Welcome

FY 18 Major Leasing Program

Industry Day

DEPARTMENTOFVETERANSAFFAIRS

Feb.8,2018

Welcome

2

Agenda

1.  OpeningRemarks2.  OverviewofLeasingProgram3.  OverviewoftheRLP4.  RLPStandards&Appendices5.  LeasingQ&A6.  EventClose&NextSteps7.  BackupMaterialsforDiscussion

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Disclaimer

ThisisanindustrydaysessiontoincreaseawarenessandobtainfeedbackonVA’sRequestforLeaseProposals;offerorsshouldbeaware

thatwhatisdiscussedtodayisageneraloverviewofVA’sfuturestate,forMajorleases.

Aswithallprocurements,offerorsshouldbecomefamiliarwithandabidebythelanguage

withineachindividualsolicitation.

OpeningRemarks&Overviewof

LeasingProgram

AmandaHendryDirector,LeaseExecution

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OpeningRemarks

ImprovingVeteranaccesstohealthcareandmemorialbenefitsbyproviding

excellent,comprehensiverealestatesolutions.

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OverviewLeasingProgramSummary

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5.8Million

93

5.3Million

$4.8Billion

TotalABOASF

TotalContractValue

TotalActiveLeaseProjects

ProjectManagers

TotalVeteransEnrolledinMarketsWhereProjectsLocated*

*CalculationbasedonthenumberofenrolleesresidingwithintheVHAmarketwheretheinprocessleaseislocated.Enrolleesarenotcountedforoffice,warehouse,orCMOPleases

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ResidentEngineers

47outof96Markets

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Overview-Objectives

Inallofitsleasedfacilities,VA’sgoalistoprovidemodern,well-designedhealthcarefacilitiesthatenabledeliveryofhigh-qualitycareandagreatpatientexperiencetoourVeterans.

•  SpeedtoMarket•  IncreasedCompetition•  LoweredCosts

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Overview-NewLeases

AuthorizedbyChoice2.0

Location Type Size(ABOASF)

ProspectusAnnualUnservicedRent

ProspectusLumpSum

Boston,MA R&D 40,604$2,041,000.00$4,183,000.00

Portland,ME OPC 56,637$2,107,000.00$4,701,000.00

Rochester,NY OPC 31,064$1,066,000.00$2,579,000.00

Pittsburgh,PA OPC 53,466$1,809,000.00$4,438,000.00

Fredericksburg,VA OPC 378,461$13,602,000.00$31,413,000.00

HamptonRoads,VA OPC 155,169$5,261,000.00$12,880,000.00

Raleigh,NC OPC 185,271$6,492,000.00$15,378,000.00

Birmingham,AL MHC 59,744$1,690,000.00$4,959,000.00

Charleston,SC R&D 48,000$2,330,000.00$4,944,000.00

PikeCounty,GA OPC 49,175$1,483,000.00$4,082,000.00

DaytonaBeach,FL OPC 106,826$3,331,000.00$8,867,000.00

Gainesville,FL OPC 70,849$2,010,000.00$5,881,000.00

Gainesville,FL MHC 39,932$1,005,000.00$3,315,000.00

Jacksonville,FL OPC 164,054$5,006,000.00$13,617,000.00

Location Type Size(ABOASF)

ProspectusAnnualUnserviced

Rent

ProspectusLumpSum

Ocala,FL OPC 45,499

$1,249,000.00 $3,777,000.00

Tampa-Lakeland,FL OPC 92,681

$3,067,000.00 $7,693,000.00

Tampa,FL MHC 114,098

$3,916,000.00 $9,471,000.00

WestIndianapolis,IN OPC 67,721

$2,255,000.00 $5,621,000.00

AnnArbor,MI OPC 36,453

$1,221,000.00 $3,026,000.00

TerreHaute,IN OPC 36,827

$1,045,000.00 $3,057,000.00

CorpusChristi,TX OPC 58,254

$1,720,000.00 $4,836,000.00

Denver,CO CBO 184,718

$4,622,000.00 $10,160,000.00

Missoula,MT OPC 59,990

$1,962,000.00 $4,980,000.00

NorthernColorado,CO OPC

75,645$

2,625,000.00 $6,279,000.00

SantaRosa,CA OPC 53,870

$2,450,000.00 $4,472,000.00

Oxnard,CA OPC 41,027

$1,868,000.00 $3,406,000.00

SanDiego,CA R&D 27,923

$1,975,000.00 $2,877,000.00

RapidCity,SD OPC 62,916

$1,904,000.00 $5,223,000.00

RedtextindicateprojectsslatedforthepilotwithGSA

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Overview-ChoiceAct2.0LeasesPlannedSchedule

PlannedSchedule

RequirementsPackage Advertisements Solicitation

Release Award PostAwardConstruction Activation

AllChoiceAct2.0Leases

(30KABOASF–100kABOASF)

