GLS_Plus_Pre-Proposal_Conference_Presentation.pdf

Solicitation No. 47PA0519R0001 July 31, 2019

Pre-Proposal Conference

Introductions

From the GSA Office of Leasing, Center for Broker Services:

■ Kameshia Freeman, Director

■ Breanna Ackley, National Contracting Officer

■ Bridget Rhodes, National Contracting Officer’s Representative

■ Danny Killian, National Contracting Officer

■ Jessica Sellers, National Contracting Officer’s Representative

From the Office of GSA IT:

■ Katie Jaworski, Information Systems Security Manager

Good morning or afternoon depending on what part of the country you are in today. Welcome to the Pre-proposal conference for the GLS Plus requirement for GSA’s fourth iteration of its National Broker Contract (NBC). Thank you for joining us for what we hope to be an informative session. I am Kameshia Freeman, Director for the Center for Broker Services and National Program Manager for the GLS Plus requirement. My responsibility includes providing oversight and strategic direction for GSA’s four National Broker Contracts. I have here in the room with me some of the National program officials for the broker program and a subject matter expert from our Information Technology organization on the phone.

I’ll start with my team members in the room.

Breanna Ackley and Danny Killian serve as the National Contracting Officers for the GSA National Broker Contracts. They are responsible for awarding and administering the broker contracts. Breanna also serves as the lead contracting officer for this requirement.

Bridget Rhodes and Jessica Sellers serve as the National Contracting Officer’s Representatives. They are responsible for the technical matters related to and the administration of the GLS Plus contract.

The National Contracting Officers and National Contracting Officer’s Representatives day-to-day roles include the administration of the existing broker contracts including NBC1, NBC2, and GLS. Now, the team is focused on the fourth generation National Broker Contract which we are gathered here to discuss today.

On the phone, we have Katie Jaworski, Information Systems Security Manager, with the Office of GSA Information Technology.

Disclaimer

In the event that there is a conflict between the Solicitation terms and conditions and the information that is disseminated during today’s conference, the Solicitation terms and conditions shall control. The formal Solicitation is the only document that should be relied upon in determining the Government’s requirements. Any changes to the Solicitation will be with a formal amendment.

Before we begin, please note that in the event there is a conflict between the solicitation and and the information presented here today, the solicitation and any associated amendment takes precedence.

Administrative Remarks

■ This session will not be recorded.

■ Anything said at this conference or at anytime before proposal closing does not constitute a change in the solicitation. The only changes to the solicitation will be made in a formal, written amendment. All amendments and other information will be posted on the web site at www.fbo.gov. Offerors are reminded they must ACKNOWLEDGE all amendments.

■ Any questions pertaining to access/meeting space shall be submitted via the pod called “System Housekeeping.”

We are not recording today’s presentation. Additionally, while we are not taking questions today, I encourage you to jot down any questions that you may have as we go through the slides. Since this is an open solicitation, send all questions to glsplus@gsa.gov, per the solicitation, so that we can formally respond to your questions after August 5. If you do have other questions, or need assistance with technology, please submit those through the “Systems Housekeeping” pod. The slides will be made available at the conclusion of the presentation on FBO.gov.

http://www.fbo.gov/ mailto:glsplus@gsa.gov

Administrative Remarks

■ Questions submitted in writing will be answered through an

Amendment to the Solicitation.

■ All questions must be submitted by 5:00 PM EST, Monday, August 5, 2019.

■ Questions will not be accepted during this conference through

Meeting Space.

■ All questions must be submitted to glsplus@gsa.gov.

All questions will be answered, in writing, and posted on FBO.gov in the next few weeks. Reminder, all questions must be submitted, in writing, by August 5.

Agenda

Background and Purpose

Scope of Work Highlights

IT Requirements

Small Business Goals

Solicitation Overview

Please take a moment to review our agenda for today.

During the session, GSA will provide key highlights of GLS Plus requirement and a description of our small business goals. Additionally, we will discuss source selection procedures, evaluation guidelines and training requirements. With a focus on unique aspects of the contract, this session will include a technical overview on Market Survey 360, Portfolios of Work, Annual Market Presentations, and Enhanced Pre and Post Award Services.

Background and Purpose

■ Background of GLS Plus

○ Zonal contracts

○ Leveraging broker partnerships and government knowledge

○ Taxpayer savings

■ To promote a common understanding of:

○ Government’s Requirements

○ Proposal Instructions

Before we get into the presentation, let’s discuss how we arrived at this point and the next steps. We started with our industry conference in May 2018. That conference set everything in motion. We followed up with a draft scope of work and solicited your feedback in December 2018. We have and will continue to post updates related to the GLS Plus solicitation on Federal Business Opportunities (FBO). So it’s very important that you are registered with FBO.

The purpose of GLS Plus is to assist in delivering the best value in space solutions for the Government and taxpayers leveraging private sector resources and expertise with reduced contract administration. GLS Plus zonal contracts are a result of nearly 15 years of experience and lessons learned, over three national contracts, seeking to capitalize on private sector brokerage partnerships with Government knowledge. This contract will enable all stakeholders, most notably, the taxpayer, to realize greater savings by utilizing the broker to assist in negotiating fair and equitable deals and leveraging current market incentives.

