Amendment_001_Industry_Questions.pdf

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NO. 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicable)

7. ADMINISTERED BY (If other than Item 6) CODE

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICITATION

NO.

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended, is not extended.

12. ACCOUNTING AND APPROPRIATION DATA (If required) copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO.

IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

PAGE OF PAGES

6. ISSUED BY CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (X)

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

NSN 7540-01-152-8070

Previous edition unusable

PR

Amendment #001, issued under Solicitation # GS-00-P-15-BQ-D-7002 incorporates Industry questions to the DRAFT Solicitation, and Government responses to these questions. They are arranged by Section (including “miscellaneous” which incorporates questions that may fall under more than one Section). A significant number of questions and comments were received in response to the DRAFT solicitation. A number of comments focused on Section C (Statement of Work and Quality Control Requirements): Strategic Planning Services, Commission Agreement language, and Training Requirements. In addition, there were a number of comments focused on Section L (Instructions, Conditions, and Notices to Offerors). These sections have been updated in the FINAL Solicitation, including the incorporation of Section M (Methodology and Factors for Award).

GSA / PBS - Office of Leasing 1800 F Street NW Suite 5230 Washington, DC 20405

GS-00-P-15-BQ-D-7002

04/20/2015

04/20/2015

GLS Draft Solicitation Industry Response – Questions / Answers

Section B

1. [Section B.2.1 – General, page 7] - Can the pricing be presented on a variable amount depending on the volume of business?

No, pricing needs to be offered as a fixed amount.

2. [Section B.2.1 – General, page 7] - Why is a proposed commission rate submitted in the RLP limited to listed properties and not all properties? A valuable service is provided to the Lessor by the GSA contractor as an SME in the explanation of the lease technical content and the Post Award coordination process

We are not making that distinction. On the rare occasion that we have an offeror and that is the only offeror in a remote area who are not offering a commission, if this information is known prior to broker tasking, we will keep that project in-house.

3. [Section B.2.1 – General, page 7] - “Contractors should assume that in some cases where an offeror in lease procurement is not paying a commission to their own representative, there could be no commission available to compensate our Contractor.

GSA is not liable for the difference in any case.”

The GSA, as a partner with the contractor, must provide support for a Broker’s compensation.

The broker contractor provides substantive services to the GSA and the Lessor and has expended funds to the benefit of the GSA in the process such as TAB 1 requirements development, Market Survey work, and if applicable to the Task Order, the Market Tour.

If the GSA does not provide commission support, the Lessor community will quickly learn that they can “pocket” the commission difference by refusing to negotiate a commission agreement.

The GSA position within the solicitation seems to be in non-compliance with RSL- 2006-09 which is referenced in the solicitation.

Is the GSA stating in this provision that if a commission is not provided by the Lessor then the contractor must complete the project on a pro-bono basis?

No. GSA will not task a broker in areas where a commission cannot be earned. If a lessor refuses to pay a commission at lease award, the broker will not be expected to continue services into the post award phase.

4. [Section B.1 - Services - page 5] - Are there a maximum amount of prime contracts and / or zones that can be awarded per contractor?

A prime contractor may receive up to one (1) contract, in two (2) separate zones.

5. [Section B.1 - Services - page 5] - Out of 9 total zonal awards, how many different Contractors does GSA anticipate receiving awards?

The number of different Contractors receiving awards could be up to 9.

6. Can you please provide the password to unlock the excel document entitled “Copy of Exhibit 3 - GLS High & Moderate Value Expiring Leases List from FY16 to FY21?”

Exhibit 3 has been removed from the solicitation and a link to the GSA Lease Inventory has been included..

7. How did you establish the annual commission for each Module? (i.e., how did you determine which task orders will require a specific Module?)

This was established using the estimated annual gross commission for all requirements and the estimated percentage amount each module would be tasked.

8. What will the Government do to support the receipt of market commission?

The Government will evaluate each project before tasking to a broker to determine whether or not a commission is associated with it.

9. [Section B.2.1 – Services – page 7] – “Contractors should assume that in some cases…there could be no commission available to compensate our Contractor.”

● Will GSA screen task orders in advance when no commission is likely and divert such projects to in-house staff, or is there an expectation that some work will be done without compensation?

GSA will evaluate requirements in advance of issuing a Task Order, and where no commission is available, will manage the project with in-house staff.

● Will the final version of the Solicitation contain a structure that requires a standard market rate commission be applied to each Offeror’s proposal so all offer can be evaluated on an equal and fair basis?

The estimated annual commission for each Zone is an aggregate total standard market rate commission for the particular module and particular contract year. Offerors will be required to propose a percentage of that total commission they will receive as compensation.

● Will the government consider a commission schedule program based on transaction square footage size with fixed non-competitive tranches?

No.