Complete Complete Q3/Q4FY2018

Q3/Q4FY2019

Q3/Q4FY2019

Q1FY2022

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Choice2.0Leases–CurrentStatus

(Central)

Lease Execution Region Lease City Lease

State New, Replacement,

or Succeeding Project Start Date

(Requirements Received)

Planned or Actual Advertisement

Issuance Planned or Actual

Solicitation Release (2) Planned or Actual Award (quarter)

Planned or Actual Design and Construction Completion (quarter) (3)

Planned or Actual First Use (quarter)

Central

AnnArbor MI New Dec-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Boston MA New Dec-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Portland ME NewReplacing Nov-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Rochester NY NewReplacing Nov-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

TerreHaute IN NewReplacing Nov-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

WestIndianapolis IN NewReplacing Dec-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

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Choice2.0Leases–CurrentStatus

(Eastern)

Lease Execution Region Lease City Lease State

New, Replacement, or Succeeding

Project Start Date (Requirements

Received)

Planned or Actual Advertisement

Issuance Planned or Actual

Solicitation Release (2) Planned or Actual Award (quarter)

Planned or Actual Design and Construction Completion (quarter) (3) Planned or Actual First Use (quarter)

Eastern

Gainesville FL NewReplacing Sep-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Birmingham AL New Nov-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Charleston SC NewReplacing Nov-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

DaytonaBeach FL NewReplacing Sep-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q2FY2022 Q3FY2022

Fredericksburg VA NewReplacing Nov-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q2FY2022 Q3FY2022

Gainesville FL New Sep-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Jacksonville FL NewReplacing Sep-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q2FY2022 Q3FY2022

Ocala FL NewReplacing Nov-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

PikeCounty GA New Sep-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Raleigh NC NewReplacing Nov-17 Dec-17 Q3/Q4FY2018 Q3/Q4FY2019 Q2FY2022 Q3FY2022

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Choice2.0Leases–CurrentStatus

(Western)

Lease Execution Region Lease City Lease

State New, Replacement,

or Succeeding Project Start Date

(Requirements Received)

Planned or Actual Advertisement

Issuance Planned or Actual

Solicitation Release (2) Planned or Actual Award (quarter)

Planned or Actual Design and Construction Completion (quarter) (3)

Planned or Actual First Use (quarter)

Western

Missoula MT NewReplacing Oct-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

NorthernColorado CO NewReplacing Dec-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Oxnard CA New Aug-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

SanDiego CA NewReplacing Dec-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q2FY2021 Q3FY2021

SantaRosa CA NewReplacing Oct-17 Jan-18 Q3/Q4FY2018 Q3/Q4FY2019 Q4FY2021 Q1FY2022

Questions?

OverviewofRLP

MattLeddy,DeputyDirector,LeaseAcquisition,LeaseExecution

EricRoberts,TeamLead,CentralLeasingTeam,LeaseExecution

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VARLPvsVASFO

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NewRLP-KeyConsiderationsPartI

•  NUSFisnowANSI/BOMAOfficeArea(ABOA)SquareFeet.RSF

isABOASquareFeet+CommonAreas

•  Parking–VArequirement+tolocalcode

•  Term–includes15yearfirm,15-yearfirmterm,withfive1-year

options&20yearfirm

•  RentStructure–mixofshell,TI(FFP&allowance),OpCosts,

BSAC,&VAAgencySpecificRequirements

•  StartNEPAandNHPAearlytomaintaincriticalpath

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AttachmentsandAppendices

DOCUMENTNAME

LeaseNo.GS-XXP-LXXXXXXX(FormL100) Agency’sRequirements–ProgramofRequirements/Layout

SecurityRequirementsforISCFacilitySecurityLevelII

3516–SolicitationProvisions

GSAForm3517B,GeneralClauses/VA’sModifiedClauses

ProposaltoLeaseSpace(GSAForm1364&Attachment)

GSAForm1217,Lessor'sAnnualCostStatement

GSAForm12000forPreleaseFireProtectionandLifeSafetyEvaluationforanOfficeBuilding(PartAorPartB)(SeeSection3forapplicablerequirements)

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AttachmentsandAppendices

DOCUMENTNAME

DOLWageDetermination

PastPerformanceSurveyForm

ReferenceCheckQuestionnaireForm

ModifiedGeneralClauses

SeismicOfferForms(ForSeismicLevelsYELLOWandREDonly)

CertificationofBuildingEnergyPerformance

VAHandbook6500

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AttachmentsandAppendices

DocumentName

ContractorConfidentialityCertificate AppendixA:ProgramorDesign(PFD)ProjectRoomContents(PRC)

AppendixB:DesignDrawings AppendixC:BasisofDesignNarrativeandAgencySpecificRequirements