The purpose of this presentation is to provide an overview of the GLS Plus solicitation and associated exhibits. Proposals are due by September 9, 2019, with a contract award anticipated in early 2020, and a notice proceed by late Spring/early Summer 2020.

Northwest/Arctic

Rocky Mountain

Great Lakes

Heartland

Greater Southwest

Southeast Sunbelt

11Mid-Atlantic

New England

Pacific Rim

2 Northeast Caribbean

Zonal/Regional Map

National Capital Region

This is a visual of the GLS Plus Zonal Service Areas.

GLS Plus will utilize the structure of the GLS contract wherein it will be zonal awards based on grouping regions.

We’ll start with the west coast and work our way up east. Beginning in the GREEN or the west, we have Regions 6, 8, 9, & 10. This makes up Zone 3 which includes some large markets such as Seattle, Portland, San Francisco, Los Angeles, and Las Vegas among others. In the ORANGE we have Zone 2 which includes Regions 4 and 7. This area covers southern major markets such as Dallas/Fort Worth, Houston, Austin, New Orleans, Atlanta, and Miami.

In the BLUE, up above, spanning to the northeast, we have Zone 1 which includes Regions 1, 2, 3, and 5, and includes Chicago, New York, Virginia, and Detroit to name just a few. Lastly, we have Zone 4 which is indicated by the RED star on the right. The National Capital Region, Region 11 is the only region in Zone 4.

Licensing Requirements

■ Must have authority to perform commercial real estate services in each state/U.S. Territory in Zone.

■ If there is no state requirement, must provide documentation of an exemption for licenses.

■ The offeror must provide supporting documentation that reflects compliance with licensure requirements.

■ The offeror should only submit a license or partnership/co-brokerage agreement and supporting documentation for the states in the Zone(s) in which they are proposing.

Now let’s discuss the licensing requirements. In general, Contractors and their subcontractors must be licensed brokers who have the ability to collect commissions, on behalf of the Contractor, for all locations where services may be required. It is the Contractor’s responsibility to obtain all required state or other licenses required to perform the services, described in the contract, for the assigned zones by contract award.

With respect to the proposal requirements outlined in section M.2.2. Factor 2: Management Plan:

The offeror must identify how they will meet this requirement, either through their own brokerage license (one per state/U.S. Territory for the zone) or a partnership/co-brokerage agreement, that demonstrates their authority to perform commercial real estate services, as required by the contract. The offeror must reference the state website for broker licensure requirements.

If there is no state requirement, the offeror must provide documentation of an exemption for licenses for the state/U.S. Territory in which services will be performed. The offeror must provide supporting documentation that reflects compliance with licensure requirements. The offeror should only submit a license and supporting documentation for the states in the zones in which they are proposing.

Scope of Work Highlights

Good afternoon, it is my pleasure to go over the scope of work starting in Section C, of the solicitation, if you are following along.

GLS Plus Modules GLS Plus Menu of Services

The GLS Plus Menu of Services looks a lot like the GLS menu of services, but it has some key enhancements.

To orient you, I’ll start with the green check boxes. Every green checkbox within a module indicates the service that the broker contractor is performing for that particular project. Each one of the green checkboxes correlates to the scope of work paragraphs found in Section C. Now, let’s take a look at the gold plus signs.

Each of the plus signs indicates opportunities for the regions to request enhanced services performed by the broker. Finally, the red Xs denote services that are not authorized under the listed module. So in essence, we still have six modules in total. However, modules now have the ability to include additional enhanced services for high value projects.

GLS vs GLS Plus Services

GLS SERVICES

Module 1 Module 2 Module 3 Module 4 Module 5 Module 6

GLS PLUS SERVICES

+ Clarified Value Tiers + Enhanced Requirements

Development + Enhanced Post Award + Market Survey 360 + Annual Market Presentations + New Ordering Procedures

The six modules executed under the GLS Menu of Services, served as the basis for GLS Plus. In addition to these Basic Services, GLS Plus includes the enhancements listed to the right of your screen. These enhancements may be required and will be indicated in the task order awards. As we go through the presentation, we’ll take a deeper dive and review each of these enhancements.

Module selection under GLS Plus has a variety of determining factors based on the needs of the regions. For example, they may have strong requirements development teams and/or post award teams, and will rely on the broker, most heavily, for the lease acquisition phase. The determination of module might be based on the type of project, agency, and/or location. For example, if you have agency that is unsure of their long term plan and need a little bit more help defining their delineated area, we might task the broker Requirements Development plus Enhanced Requirements Development, so that we can do a deeper dive into options for the agency. By bringing the broker on earlier, they can assist with footprint optimization and couple that simultaneously with market projections up front.

Value Tiers

Value Tier Estimated Total Annual Rent

High Value Greater than or equal to $750,000.00

Moderate Value Greater than $250,000.00 - $749,999.99

Limited Value Less than or equal to $250,000.00

If you take a look at this slide, it breaks out our value tiers for limited, moderate, and high value projects based on the estimated total annual rent. Value tiers unders GLS were related to the square footage and the Metropolitan Statistical Area/Market location of the project. Under GLS Plus, value tiers tie more closely to GSA’s Lease Cost Avoidance Plan so that GLS Plus High Value Projects correlate with GSA’s threshold for High Value Projects.