10. The introductory narrative to section B.2.1 notes that there may be instances where the offeror will not compensate the Contractor. In those instances, is the Contractor obligated to provide all of the services required under the applicable module, through to their completion?

The Government will seek to only issue task orders where there is reasonable opportunity for broker commission compensation. The Government will work to minimize and mitigate instances where a lessor (offeror) decides to not sign a lease due to issues concerning broker commission.

11. The introductory narrative to section B.2.1 states that offerors will be obliged to pay tenant representative fees in the event that they are themselves represented by “a listing agent, an offering agent, or broker, property manager, developer, or any other agent or representative.” This is a broadly defined requirement that may be difficult to enforce. It certainly has no parallel in the private sector and, therefore, it appears to violate the principle that this is a “no-cost” contract to the Government. Is it truly GSA’s intent to make the Offeror’s payment of commission fees mandatory?

Yes, please refer to Section 1.13 of the Standard Request for Lease Proposal (RLP) http://www.gsa.gov/portal/content/104480

12. Are the Estimated Total Commissions listed on each Pricing Worksheet calculated such that approximately 50% of tasks are expected to be assigned through the GLS contract?

The Estimated Total Commissions represent the total estimated gross commission available (not including commission credit) for the total estimated amount of projects under this requirement.

13. Is the Proposed Standard Commission on the Pricing Worksheets meant to represent the minimum commission the contractor will receive (similar to the NBC2 commission structure) or the percentage of the fee retained by the Contractor (similar to the NBC1 commission structure)?

The proposed minimum commission on the pricing worksheets is meant to represent the percentage of the fee retained by the Contractor.

a. If the former, how is column C to be calculated?

b. If the latter, will GSA consider establishing commission-sharing tiers within each module?

GSA will not establish commission sharing tiers for each module.

14. Will GSA provide the (unprotected) spreadsheets used to determine the Estimated Annual Commissions for each Module and Service Area/Zone?

Exhibit 3 has been removed from the solicitation and a link to the GSA Lease Inventory has been included.

15. [Section B.1. pg. 5] - Will each Zone or “Service Area” be evaluated independently on price and independent of contract award in other zones (e.g., does a contract award in Zone 4 impact the evaluation for an award in Zone 1 in any way?)? Please explain

Each Zone will be evaluated independently by separate evaluation teams on technical factors (non-price) and price. A contract award in one Zone will not impact the evaluation for an award in another Zone.

16. [Section B.2.1. (General), pg. 7] - The fifth paragraph states “… a Contractor’s price proposal must state a maximum percentage of the Standard Commission in each category …” (emphasis added). The Pricing Worksheets, however, indicate that the proposed “… Standard Commission is the commission percentage that the Contractor will receive.” To cap commissions across markets is a missed opportunity to take advantage of proven private sector practices. Please clarify and confirm that Offerors are to propose a percentage of market commissions as prices in pricing tables (e.g., “70%” of market commission and not “4%” commission regardless of market commission).

Offerors are to propose a percentage of the market commission they will receive as compensation as prices in the pricing tables.

17. [Section B.2.1. (General), pg. 7] - The pricing structure described in the fifth paragraph of B.2.1. aligns the Contractor’s and GSA’s interests in securing a substantial credit for tenant agencies and given the lease acquisition module structure in C.2. SCOPE, providing a percentage of a market-based commission enables Contractors to negotiate with landlords for fair compensation that aligns with the varying complexity of services provided for each lease. Might “Standard Commission” be defined in C.3. as the market commission negotiated with the Landlord on each task order?

The Standard Commission is the share of the market commission negotiated with the Landlord on each task order that the contractor will receive as compensation (as incorporated into their GLS contract)

18. [Section B.2.1. pg. 7] - Though the statement is made that a “market rate commission is expected and must be paid” (emphasis added), will GSA find proposals from offerors that fail to agree to a reasonable and supportable market commission to be non-responsive and therefore not suitable for award?

GSA may find proposals from offerors that fail to include a market commission as non-responsive.

19. [Section B.2.2.A. pp. 8-9] - Are there minimum quantities for other than the Base Period?

If not, why?

There are only minimum quantities established for the Base Period. The Government is required to establish a minimum quantity for any Indefinite Delivery / Indefinite Quantity contract, however this requirement only applies to the Base Period of the contract.

20. [Section B.2.2.B. pp. 8-9 (also L.7. pg. 180)] - Why are there maximums? It would seem that each region and zone should have the discretion to award as many task orders as it deems beneficial to the GSA and Tenant Agencies?

Maximum amounts are established in order to limit the contractor’s obligation to deliver and the Government’s obligation to order.

21. [Section B.2.2.B. pp. 8-9 (also L.7. pg. 180)] - What commission percentage assumptions were used to arrive at the dollar amounts for each of the maximum quantities?

