Link to Recording>>Forward to this
unique perspective today. During to today’s series we’re
going to cover the history of the GLS program and
the predecessor contract. We’ll discuss the
GLS Menu of Services which are the six-line items
unavailable under the contract. And we’ll also cover how
the contract works for you as our customer, and showcase
some GLS project successes. And we’ll end talking briefly
about the Successor Contract, and then take some
questions from you on the phone and online. GLS stands for the GSA Leasing
Support Services Contract. And the contract is an
IDIQ type which stands for Indefinite Delivery,
Indefinite Quantity. And this type of
contract is used when you know what you need, but aren’t quite sure
exactly how much. The GLS is the fourth-generation
broker contract we’ve awarded to support GSA’s
leasing workforce. If compliments our leasing
workforce and provides support to our support services
to our regions in managing expiring workloads. It also leverages
broker expertise in providing more
efficient space solutions for you our customer. So, slide six gives
a brief history of GSA’s brokerage program. There have been a few other
contracts that were awarded to assist GSA’s leasing
workload. We started with the Regional
Brokerage Contract in ’94, and then the NBC 1 in 2005,
and the NBC 2 in 2010. What we learned from the
regional brokerage contract was that each region
administered their contracts in whatever way works
best for them, and administration
really lacks consistency. Then we awarded NBC 1 and
we established one contract with four brokers that
received task orders or leasing projects using and
equitable distribution system. And we learned from
equitable distribution was that brokers were not
necessarily driven by performance. The NBC 1 was the first time
we established a contract that offered our customers
commission credits resulting in rent cost avoidance. And the NBC 1 contract
and the contract that followed all use
no appropriated funds, and are called No
Cost Contracts. So, under the NBC 1 the
brokers retained a portion of the commission earned
in a lease transaction. And the remainder of the
contract was credited to the lease in the form of
a commission credit similar to what’s in practice now. Our earlier contracts
were managed independently by each region as we
discussed, and we found that this was not the best way
to manage our brokerage program. Over time this created
inefficiencies and resulted in redundant resources by
having a leasing specialist, a leasing contract officer,
and a broker on all projects. And sometime these projects
even required a project manager and other personnel in addition to those already
assigned to the project. So, what we heard from you
was that this was confusing, and resulted in you having to
interface with numerous people on the same project, and
often on the same topic. So, to address this,
we reduced the number of GSA representatives that you
interface with by removing all of the redundant project
personnel assigned, and letting our broker
partners act in the capacity of our reality specialists. The lease contracting officer is
the only GSA personnel assigned to a project under the GLS. Another thing we learned is that because lease projects were
issued equitably under NBC 1, there was no incentive in
place to drive performance. So, we wanted to optimize
broker performance so that you would
receive the benefit of having the most qualified and the highest performing
brokers assigned to your projects. To address these concerns, we established a
performance-based incentive to ensure broker
performance under the GLS. so, what this means
to you is that, when our brokers perform
exceptionally well, and bring you lease rates
that are well below market, we reward them by allowing them to retain a larger
portion of the commissions. This is a win-win for you. The lower lease rates
means less rent for you, and you still get the benefit
of lease cost avoidance. So, with the GLS you get
the best of both worlds. And we’re still taking
advantage of no usage of appropriated funds,
and it’s being used as a workload supplement
and resource multiplier. After 10 years of
lessons learned, we’ve made several changes to the contract streamlining
processes and eliminating redundancies. And the contract now
works better for everyone. We’ve made significant changes to the structure
of the contract. Most were internal such as
reducing personnel that we’re — that we have assigned. And streamlining our
administrative processes. One big change is that we
now have a zonal structure, which I’ll show you
on a later slide. So, depending on your area
of the contract or your zone, you’ll work with fewer brokers,
and — or GSA personnel. We have dedicated resources
assigned to the contract, and because of this
we’ve increased broker’s responsibility. The broker’s role and it’s
under GLS, mirror the role of a leasing specialist. Strategic planning services were
also added allowing real estate and portfolios to partner to
review your expiring leases to develop workload
planning strategies. Strategic planning also gives
brokers the opportunity to share with us what’s going
on in the market and give contractors
more flexibility in reporting information about