Enhanced Reqs. Development Services

Okay, on to section C.4.3.1.1 , Enhanced Requirements Development. Over the years, we’ve utilized our brokers to attain better rental rates. Requirements Development is where we partner with agencies to develop, among other things, their delineated areas, optimize their footprints and conduct a thorough analysis of options that may best serve them. We recognize that there are various levels of these workplace studies. At GSA, we’ve come to distinguish these as Macro and Micro Program of Requirements or PORs. Micro PORs are much more specific as to the level of finishes, architectural requirements, mechanical, electrical, and plumbing specifications required for each space type. I want to be clear, a MICRO POR is not required for GLS Plus; MACRO is what is we are seeking. The Macro POR requirements are delineated on the slide and shown in green next to the orange arrows. Carefully review section C.4.3.1.1, Enhanced Requirements Development, to see what must be included in a Macro POR.

Enhanced Post Award Services

Another key enhancement in GLS Plus is in our Enhanced Post Award Services.

With Enhanced Post Award Services we are looking for a few key distinctions:

experience, detailed pricing reviews, and more inspections. Additionally, we would also expect elevated communication standards, more photography, and 360 photographs. Enhanced Post Award services are in addition to the basic post award services. In a nutshell, when we task the Enhanced Post Award Services, we are seeking a higher degree of Quality Assurance and Quality Control provided to the Government which helps to identify scope creep, gaps, and areas in the design or buildout phase that are critical to achieving substantial completion and ultimately occupancy. On the next screen, I’ll share with you the difference in inspection requirements.

INSPECTION COMPARISON

POST AWARD

ENHANCED POST AWARD

These charts compare the difference between the number of inspections.

Regular inspections are shown on top and the enhanced post award service inspection list is provided on the bottom.

There is a caveat. In the case of a succeeding lease project with, only minor alterations like carpet and paint, one inspection may be required.

360 Degree Construction Progress Images

Continuing with Enhanced Post Award Services, here is an example of what a 360 photo might look like during enhanced post award within the build out phase. It essentially allows the end-user to see the entire space and more of the space than your typical camera might allow. It should be noted that while the lessor’s General Contractor provides some photos to the Government, we think that these additional photo requirements will benefit the Contracting Officer’s Representatives who rely on the broker’s additional review with respect to their inspections and due-diligence.

Market Survey 360 C.4.3.2.3. Market Survey 360

Section C.4.3.2.3 is the section for a new service called Market Survey 360. The intent of this service is to innovate the experience we provide to our customer agencies by leveraging 360 camera technology. This technology is available at a low cost, off-the-shelf and provides the opportunity to see a full view of a space rather than a small singular shot. While agencies will still need to send individuals on the physical market survey, it’s expected that we will realize a reduction in travel costs. Previously, agencies might send eight individuals to conduct a market survey. Perhaps now, the agency will only need to send three or four and the others can utilize the 360 photos of the spaces. It should be noted that this service can be tasked for up to 10 projects per region, per year, for the base contract to allow this concept to be internally socialized. After the first year, the restriction for ordering will be removed. I invite you to re-review section C.4.3.2.3 of the solicitation for additional guidance on this topic.

Portfolios of Work Criteria

■ Strategic approach for tasking customer requirements by grouping multiple requirements for one Agency

■ Grouping requirements of different agencies in the same market

■ Vetted by program leadership prior to tasking

Now that you have an understanding of the Menu of Services, I’d like to bring your attention to section B.1.1. Portfolios of Work. This is currently available under GLS and we will expand on this requirement under GLS Plus. Our intent is to garner efficiencies at the portfolio level by having a broker team working alongside the same smaller government team on a portfolio of projects that are similar either by agency, geography, or other commonalities which make them a portfolio. We intend to task groupings of projects in a Zone. It’s important to also note that an actionable portfolio of work will consist of projects that are commissionable and vetted through regional leadership.

Portfolios of Work Example of a Portfolio of Work

AGENCY LOCATION RSF FIRM TERM SERVICE

DHS CBP Seattle 9,500 10 Module 4

DHS CIS Seattle 3,000 10 Module 5

DHS CIS Seattle 35,000 15 Module 4 + 360 Market Survey

DHS ICE Seattle 42,000 15 Module 1 + Enhanced RD + Enhanced PA

DHS ICE Seattle 95,000 15 Module 3 + Enhanced PA

Strategic Portfolio Planning

On this slide, I wanted to highlight what a potential portfolio of work might look like.

In this example, you have five Department of Homeland Security (DHS) projects located in the Central Business District (CBD) of Seattle, WA, with various sub-agencies and different service requirements. The added value of tasking a group of projects is not merely grouping similar projects but also combining the needs with strategic portfolio planning which is highlighted for emphasis. Section B.1.1 speaks to this service. In an effort to yield significant taxpayer savings, the Contractor may be asked to provide specific information regarding changes in market conditions or renegotiation opportunities within the actionable portfolio. For example, on a portfolio like the one shown on the screen, the Contractor may provide a high level analysis of the market status, including market indicators, evaluation of the market to allow the Government opportunities to restructure leases, market research per the list of GSA leases provided to notify the Government of owner debt stress, or options for renegotiation of terms (length of firm term and soft term) as well as estimated rental rates and any other concessions that might be achieved with renegotiation.