3%

22. [Section B.2.2.B. pp. 8-9 (also L.7. pg. 180)] - What firm term assumptions were used to arrive at the dollar amounts for each of the maximum quantities?

7 years.

23. Pricing Worksheet. What rationale was used to determine the distribution of requirements for the different modules in any given Zone (e.g., for the Northern Service Area, how was it determined that twice the commission earning potential exists in Module 3 task orders versus Module 1 task orders)?

The rationale used to determine the distribution of requirements for the different modules in any given Zone was based on historical data, and the individual Regions’ needs.

24. Exhibit 3 – List of projected expiring leases: How will GSA monitor or enforce the zones to meet the estimate of 50% of the expiring lease workload to be distributed to Contractors each year?

GSA anticipates having a performance measure in place to monitor utilization.

25. [Section B.1., paragraphs 5, 6 and 7 (page 6)]: This Section’s statements, “Contractor agrees to follow any new procedures or processes…at no cost to the Government” and “contractor…agrees to conduct lease acquisitions utilizing new methods at no additional cost” and “[a] unilateral modification to the contract will be issued…”, taken together present material risk of increases in scope in this five-year Contract. Please identify the section of the Federal Acquisition Regulation that permits unilateral changes to a contract without making an equitable adjustment in pricing. Will GSA mitigate increase in scope under this Contract with equitable adjustments? If not, why?

This section has been revised.

26. [Section B.2., Price (page 7)]: Referencing the second paragraph of B.2.1., recent reports show that the average lease terms for GSA have declined and continue to do so

– five years is no longer a typical firm term and seven years is no longer the average term. Please substantiate the statement in B.2.1 with actual figures? See http://www.capitolmarkets.com/leases/gsas-dwindling-lease-term/ for an example of data driven analysis of lease terms

This is based on historical data from our NBC leases.

27. [Section B.2.1 – General]: “Contractors should assume that in some cases where an offeror in a lease procurement is not paying a commission to their own representative, there could be no commission available to compensate our Contractor. GSA is not liable for the difference in any case”. Does GSA really expect its contractors to work pro bono when after completing all the tasks leading up to the RLP the landlord decides he doesn’t want to pay the GSA broker because he doesn’t have a broker representing himself?

28. No. GSA will not task a broker in areas where a commission cannot be earned. If a lessor refuses to pay a commission at lease award, the broker will not be expected to continue services into the post award phase.

[Section B.2.2 – Minimum / Maximum Quantities and B.2.3. Zone Map (page 9)] – Since the vast majority of small business concerns under $7 Million are licensed in only one state (or maybe two) and may only provide brokerage services in the state in which they are licensed, has the GSA considered breaking down the award of the National Broker Contracts into Regions or more preferably on a state by state basis to allow small business concerns to better compete? The rationale being; if a brokerage firm is large enough to have licensed managing brokers as required by state laws (and therefore offices) in every state in a particular zone, it is unlikely that such a firm would fall within the Small Business Size Standard of $7 million.

GSA has sought to open this requirement up to more firms interested in competing by segmenting the national scope of this requirement into geographic Zones. GSA needs are best met through a national contract that includes smaller geographic areas (Zones) and fewer contractors within those geographic areas. This structure should provide greater subcontracting opportunities, as well as opportunities for small business teaming arrangements or joint ventures.

If the GSA prefers to limit the number of prime contractors to four (or some other nominal amount) has or would GSA entertain the notion of mandating that each NBC utilize its good faith efforts to engage small business concerns in each state? This would more fairly distribute the higher commission paid in certain states and allow broader small business concern participation.

GSA must negotiate and approve a subcontracting plan for all businesses that are other than small businesses, prior to award of a contract. The small businesses subcontracting plans are evaluated based on the goals of the agency for the particular Fiscal Year.

29. [Section B.2.1 – General, page 7] – What is the average Commission Credit for each Module since the inception of NBC 1 and does GSA have a minimum acceptable Commission Credit for each Module?

The module structure incorporated into this requirement is unique to this requirement, and not included under NBC 1.

30. [Section B.2.1 – General, page 8] – Module 6 – Lease Extensions. What is the rationale behind the GSA not collecting a Commission Credit for Lease Extensions?

GSA does not collect a Commission Credit for Lease Extensions since they are typically associated with other existing lease requirements (where the Government will take a Commission Credit).

31. “Paragraph B.1 on page 6 states that “[a] unilateral modification to the contract will be issued, if needed, to provide scope of work for any changed procedures. There will be no change in the compensation arrangement under the contract for the implementation of such changes.” What principles would guide or limit the Government’s exercise of this unilateral right. Please explain how contractors can rely on their proposed contract pricing if the Government has unfettered discretion to increase a contractor’s cost of performance. Similarly, how can a contractor rely on its offered contract pricing and how can the Government legitimately evaluate pricing on a “not to exceed” basis, when the actual pricing may be driven substantially lower by virtue of the task order mini-compete process for tasks expected to exceed $150,000.00?

