Capitol CREAG Services:
Site Inspection
Market Survey
Appraisals / Valuation
Due Diligence
Space Programming / Program of Requirements
Market Analysis
Independent Estimates / Budget Estimates
Feasibility / Cost /Benefit Analysis
Public Private Ventures
Procurement Management
Contractual Services
Project Challenge

Project Challenge:
The Army Corps of Engineers needed to identify the highest and best use for underutilized land at Fort Knox under the Army’s Enhanced Use Lease (EUL) program. This assessment will be used to provide guidance for a developer solicitation and an Army ground lease valuation for the EUL development project. Due to the 2005 Defense Base Closure and Realignment Act, there will be an increase of 11,499 workers and their families by 2011. As this influx of people presents a challenge to the Fort Knox community, the Army Corps of Engineers needed a report providing solutions by analyzing uses for five (5) prospective sites at Fort Knox.

Project Scope:
In completing this analysis, Capitol CREAG followed the highest and best use methodology of the Department of the Army. Highest and Best Use is defined by the Department of the Army as “the reasonably probable and legal use of land or improved property that is physically possible, appropriately supported and financially feasible and results in the highest value.”

The Highest and Best Use Study is currently being utilized by Capitol CREAG to move forward with an Enhanced Use Lease (Public Private Venture) procurement. Information on the highest and best use of these five parcels is considered “procurement sensitive” prior to being released to the general public at the EUL Industry Forum.

In addition to drafting a highest and best use analysis, Capitol CREAG has been tasked to draft the Notice of Opportunity to Lease (NOL), oversee the entire EUL procurement process, conduct the industry forum, and oversee the lease negotiations for the project.

Agency:

Capitol CREAG Services:
Real Estate Management Support
Business Management Support

Project Challenge:
In response to government-wide policy changes, various business units within GSA’s Public Buildings Service launched an analysis and process improvement program focused on internal controls and data accuracy. Capitol CREAG’s staff of Analysts were tasked with the challenge of ensuring these mission-critical efforts were delivered on time and in compliance with the goals of the each program.

Project Scope:
Capitol CREAG collaborated with and supported the existing GSA/PBS team through a seasoned group of financial, budget, program and real estate professionals. The Capitol CREAG team assisted in identifying process improvement opportunities, resolving open items and data discrepancies between various information systems and supporting the review and reconciliation of occupancy agreements, revenue streams and portfolio and project performance requirements analysis.

Capitol CREAG provided four separate teams of staff members located within the various Services Centers, the Regional CFO/Financial Management Division, NCR’s Business Management group and the Portfolio and Real Estate divisions.

Capitol CREAG Services:
Strategic Housing Plans
Space Programming coordination
Market Survey
Market Analysis
Building Assessments
Independent Government
Estimates/Estimated Budgets
Develop Solicitation for Offers
Review and Evaluate Offers
Negotiate Offers
Request and receive Best and Final Offers
Prepare Lease Documents and Obtain Signatures
Post Award Services
Coordinate Design Intent Drawings
Lease File Close Out
Adjustment for Vacant Space
Vacant Space Verification
Real Estate Tax Adjustments
Operating Cost Escalations
Succeeding Leases
Lease Extensions
Renegotiation of Existing Leases
Reconfiguration or Realignment Advisory Services
Lease Alterations
Backfill of Vacant Space

Project Challenge:
The Capitol CREAG Team provided Program and Project Management oversight to the GSA National Capital Region (NCR) Northern Virginia Advanced Acquisition Program (AAP). The Advanced Acquisition Program was a pre-competed fast track Government lease procurement service that was used by the GSA NCR to facilitate lease acquisitions in place of the conventional lease procurement process. (It is important to note that the GSA awarded Capitol CREAG four separate contracts under the GSA AAP.)

By the end of our tenure, the Northern Virginia AAP was the preferred lease procurement process to complete new and expiring government leases in the NCR. During the Capitol CREAG Team tenure, we encouraged the use of the program on prospectus level requirements and complex agency mission critical lease requirements through a collaborated marketing effort with the GSA. By the end of our campaign, the Northern Virginia Office AAP inventory had grown to approximately 40 million rentable square feet (RSF) and 250 buildings and completely re-competed on an annual basis. By creating a new procurement and inventory, holding pre-bid forums, negotiating leases and consistently updating the AAP Solicitation for Offeror, we were able to take a lessons learned approach to each successive inventory.

Though the contract period reflects a three year period, the founding partners of Capital CREAG had provided management oversight of the Northern Virginia program since 1995 as subcontractors under a GSA Prime contractor. The members of the Capitol CREAG Team collectively completed approximately 7 million rentable square feet of transactions or 190 lease transactions.

The conventional government lease procurement added significant time to the procurement process. The process required that the agency identify a space requirement, create a Program of Requirements, forward the requirement to the GSA real estate specialist, advertise for buildings, generate an SFO, evaluate and award a building and then build-out the space. The AAP process removes the pre-solicitation phase of the equation saving a minimum of several months in the space acquisition process.

The AAP program faced several significant issues when Capitol CREAG was initially assigned to the program. The large size and clarity of the solicitation was not well received by the market and the solicitation was underutilized by GSA tenant agencies and the real estate market.