changes in market conditions and renegotiation opportunities. And we can then pass
those savings on to you. On slide eight is a diagram of
our organizational structure. So, as I discussed earlier when
I spoke about improvements made to the contract, we
drastically changed the organizational structure. The contract is now broken down
into four zones with a total of nine contracts nationwide. Two contractors service
each zone except in zone 4. We’ve broken the nation down
into northern, southern, western service areas,
or zones 1, 2, 3, and 4. Three contractors serve the
national capital service area which is zone 4. We consider several factors
when establishing zones such as geography, lease count,
lease size, and lease market. This structure provides
a great opportunity for more contractors. It also reduces administrative
burden, and allows for increased
consistency, while strengthening
relations in the region. In zone 1, which is highlighted
in blue, we have two brokers, Jones Lang Lasalle and CBRE. In zone 2, which is highlighted
in orange, we have two brokers, Savills Studley and Public
Property, which is one of our business partners. In zone 3, which is highlighted
in green we have two brokers, Cushman Wakefield and
Carpenter Robbins, which is also one my
small business partners. And in zone 4, which is the
small star highlighted in red, we have three brokers,
Jones Lang Lasalle, CBRE, and Savills Studley. Under GLS we have six
different line items which we call modules. So, under previous
contracts, regions were forced to task projects to brokers for
the entire leasing procurement. This included requirement
development, lessee auction, and post award services
whether they were required in your project or not. And what we found was that
there were sometimes — we were sometimes paying
for services that were built into the contract that we
didn’t necessarily need. GLS allows regions to
determine which resources to use to support their projects, and
task only the services the need. As you view the top of the
chart highlighted in blue, you can see which portions of the lease procurement
process are available. This assists the
regions in determining which module they need
to task to a broker in awarding your lease. Moving down the column,
if a service is indicated by a green check it’s
included in the module. If the column includes
a red check, it’s not included in the module. And we find that offering the
six modules really allows our real estate team members to
tailor broker task orders to their specific needs. It also represents savings. Each of the modules
are priced separately, the more work a broker performs, the commission structure
is usually higher. By eliminating portions
of the lease procurement that you don’t need, you can
achieve a greater cost avoidance by lowering the commission
structure. All GSA leases are broken
down into high, moderate, and limited value leases. We had a third-party
contractor come in to determine where the brokers could add the
most value to our customers, and what we found
was that the area where the brokers could
add the greatest value to you were the leases
that were considered high to moderate value based
on several factors. And this due largely to the
broker’s market knowledge and the impact they
had in large cities. GSA classifies its
high, moderate, and limited value leases
as follows per the table. And they’re broken down
by three components, type, size, and location. So, all projects — all project
types can be tasked including new, new replacing,
succeeding, extensions, and prospective projects. Renewal projects
cannot be tasked. New types of leases unattainable
refer to new or replacing leases which are identified as leases
with new terms and conditions, new lease contract numbers. And are applicable for
either new requirements or to replace an
existing expiring lease. The size aspect is based on the
anticipated ABOA square footage of the proposed acquisition. And ABOA just means the useable
square footage, and is the area where the tenant normally
houses personnel or furniture. The location component tiering
is based on the MSA list. MSA stands for the
Metropolitan Statistical Area, so think population. These areas are defined by OMB. The contract also allows for
the flexibility to use contracts for limited value
leases to assist regions with resource capacity, and — leases tend to be in remote
locations, and are more costly for the brokers to perform. So, slide 11, we’ll talk
about how the contract works. So, step one in bringing a
broker onboard is identifying an agency need. the decision for the
leasing contracting officer to utilize the broker is a
decision that is made internally and based on — yeah,
business needs. The GLS is one of
the tools that GL — GSA uses to acquire leases. So, once that need
has been identified, the lease contracting
officer determines which module they need based on the value tier table we
discussed on the previous slide. Once the lease contracting
officer has this information, they’ll prepare a broker
task order request, which contains the
statement of work information. So, this information
is then forwarded to a zone contracting officer who will issue a task
order in step two. The task order is
awarded to a broker who offers the best values for