A changed procedure (as a result of a change in regulation or policy, for instance) may require a unilateral modification. The Government is required to issue task orders on a competitive basis for those task expected to exceed $150,000.00 (unless an exception to fair opportunity applies). All task order do not fall within this threshold, so contract pricing needs to be fixed in the base contract.

32. Please confirm whether prices are to be proposed as a percentage of market commission as was the case with NBC 1 or as a maximum percent of aggregate lease value as was the case with NBC 2

Prices are to be proposed as a percentage of market commission.

33. Will bidders be asked to submit technical proposals for each zone separately; or will proposals for each zone be required to be submitted in one document?

Bidders will need to submit separate technical and pricing proposals for each Zone they wish to be considered for. Final instruction for proposal submission will be included in the final solicitation.

34. Typically there are page limitations. How will this be addressed given the likelihood of having to submit different information – organization, experience, subcontractor plans, etc., for each zone – given that we are allowed to submit for all zones but may not be awarded all?

This information will be addressed in Section M with the final solicitation.

35. [Section B.2.1 – Services, page 7] - It is stated in this section that “four (4) sets of pricing worksheets, one for each Zone contractors wish to be considered for.” Can bidders offer more aggressive pricing structures that would apply if awarded multiple Zones?

Offerors should submit pricing per Zone with the assumption that award may only be made to that offeror for one Zone.

36. [Section B.2.1 – Services, page 8] – (Exhibit 3) – It is stated in this section that GSA estimates that it will procure leasing services for at least 50% of the expiring lease workload. We are not sure we understand what GSA means by “workload.” Is this expiring leases without regard to size or complexity, is it commissionable value, or is it something else? Without dependable workload information, contractor pricing underwriting will be flawed, and will impact the ability of the contractor to deliver satisfactory services to GSA.

This refers to expiring lease workload of high and moderate value leases.

What measures is GSA taking to ensure that at least 50% of the workload is actually tasked to contractors? Please understand that it is very difficult to underwrite the pricing model if they are not based on dependable workload information. In addition, if expiring workload means expiring leases without regard to size and complexity, how will GSA ensure that the leases selected for distribution to the brokers under this contract represent the approximate amounts reflected in the pricing worksheets?

GSA anticipates having an internal performance measure in place to monitor utilization.

37. [Section B.2.1 – Services, Pricing Worksheets –pages 10 – 29] – These worksheets only contain consolidated estimated commissions by zone, year and Module. It is impossible to underwrite the pricing without knowing the number of Task Orders that are estimated to be included in each of these commission estimates. What actions are being taken to ensure that the workload that is actually distributed in fact conforms to the projected data on the worksheets? For example, during NBCII several regions effectively opted out of the broker contract and others issued a large number of substandard lease requests.

GSA anticipates having an internal performance measure in place to monitor utilization.

Section C

1. [Section C.3 - Commission] - “The contractor’s commission is paid to the contractor by the lessor in accordance with the terms of the lease and this contract. The commission will either be the contractor’s standard or standard and best value commission.” Please better define “contractor’s standard or standard and best value commission”.

The contractor’s standard commission is the Not to Exceed commission amount incorporated into their task order award . The contractor will be paid their standard commission and the best value commission if they exceed the negotiation target for a particular deal.

This provision has been changed to allow the Contractor to use the commission for the market being worked to be inserted on the form.

2. [Section C.4.1.9 - Disposition of Lease File Records] - Will hard-copy of documents be required to be tabbed and shipped to the GSA?

The documents shall be completed in accordance with the regional standards unless otherwise directed by the National Program Manager.

3. [Section C.4.3.6.1 – Pre-Negotiation, page 50] – “Failure of the offeror to submit a signed commission agreement will be handled in accordance with RSL 2006-09 Commission Management. Commissions are to be considered a cost element during negotiations.”

RSL 2006-09 Commission Management is obscure in its treatment of Task Orders after the completion of a commission agreement is rejected by an offeror.

It is reasonable to ask the GSA to take a firm position with clear procedures documented in our contract for their treatment of offeror who refuse to sign a commission agreement:

1. The deliverables for a broker to the GSA under the NBC far exceeds the customary duties of a broker in private industry yet GSA does not take a strong, clearly defined position which would protect its partner who is performing duties as agent for GSA.

2. Will the contractor be expected to complete the task order deliverables pro-bono?

3. Since the payment of commissions is customary in all markets, will the lessor be allowed to be considered for award if no commission is offered

Offers in which a commission is not offered, in a market where commissions are customary, may be considered non-responsive.

4. [Section C.5 - Disputes, Protests, Claims and Appeals, Congressional Inquiries and Freedom of Information Act (FOIA) Inquiries] - If the contractor must dispose of all GSA records, how can we assist in subsequent FOIAs or other documentary requirements?