Annual Market Presentations

■ The Government is seeking to leverage the Contractor’s market data and intelligence to increase awareness of market opportunities, risks and concessions.

■ At minimum, on an annual basis, the Contractor shall make a presentation on selected markets.

■ The presentation shall include emerging market trends, industry overviews, a commercial landscape analysis and other relevant information.

C.4.4.2. Annual Market Overview and Partnership

C.4.4.2 is another area that will add significant value to our regions. We are expecting annual market presentations. These presentations will allow broker firms to provide market feedback to the leasing staff on trends, concessions, and market opportunities occurring across that region. The region would specify which markets are to be covered and, where possible, we are looking for firms to utilize any innovative technology that they make have at their disposal. As with all contract requirements, we’ve provided the minimal contract standard. The objective here is knowledge exchange and a collaborative sharing opportunity between GSA’s leasing community and the GLS Plus brokers. This feature will allow leasing to take advantage of the broker’s market knowledge without being specific to a project. We anticipate it providing GSA with insight into the negotiation strategies resulting in long term taxpayer savings.

Personnel Training Requirements

Minimum Contract Standard

■ C.2.F. Training following base contract award

■ H.3.8.6. Role Minimum Requirements Matrix

■ H.3.4. IT-related Training

Within the solicitation, there are several areas where training is mentioned. We want to highlight each of these areas for ease. First, I’ll cover the requirements specifically pertaining to the minimum contract standards once the base contract is awarded.

C.2.F. speaks to the requirement for the Contractor’s key personnel to attend training that the Government will put on following base contract award. In these trainings, we will bring both the Government personnel and the broker contractors assigned to given Zones together to discuss overall expectations, develop business relations, and train on the contract. We will provide the specific location once the contracts are awarded.

H.3.8.6. Role Minimum Requirements Matrix - Within section H, there is a role matrix which includes all of the training, education, and experience required for each of the broker roles prescribed in the contract. As you are considering your team for this contract, please ensure that they minimally meet the requirements as stated herein.

Finally, H.3.4. IT-related training - Throughout the year, contractors will be required to complete various online training in order to maintain IT access compliance. All contractors will be required to have a security clearance before accessing our system. Most of these trainings are about one hour and are completed online. The Contractor’s Zonal Project Manager is responsible for ensuring that the firm completes all required training.

Personnel Training Requirements

Section M - Offer Requirements

M.2.2. Factor 2: Management Plan

Organizational Structure/Staffing Matrix

■ Staffing Matrix

■ For each category of personnel, including subcontractor personnel, who will be assigned to perform contract tasks: identify years of commercial real estate experience, education, and training.

In contrast with the minimum contract standard, I’d like to bring your attention to Section M of the solicitation. Section M is where the Offer requirements are found.

These items are germane to the proposal submission requirements. Section M.2.2. Factor 2 includes the requirement for the development of the Management Plan. Within the management plan, a staffing matrix should be included outlining the team’s years of commercial experience, education, and training. If selected for base contract award, this management plan would become part of the contract and be required for update. To recap the pertinent sections are C.2F., H.3.8.6., H.3.4. and lastly section M.2.2. Next let’s take a look at the IT Requirements for GLS Plus.

IT Requirements

IT / Security Requirements

Securing Government Information (H.3.4.)

■ All information collected on behalf of the government is considered government information.

○ Must be protected per National Institute of Standards and

Technology (NIST), Federal Information Security Management Act (FISMA) and GSA IT Security policy.

■ GLS Plus contractors must use government provided systems and email to store or process any and all information pertaining to leases.

○ GSA IT Systems included: Gmail, Google and Virtual Desktop (VDI).

■ Contractors are not permitted to use non-GSA services, systems or email unless specific exceptions have been granted.

First, I’m going to talk about the requirements for Securing Government Information.

■ All information collected on behalf of the government is considered government owned information.

○ Because this is federal government information, it means all federal and GSA policies apply and data must be protected per NIST, FISMA and GSA IT Security policy requirements.

■ GLS Brokers must use government provided systems and email to store or process any and all information pertaining to leases. All of the GSA systems you will be using to address this requirement have already been approved per GSA and federal requirements.

○ GSA will provide GSA Google Accounts and access to GSA Gmail and Google Drives. Keep in mind this is not the public version of Google, but a GSA approved instance for government use.

○ GSA uses a remote desktop software for remote access to GSA assets and systems. Once you have a GSA network account, you will use a remote desktop session to process and transmit GSA data within the GSA network through that virtual desktop.

■ Contractors are not permitted to use non-GSA services, systems or email unless specific exceptions have been granted.

GFE/GFI (H.3.4.)

