Welcome Welcome Agenda 1. Opening Remarks 2. Overview of Leasing - - PowerPoint PPT Presentation

Welcome

FY 18 Major Leasing Program Industry Day

DEPARTMENT OF VETERANS AFFAIRS

• Feb. 8, 2018

Welcome

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Agenda

• 1. Opening Remarks
• 2. Overview of Leasing Program
• 3. Overview of the RLP
• 4. RLP Standards & Appendices
• 5. Leasing Q&A
• 6. Event Close & Next Steps
• 7. Backup Materials for Discussion

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Disclaimer

This is an industry day session to increase awareness and obtain feedback on VA’s Request for Lease Proposals; offerors should be aware that what is discussed today is a general

• verview of VA’s future state, for Major leases.

As with all procurements, offerors should become familiar with and abide by the language within each individual solicitation.

Opening Remarks & Overview of Leasing Program

Amanda Hendry Director, Lease Execution

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Opening Remarks

Improving Veteran access to healthcare and memorial benefits by providing excellent, comprehensive real estate solutions.

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Overview Leasing Program Summary

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5.8 Million 93

5.3 Million

$4.8 Billion

Total ABOA SF Total Contract Value Total Active Lease Projects

Project Managers Total Veterans Enrolled in Markets Where Projects Located*

*Calculation based on the number of enrollees residing within the VHA market where the in process lease is located. Enrollees are not counted for office, warehouse, or CMOP leases

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Resident Engineers

47 out of 96 Markets

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Overview - Objectives

In all of its leased facilities, VA’s goal is to provide modern, well-designed healthcare facilities that enable delivery of high-quality care and a great patient experience to our Veterans.

• Speed to Market
• Increased Competition
• Lowered Costs

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Overview- New Leases Authorized by Choice 2.0

Location Type Size (ABOA SF) Prospectus Annual Unserviced Rent Prospectus Lump Sum Boston, MA R&D 40,604 $ 2,041,000.00 $ 4,183,000.00 Portland, ME OPC 56,637 $ 2,107,000.00 $ 4,701,000.00 Rochester, NY OPC 31,064 $ 1,066,000.00 $ 2,579,000.00 Pittsburgh, PA OPC 53,466 $ 1,809,000.00 $ 4,438,000.00 Fredericksburg, VA OPC 378,461 $ 13,602,000.00 $ 31,413,000.00 Hampton Roads, VA OPC 155,169 $ 5,261,000.00 $ 12,880,000.00 Raleigh, NC OPC 185,271 $ 6,492,000.00 $ 15,378,000.00 Birmingham, AL MHC 59,744 $ 1,690,000.00 $ 4,959,000.00 Charleston, SC R&D 48,000 $ 2,330,000.00 $ 4,944,000.00 Pike County, GA OPC 49,175 $ 1,483,000.00 $ 4,082,000.00 Daytona Beach, FL OPC 106,826 $ 3,331,000.00 $ 8,867,000.00 Gainesville, FL OPC 70,849 $ 2,010,000.00 $ 5,881,000.00 Gainesville, FL MHC 39,932 $ 1,005,000.00 $ 3,315,000.00 Jacksonville, FL OPC 164,054 $ 5,006,000.00 $ 13,617,000.00 Location Type Size (ABOA SF) Prospectus Annual Unserviced Rent Prospectus Lump Sum Ocala, FL OPC 45,499 $ 1,249,000.00 $ 3,777,000.00 Tampa - Lakeland, FL OPC 92,681 $ 3,067,000.00 $ 7,693,000.00 Tampa, FL MHC 114,098 $ 3,916,000.00 $ 9,471,000.00 West Indianapolis, IN OPC 67,721 $ 2,255,000.00 $ 5,621,000.00 Ann Arbor, MI OPC 36,453 $ 1,221,000.00 $ 3,026,000.00 Terre Haute, IN OPC 36,827 $ 1,045,000.00 $ 3,057,000.00 Corpus Christi, TX OPC 58,254 $ 1,720,000.00 $ 4,836,000.00 Denver, CO CBO 184,718 $ 4,622,000.00 $ 10,160,000.00 Missoula, MT OPC 59,990 $ 1,962,000.00 $ 4,980,000.00 Northern Colorado, CO OPC 75,645 $ 2,625,000.00 $ 6,279,000.00 Santa Rosa, CA OPC 53,870 $ 2,450,000.00 $ 4,472,000.00 Oxnard, CA OPC 41,027 $ 1,868,000.00 $ 3,406,000.00 San Diego, CA R&D 27,923 $ 1,975,000.00 $ 2,877,000.00 Rapid City, SD OPC 62,916 $ 1,904,000.00 $ 5,223,000.00