Contractors can assist if these inquiries are related to ongoing work a Contractor is performing under a Task Order

5. [Section C.8 - Quality Assurance by the Government] - What assurances will be provided to contractors that mandatory CPARS evaluations will be enforced by the

GSA?

Evaluations will be a ‘hold point’ within the GREX system. Projects will not be able to proceed without evaluations being completed for specific milestones.

6. [Section C.1.4.6, Subsection 6 - Payments of Contractor’s Commission (for Module 5) -page 41] - This Section states that there will be no commission credit. Should the Pricing Worksheets reflect 100% of the Proposed Standard Commission to the Contractor?

The statement “There will be no Commission Credit for Module 5” has been removed from this Section. The pricing worksheet should not reflect 100% of the Proposed Standard Commission to the Contractor.

7. [Section C.4.1.1 - Strategic Planning Services - page 56] - If a Task Order is issued for Strategic Planning Services, how will the services be paid for?

See revised Section C.4.1.1 - Strategic Planning information will not be compensated.

8. [Section C.9.2 - Contract Program Level Performance Criteria - page 63] – How will GSA ensure the accuracy of task level ratings with CPARS?

CPARS will be used to provide program level feedback. Task level ratings will be provided by the Regional CORs, and will be vetted through the Regional Program Officials. For both CPARS and Task level ratings, the Contractor will have an opportunity to respond / comment before the ratings are finalized.

9. [Section C.4.1.6 (2) – Commission and Commission Credits, page 40] - When would the lessor be aware of the Commission Credit? Many Lessors will try to negotiate them separately, to the detriment of the broker, if they are aware of a credit offset too early in the negotiations. What happens when the market finds out about this practice?

The market is aware of this practice (commission credit). They will not know the extent of the credit until just before lease award.

10. [Section C.4.1.6 (5) – Commission and Commission Credits, page 41] – If the margin between the NPV savings and bullseye target is relatively small, does it mean that on occasion the NPV savings, could all be effectively absorbed by the Contractor, if deemed Best Value Commission?

There will always be a Commission Credit to the Government, with the exception of task orders issued for Modules 5 & 6. The Best Value Commission is a fixed percentage of the total negotiated commission on any deal, and shall not exceed 10% of the total negotiated commission.

11. [Section C.4.1.6 (3) – Commission and Commission Credits, page 40] – When the market commission rate has been established as part of the negotiation objectives, why not state what the market rate is in the commission agreement? Ultimately, the commission credit may be reduced if a lower commission is offered by an offeror.

Section C.4.1.6 has been rewritten to allow the Contractor to state the established commission rate. The Government expects that the final rate will be negotiated between the Contractor and the Offeror.

12. How is the commission handled if a lump sum payment has been made by the

Government when the second half commission has already been collected?

A lump sum payment would only be made by the Government in the instance of a Reimbursable Work Authorization (RWA). Commissions are not collected on this portion of the lease.

13. [Section C.3 – Definitions and Terminologies, pg. 33] – Regarding “Best Value Commissions”, is the 10% bonus based on the total commission paid by an offeror, or just the portion going to the contractor?

The Best Value Commission bonus is based on the total commission paid by an offeror.

14. [Section C.3 – Definitions and Terminologies, pg. 33] – What are the rating period for “Best Value Commission”? Is the level 3 or better criteria for each item of the evaluation, or for the overall average of the evaluation?

The rating period for the “Best Value Commission” is six months. A level 3 or better criteria for each item of the evaluation is required in order to meet the past performance requirement for the “Best Value Commission”.

15. [Section C.3 – Definitions and Terminologies, pg. 33] – Is the criteria to receive “Best Value Commisson” regional, zonal, national, or all three?

The criteria to receive the “Best Value Commission” is zonal.

16. [Section C.4.3.8 – Post Award Services, pg. 51] - There is a significant increase in services for Post Award. These increased services result in incremental increases in staffing and travel costs; however there does not appear to be an additional compensation consideration. Please clarify how these services are to be compensated.

These services will be compensated through the Standard Commission proposed by the Contractor at time of offer, and incorporated into the subsequent award. Additional compensation is available through the Best Value Commission, provided the Contractor meets the requirements described in Section C.3 “Best Value Commission”.

17. [Section C.4.3.8 – Post Award Services, pg. 51] – If a project has multiple phases will the number of inspections be determined per phase or as a whole project? If a project has an extended time of construction due to complexity of the project, will the number of inspections be altered by the Government to match the construction schedule?

No. The inspections will remain as stated in the solicitation.

18. [Section C.4.3.8 – Post Award Services, pg. 51] - Does the Government expect a technical inspection for each progress inspection? A technical inspection assumes liability to the inspector/firm that the report is accurate. The contract does not specify technical expertise for a Post Award inspector.