Government Furnished Equipment (GFE)/ Government Furnished

Information (GFI)

Must meet the following conditions:

■ Use of the GFE and GFI is for the sole purpose of completing the requirements of this contract

■ GSA system access will be granted based on an acceptable background investigation determination/adjudication

○ The contract employee has received a pre-favorable HSPD-12 background investigation determination/adjudication;

expected to result in a final favorable determination/adjudication

○ The contract employee has already received a final favorable background investigation determination/adjudication

■ The contract employee has completed the required user training

You must meet the following conditions in order to be granted access to our systems:

■ Use of the GFE is for the sole purpose of completing the requirements of this contract and should not be used for any other purposes. GSA’s IT systems must be used to email, store, process or transmit any GSA information for all performance and task order initiation under this contract.

○ GSA will not be providing physical hardware to support this requirement and relies on all the virtual software components.

■ Access to GSA IT systems will be granted based on an acceptable background investigation determination. There are 2 scenarios for system access requests based on background clearance status.

○ The first scenario is where the contract employee has not completed the full background investigation and will require a pre-favorable HSPD-12 background investigation determination.

■ Pre-favorable is the initial clearance determination and includes the validation of the fingerprint check.

■ Access to GSA IT systems can not be requested until the Pre-favorable clearance is completed with an acceptable determination.

■ It does take some time to reach the final adjudication decision and can depend on the level of clearance being processed.

○ The second scenario is where the contract employee has already received a final favorable background investigation determination/adjudication.

■ Contract employees can submit access requests to GSA IT systems, when needed since they are already cleared.

■ Please note, clearance with another agency does not automatically transfer to GSA. So you must be submitted through the GSA clearance process.

○ I would also like to note that “individual activity” subcontractors are not required to have a security clearance if their sole function is to perform a market research/survey and they will not have access to the Government’s computer systems or any information other than what is necessary to conduct a market survey.

■ The contract employee has completed the required user training.

○ The main training that needs to be completed within 30 days of notification and annually thereafter, is the GSA IT Security Awareness and Role Based training. If you do not complete this training, your GSA network account will be locked and you will not be able to access any GSA resources.

Access GSA IT Resources

Work from Anywhere

■ Use Horizon VDI to access a “virtual” GSA desktop on any device (including your personal computer or mobile device).

■ Access available applications off the network using 2 factor authentication.

○ Access Gmail; Insite; Salesforce; eSign, or ServiceNow

GSA supports the “Work from Anywhere” initiative.

■ As I mentioned earlier, GSA uses Horizon VDI to access a “virtual” GSA desktop on any device, which includes your personal computer or mobile device.

■ We also have some applications that you can access, from the public internet, using 2 factor authentication (user name, password and one time pin).

○ Access includes the following:

■ GSA’s Gmail,

■ Insite, GSA’s main informational site,

■ Any of the PBS systems hosted on Salesforce,

■ eSign, GSA’s digital signature system,

■ ServiceNow, GSA’s helpdesk ticketing system.

https://insite.gsa.gov/employee-resources/information-technology/do-it-yourself-self-help/telework-and-remote-access/horizon-virtual-desktop-interface-vdi https://insite.gsa.gov/employee-resources/information-technology/do-it-yourself-self-help/telework-tech-tools/secureauth#2factor https://insite.gsa.gov/employee-resources/information-technology/do-it-yourself-self-help/telework-tech-tools/secureauth#2factor http://email.gsa.gov/ https://insite.gsa.gov/ https://gsa.my.salesforce.com/home/home.jsp http://sign.gsa.gov/ http://servicedesk.gsa.gov/ https://insite.gsa.gov/employee-resources/information-technology/do-it-yourself-self-help/telework-and-remote-access/horizon-virtual-desktop-interface-vdi https://insite.gsa.gov/employee-resources/information-technology/do-it-yourself-self-help/telework-tech-tools/secureauth#2factor http://email.gsa.gov/ https://gsa.my.salesforce.com/home/home.jsp

Small Business Subcontracting

This topic is primarily for “Other-than-small” business contractors.

However, this can also assist small businesses in understanding how their partnership with these contractors can help them achieve their goals.

Small Business Goals Section B.2. GSA's Fiscal Year 2019

Agency-wide Prime Contract And Subcontract Goals

PRIME CONTRACTS

Small Business 30.00%

Small Disadvantaged Business (SDB) 5.00%

Women-owned Small Business 5.00%

HUBZone Small Business 3.00%

Service-Disabled Veteran-owned Small Business 3.00%

SUBCONTRACTS

GOALING CATEGORY GOAL

Small Business 25.50%

Small Disadvantaged Business (SDB) 5.00%

Women-owned Small Business 5.00%

HUBZone Small Business 3.00%

Service-Disabled Veteran-owned Small Business 3.00%

In Section B.2. of the solicitation, there is a list of GSA’s FY 2019 SMALL BUSINESS GOALS. These are agency-wide prime contract and subcontract goals approved by U.S. Small Business Administration (SBA).

The Office of Small Business Utilization (OSBU) is responsible for negotiating GSA's goals with SBA to ensure that small businesses have the maximum practicable opportunity to provide goods and services to the federal government.