Red text indicate projects slated for the pilot with GSA

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Overview- Choice Act 2.0 Leases Planned Schedule

Planned Schedule Requirements Package Advertisements Solicitation Release Award Post Award Construction Activation

All Choice Act 2.0 Leases (30K ABOA SF – 100k ABOA SF) Complete Complete Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q3/Q4 FY 2019 Q1 FY 2022

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Choice 2.0 Leases – Current Status (Central)

Lease Execution Region Lease City Lease State New, Replacement,

• r Succeeding

Project Start Date (Requirements Received) Planned or Actual Advertisement Issuance Planned or Actual Solicitation Release (2) Planned or Actual Award (quarter) Planned or Actual Design and Construction Completion (quarter) (3) Planned or Actual First Use (quarter)

Central Ann Arbor MI New Dec-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Boston MA New Dec-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Portland ME New Replacing Nov-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Rochester NY New Replacing Nov-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Terre Haute IN New Replacing Nov-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 West Indianapolis IN New Replacing Dec-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022

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Choice 2.0 Leases – Current Status (Eastern)

Lease Execution Region Lease City Lease State New, Replacement,

• r Succeeding

Project Start Date (Requirements Received) Planned or Actual Advertisement Issuance Planned or Actual Solicitation Release (2) Planned or Actual Award (quarter) Planned or Actual Design and Construction Completion (quarter) (3) Planned or Actual First Use (quarter) Eastern Gainesville FL New Replacing Sep-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Birmingham AL New Nov-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Charleston SC New Replacing Nov-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Daytona Beach FL New Replacing Sep-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q2 FY 2022 Q3 FY 2022 Fredericksburg VA New Replacing Nov-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q2 FY 2022 Q3 FY 2022 Gainesville FL New Sep-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Jacksonville FL New Replacing Sep-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q2 FY 2022 Q3 FY 2022 Ocala FL New Replacing Nov-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Pike County GA New Sep-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Raleigh NC New Replacing Nov-17 Dec-17 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q2 FY 2022 Q3 FY 2022

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Choice 2.0 Leases – Current Status (Western)

Lease Execution Region Lease City Lease State New, Replacement,

• r Succeeding

Project Start Date (Requirements Received) Planned or Actual Advertisement Issuance Planned or Actual Solicitation Release (2) Planned or Actual Award (quarter) Planned or Actual Design and Construction Completion (quarter) (3) Planned or Actual First Use (quarter)

Western Missoula MT New Replacing Oct-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Northern Colorado CO New Replacing Dec-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 Oxnard CA New Aug-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022 San Diego CA New Replacing Dec-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q2 FY 2021 Q3 FY 2021 Santa Rosa CA New Replacing Oct-17 Jan-18 Q3/Q4 FY 2018 Q3/Q4 FY 2019 Q4 FY 2021 Q1 FY 2022

Questions?