No

19. [Section C.4.3.8 (5) – Post Award Services, pg. 53] - Reporting of deficiencies during an onsite visit is mentioned in C.4.3.8.5 however the types of deficiencies are not noted.

Are technical deficiencies in shell structure, HVAC, wall construction, and other installation methods expected?

Technical deficiencies that are not obvious are not the contractor’s responsibility. They are not performing the services of a construction manager.

20. [Section C.4.3.8 (5) – Post Award Services, pg. 53] - Projects smaller than 10,000 SF have the option of a progress inspection. If an inspection is not conducted and the project has delays, will that impact performance evaluations? Is the contractor liable for delays based on a discretionary decision? How is the contractor compensated for the trip if they attend?

Contractors need to factor this trip into their proposal submission. Delays in the project will be evaluated as to how and why they occurred, based on the information known at the time to those involved on the project.

21. [Section C.4.3.8 (2) – Post Award Services, pg. 52] - DID workshop attendance is mentioned for attendance “at their discretion”. Will attendance or non-attendance in person be a performance evaluated item?

Should you decide not to attend the DID workshop should not have an adverse impact on your performance as long as your COR is notified in advance,

22. [Section C.4.3.8 – Post Award Services] - There are lease requirements that are technical and confirming conformance to those requirements push the contractor into an A/E liability situation. Items such as HVAC design, electrical design, and structural components require specific technical expertise not required in the personnel staff.

Please clarify required responsibilities.

These inspection services are performed by GSA in house staff and construction managers.

23. [Section C.4.3.8 (7) – Post Award Services, page 54] – Davis Bacon review can be a costly investment in time. It is mentioned in the LDG but not in the RLP. Is this a requirement of the contract?

This is a requirement of the contract when it applies to the Lease Requirement. Davis Bacon reviews are not required for all projects.

24. [Section C.4.2.- Description of Modules, page 42] – Modules 1 &2 and possibly #5 require “Requirements Development”. May we assume that these PORs are macro in nature and the output of which is to obtain accurate quantitative and qualitative space requirements but not so detailed to provide a basis of detailed space plans? Can we assume that these PORs will generally be subsequently delivered to an architect who would then take them to a more detailed level for design purposes?

Yes

25. [Section C.4.4.1- Strategic Planning Services, page 56] – The Strategic Planning Services could be interpreted as an exhaustive study of a particular region and/or a specific agency/campus, or as is suggested a “high level” general market analysis (depending on one’s interpretation of “high level”). If there is a way to make this more clear that would be helpful. ?

See revisions to Section C.4.4.1

26. [Section C.4.1.6- Commissions and Commission Credits, page 39] - Commissions and Commission Credits, Section 1, Negotiation Objectives, This section indicates that the contractor shall provide a market commission percentage rate or dollar amount and that the figures shall be substantiated with supporting documentation by a third-party market research source. Are there particular sources that need to be cited for this objective to be met?

Sources may vary based on the market. It is the Government’s intent to have evidence of market comparables beyond proprietary Contractor resources or anecdotal feedback.

27. [Section C.4.1.6 (3) - Commissions and Commission Credits, page 40]: Commission Negotiations-Is it possible to revisit this structure? It will not benefit the Agency, GSA or their leasing partner.

See response to question 11.

28. [Section C.4.1.6 (5) - Commissions and Commission Credits, page 41]: “Determination of Best Value Commission” - Is the 10% bonus derived from the commission as previously agreed to and is it taken out of the Commission Credit typically applied to the lease?

Yes.

Does this mean a recalculation of the NPV with reduced fees?

Yes.

At lease award.

Please clarify the “previous rating period” with regards to determining the 10% credit. Is this based on specific project evaluations to date, or Contractor performance overall for a prior quarter or year?

Previous rating period is referencing the previous quarter only, performance is reported quarterly

29. [Section C.3 – Definitions and Terminologies, page 33] - Many brokers have encountered problems with individual Bullseye reports, a situation which could undermine GSA’s own performance assessment as well as incentives for broker-bonuses based on rental rates relative to this report. Will the Contractor have the ability to request adjustment to Bullseye data based on specific market conditions in the delineated area?

Although GSA does have a review period and allows adjustments for very specific items to make sure that the assessment is as accurate as possible, the underlying market data and target will not be open to review and adjustment.

30. [Section C.4.3.1- Requirements Development, page 46] – If GSA requests that brokers take on requirements development and/or post award services (for a larger commission), can those services be defined in such a way that the limits of expectation are clearly distinguished?

Section C.4.3.1 defines the expectation of what is to be provided

31. [Section C.4.3.8 – Post Award Services, page 51] - If unusually complex requirements development (requiring A/E programming/technical experience) and unusually complex post-award construction inspection/monitoring services (requiring professional CM/technical services) are needed, will the tenant agency be expected to deliver additional RWA funding just as GSA might require them to fund similar services if the lease acquisition were done in-house?