government in every project. Each broker project is
competed among the contractors within that zone. We consider several factors
including past performance and price, and if
required, we take a look at a broker’s specialized
experience. So, we sometimes receive
specialized requirements from you varying from the
requirements from skip base, wet and dry lab, to working
on top secret project. So, we take all of this into
consideration to make sure that you’re getting the best
worker possible assigned to your project. Step there is the broker
receipt of the task order and the notice of receipt. At this time, the broker
goes through the steps of a lease acquisition
required based on the specific module
they were rewarded. If the broker needs to gather
requirements development information, they
get started on that. The broker will interface
directly with you on behalf of GSA in confirming your
specific agency needs. If that work has already
been completed inhouse, the lease contracting officer
provides the requirement and the broker will start
working on awarding your lease. Once the lease is awarded, the lease contracting officer
approves and signs the lease. At this point in the process
the task order is complete. If your project requires
post-award services, the broker will continue
to work on those, and the task order will be
completed once those tasks have been wrapped up. So, the final step is step four, which is the commencement
of rent. Once the lease reaches
substantial completion, rent begins, and you can
see the savings achieved through rent cost avoidance in
the form of a commission credit. This is the result of
government sharing some of the commission
negotiated by the broker and the lessor applying
that portion to the rent. So, slide 12, I Wanted to
present to you an example of how we arrive at the
commission credit amount, which results in
decreased rent for you. So, the first step is to determine the
aggregate lease value. And this is done by multiplying
the total rentable square footage by the rate per
square, and the number of years in the firm term. For this example,
we’re using $42 million as the aggregate lease value, $34 for the cost per
rentable square foot. And we’re going to
assume 20 years firm term. So, prior to lease — prior
to task order award the — or prior to lease
award, I’m sorry. The lessor and the broker agree
upon a standard fair market commission that they
agreed upon independently. So, the government
generally does not interfere in this agreement except
to ensure that it’s fair. For the purposes
of this example, we’ll use an agreed upon
fair market commission of 3%. This is the amount
of the commission — this is the amount of commis — this is the amount of the
commission the lessor has agreed to pay the broker
at lease award. In determining which broker
to award a task order to, which was step two from
the previous slide, the broker is sometimes invited to propose a lower
commission percentage than offered in the
base contract. For this example, we’ll assume that the successful broker bid a
standard commission rate of 49%. This means that whatever
the resulting commission on the least deal,
which we stated for this exercise will be 3%
of the aggregate lease value, the broker will keep 49%. So, here you see in the breakdown the total
earned commission will be $1 million, 260,000. Of this, the broker
will retain 49% of the commission at $617,400. The remaining $642,600
is the commission credit, which will be applied
toward the rent. This is six-thousand —
$642,600 in free shell rent. The requirements development
is a very important component under the GLS contract. The process includes the
analysis of your mission, your goals, your mission goal, business processes,
and space standards. So, during this pre-planning,
the focus is on obtaining your
strategic level requirement. Such as your delineated
area, agency planned usage, and the total square
footage that you require. Under certain modules under
the module, the contract allows for the broker to assist
with the gathering, and completing many aspects of
the requirements development. When requested, the brokers
are responsible for preparing or assisting with the gathering
of the SF81, request for pace, conducting Needs interview, and conducting agency
long-term space requirements. Special requirements or
agency specific requirements. Assisting with delineated area, performing rules
development compliance. Preparing justifications
for delineated areas, combine project management
and acquisition plan. Developing a milestone
schedule, the tenant, agency standard work hours, utilization rate,
and market analysis. So, all those a broker is
responsible for assisting with the 11 items
I just mentioned. The overall goal for the
requirements development phase is to ensure the broker
meets five key elements to requirements development. The broker needs to conduct
a Needs Assessment Interview with you to confirm that
your actual space needs — to confirm what your
actual space needs are. And once we learn
what those needs are, they must be confirmed. The broker also has a role in presenting options
using their knowledge of market conditions and
other housing options. So, when your needs
