no changes in rent or square footage Parking spaces added to or removed from an assignmentAntennas added to or removed from an assignment 84 GSA Public Buildings Service PDG Section 2.1.5, 3.1.5

Annual OA Updates – No Signature, No Transmittal Operating costs Real estate taxesParking AntennasBuilding-specific amortized capital (BSAC) security, if applicable Joint use85 GSA Public Buildings Service PDG Section 2.1.5, 3.1.5

86 PBS Building Shell The complete enveloping structure, the base building systems, and the finished common areas of a building that adjoin the tenant areas. Detailed in PDG. PDG Sections 2.4.1, 3.5.1 GSA Public Buildings Service

PBS Building Shell Base Building Includes:Base structure and building enclosureBase building electrical & mechanical systems Common areasTenant Areas Includes:Wall board on exterior perimeter & interior core walls Common corridor stud walls without gypsum boardSuspended acoustical tile ceiling with parabolic fluorescent lighting (open office layout) Concrete floor87 GSA Public Buildings Service

88 Building Shell in Tenant Area Suspended ceiling with fluorescent light fixtures Primed gypsum wall board on exterior perimeter walls & core elements Electrical service to floor for general office space HVAC distribution for general office space Level Concrete Floor GSA Public Buildings Service

89 Building Shell PBS uses the shell definition for consistencyBuilding standards and design guides are not part of the building shell merely because they are called “standards” Tenant agency driven upgrades to building shell are separately priced and considered TIs The shell and TI distinction is an impermeable barrier or "firewall" across which funding cannot shiftPDG Sections 2.4.1, 3.5.1 GSA Public Buildings Service

90 Shell Rent – Leased Space Pass-through of the underlying PBS lease contract shell rent Lessors use shell definition in SFO or RLP to develop their shell rental rate PBS policy is to include cyclic painting and carpet replacement in leases as a shell costDesign Intent Drawings (DIDs) included in shell unless Contracting Officer specifies Government will provided DIDs. PDG Section 2.4.1 GSA Public Buildings Service

91 Tenant Improvements The finishes and fixtures tenant agency elects that typically take space from the shell condition to a finished, usable condition; compliant with all applicable building codes and standards The existence of building standards does not mean they are part of shell – they are still TIs (e.g. suite entry door specification, restricted color palettes) PDG Sections 2.5.1, 3.6.1 GSA Public Buildings Service

92 Typical Tenant Improvements Electrical wiring, outlets, and horizontal conduit, including cable trays and hooks, within the tenant agency’s demised premises and to the building core. Carpeting or other floor covering; raised access flooringPlumbing fixtures within the demised premises and all lines connecting to the building core–except for common bathrooms Partitioning and wall finishesDoors (including suite entry), sidelights, frames, and hardwareMillworkThermostats Window treatments PDG Sections 2.5.2, 3.6.2 GSA Public Buildings Service

93 Application of TI Allowances Tenant agency elects how its space is to be finishedRent payment is lower if an amount less than the allowance limit is used If the full allowance is not used for initial buildout, it is no longer availableCan only be used to pay for items that are real property, or which become real property when attached or affixed to the building PDG Sections 2.5.9, 3.6.9 GSA Public Buildings Service

94 TI Cannot Fund Personal Property Examples Include:Furniture MicrowavesRefrigeratorsArtwork Personal computersAudiovisual equipmentTelevisions for conference roomsPhone handsetsPhysical relocation expenses of personal property PDG Sections 2.5.9, 3.6.9 GSA Public Buildings Service

95 Application of TI Allowance Initial occupancies (including expansions)New space, new tenant Tenant agency provided the full TI allowance Tenant agency cannot buy down the general allowance in first generation space through use of an RWA Backfill occupancies2nd generation space, new tenantThe full TI allowance may be provided to tenant agency, subject to availability of funds PDG Sections 2.5.3, 3.6.3 GSA Public Buildings Service

96 Application of TI Allowance Midoccupancy / post initial occupancy TIs typically funded by the tenant agencyNo obligation to provide TI allowance, but may be provided to tenant agency subject to availability of funds Continuing occupanciesLeased Space Tenant agency provided the full TI allowance PDG Sections 2.5.3, 3.6.3 GSA Public Buildings Service

