WelcomeProposed Architect/Engineer IDIQ Contract for VA Leasing

DEPARTMENTOFVETERANSAFFAIRS

July17,2017

WelcometoVA

IndustryDayConference

2

-WelcomeandOpeningRemarks-LeasingProgram-ProgramRequirementsBREAK-ContracMngandTimelines-KingdomwareImpact-QuesMonandAnswerPeriod-BreakforLunch-RoundtableSessions

Agenda

OpeningRemarks

VA’sLeasingProgram

•  ORPistheofficewithinCFMthathandlescomplexrealestateprojectsandissuesforourclientsatVHA,NCA,VBA,andstaffoffices.

•  ORPisdividedintoregionalteamsofProjectManagers,plusaPolicyandProgramsgroup,OperaMonsSupportgroupandaStrategicUMlizaMongroup.

•  ProjectManagershandlerealpropertyprojectsintheirrespecMveregionsandactaspointsofcontactforVAofficialswithrealpropertyquesMonsorissues.EachregionalteamisledbyaDirector.

•  ThePolicyandProgramsServiceimplementspoliciesandproceduresforVA’srealpropertyprogramsnaMonwide,undertakesQualityAssuranceandcompliancereviews,andtrainsstaff.

•  OperaMonssupportprovidestechnicaloversiteduringtheleaseconstrucMonphasethroughResidentEngineersandConstrucMonReps.

•  StrategicUMlizaMonundertakesrealpropertyreuseanddisposalefforts,includingPublic-PrivatePartnerships,disposiMonsthroughGSA,andhistoricreuse.

OfficeofRealProperty

LeasingProgram

§ Leasing allows VA flexibility to provide services to Veterans as patient demographics and populations shift.

§ Lease contract procurements are governed by the Federal Acquisition Regulations, General Services Administration Regulations, and the Competition in Contracting Act.

§ ORP procures large, prospectus-level leases (over $1M in rent) and build-to-suit/lease construction projects. ORP is also the source of leasing policy for the Department as a whole.

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LeasingProgramScopeandMagnitude

§  VAcurrentlyoccupiesover1,900leasedfaciliMesnaMonwide.Mostaresmaller(<10,000squarefeet)leasesofexisMngbuildings,managedbyVHAleasingofficials.

•  InFY2016,ORPdeliveredninenewleasedfaciliMeswithatotalcontractvalueofmorethan$845millionandacquiredfourparcelsoflandforminorconstrucMonprojects.

•  ORP’sleasingprogramgrewfrom$5.7billionin2015toover$6.5billionin2016,a15%increase.Ithasgrown225%since2013.

•  InFY2017,ORPesMmatesthat12leaseawardswillbemadefornearly500,000squarefeetofleasedspacewithanesMmatedcontractvalueofmorethan$456million.

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LeasingProcess

1)AuthorizaMon/Approval–  VAmayonlyleasespaceifithasaneedforthatspace,basedon

VeterandemographicsandprojecMons.–  Congressmustauthorizeallleasesofover$1Minannualunserviced

rent.Projectsbelowthatthresholdareapprovedinternally.–  TheleaseprocurementisiniMatedonceallrequiredapprovalshave

beenobtainedandarequirementspackagehasbeenfinalizedandsubmiledtotheprocurementoffice.

–  VAmustobtaindelegaMonsofauthorityfromGSAonaproject-by-projectbasis.

AuthorizaMon/

ApprovalSolicitaMonandAward

DesignandConstrucMon

OperaMonsand

Maintenance

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LeasingProcess,cont.

2)SolicitaMonandAward–  VAdevelopsasolicitaMonpackagethatincludesitsspaceand

operaMonsrequirements,procurementinformaMon,evaluaMonfactors,and(forcomplexorlargefaciliMes)aconceptualdesign.