have been agreed upon, the broker documents
the agreement, and delivers the requirements
development package to GSA. So, with requirements
development, the timing to which a broker
is introduced to you depending on the region you’re
working with, as well as many other factors
involved in the project. For example, sometimes
the broker isn’t involved in requirements development,
and they’ll come onboard later on at a project orientation
meeting. Strategic planning was also
added to the GLS contracts to leverage the private
sector innovation in strategic market analysis. This tool allows for the office
of real estate and portfolio to partner with our brokers to
review your expiring leases, and develop workload
training strategies. With our broker partners
we can assist you in cost saving initiatives
by determining cost savings in colocation opportunities. Market valuation to
determine if renegotiation of terms would create
lower rental rates. Agency grouping opportunities to
allow for larger shared leases that typically yield lower
overall rental rates. And the delineated areas for
operations can be augmented to reduce rental rates
in neighboring areas. The contractor may provide
a high-level analysis of market status — of the market status including
market indicators and evaluation of the debt market to
allow us opportunity to restructure leases. They may resource markets to notify the government
of owner debt struts. They may present options
for renegotiation of length of lease, firm and soft
terms, and rental rates. And any other concessions that might be achieved
with renegotiation. These services for strategic
analysis aren’t ordered using a task order and no commission
is paid to the broker. They’re only ordered
on a limited basis, and must be approved
by the National Office. At this time, I’m going
to turn the presentation over to Edgar Delgado, however,
first, I wanted to take a pause to see if we had any questions
that we needed to address on the phone or online.>>Yeah, we do. There’s actually been some
good chatter in the chat box, so I want to thank the people
who have had their questions in. And I see Jessica and Monica
now are answering some. I think this was on slide
11 a question came up, maybe you can flesh out a little
bit more, the types of projects that — this is sort of —
is it just office projects? Or I heard you say
skiff and other spaces. Can you just be a little more —
because what types projects all, some — are — that’s
applicable for this?>>Okay. Any lease
acquisition is applicable and appropriate for
the GLS contract. The lease contracting officer’s
going to that decision.>>Okay.>>We do warehouse
space, like I said, we do some labs, some wet labs. We do have some projects
that do require top secret. So, when we talk about the
specialized experience which is, I think, what your question was
directed to, it really depends on the complexity of
your scope of work. If you have some specialized
needs that need to be addressed, and we want to make sure that
the broker can cover those, then we’ll ask for those
upfront to make sure that the broker can
meet those needs. So that we’re not issuing
a task order to a broker that we know is not going
to be able to assist you on your project successfully.>>Excellent. And I think that
you said earlier, this is for both prospective and
non-prospective leases, correct?>>Exactly. Exactly.>>So, the size is —
you can be flexible.>>Yes, size is very flexible.>>Excellent. I want to encourage everybody
to keep popping those questions into the chat, and
we will get to them. And anything that we don’t
get to of course, we are going to answer in a formal Q
and A document after this. So, I’m looking through
here, I see a question coming in — let me see here. Do you have any examples of
the GLS contract that was used to implement strategic
workplace engagement? And, or an example
of the deliverables of a POR using the GLS contract? Thank you, Carol,
for submitting that.>>So, I can answer I
guess, a little bit of that. PORs are not ordered
under the contract. The POR means Program
or Requirement. Requirement development
is something on a much smaller scale, and that’s just gathering
your agency requirements. And I think I may
allow Jessica to — or Jessica or Michael
take over this question to answer in more detail.>>Are Jessica or Michael
on the line?There you go.>>Okay. So, when the GLS
contract was developed it was before the distinction
of strategic and technical requirements. But in general, the
broker can help with strategic requirements. And then, in the next
fiscal year we’re going to be looking a little
more closely looking at how the distinction of
how the broker can support with the technical requirements. So, more to follow on that. In terms of an example,
we can, Carol, if you’d shoot us an email
we’d be happy to provide you with an example of
what the brokers can do with requirements development.>>Great. Well, thank
you Jessica and we will share
contact information, I know that your team has sort of a shared inbox
that you check.>>Yes.>>We will share that at
the end of the presentation. And Jessica, you
may have advertently or inadvertently
answered other questions in the chat, so I
appreciate that. With that said, we’re at
about the halfway point of our presentation. We’re going to turn over