97 Tenant Agency Rights - Cancellation Prior to Contract ExecutionNo fault cancellation After Contract Execution, Prior to Occupancy Agency is liable for the lesser of these two costsIn the case of a lease, the lease buyout costs, or16 month rental obligation had it occupied the space, plus the unamortized balance of the TIs PDG Section 5.1 GSA Public Buildings Service

98 Agency Rights - Return of Space After the first 12 months of the OA term, tenant has right to release space to PBS with 4 months’ notice provided the following conditions are met:There is no longer a need for the space The space is in marketable blocksThe space is not designated as non-cancelableApplies to Continuing Occupancies PDG Section 5.3 GSA Public Buildings Service

Marketable Space? 99 GSA Public Buildings Service Location: Space not accessible from common corridor Size: USF is contiguous, but must consider accessibility

100 Noncancelable Space Remote or not easily accessible locationSpecial purpose use or buildout necessitating significant capital outlays to retrofit the space to a more conventional use Unusual term Lack of any realistic federal need for the space, other than the requesting tenant agencyAny other factors that would significantly impair PBS’ ability to backfill the space PDG Sections 2.15.2, 5.2 GSA Public Buildings Service

101 Tenant Agency Rights Tenant agency is entitled to a reduction in the PBS fee from 7% to 5% for leased assignments designated as non-cancelable Tenant agencies may not volunteer to designate their space as non-cancelable as PBS solely makes that determination; will be reflected in the first pro forma OAOnce space has been designated (or not designated) as non-cancelable, it may not be changed during the OA term PDG Section 5.2 GSA Public Buildings Service

102 PBS Lease Fee Leases charged a fixed, non-divisible 7% PBS Fee 7% Fee applies to all lease actions with two exceptions:5% fee for non-cancelable space 4% fee for USPS controlled space PBS Fee coversContract risk Lease acquisition services Lease administration PDG Sections 2.15, 3.16 GSA Public Buildings Service

Contact Information Erin Armstrong(404) 562-1954erin.armstrong@gsa.gov 103 GSA Public Buildings Service

B&FMD – RWA Management Client Solutions Division 77 Forsyth Street, SWSuite 110Atlanta, GA 30303 404.331.3584www.gsa.gov May 1, 2013

105 GSA Public Buildings Service B&FMD – RWA Management Maletha Singleton, Branch Chief (Acting Director)Sharon Back, READ Financial Analyst Shelia Watson, D&C Financial Analyst(Acting Branch Chief)

B&FMD – RWA Management Program Analysts Scott Foute Florida, AlabamaRandall Hayes Georgia, MississippiAngela Bradshaw North Carolina, South Carolina, Kentucky, and Tennessee 106 GSA Public Buildings Service

RWA Management Branch What Is An RWA? Formal agreement between GSA and customer agency whereby PBS agrees to provide materials and services and the customer agency agrees to reimburse GSA costs. It identifies the bona fide need and financial agreements. When Is An RWA Used?For alterations to an existing spaceFor tenant improvement costsFor above standard services ( i.e. overtime utilities) 107 GSA Public Buildings Service

RWA Management Branch GSA RWA Form 2957 RequirementsAgency’s Fund Certifying Official’s Signature and DateAgency Fund Certifying Official is knowledgeable about funding authorityGSA’s Approving Official’s Signature and DateCertified amount to match the cost estimate RETA allows users to create, generate, and retain an electronic copies of all documentshttps://extportal.pbs.gsa.gov/portal/page?_pageid=36,1&_dad=portal&_schema=PORTAL 108 GSA Public Buildings Service

RWA Management BranchRequired Supporting Documentation A well developed Scope of work A Reasonable Cost Estimate matching the amount of the RWAA Bona fide need that is established by customer109 GSA Public Buildings Service

RWA Management BranchRWA Amendments Are routinely accepted from agenciesAre used to increase or decrease the RWA amountChanges in the Scope must meet three requirements:The Funds are legally available for new purposeThe Bona fide need exists The Appropriation has not lapsed for obligational authority 110 GSA Public Buildings Service