Section C.4.3.8 Post Award Services, clearly defines the contractor role. If additional services are required these will be coordinated with the appropriate Government entity.

32. [Section C.4.4.1 – Strategic Planning , page 56] - This is a very important component of asset management and one that is traditionally incorporated into a contract with a guaranteed amount of non-discounted work or is contracted separately through a firm that specializes in this service. It is not the same work as brokerage and could be very expensive to perform with no compensation. Would GSA consider using a separate contract for strategic planning services, or could GSA build additional compensation into subsequent task orders which may result after providing these planning services?

This section has been revised; see response to question 7.

33. [Section C.3 – Definitions and Terminologies, page 33] - Does the Bullseye system described in RFP section C allow for the Contractor or the Contracting Officer to refine the Bullseye negotiation target with supplemental market data (such as lease comps, CoStar reports based on practical competition, market trends, etc.)?

Yes, when an assessment is calculated the Bullseye Target is used as the base rent and is increased at 2.5% annually.

34. [Section C.4.1.6 (6) – Commissions and Commission Credits , page 41] - In section C.4.1.6, subsection 6, the RFP notes that the Contractor will receive 100% of its commission for lease acquisitions services “upon lease award”. How will this square with the typical norm whereby commissions are paid by the offeror 50% upon lease execution and 50% upon occupancy?

Under module 2 & 4 different paragraphs will be inserted into the Lease to provide for 100% commission at lease award.

35. [Section C.4.3.2 – Project Orientation Meeting , page 47] - Per section C.4.3.2, are the Project Orientation Meeting and Task Order Orientation Meetings meant to be in-person meetings?

There is not a requirement for this meeting to be in person, conference calls are acceptable.

36. [Section C.4.3.8 (1) – Post Lease Award Orientation Meeting , page 52] - Per section C.4.3.8, is the Post Lease Award Orientation Meeting meant to be an in-person meeting?

There is not a requirement for this meeting to be in person, conference calls are acceptable.

37. [Section C.1 – Value Tier Table, page 31] - While the intent of deriving the greatest value from private sector participation through identifying high and moderate value leases is clearly desirable, the parameters in the table are too broad. For example, a 2,000 square foot lease in Des Moines, IA would be considered a high value lease, and a 200 square foot lease would be considered a moderate value lease. Accounting for effort and travel, these leases would generate minimal and possibly no net compensation.

Which MSA ranking is used and when will it be updated?

MSA rankings are generated by the U.S. Census Bureau and is updated every 10 years.

Might GSA consider using the top 50 MSAs by GDP in lieu of what appears to be the top 100 by population to focus on higher rent areas?

No, we will continue to use our current format.

Might GSA consider raising the 2,000 square foot threshold to >10,000 square feet for high value and >5,000 for Moderate Value?

No, we will use our current standards.

38. [Section C.2 – Scope, page 32] - Is the number of “national performance review meetings” each year (presumably 0, 1 or 2) and the format (virtual or in-person) at the discretion of GSA or the Contractor? Are any meetings in excess of 2 at the discretion of the Contractor?

The Contractor shall attend up to two national performance review meetings a year with the National Program Manager (NPM), National Contracting Officer’s Representative (NCOR), National Contracting Officer (NCO), and other Government representatives. Meetings may be held virtually or in-person. Travel costs shall be at the Contractor’s expense.

This paragraph provides for the minimum number of meetings required, if additional meetings are needed the contractor can submit the request. Any meeting in excess of two is at the discretion of the contractor.

If in-person meetings occur, what number of Contractor personnel is required to attend at the Contractor’s expense?

The contract does not specify so the contractor can have the flexibility to make this decision.

Is the number of “regional performance review meetings” each year (presumably 0, 1 or

2) and the format (virtual or in-person) at the discretion of GSA or the Contractor? Are any meetings in excess of 2 at the discretion of the Contractor?

Same answer as above for the National performance meetings

If in-person meetings occur, what number of Contractor personnel is required to attend at the Contractor’s expense?

Same answer as above for the National performance meetings

39. [Section C.3 – Definitions and Terminologies, “Bullseye (Exhibit 4)”, pages 33 - 34] - Please define the criteria for “qualifying lease transactions” and confirm that a report will be a component of the critical path for every qualifying lease affording the Contractor an opportunity to be compensated at a Best Value Commission level.

A qualifying lease transaction is a lease that’s delineated area is inside the market coverage of Reis and is predominantly office space (over 75% office space).

Does the Bullseye report consider and adjust for flat rent versus rent escalations, which may be typical in various markets? If so, how? If not, how will GSA ensure that this will not result in unrealistic, or distorted, targets that are used as a basis of compensation under the Contract?

Yes, when an assessment is calculated the Bullseye Target is used as the base rent and is increased at

2.5% annually.