presenting to Edgar Delgado, so Edgar if you’re
there say hello. And we look forward to your
half of the presentation.>>Thank you Eric. Hello everyone, all
right, let’s get going. So, how do we monitor
broker performance? I want you to know that our
brokers are an extension of our leasing teams here at
GSA, they are our partners. Although, you may be interacting with a broker we have not
removed from the process. Just like we care about our
leasing specialist performance, we care about our
brokers’ performance, and because we care, we
measure their performance. This contract is about
much more than money. We want you to get
the best deals with the greatest performance. This is a performance-based
contract, and our brokers’ performance
if closely monitored and the broker is evaluated
at milestone events, as well as periodic events. Each broker project is
assigned a Contracting Outreach Representative or COR who’s also
the lead contracting officer for the lease. Part of the COR’s responsibility
is to monitor the performance of the broker, and ensure that deliverables are
estimated accurately and timely by performance broker
evaluation. Brokers are required to
perform in accordance with the contract requirement, in which the COR’s
responsibility to document contractor
performance. At several milestones
throughout the project, CORs complete an
evaluation questionnaire, and assigned a score based
on broker performance. The scores that the broker
receives from the core for each criteria are rolled up to establish past performance
scores for each firm. These scores are then used in
part to determine the best alley to the government when then
they can task for their award. We not only use these
scores for task order award, but they are also
reported to CPRS[Phonetic], which is an electronic
contractor performance rating system. These scores are used
by contracting officers from our agencies to establish
task performance history. Each evaluation drive
broker performance, and result in a better value
to you, our customer agency. These added performance
incentives to the contract that allow the contractor
to retain a larger portion of the commission if
they perform well. This is a win-win for you because you get the
best performance and still receive
rent cost avoidance. So, who are our customers? Well, we do business with
numerous federal agencies, and you’ll see a sample
of those to the left. The chart to the
right represents that top five agencies
we do business with. It also gives a visual
representation of some of the largest used of
the broker’s program since its inception in 2014. These numbers were
reported around March 2018. As you can see, a very
large portion of our work is in support of the Social
Security Administration, totaling over 2 million
rentable square feet. The FBI and IRS represent the
second and third largest portion of our workload with just under
1 million rentable square feet, followed by the Census and ATF. The Current GLS Initiatives. While GLS is currently
assisting nationwide of their two major initiatives,
the census and disaster leasing in response to Hurricane
Harvey and Maria. The U.S. Census is in
the process for preparing for the 2020 Census Decennial. A primary mission requirement is to meet demanding schedule
dates, to deliver the apportion and count and population to the
President of the United States by December 31st, 2020. Beginning in FY 17,
the Census 2020 program at 248 Area Census
Offices or ACOs to be existing GSA PBS workload. Censures require
GSA to acquire space for approximately 248 ACOs, of which approximately 40 will
be required for early occupancy. The acquisition and onsite
project management is being PBS teams. GLS has assisted the
regions in the effort by awarding 40 task
orders to brokers to find the space
for the census 2020. Twenty-seventeen was a very
active hurricane season and a tough time for
many of our customers. We saw Hurricane Harvey and
Maria cause great damage to Texas and Puerto Rico. However, GSA was there to
support our customer agency. From the time we became aware
that the leases were necessary, the verbal notice to
proceed were issued to brokers within 24 hours. At times, some of the
leases didn’t result in any commissions, and
the brokers still assisted with these emergencies leases. In the case of an emergency
GLS has streamlined tasks and procedures to ensure that
our broker partners are tasked in a very expedient manner. Our GLS Project. Well, we want to talk about
two projects that were awarded to Public Property
who happened to be one of our two small
business contractors. Although they are new to GSA
brokerage, they are not new to real estate at all. Once they received their notice
to proceed for both projects, they were able to assist GSA in overcoming some
procurement obstacles. The first project was for a customer agency
in Brandon, Florida. This customer agency currently
operates a medical clinic in Brandon, Florida. Due to increased
patient business and the growing population, the current 15,000 square foot
facility no longer met the agency’s needs. In March 2017, GSA through
a GLS contract tasked Public Properties with finding
a long-term solution for this customer. So, some of our project’s