–  VAevaluatesproposalsandawardsaleasecontracttoadevelopertofullydesignandrenovateorconstructthefacility,andthenleasethefacilitytoVAforupto20years.ThelessoroperatesandmaintainsthefacilityfortheenMreleaseterm.

–  ForcomplexorlargefaciliMes,eachdeveloperoffersateamcomprisedofaleadfirm,aconstrucMoncontractor,andadesignfirm.

AuthorizaMon/

ApprovalSolicitaMonandAward

DesignandConstrucMon

OperaMonsand

Maintenance

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LeasingProcess,cont.

3)DesignandConstrucMon–  Ameraleasecontracthasbeenawarded,thedeveloper/lessorworks

withVAtocompleteafacilitydesign.–  ThelessorthenrenovatesorconstructsthespacetothespecificaMons

intheleasecontractandtheapproveddesign.–  AllsubcontracMngishandledbythelessor;VAisnotinvolvedinthis

process,excepttotheextentspecificsubsareproposedinthelessor’siniMalbid.

AuthorizaMon/

ApprovalSolicitaMonandAward

DesignandConstrucMon

OperaMonsand

Maintenance

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LeasingProcess,cont.

4)OperaMonsandMaintenance–  AmerthefacilityisacceptedbyVAascomplete,VAwillmoveinand

startacMvaMonacMviMes.–  ThelessorisresponsibleforoperaMngandmaintainingthefacilityfor

theenMreleaseterm,whichcommencesuponfacilityacceptance.–  Again,thelessormaysubcontractforservices,andVAhasno

involvementinthissubcontracMng,exceptforanyfirmsthatmyhavebeenproposedinthelessor’sbid.

AuthorizaMon/Approval

SolicitaMonandAward

DesignandConstrucMon

OperaMonsand

Maintenance

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LeaseFunding

-  ProjectsarefundedthroughVHA’soperaMngfunds.-  Rentisobligatedannuallyandpaidmonthlyinarrears.-  Fully-servicedrentcoversoccupancyofthebuildingshell,

operaMons,maintenance,uMliMes,andsomeMmesjanitorialservices,allofwhichareprovidedbythelessor.

-  VApaysalumpsumatconstrucMoncompleMontocovertheVA-specificbuildoutrequiredintheleasethatelevatesthespacetoamedicalofficefacility.

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FY2017UpcomingLeasingOpportuniKes

•  ContracMngopportuniMesforprospectus-levelleasesarepostedonOSDBU’spublicwebsite.

•  Prospectus-levelleasesarealsoincludedinVA’sannualbudgetsubmission,whichispublishedonVA’swebsite.

•  AdverMsementsforleaseprocurementsarepostedonFebBizOpps.govatthesiteidenMficaMonphase,solicitaMonreleasephase,andcontractawardphase.

•  Forlargerprojects,VAusuallyholdsapre-bidconference,whereVApresentsinformaMononaparMcularleasesolicitaMon,andinteresteddevelopersandsubcontractorshavetheopportunitytonetworkandcollaborate.

ProgramRequirements

On-Boarding

•  TheAEistypicallybroughtonboardthroughissuanceofaTaskOrderasoneofthefirststepsinaleasingproject

•  Realestatebrokersupportisalsoon-boardedatthisMme

•  AE,broker,PM,CO,Planners,andusergroupwillbeworkingtogetherasaprojectteam– BrokerisinchargeofthesolicitaMon,whiletheAEisinchargeofprovidingtechnicalinformaMonandtheconceptualdesign

ConceptualDesign

•  UMlizeVAPrototypeforCBOCstocreateaconceptualdesignforinclusioninthesolicitaMonpackage

•  VAdesiresdesignandrenderingstobegenerictoallowofferorstocustomizeasnecessary,andtoreducecosts–  Ifyouincludeanythingfancyintheconcept,offerorswillproposeitrightbacktous,whichraisesprices

•  AEalsotoprovide–  1-pagedescripMonoftheaestheMcvisionforthefacilityforinclusioninthesolicitaMon