More information regarding the Small Business Goals is available from the GSA Office of Small Business Utilization, https://www.gsa.gov/about-us/organization/office-of-small-business-utilizati on-osbu https://www.gsa.gov/about-us/organization/office-of-small-business-utilization-osbu https://www.gsa.gov/about-us/organization/office-of-small-business-utilization-osbu

Statutory Requirements (FAR 19.702) FAR 52.219-8 Utilization of Small Business Concerns:

■ “Maximum practicable opportunity for SBs, SDBs, VOSBs, SDVOSBs, WOSBs and HUBZones to participate in government contracts and subcontracts”

■ Note: contractors agree to implement to the “fullest extent”

■ Requires contractor confirm HUBZone certified by SBA

■ Unacceptable plans make the offeror “ineligible for contract award”

The statutory requirements, per FAR clause 52.219-8, are incorporated, by reference, in Section I of the solicitation. Contractors must agree, in the contract, that small business concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance. Subcontracting with small businesses is a major factor contributing to the health of the United States’ economy, including new job creation. The Contractor shall confirm that a subcontractor, representing itself as a HUBZone small business concern, is certified by SBA by accessing the System for Award Management (SAM) or by contacting the SBA.

If an apparent successful offeror fails to submit and negotiate an acceptable plan, the offeror will be considered ineligible for award.

FAR 52.219-9

Small Business Subcontracting Plan

■ Some Key Elements to a Subcontracting Plan:

○ Goals

○ What is subcontracted?

○ How contractor will make the “good faith effort”

○ Reporting requirements

○ Assurances

■ The plan is more than just goals! Treat the goals as a thesis statement and the remaining elements either prove or disprove the thesis.

Offerors who are “Other-than-small” businesses are required to submit a subcontracting plan with its initial offer before award in support of GSA's Small Business Subcontracting goals and comply with FAR 52.219-9. The plans must provide goals for subcontracting with small businesses (SBs), small disadvantaged businesses (SDBs), veteran-owned small businesses (VOSBs), service disabled veteran-owned small businesses (SDVOSBs), women-owned small businesses (WOSBs) and HUBZone small businesses.

Section I.2.5., of the solicitation, contains FAR clause 52.219-9 Small Business Subcontracting Plan. There are 15 elements and it’s important to review all of them. I’ll provide an overview of some of these.

The Offeror’s subcontracting plan shall include separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business concerns as subcontractors. For individual subcontracting plans, goals shall also be expressed in terms of percentage of total contract dollars, in addition to the goals expressed as a percentage of total subcontract dollars. The Offeror shall include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs.

The Offeror’s subcontracting plan shall include a description of the principal types of supplies and services to be subcontracted and an identification of the types planned for the subcontracted small business concern (small businesses (SBs), small disadvantaged businesses (SDBs), veteran-owned small businesses (VOSBs), service disabled veteran-owned small businesses (SDVOSBs), women-owned small businesses (WOSBs) and HUBZone small businesses).

The Offeror’s subcontracting plan shall include assurances that the Offeror will make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. I would also like to take a moment to point out that subcontracting efforts are not limited to broker services, they just need to be in support of the overall contract requirements.

The Offeror will submit an Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR) so that the Government can determine the extent of compliance by the Offeror with the subcontracting plan.

The contractor will provide assurances to the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work.

The subcontracting plan is more than just goals. Think about the goals like a thesis statement and the remaining elements either prove or disprove the thesis.

“Tell the story.” “When in doubt, write it out!”

Socio-Economic Small Business Categories

■ Achieve Credit for Multiple Categories

○ Example: $100,000 subcontract to a SB that is also a WOSB and SDVOSB:

■ $100,000 to WOSB

■ $100,000 to SDVOSB

■ $100,000 to VOSB

■ $100,000 to SB

■ Results in $400,000 in small business credit for your goals and reports.

This example shows how an offeror can receive credit for more than one business concern category through a single subcontractor. Here, the subcontractor counts for credit toward an offeror’s goals as a women-owned small businesses (WOSBs), veteran-owned small businesses (VOSBs), service disabled veteran-owned small businesses (SDVOSBs) and a small businesses (SBs) concern. Subcontracting $100,000 to this contractor counts separately toward each business concern category. That’s $400,000 in small business credit for your goals before award.

Subcontracting Plan

■ Template Provided

■ Developing the Estimated Contract Value

○ Section L.7 Provides Estimated Total Commission Value for

Zone

○ Estimated GLS Plus Projections

○ Use Proposed Pricing when Developing Goals

■ Cumulative Goals

■ Commitment Based Reporting, not Payment Based Reporting

Attachment 4, of the solicitation, is the GSA Model Subcontracting Plan template that offerors shall utilize to develop and submit their plan.

Offerors must develop an estimated contract value. The estimated total available commissions are noted in section L.7 of the solicitation. The estimated GLS Plus Projections are located in the GLS Plus Pricing Worksheet, Attachment 1. Contractors may use the information provided, along with the commission rates being proposed, to calculate an estimated contract value for the subcontracting plan to be submitted.

Cumulative goals cover the entire contract period (including option periods). This means, when a contractor submits their report, it will reflect subcontracting accomplishments, on a cumulative basis, from the inception of the contract through the end of the reporting period.