challenges were, first, we had a limited competition, the incumbent space didn’t
meet new requirements, and they didn’t have
the ability to expand. Second, the project had a
compact project timeline. The agency’s goal was to occupy
a new space by fall of 2018. This included solicitation,
award, designing construction
of medical space. And third, the agency’s
on-service and low rent rate threshold of $1 million dollars
needed to be met. Threshold includes, built out of tenant improvements
on level three BSAC. We were very impressed by
Public Properties results with the lease acquisition. With two offers throughout
the procurement process, Public Properties was
able to hold three rounds of negotiations, each focused
on rental rate reduction, resulting in lowering
our present value. In order to meet the
compact timeline of 2018, Public Properties was
very involved during the post-award design. A design and 10 drawings
workshop was held three days after lease award, with a follow-up onsite
meeting within a month. Public Properties
negotiated a lease that included five
months of free rent. Additionally, Public
Properties rebated over $194,000 of commissions owed
for the lease. This rebate, called a commission
credit was provided directly to the agency reducing
their rent bill. The second project that I
want to share with you was for our customer agency
in Shreveport, Louisiana. GSA leased 10,495
rentable square feet to our customer agency
in Shreveport, Louisiana. With the current lease set to
expire on January 24, 2017, GSA submitted a GLS project
tasked Public Properties with awarding a new
replacing lease. With less than a year
from task order issuance, to the expiration of the
current lease, this project was on an accelerated schedule
from the beginning. Some of our project
challenge here were, first, the accelerated project
schedule less than one year the
task order issuance to the current lease expiration. Second, there was a
limited marketplace of available properties,
and only — and the only offer
being incumbent, which led to difficult
negotiation condones throughout the solicitation phase. And third, the removal of the tenant improvement
allowing during the solicitation phase. This required Public
Properties to develop a list of improvements needed in
order to satisfy the agency, and negotiate a concession
with the lessor, so the least could be awarded
and accepted concurrently. This project represents
another example of how Public Properties
was able to come through for our customer agency. One factor that complicated
negotiations was due to expiration to the
tenant improvements that negotiated as you rent. Allowing the project
to be awarded and accepted simultaneously, thus avoiding any
post-award delay. Though this project
was completed as full and openly replacing
lease procurement, it constraints suburban office
market with limited inventory of cost AB office buildings,
let to pure market options and only one formal proposal from the incumbent
during the ROP phase. Without leverage or competition,
it was critical to be able to achieve savings for
the government throughout negotiations, and building a
relationship with current lessor and the representative. Though a single offer made for difficult negotiation
parameters, Public Properties never
eluded to the fact and throughout the process the
incumbent assumed there was outside competition. Public Properties
negotiated $152,000 for rent, for tenant improves as a
concession paid by the lessor. This allowed for the
current award and acceptance, and the agency was able to
make their desired changes to their space free of charge. The concessions also included a
10% contingency, which allowed for agency change orders without
the delay of RWA funding. The Deals. Our regions are really
seeing a difference, and our customers are seeing
the value and the expertise that our broker partners
bring to the GLS contract. As of mid-March, we have issued
656 task orders under GLS to support our customer
agencies. These task orders totaled over 30 million rentable
square feet nationwide, with a contract value
of 6.3 billion. The contract value is based
on the total contract value of the leases that were awarded. The savings that we have
been able to pass along to our customers by
utilizing the broker have been over 62 million. Those savings were achieved
through rent cost avoidance. GLS fact versus fiction. Okay. Okay. So, we’ve heard over the years as to why our customers didn’t
want to utilize the broker. And we’re here to set
the record straight. One common concern is that the
rates the brokers achieve are higher than those that
are achieved in-house. In fact, a lease cost
relative to market data shows that the rates are below
average 80% of the time. Another common concern is that the lessor builds
the commission costs into the lease rates, which sort
of ties to the first concern. However, as we discussed
our LCRM data shows that the rates are below
average 80% of the time, and that commission rates are
not built into the lease rates. One of the ways we endure
the we’re driving our brokers to provide us with
below market rates is by having a Best Value
Commission Tool in place. This tool allows
our broker partners to retain a larger