–  As-designedupdatedspaceprogram–  Equipmentandfurnitureplanningifrequested–  ISCfacilitysecurityassessment/reportforfacility–  CostesMmatesforallschedulesaswellasaconstrucMoncostesMmateforthefacilityasdesigned

DesignProcess

•  DesignconfirmaKonmeeMngswithusergroup–  CFMPMandFacilityPlanneralsoalend– AEpresentsdesigntoleadership–  ConfirmswithusergrouptheapplicaMonofthespaceprogramtotheprototypeprinciplesanddesigntemplates

– Usually2-4mulM-daymeeMngson-site,dependingonfacilitysize

– AbilitytotakenotesandmakechangestodesigninrealMme

– MustmeetwithlocalO&ITtotailorITrequirementsforschedules

•  RegularandconMnuouscommunicaMonwithPMandCFMPlannerduringdesignprocess

SolicitaKonDevelopment

•  A/EsupportisneededtoprovidetechnicalspecificaMonsinthesolicitaMonpackage,primarilythenarraMveandtheSchedules–  ScheduleB:Tailorsothatonlyitemsincludedintheconceptualdesignarelisted

–  ScheduleC:TailoresMmatedunitquanMMestotheconceptualdesign

–  ScheduleD(Newinfuture“RLP”):TailorGovernment-specificrequirementstoconceptualdesign

•  VAneedsA/Eassistanceinvalueengineeringeffortstobringdownshellrentalratesandtohelpcontrol“kidinacandyshop”syndrome

SolicitaKonDevelopment,cont.

•  ORPisrestructuringthewayitwillundertakesolicitaMondevelopmentinconcertwithprojectauthorizaMon– Past:waitforauthorizaMon,thenstartproject– Future:startconceptualdesign,solicitaMondevelopment,andworkingwithanAEonafeebasis*

*BasedonthebonafideneeddefinedinthePWSand/oracquisiMonplan,subjecttoavailabilityoffunding,undertakenasapartofacquisiMonplanning

ProcurementTechnicalSupport

•  Provideexpertadvisoryservicesasfollows:– Marketsurvey/marketresearchtour;in-personparMcipaMonandprovideshortpropertyreports

–  Non-voMngmemberofTechnicalEvaluaMonBoard–  ProvidetechnicalinformaMonandeditschedulesasnecessarytorespondtoofferorquesMonsandrequestsforclarificaMons

–  Leadpre-bidconferenceandpresentconceptualdesignandtechnicalaspectsofsolicitaMon

Post-AwardSupport

•  ParMcipateinpost-awardkickoffmeeMngtohandoverdesigntoselecteddeveloper’steam

•  Conductpeerreviewsofdevelopersubmissions:–  Forcompliancewithleaserequirementsastothecontentsofeach

submission(a“firstpass”reviewforcompleteness);and–  Foradherencetoleasecontractrequirementsandtheconceptualdesign

(substanMvereview).–  NowpaidbyVAinsteadoflessor.

•  ProvideacMvaMonplanningsupport,whichmayincludefurnitureandequipmentplanning,asmayberequestedinSOW.

BREAK

ContractandTimeline

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Scope

•  NaMonalContract–  CoversVA’sleasingprogramasmanagedbyVA’sOfficeofRealProperty(ORP)

•  Onebaseyear,four(4)one-yearopMons•  Minimum:$1,000•  Maximum:$10Millionpercontract•  MulMpleAwardIDIQ•  RequiredDisciplines/SpecialMes:

-  ProjectManagement-  Landscaping-  Environmental-  Civil-  Mechanical

-  Electrical-  Structural-  CostEsMmaMng-  Scheduling-  EquipmentPlanning

-  RiskAnalysis-  FireProtecMon-  InternaMonalSecurity

CouncilAssessment

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Timeline

•  Pre-ProposalConferenceJuly17,2017•  July13,2017,CapabiliMesStatementsdue

•  Maybere-openedtoallowforotherNAICScodes

•  LateSummer,esMmatedsolicitaMondate•  Summer-Fall,esMmatedawarddate

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Milestones

1 Requirement Identified

2

Requirement Defined: Source Sought Industry Day Forum Market Research Report Finalize PWS Acquisition Plan Create 2268 OSDBU Approval of 2268

3 Pre-Solicitation Announcement (FedBizOpps)

4 Request for Technical Qualifications

5 Qualification Statements Received (SF 330s)

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Milestones,cont.

6 Evaluation of Firms (Boards Meet)

7 Conduct Interviews (Hold Discussions) 8 Prepare Selection Report 9 Final Selection

10 Request For Proposals (RFPs)

11 Received RFPs & VA Forms 10-6298

12 Request Audit (OIG or DCAA)

13 Receive Audit & Complete Negotiations

14 Legal Review/Contract Review Board

15 Award Contracts - SF 252

16 KICK-OFF MEETING

ProcurementInformaKon

SubmissionRequirements EvaluaKonFactors•  ProposalsshallbeinwriMng•  VAwillnotaccepttelephonic,telegraphic,

facsimile,andinternetoffersubmissions•  VAwillnotpayanycostsincurredby

offerorsfordevelopingandsubmitngproposals.

•  IniMalproposalshouldcontaintheofferor’sbesttermsfortechnicalandprice.

•  ResponsiveOfferorswillsubmitproposalsintwo(2)severableparts:

•  PriceProposalonSF1449,•  SignedSF1449RFP•  SignedSF30Amendments

•  TechnicalProposal(shallnotincludecostorpriceinformaMon)

•  PastPerformanceQuesMonnaires

Note:Thisslideisnotallinclusive.SeeRFP.

•  Technicalnon-pricedfactorswhencombinedaresignificantlymoreimportantthanprice,

•  But,asproposalsbecomemoreequalintheirtechnicalmerit,theevaluatedpricebecomesthedeterminingfactor.

•  TheGovernmentmaymaketrade-offs.•  TheevaluaMonwillbeconductedonthefactorsspecifiedinthisSolicitaMonwhicharelistedindescendingorderofimportance.

•  Allsub-factorswillbelistedindescendingorderofimportance.

(i)  TechnicalEvaluaMonFactors1)  CapabilitytoPerform2)  PastPerformance3)  Experience4)  Socio-EconomicStatus

(ii)  Price

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ContractRequirements

1.  FairOpportunityProcedures2.  ApplicableFARProvisions3.  JointVentures4.  ContracMngGoals

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FairOpportunityProcedures

FairopportunityperFAR16.505(b)(1)ThecontracMngofficershall—(1)  ProvideafairnoMceoftheintenttomakeapurchase,

includingacleardescripMonofthesuppliestobedeliveredortheservicestobeperformedandthebasisuponwhichtheselecMonwillbemadetoallcontractorsofferingtherequiredsuppliesorservicesunderthemulMple-awardcontract;and

(2)  AffordallcontractorsrespondingtothenoMceafairopportunitytosubmitanofferandhavethatofferfairlyconsidered.

TaskOrdersshallbecompetedandawardedusingtheprocesssetforthintheBrooksAct.