Does the Bullseye report consider and adjust for security requirements and other federal lease terms (e.g., “holdover” rights), which may not be typical in various markets? If so, how? If not, how will GSA ensure that this will not result in unrealistic, or distorted, targets that are used as a basis of compensation under the Contract?

The Bullseye assessment accurately reflects the building owner’s funding of the government buildout, including security requirements, and the subsequent repayment of those costs through the rent.

40. [Section C.3 – Definitions and Terminologies – Best Value Commission, page 33] - Might a Contracting Officer request that the rental midpoint included in the approved negotiation objectives be used for the best value commission in lieu of the Bullseye report, if the Contracting Officer agrees that the bullseye report doesn’t accurately depict market rates?

For procurements being conducted in areas not covered by Bullseye, the midpoint of the approved negotiation objectives will be used. However, when a Bullseye Report is available, the market data provided in the Report will be used when calculating the assessment.

41. [Section C.3 – Definitions and Terminologies – Bullseye Target, page 34] - Please clarify if the full-service RSF rate or the full-service ABOASF rate will be compared to the PVA?

RSF.

42. [Section C.4.1.5 (2) – Changes to Task Order after Issuance of Task Order, page 39] - Might “may” be changed to “shall” to remove extensive administration and reporting burden on the Contractor(s), bring greater consistency to the leasing process across regions and eliminate an unnecessary contracting step that adds to lease procurement cycle time?

Yes.

43. [Section C.4.1.6 (3) – Commission Negotiations, page 40] - Please clarify if Contractors can include the market commission percentage in the RLP/Lease package given the market commission will be approved by the COR as part of the negotiation objectives, per C.4.1.6.1.

See response to question 11

44. [Section C.4.1.6 (4) – Documentation of Commission, page 40] - Please clarify whether the third paragraph of this section also implies that the contractual percentages will be “walked to” for example, when market practices are to apply a wholly different calculation (e.g., dollars per square foot per year as a market practice in the City of Chicago)? GSA can easily resolve this through pricing proposed as a percentage of a market commission.

Referencing the Aggregate Lease value calculation: While Aggregate Lease Value as defined should be the standard for negotiating commission on a lease award, (total lease value for firm term) there may be instances where market practices differ from this value to be used as a basis for the commission calculated on the deal. For Example markets where the lessors pay commission on shell only In these instances, the Commission and Commission Credit should be documented in the commission agreement and lease agreement as negotiated between the successful offeror and broker.

45. [Section C.4.1.6 (4) – Documentation of Commission, page 40] - The recognition that “there may be instances where market practices differ from [using aggregate Lease Value] as a basis for the commission calculated…”, and the flexibility to follow such market practices with respect to negotiating a market-based commission agreement is a welcome revision from the terms of prior broker contracts, reflecting the adoption of industry practices. However, the requirement that “any deviations” are to be reviewed with the Regional Program Manager prior to signature effectively makes the government a party to the agreement (as their review may not be favorable, halting the procurement) and further adds to lease procurement cycle time. Might GSA consider removing this requirement for review?

46. [Section C.4.1.6 (5) – Determination of Best Value Commission, page 41] - Might GSA clarify all of the conditions required for earning a Best Value Commission in a single section in the Contract? The additional condition on earning a Best Value Commission described in C.4.1.6.5. related to performance evaluation ratings could be clarified in the definition of “Best Value Commission” in C.3. on page 33.

Section C.4.1.6 provides for all the conditions of the Best Value Commission, the definition is not intended to go into that amount of detail.

47. [Section C.4.1.6 (5) – Determination of Best Value Commission, page 41] - Is the “Level 3 or better” performance rating based on a national, zonal or regional average, and to what period is the average applied (e.g., prior quarter)?

The criterion to receive the “Best Value Commisson” is based on zonal performance in the previously evaluated period.

48. [Section C.4.1.6 (5) – Determination of Best Value Commission, page 41] - Which of the following are used for the numeric comparison for determining if a Best Value Commission increase of 10 percent has been earned: (i) C.4.1.6.5. – “cost of an estimated market lease on a net present value basis…” (ii) C.3. Bullseye Target – “year one base rent” and/or (iii) C.3. Best Value Commission – “final rental rate”? It appears that one is a present value cost, another is a total rental amount, and the third is a rate, presumably per square foot.

(i) C.4.1.6.5 – “cost of an estimated market lease on a net present value basis”

49. [Section C.4.1.6 (5) – Determination of Best Value Commission, page 41] - Please clarify who and when the additional 10 percent is paid in cases where the criteria for a Best Value Commission are achieved.

Best value will be determined prior to award by the RPM and the additional amount will be considered at award.

Will payment come from the credit generated by the difference between Contractors’ awarded commission percentage and the market commission percentage negotiated?

The commission credit will be reduced by 10% and added to the broker’s commission earned.

How will…