Contractors should also note that commission may not be available for an extended period of time after task order issuance; therefore, contractors will have to use commitment based reporting. This is the process of capturing subcontracting dollars when you execute the subcontract award documents. Payment Based reporting is the process of capturing subcontract dollars when you pay the invoices. With commitment based reporting contractors are expected to actively pursue subcontracting efforts to small businesses without regard to when commissions will actually be received.

Finally, offerors should submit their plan with goals they can realistically attain, and may submit higher or lower goals to GSA that are determined to be acceptable.

After Award

■ Reports - Must be submitted by the required due date (FAR 52.219-9).

■ Failure to submit the report timely may indicate a lack of good faith effort.

■ Are you on track for meeting the goals set in the plan?

○ If not, what corrective action will you take?

○ “Tell the story” to explain any shortcomings and identify corrective action.

Section G.2.4. is for the Submission of Subcontracting Reports after contract award.

The individual Subcontracting Plan is incorporated as a material part of the GSA contract which requires both Individual Subcontracting Reports (ISRs) and Summary Subcontracting Reports (SSRs). These reports are used by the Small Business Administration to document participation in federal government contracts by small businesses concerns and provide these achievements to Congress.

Three reports are required each year for an individual subcontracting plan and one final report is due within 30 days of contract completion. All reports are entered into the government-wide Electronic Subcontracting Reporting System (eSRS).

1. Individual Subcontracting Reports (ISRs) must be submitted semi-annually no later than April 30 and no later than October 30.

2. The annual Summary Subcontracting Report is due within 30 days of the end of the Government’s fiscal year (September 30).

The SSR summarizes subcontracting under all prime contracts and subcontracts with GSA, regardless of the dollar value of the subcontracts.

Failing to report on time may indicated a lack of making a good faith effort in achieving the goals set out in the plan.

If a contractor is not on track to meet their goals, they should clearly describe, in the remarks section of the ISR, any shortcomings and the corrective action they are taking.

FAR 42.15

Contractor Performance Information

■ A contractor’s failure to meet their goals or demonstrate a “good faith effort” to maximize opportunities for SBs, SDBs, WOSBs, VOSBs, SDVOSBs, and/or HUBZone, will result in lowered contractor performance evaluations.

■ “Good faith effort” is defined in 13 CFR 125.3.

■ Evaluation Rating Definitions can be found in FAR 42.15, Table 42-2.

FAR 42.15 addresses the evaluation of a contractor’s performance for meeting subcontracting goals. Failure to comply with the subcontracting plan is a material breach of the contract or subcontract, and the failure to demonstrate good faith must be considered in any past performance evaluation of the contractor.

A “good-faith effort” is an effort to achieve the dollar and percentage goals and other elements in the subcontracting plan.

Past performance will be documented in the Contract Performance Assessment Reporting System (CPARS). This includes evaluation of small business subcontracting efforts in accordance with the contractor’s subcontracting plan. The evaluation ratings and narratives will be completed per the definitions in FAR 42.15 table 42-2.

Resources to Find Socio-Economic SBs and HUBZones

■ Local Chambers of Commerce

■ SBA Commercial Marketing Representative:

https://www.sba.gov/federal-contracting/counseling-help/commercial-market -representative-directory

■ Procurement Technical Assistance Centers:

http://www.aptac-us.org/

■ Minority Business Development Agencies:

https://www.mbda.gov/

■ State, county, or city minority business offices

■ SBA Dynamic Small Business Search:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

Here is a list of resources to find socio-economic small businesses and HUBZone businesses.

■ Local Chambers of Commerce

■ SBA Commercial Marketing Representative:

https://www.sba.gov/federal-contracting/counseling-help/commercial -market-representative-directory

■ Procurement Technical Assistance Centers:

http://www.aptac-us.org/

■ Minority Business Development Agencies: https://www.mbda.gov/

■ State, county, or city minority business offices

■ SBA Dynamic Small Business Search:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm https://www.sba.gov/federal-contracting/counseling-help/commercial-market-representative-directory https://www.sba.gov/federal-contracting/counseling-help/commercial-market-representative-directory http://www.aptac-us.org/ https://www.mbda.gov/ http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm https://www.sba.gov/federal-contracting/counseling-help/commercial-market-representative-directory https://www.sba.gov/federal-contracting/counseling-help/commercial-market-representative-directory http://www.aptac-us.org/ https://www.mbda.gov/ http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

Subcontracting Program Questions

GSA Point of Contact:

■ Subcontracting and Mentor Protege Program Manager, Office of Small Business Utilization

○ Deborah Eble

■ Deborah.Eble@gsa.gov

■ 215-446-5823

Direct small business questions to Debbie Eble, GSA’s Subcontracting and Mentor Protege Program Manager in the Office of Small Business Utilization.

mailto:Deborah.Eble@gsa.gov

Solicitation Overview

Contract Type

■ Full and Open Competition (unrestricted)

■ Firm Fixed Price Service Contract

■ Indefinite Delivery, Indefinite Quantity (IDIQ) Contract

■ Period of Performance

○ Contract Base Year and Four One-Year Options

○ Base Contract Year begins at time of Notice to Proceed

■ Services will be performed in accordance with Federal Regulations and GSA Policies and Procedures

This is a full and open procurement for firm fixed price service contracts.