portion of the commission when they achieve
below market rates and maintain good performance. We’re okay with giving
them extra commission as it benefits you
in the long run. The broker worked hard for
the best value commissions, which means they’re
working hard for you. Working hard to give
exceptional customer service and responsiveness,
and working hard to deliver the low market rates. An additional common concern
is broker conflict of interest. Each of our brokers
have firewalls in place that have been inspected by
our contracting staff to ensure that conflicts are mitigated. We have a very rigorous conflict
of interest process in place, and monitor any potential or
actual conflicts very carefully. Lastly, we hear concerns
regarding the amount of time that it takes brokers to
perform lease acquisition. And our data showed that our
brokers are meeting milestone schedules, achieving low
rates, and just doing it right. How can you take
advantage of GLS? Well, if you’re interested, and would like to have your
procurement project tasked to GLS, you speak with
your GSA Point of Contact when first contacting about
your leasing space needs. Whether you have
your requirements, or need to have them developed, GLS may be the leasing
tool for your procurement. However, not all projects
are a good fit for GLS. As factors such as terms,
specialized requirements, and locations are influential to how a project is
addressed and executed. GLS is one option of several
to fulfill a lease space need. And it is employed
at the discretion of the GSA realty expert our
conditions support its use. While the decision of
what venue to select when tasking a project is
based on multiple factors, your interest and desire
to go via GLS will be taken into consideration when tasking. For the future of the program. We are in the third year
of the GLS contract, and we have already
begun to work on the next broker contract. We have already scheduled
industry outreach sessions, so that we can meet
with interested parties, and learn what we would
like to incorporate into our successor contract. We also met with our
GSA Leasing Committee to learn what works well
for them under the contract, and what we can improve
upon in the future. Once we’ve compiled
all the information, we’ll have a strong
scope of work, note to issue a solicitation
no later than March 2020, and hope to have a contract
in place by the fall of 2020. So, feel free to
look at our website for additional resources, and
you can all reach a member of our team at [email protected] And then lastly, thank
you for joining us today, and we’d like to
take a few minutes and address any questions
that you may have. You can also type your
questions in the reading space.>>Hey, Edgar, thank
you very much. There are quite a — I see
some people typing in the box, we’ll see if some
questions come in. One of the questions
I have here is that, the two examples you
gave were pretty great, but I noticed they were
both smaller markets. And I’m wondering is
GLS just as effective, or does it work any
differently in a large market like Washington D.C.,
or versus a small market like Shreveport, Louisiana?>>Sure, I’m happy
to take the question. So, in general we want to make
sure that we’re tasking projects to the project that
are commissionable. So, often times the
commissionable markets are in the urban markets. But, there are sometimes
where we task some projects to the broker in rural markets. In general, the work that the
broker is performing is the same whether it’s in Washington D.C.,
or whether it’s in Nome, Alaska. As long as the project is
commissionable, then we’re happy to look at tasking
to the broker.>>Excellent. Thank you. We have a question in the chat
from Jefferey that relates to broker performance. So, that is, “If GSA has already
selected its brokerage firms in each of the regions,
what’s the impact on the brokerage for
poor performance? Are they replaced by
another brokerage firm? Do they receive decreased
commission or other?” This is sort of an expansion on the point you were making
earlier regarding evolution of brokers.>>Yeah, so we have a very
rigorous performance process, which starts with the
COR on the project — that’s working on the project. Typically, that’s the
leasing contracting officer. And if there are any
performance issues, then that lease centered
officer can certainly work within the region,
work within the program to address any performance
issues. In terms of future
tasking, yes, we are looking at past performance when
we’re tasking the projects to the brokers. So, if there’s a history
of poor past performance, then that might result
in decreased tasking to that particular firm. .>>Excellent. Thank you. There’s sort of a –>>Yeah –>>Go ahead.>>More to follow on to
that question and it said, are they replaced by
another brokerage firm or receive decreased
commissions. And so, no, they’re not going to
receive decreased commissions, but you know, it’s our
job as the government to be properly documenting
any poor performance, that we have a good
record of that. So, while they won’t receive
any decreased commissions, it will certainly
impact their ability to receive future tasking. And if the performance is so
horrible that we would need to replace them, then