RWA Management BranchRegion 4 RWA Mailbox R04.RWA.TEAM@GSA.GOVZero and not the letter OCentralization of RWA transmittals Primary point of contact for RWA information 111 GSA Public Buildings Service

RWA Management Branch RWA Fee StructureProject Management (4%)Covers:PBS Associates’ (or contact employees hired by PBS) for oversight of Tenant Improvement work Applies to Space Programming, Design, and Construction CostsRecaptures business line (regional and field office) overheadFee does not apply to:Personal property costs such as Furniture, Equipment, and Supplies PBS Labor Costs billed directly to the RWA 112 GSA Public Buildings Service

RWA Management BranchGSA’s Sliding Scale Recoups indirect general and administrative overheadThe overhead fee is based on actual expensesThe sliding scale is capped at $30,000 RWA cumulative dollar amount 113 GSA Public Buildings Service

RWA Management Branch Laws Governing RWAs31 U.S.C 1501(a): Purpose of AppropriationAgencies have authority to spend funding for certain purposes and must have documentary evidence to support this.31 U.S.C 1502: Bona Fide Need Funds are available only for expenses properly incurred during period of availability.31 U.S.C 1341: Anti-deficiency ActOfficials may not authorize expenditures exceeding amount available in a fund for the obligation. 31 U.S.C 1552: Period of Availability On Sept. 30 of 5th fiscal year after period of availability, account shall be closed and any remaining balances will be canceled. 114 GSA Public Buildings Service

RWA Management Branch Example: Single-year Appropriation One-year or annual appropriation: An appropriation that is available for obligation only during a specific fiscal year. This is the most common type of appropriation. It is also known as a “fiscal year” or “annual” appropriation. (RETA FAQs #37)* Customer appropriations are to be executed within the life of the appropriation (in this instance 1 year) for obligation & five years for expensing, at which time the appropriation is cancelled. (RWA National Policy Document Sec 3.2.2) 115 GSA Public Buildings Service

RWA Management Branch 116 GSA Public Buildings Service GSA Accepts RWA 1/15/2013 Period Of Funding Appropriation Availability FY2013 Appropriation Year As of 9/30/2013 period of funding appropriation expires for new obligations FY2019 Year 6 As of 9/30/2018 Appropriation is cancelled by Congress Year 1 Year 2 Year 3 Year 4 Year 5 FY2014 FY2015 FY2016 FY2017 FY2018 Period Of Contract Performance (Liquidation Period )

RWA Management BranchExpiring Customer Funds Customer funds expire Sept 30 of the final year they are available for expenseLast billing cycle of the fiscal year is Sept 25 All receiving reports must process by Sept 15 to ensure billing to our customer prior to expiration of their funds What happens if we miss this date and bill late? 117 GSA Public Buildings Service

RWA Management BranchRWA Billing What triggers a Bill?Inspection or Receiving Report4% Project Management Fee automatically applied on top of “eligible” expenses Overhead automatically applied to all expensesBilling Term is identified on GSA Form 2957Block 9B 118 GSA Public Buildings Service

RWA Management BranchRWA Time Line Year-end Internal ControlsRWA end of fiscal year acceptance “cut-off” date is established by GSA’s Office of Chief Acquisition Officer via an annual acquisition letterRWAs submitted after the acceptance “cut-off” date risk automatic rejection by GSA 119 GSA Public Buildings Service

RWA Management BranchRWA Closeout RWAs should be closed when work is complete -Substantial/Physical CompletionContractual Completion: Contract closedRWA Team has 30 days from this date to close RWA in RETA Financial Completion: All costs have been billed and all invoices have been paid. RWA Close-out notice submitted to agency; agency may de-obligate remaining funds 120 GSA Public Buildings Service

RWA Management BranchCloseout RWA CancellationsCustomer Agency may cancel an RWA anytime before charges are incurred by PBS against an RWA Customer must submit an Amendment to cancel the RWA If GSA has incurred costs, GSA will bill the Customer Any remaining funds may be de-obligated by the customer 121 GSA Public Buildings Service