The resulting awards will be Indefinite Delivery Indefinite Quantity contracts, commonly referred to as IDIQs.

The Contract period of performance will be one contract base year, and four one-year option periods. The base contract year will begin at the time the notice to proceed is issued.

Please note that all services to be performed under the contract are required to be performed in accordance with all federal regulations, as well as, all applicable GSA policies and procedures.

Contractor Compensation

■ Minimum Guarantee:

○ $250,000 per contract

■ Compensation:

○ Real estate commissions paid by the lessor building owner

■ No Government payment or reimbursement for contract services or expenses

■ Modules 1 and 2:

○ Commissions may not be available until 18 - 42 months

■ For Modules 3, 4, and 5:

○ Commissions may not be available until 12 -18 months

As indicated in the solicitation, the Minimum Guarantee for each contract awarded is $250,000. The Government will only make a payment of up to $250,000 in the event that the commissions earned for services provided under the contract do not meet that minimum guarantee.

Please note, this means that the government will not provide any direct payment or reimbursement for contract services or expenses, and all compensation for services will be received in the form of real estate commissions paid by the lessor building owner on the transaction.

When thinking about receiving compensation under the GLS Plus contracts, you may also want to refer back to the Menu of Services. It's important to consider which services will be provided for each module as the timeline for compensation may vary.

For example, for Modules 1 and 2, leases are awarded, on average, 24 months after task order issuance, while for Modules 3, 4, and 5, leases are awarded, on average, 12 months after task order issuance.

It's also important to be aware that some projects may not materialize and may result in termination. Terminations may result from market conditions, changes in agency requirements, or other circumstances beyond the control of the agency. According to our data, only 5% of a given 1,000 task orders awarded might be terminated. This statistic is based on historical data in the first generation of GLS. 45

Conflicts of Interest

■ Section H.5. Purpose

○ Avoid, neutralize, or otherwise mitigate conflicts of interest.

■ The same agent within brokerage firm may not represent both parties in the lease acquisition.

■ FAR 9.5 & 48 C.F.R. 9.5

○ Prescribe responsibilities, general rules, and procedures for identifying, evaluating, and resolving organizational conflicts of interest.

The purpose of the Conflict of Interest Section H.5. of the contract is to avoid, neutralize or otherwise mitigate conflicts of interest.

It's crucial to understand that the same individual Contractor personnel within a brokerage firm cannot represent both parties (GSA and the offerors) in a lease acquisition.

Note that Subpart 9.5 of the Federal Acquisition Regulation and 48 Code of Federal Regulation Section 9.5, prescribe the responsibilities, general rules, and procedures for identifying, evaluating, and resolving conflicts of interest.

Ordering Procedures (F.3)

■ John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. 115-232 (2018) (NDAA) Section 877, Individual Acquisition for Commercial Leasing Services

■ Temporary Exemption FAR 16.505(b)(1) & GSA Conditional Approval of Class Deviation to FAR

■ Not required to provide notice and opportunity to submit an offer for all task orders valued above the simplified acquisition threshold

■ All FAR competition requirements will apply either upon:

○ Termination of NDAA (December 31, 2022) or

○ Revocation of Class Deviation

The contract ordering procedures for task order issuance can be found in Section F.3. of the solicitation.

The contract ordering procedures reflect that there is a limited requirement for GSA to provide notice and opportunity to submit an offer prior to issuing task order awards. This ordering procedure is allowed due to a current temporary exemption to FAR.

The 2019 National Defense Authorization Act, referred to as the NDAA, included a provision that provides a temporary exemption that is currently set to terminate on December 31 of 2022. As a result of this exemption, GSA obtained a Conditional Approval for a Class Deviation of the competition requirements in FAR Section 16.505(b)(1).

Please note that should the NDAA provision terminate, or the Conditional Approval of the Class Deviation to FAR 16.505 is revoked, the GLS Plus contracts will no longer be exempt and all FAR competition requirements will apply.

Ordering Procedures (F.3)

■ Fair Opportunity will be provided and best value awards made for all task orders estimated to exceed the Micro-Purchase Threshold.

■ Price will be considered when issuing best value task order awards.

■ Contractors will have an opportunity to offer a lower commission rate for all task orders with an estimated commission value to the Contractor exceeding $2,000,000.00.

○ Note: May respond with a commission rate equal to or less than the applicable awarded commission rate.

When discussing the ordering procedures under GLS Plus, it's important to note that all contractors within the Zone will have an opportunity to be considered for all task orders issued within the Zone.

Task orders estimated to provide a commission to the broker of less than the micro-purchase threshold, which is currently $10,000, may be issued to a contractor in the Zone at the discretion of the ZCO. However, all task orders estimated to provide a commission to the contractor in excess of that micropurchase threshold will be awarded based on a best value analysis.

Please note that price will be considered for all task orders, so be sure to propose competitive contract pricing as the current ordering procedures allow for award to be made without providing notice or an opportunity to submit an offer. Contractors will be provided notice and have an opportunity to offer a lower commission rate for all task orders estimated to provide a commision to the contractor in excess of two million dollars.

Sections L & M

■ Instructions in Sections L & M are crucial to developing a complete proposal.

■ Proposal Instructions…