yes, it is possible that the task order could be
terminated for convenience, but that would be a
very rare occasion.>>All right. Do we have — there seems to be an ongoing conversation
regarding other tools I believe for specific requirements. I think we’re seeking a
little bit more clarity on that question Brenda
that you were asking. But, I can tell you that when
we do get that information that it’s something
we’ll probably put into the follow-up
question and answer document that we are going to
circulate after this. Still have some time left
for questions if you want to put them into the box there. And take advantage of the
time that we have left with our four SMEs here. Otherwise, I’ll encourage
everybody to take a look at the website that we put up
earlier, the I know there is a
lot more information about the GLS program here. Buying some time as people
are typing, encouraging — remind you all that you
can find more information about the Client Enrichment
Series at That’s where we post all
of our archived information on this topic, and other
topics in the leasing world. We recently had AAAP, we recently had Client
Enrichment Series about longer firm term
leases, as well as many– many other topics across
the GSA PBS landscape. We have a question coming in
here, and that is “What percent of contracts are
awarded using brokers?” That’s a very good
question, David. Do we have a sense of
that, either percentage or just quantity that
take advantage of this — I shouldn’t say take
advantage, I guess are best fort of funneled towards
this program?>>Yeah, we do have
an answer to that. And most typically we’re
looking at about 55% of our high to moderate value leases
are going to the broker. And so, earlier Lisa provided
an example of what high to moderate is defined as. And high to moderate
is looking at — those are your leases typically
in more populated cities such as, Miami, New York City,
et cetera with a high value and that’s a higher
square footage. And then, those newer — newer
cleasing — lease action. So, about 55% of high to moderate value
leases go to the broker. We still see of course, a significant value
in utilizing AAAP. AAAP is another tool
that GSA utilizes to fulfill lease
procurement requests. So, two different programs, but both have great
benefits to the government.>>Jessica, either once
again, you’re psychic or possibly reading the chat
while you answer your questions. Because I think you addressed
Greg’s point about thoughts on GLS versus AAAP,
and then I’ll add in versus the percent
of lease procurement. These are all tools that
we have in our quiver here at Public Buildings Service. And it’s just a matter of which
tool is right for which project? So, we have a couple
of minutes left, if there are no more questions,
I’m going to transition to the closing comments here. I do want to thank all of our
speakers who are with us today, so that’s Lisa and Edgar for
leading the presentation. And Jessica, and Mike who
were typing their fingers off, and popping in to answer
questions as necessary. And I certainly want
to thank everybody who was able to join us today. We had somewhere north
of 150, 160 people. Lisa said she was going
to pretend it’s three, but I’m sorry to tell you
it was far more than that. Before we close out, I want
to make a quick announcement that registration is open for the next PBS customer
forum event on Monday, June 25th in Washington D.C.
This is an in-person event, and today’s topic will be
among the many explored in further detail. We’re going to have
discussions on RWAs, the various leasing tools
that I just mentioned. Rent and pricing facilities
management, and a demonstration of our new PBS customer
dashboard. And you can learn more about
that, It is a daylong event of
keynote seminar sessions, breakout sessions, we will
also have an exhibit hall. In-person in Washington D.C.,
so if you are in the area, or that you have travel
dollars we really hope that you can make it
Monday, June 25th. So, as I mentioned at the
beginning of our presentation, we will be compiling all of
the questions and answers from today’s session
into a single document, and sharing that with
you in the near future. In addition, we will post
today’s presentation slides, a YouTube closed-captioned
video, as well as that Q and A document for future
reference on our website. Again,, and we will also send
you this information in a follow-up email. As always, the goal of the
Client Enrichment Series is to engage our audience
in workplace topics that can contribute to
your mission success and to your effective
management of your real estate and workplace programs. Our next Client Enrichment
Series, you see it there on your screen, it’s
going to be Thursday, June 21st that’s a 1:30 eastern. And the topic is Demystifying
Design Intent Drawings, and this is new one to me, so
I hope you can make it as well. You’ll find out more
information, you can register online at
the website If you would like to share
additional feedback with us, you’ll have the opportunity
to do so via a link in a follow-up email that
you will receive along with your certificate
of attendance. I want to thank everybody
from our presenters, to all of our customers
who joined us today. Please have a wonderful
rest of your day. Thank you very much.