Overview of RLP

Matt Leddy, Deputy Director, Lease Acquisition, Lease Execution Eric Roberts, Team Lead, Central Leasing Team, Lease Execution

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VA RLP vs VA SFO

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New RLP- Key Considerations Part I

• NUSF is now ANSI/BOMA Office Area (ABOA) Square Feet. RSF

is ABOA Square Feet + Common Areas

• Parking – VA requirement + to local code
• Term – includes 15 year firm, 15-year firm term, with five 1-year
• ptions & 20 year firm
• Rent Structure – mix of shell, TI (FFP & allowance), Op Costs,

BSAC, & VA Agency Specific Requirements

• Start NEPA and NHPA early to maintain critical path

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Attachments and Appendices

DOCUMENT NAME Lease No. GS-XXP-LXXXXXXX (Form L100) Agency’s Requirements – Program of Requirements/Layout Security Requirements for ISC Facility Security Level II 3516 – Solicitation Provisions GSA Form 3517B, General Clauses/VA’s Modified Clauses Proposal to Lease Space (GSA Form 1364 & Attachment) GSA Form 1217, Lessor's Annual Cost Statement GSA Form 12000 for Prelease Fire Protection and Life Safety Evaluation for an Office Building (Part A or Part B) (See Section 3 for applicable requirements)

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Attachments and Appendices

DOCUMENT NAME DOL Wage Determination Past Performance Survey Form Reference Check Questionnaire Form Modified General Clauses Seismic Offer Forms (For Seismic Levels YELLOW and RED only) Certification of Building Energy Performance VA Handbook 6500

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Attachments and Appendices

Document Name Contractor Confidentiality Certificate Appendix A: Program or Design (PFD) Project Room Contents (PRC) Appendix B: Design Drawings Appendix C: Basis of Design Narrative and Agency Specific Requirements Appendix D: Healthcare Standards and Codes Appendix E: IT Requirements Appendix F: Environmental Management Plan Appendix G: Outfit, Installation and Turnover (OI&T)

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Attachments & Forms - No Longer in Use

A few of the forms no longer in use are:

• Form 3518/3518A
• Bid and Performance Bonds
• Certified Cost or Pricing Data
• SF3881 Vendorizing Form
• Funded Maintenance Account

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Offered Terms - Same

The lease term shall be up to 20 years, inclusive of all options. The Offeror must submit price proposals for each of the following scenarios:

• Alternative A) 15-year firm term;
• Alternative B) 15-year firm term, with five 1-year options; and
• Alternative C) 20-year term.
• Offerors is advised that it must submit pricing for all alternates

listed above in order to be considered responsive. An Offeror submitting different or fewer pricing alternates may be rejected as non-responsive by the Contracting Officer.

• CO to determine RLP time frame, proposals are typically due 30-45

days from date of issuance à This requires 3 separate 1364s & attachment to the 1364

Offered Rate = Annual Rent + Lump Sum

Lump Sum

TI BSAC ASR

Lump Sum

Annual Rental Rate Offered

OpEx Warm Lit Shell

Annualized Rent Offered

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ANSI BOMA Adoption

BOMA International has been the American National Standards Institute (ANSI) Secretariat for the Office Standard since 1915. The purpose of the BOMA area measurement standards are:

• To promote clear communications among all

participants in a real estate transaction;

• To provide consistent measurement of rentable

square footage;

• To allow accurate comparisons through a clearly

understood method of measurement.

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New RLP - Key Considerations Part II

• VA pre-design to validate requirements, confirm functional

adjacencies, complete block plan

• VA has changed its seismic requirements to align w/ GSA seismic

requirements – they are reduced in scope, but do exceed local code

• Design is based on the CBOC protoype and the PACT model of care
• ISC Facility Security level II
• Green Globes will be used as the Green Building Rating System
• Lease will supersede RLP upon lease execution

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Tenant Improvement (TI) Allowance

• The TI may be allocated several different

ways, which will be decided by the Contracting Team. The RLP provides direction in the form of hidden text à Paid Lump Sum Up Front à Amortized over the firm term of the annual rent à Combination à As turn-key Pricing

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RLP – Evaluation of Offers Best Value

• It’s the Government’s intent to make an

award based on initial offers

• Best value procurements are negotiated

procurements in which the Government reserves the right to select the most beneficial

• ffer to the Government by evaluating and

comparing factors in addition to cost or price

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RLP – Evaluation of Sites

• Offered sites and existing buildings will be evaluated

according to criteria for site characteristics as set forth in the RLP.