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ApplicableFARProvisions

◆  FAR 36.6 Architect and Engineering Services ◆  FAR 16.5 IDIQ ◆  FAR 16.505 Task Orders uses Fair Opportunity Procedures ◆  FAR 30 Cost Accounting Standards and Administration ◆  FAR 31 Contract Cost Principles and Procedures ◆  FAR 9.5 Organizational and Consultant Conflicts of Interest ◆  FAR 4.11 System for Award Management ◆  FAR 7.5 Inherently Governmental Functions •  (Contractors will not perform Inherently Governmental

Functions) ◆  Task Orders will support:

§ Office of Real Property

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JointVentures

ToqualifyasajointventuremustberegisteredintheVAWWW.VETBIZ.GOVdatabase.AddiMonalguidancecanbefoundatVAInformaMonLeler049-06-4(March9,2006),availablehere:hlp://www.va.gov/oal/docs/library/ils/il06-4.pdfTheRegulaKons38CFR§74.1JointventureisanassociaMonoftwoormoresmallbusinessconcernstoengageinandcarryoutasingle,specificbusinessventureforjointprofit,forwhichpurposetheycombinetheirefforts,property,money,skill,orknowledge,butnotonaconMnuingorpermanentbasisforconducMngbusinessgenerally.ForVAcontracts,ajointventuremustbeintheformofaseparatelegalenMty.

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ContracKngGoals

Category FY2017GoalsSmallBusiness 35.0%SmallDisadvantagedBusiness[includingSecMon8(a)]

5%

Women-OwnedSmallBusiness 5%Veteran-OwnedSmallBusiness 12%Service-DisabledVeteran-OwnedSmallBusiness

10%

HUBZoneSmallBusiness 3%

Kingdomwareandthe“RuleofTwo”

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MarketResearchPlanningStrategy

•  DuringtheacquisiMonplanningprocess,contracMngofficers,incooperaMonwithprogramoffices,shouldsurveythemarkettodeterminecapabiliMes(lead-Mmes,producMon,delivery,andesMmatedcost).

•  IndevelopingtheacquisiMonstrategyforanycontract,thecontracMngofficershalltakeintoconsideraMontheimpactoftheVeteransFirstContracMngProgramandthebestmethodofsuccessfullyimplemenMngthatrequirement.

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MarketResearchPlanningStrategy,cont.

•  OnJune16,2016,theU.S.SupremeCourtreversedalowercourtdecisionimpacMngtheDepartment’soriginalimplementaMonoftheVeteransFirstContracMngProgram.Thisisknownasthe“RuleofTwo.”MajorSupremeCourtholdingsintheKingdomwarecase.

•  RuleofTwoismandatory,notdiscreMonaryanditstextrequirestheDepartmenttoapplytheRuleofTwotoallcontracMngdeterminaMons,includingtheissuanceofeachTaskOrderunderanIDIQcontract.

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RuleofTwo

Whatisthe“RuleofTwo”?Providesthat“...acontracMngofficeroftheDepartmentshallawardcontracts”byrestricMngcompeMMontoVeteran-OwnedSmallBusinessesiftheofficerreasonablyexpectsthatatleasttwosuchbusinesses“...willsubmitoffersandthattheawardcanbemadeatafairandreasonablepricethatoffersbestvaluetotheUnitedStates.”38U.S.C.§8127(d)

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CapabiliKesStatement

•  FirmsarenotrequiredtosubmitacapabiliMesstatement,buttheyarestronglyencouragedtodoso.

•  CapabiliMesstatementsarenotevaluated.Rather,theyareusedaspartofVA’smarketresearchtodeterminewhetherthereisasufficientnumberofcapablefirmstojusMfythatthecontractbeset-asideforVeteran-ownedorsmallbusinesses.

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SAMandVETBiz

•  ItisvitalthatContractorsberegisteredinthewww.sam.govwebpage

•  ItisvitalthatSDVOSBContractorsandVOSBContractorsberegisteredinbothwww.sam.govandwww.VetBiz.gov

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ContactforSmallBusiness

VAOfficeofSmall&DisadvantagedBusinessUKlizaKon

TomLeney,ExecuMveDirectorJohnFedkenheuer,TeamLeadwww.va.gov/osdbu1-800-949-8387

VACenterforVeteransEnterprise1-866-584-2344www.VetBiz.gov

QuesKonandAnswerPeriod

LunchBreakNetworkwithIndustry/RoundtableSessions