The AAP solicitation without attachments was 70 pages long, non-lender friendly, and many of the provisions did not make sense to potential Offerors. The Capitol CREAG Team met with GSA Contracting Officers and the private sector real estate community to facilitate dialogue to reduce the paperwork and create a more acceptable document. Through many revisions of the SFO, the document was reduced from 70 to 40 pages. We were able to reduce the federal ADA and Unified Federal Accessibility Standards requirements section from 16 pages to one paragraph. We also added lifecycles to recurring costs that Lessors incurred over a lease term. Items such as carpet, repainting of common area and tenant space were assigned five-year lifecycles. The GSA Contracting Officers and regional counsel were willing to discuss default provisions in the General Clauses and Certs and Reps attachments of the SFO to address third party financing concerns. The importance of these forums was to assist the GSA to mitigate its risk and lower the possibility of a protest by creating forums for the private sector to voice concerns about the AAP lease procurement process prior to soliciting an AAP procurement.

Through collective efforts of the GSA Contracting Officers, the Program Manager and Project Managers, the AAP was recognized as the procurement of choice among NCR GSA and its client agencies. The three regional AAP programs were responsible for completing roughly 70% of the GSA National Capital Region lease acquisitions by 2001.

Capitol CREAG Services:
Space Programming Coordination

Project Challenge:
The MDA needed to relocate its 144,552 square foot headquarters from the Federal Office Building (FOB2) located at the Arlington Naval Annex in Arlington, Virginia to a building within the delineated area defined as the Leesburg Pike/Bailey Crossroads area of Falls Church, Virginia. MDA was required to be out of FOB2 by March, 2004 due to scheduled demolition of the building for construction of the new Air Force Memorial.
Though Capitol CREAG had been awarded the project in October, 2002, the project could not commence until Congress had approved the Prospectus in March, 2003. Prospectus is required for all federal leases exceeding the Prospectus threshold for the year in which the lease commences (the threshold for fiscal year 2003 was $2.3 million). Capitol CREAG had 183 work days to complete the project from Prospectus Approval (April 9, 2003) to Substantial Completion of the space build-out.

Project Scope:
Capitol CREAG commenced the market survey on April 9, 2003, and had to complete the lease and ensure that MDA would completely occupy the space by November 30, 2003.

This requirement was one of the first to be subject to the new Department of Defense Unified Facilities Criteria/DOD Minimum Antiterrorism Standards for Buildings as well as U.S. Department of Justice Federal Protective Service/Homeland Security Department requirements for a Level 4 secured facility. These security requirements include full control access to the building and parking areas at all times, the right and ability to immediately lock down the facilities in emergency situations, as well as provide significant set-back requirements. This requirement also had substantial SCIF requirements.
Capitol CREAG was able to negotiate an aggressive below market rental rate. This rental rate included cancellation rights after 7 years, a $15 TI above GSA aggressive Warm Lit Shell requirements, exclusive roof top rights, secure Level 4 facility, 2 reserved parking spaces, extended base operating schedule with aggressive overtime rate, three months free rent and daytime cleaning.

To do this, Capitol CREAG developed a customized Solicitation For Offers (SFO) to incorporate the agency’s unique requirements; submitted advertisement to the Washington Post Business Section; provided Project Management for procurement services; negotiated with commercial real estate building owners; developed NPV Financial Analysis Model to determine Successful Offeror(s); evaluated Best and Final Offers (BAFO); provided completed Lease to the Contracting Officer; facilitated tenant improvement meetings with the agency and successful Lessor to develop scope of work; provided lease interpretation and monitored Lessor’s compliance with lease terms; assembled Lease File and provided Lease Close Out.

Project Challenge:
The VA Butler Healthcare facility serves the needs of veterans in western Pennsylvania through its main medical center and four community-based outpatient clinics. The healthcare facility needed an independent advisory team to produce a master plan that would adequately address both current and future requirements despite the divergent healthcare needs of an increasing population of older veterans and recently discharged veterans.

Project Scope:
The VA selected Capitol CREAG to provide a comprehensive strategic Master Plan to assess the current facility and to recommend spatial improvements to the healthcare delivery system. The Capitol
CREAG Team is responsible for overseeing healthcare facility planning, healthcare programming and demographic analysis, facility condition analysis, real estate and market analysis, patient care delivery analysis and cost estimating.
In order to address all medical, social, administrative, and long-term care functions, the Master Plan utilized highest and best use studies and facility condition assessments to recommend improvements in facility layout and usage that would result in improved patient care, performance, increased productivity, and reduced administrative costs. All current and planned construction projects affecting the facility were analyzed and incorporated into the plan, if appropriate. Capitol CREAG developed a five-year design and construction plan, including a master schedule and cost estimates broken down by design, construction, and equipment costs. The plan also recommended delivery options for contract award.

General Services Administration National Capital Region

Project Challenge

The GSA National Capital Region headquartered in Washington, DC encompassed over 700 leases, 90 million SF, and more than 40 different agencies. GSA desired to rationalize this portfolio, audit existing occupancy costs for accuracy, and develop additional cost-saving strategies.

Project Scope

Specific services include Lease Review, preparing Occupancy Agreements in accordance with existing GSA policy, managing Annual Data Accuracy; reconciling data with source documentation, and compiling and providing briefings on current portfolio status.

In addition to the Portfolio Management services, Capitol CREAG is responsible for Financial Analysis, Management and Modeling support of the initiatives of the Director of Finance for GSA / PBS in Washington, DC. The team supports the budget development, planning and administration of the GSA’s portfolio and asset management divisions.