• VA is no longer including or excluding offered sites or

existing buildings during the market survey.

• VA will provide feedback to respondents so that they

can determine whether they believe a particular site

• r existing building is feasible for the proposed

project

• VA will no longer post a list of accepted sites on

FedBizOpps.gov.

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Adoption of ISC Facility Security Level II

This approach is a major departure from the practice of having a standard set of counter-measures for each

• facility. This new system requires customizing the

requirements for each facility. The ISC regards it as critical to recognize that the security decision process is an integral part of an overall facility management and real estate process and must be fully integrated to be the most effective.

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ISC FSL II – Key Requirements

• Facility entrances and lobby
• Electronic access control
• Securing critical areas
• Visitor access control
• Identity verification
• Key control program
• Site and building exterior
• Crime prevention through environmental design
• IDS, CCTV, access control, duress alarms.
• Shatter-resistant window protection

Questions?

Break

RLP Standards & Appendices

Mitch Ortiz, Deputy Director of Project Delivery, Lease Execution Jason Lambie, Senior Resident Engineer Team Lead, Lease Execution Mollie West, Planner, Facilities Planning Development Service

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Industry and Federal Standards

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Lease Planning and Design

Pre-Award

Project: SEPS, Floorplan, Room Templates Industry: Joint Commission, NFPA 99, FGI Federal: ISC, PG-18-14, ABA, Signage Guide ASR & Design Narrative

Post- Award

Local Codes, FGI, NFPA, etc. DDs and CDs

Main Participants: VAMC, A/E, CFM

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RLP/Lease Appendices

• A-Program for Design (PFD): SEPS, Room Contents List
• B-Design Drawings: Floorplans and Room Templates
• C-Design Narrative: Further define Project and Agency Specific

Requirements (ASRs), application of Healthcare Standards (e.g. FGI and NFPA 99), and address VA requirements.

• D-Healthcare Standards and Codes: TJC, FGI, NFPA 99, ABA,

PG-18-14, VA Signage Design Guide, Local Codes (NFPA 101 if no local code and for Ambulatory Occupancies per TJC).

• E-IT Requirements: Standards provided by the Office of Information

and Technology

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• A. Program for Design: SEPS,

Room Contents

Room types, SF, GSF, etc. Contents, JSN, VV/VC/CC, Qtys, etc.

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• B. Design Drawings –

Simplified Floor Plan

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• B. Design Drawings –

Detailed Room Templates (BIM)

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• C. Design Narrative
• Specify Agency Specific Requirements
• Specify how to apply certain referenced

standards (e.g. TJC, FGI, NFPA 99)

• ISC FSL II (Physical Security)

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• D. Healthcare Standards

and Codes

• The Joint Commission (TJC)
• The Facilities Guidelines Institute (FGI): Hospital

and Outpatient Facilities

• NFPA 99: Healthcare Code
• Architectural Barriers Act (ABA)
• PG-18-14: Room Finishes, Doors and Hardware
• VA Signage Design Guide
• Local Building Codes (NFPA 101 if no local code

and for Ambulatory Occupancies per TJC).

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• E. IT Requirements (15 pages)

Questions?

Leasing Q&A

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PLUS / DELTA

• 1. __________
• 2. __________
• 3. __________
• 1. __________
• 2. __________
• 3. __________

Event Close & Next Steps

Backup Materials

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ORP Leasing Program Magnitude, cont.

Leases by Size of Building (NUSF)

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Offered Annual Rent What is Base Building?

• Building shell is the complete enveloping structure, the base building

systems, and the finished common areas (building common and floor common) of a building that adjoin the tenant areas.

• Pricing Desk Guide Chapter 2