AppendixD:HealthcareStandardsandCodes AppendixE:ITRequirements AppendixF:EnvironmentalManagementPlanAppendixG:Outfit,InstallationandTurnover(OI&T)

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Attachments&Forms-NoLongerinUse

Afewoftheformsnolongerinuseare:•  Form3518/3518A•  BidandPerformanceBonds•  CertifiedCostorPricingData•  SF3881VendorizingForm•  FundedMaintenanceAccount

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OfferedTerms-Same

Theleasetermshallbeupto20years,inclusiveofalloptions.TheOfferormustsubmitpriceproposalsforeachofthefollowingscenarios:•  AlternativeA)15-yearfirmterm;•  AlternativeB)15-yearfirmterm,withfive1-yearoptions;and•  AlternativeC)20-yearterm.•  Offerorsisadvisedthatitmustsubmitpricingforallalternates

listedaboveinordertobeconsideredresponsive.AnOfferorsubmittingdifferentorfewerpricingalternatesmayberejectedasnon-responsivebytheContractingOfficer.

•  COtodetermineRLPtimeframe,proposalsaretypicallydue30-45daysfromdateofissuance àThisrequires3separate1364s&attachmenttothe1364

OfferedRate=AnnualRent+ LumpSum

LumpSum

TI

BSAC

ASR

LumpSum

AnnualRentalRateOffered

OpEx

WarmLitShell

AnnualizedRent

Offered

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ANSIBOMAAdoption

BOMA International has been the American NationalStandards Institute (ANSI) Secretariat for the OfficeStandardsince1915.The purpose of the BOMA area measurementstandardsare:

• To promote clear communications among allparticipantsinarealestatetransaction;• To provide consistent measurement of rentablesquarefootage;• To allow accurate comparisons through a clearlyunderstoodmethodofmeasurement.

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NewRLP-KeyConsiderationsPartII

•  VApre-designtovalidaterequirements,confirmfunctional

adjacencies,completeblockplan

•  VAhaschangeditsseismicrequirementstoalignw/GSAseismic

requirements–theyarereducedinscope,butdoexceedlocalcode

•  DesignisbasedontheCBOCprotoypeandthePACTmodelofcare

•  ISCFacilitySecuritylevelII

•  GreenGlobeswillbeusedastheGreenBuildingRatingSystem

•  LeasewillsupersedeRLPuponleaseexecution

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TenantImprovement(TI)Allowance

•  TheTImaybeallocatedseveraldifferentways,whichwillbedecidedbytheContractingTeam.TheRLPprovidesdirectionintheformofhiddentextàPaidLumpSumUpFrontàAmortizedoverthefirmtermofthe

annualrentàCombinationàAsturn-keyPricing

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RLP–EvaluationofOffersBestValue

•  It’stheGovernment’sintenttomakeanawardbasedoninitialoffers

•  BestvalueprocurementsarenegotiatedprocurementsinwhichtheGovernmentreservestherighttoselectthemostbeneficialoffertotheGovernmentbyevaluatingandcomparingfactorsinadditiontocostorprice

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RLP–EvaluationofSites

•  OfferedsitesandexistingbuildingswillbeevaluatedaccordingtocriteriaforsitecharacteristicsassetforthintheRLP.

•  VAisnolongerincludingorexcludingofferedsitesorexistingbuildingsduringthemarketsurvey.

•  VAwillprovidefeedbacktorespondentssothattheycandeterminewhethertheybelieveaparticularsiteorexistingbuildingisfeasiblefortheproposedproject

•  VAwillnolongerpostalistofacceptedsitesonFedBizOpps.gov.

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AdoptionofISCFacilitySecurityLevelII

Thisapproachisamajordeparturefromthepracticeofhavingastandardsetofcounter-measuresforeachfacility.Thisnewsystemrequirescustomizingtherequirementsforeachfacility.TheISCregardsitascriticaltorecognizethatthesecuritydecisionprocessisanintegralpartofanoverallfacilitymanagementandrealestateprocessandmustbefullyintegratedtobethemosteffective.

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ISCFSLII–KeyRequirements

•  Facilityentrancesandlobby•  Electronicaccesscontrol•  Securingcriticalareas•  Visitoraccesscontrol•  Identityverification•  Keycontrolprogram•  Siteandbuildingexterior•  Crimepreventionthroughenvironmentaldesign•  IDS,CCTV,accesscontrol,duressalarms.•  Shatter-resistantwindowprotection

Questions?

Break

RLPStandards&Appendices

MitchOrtiz,DeputyDirectorofProjectDelivery,LeaseExecution

JasonLambie,SeniorResidentEngineerTeamLead,LeaseExecution

MollieWest,Planner,FacilitiesPlanningDevelopmentService

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IndustryandFederalStandards

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LeasePlanningandDesign

Pre-Award

Project:

SEPS,Floorplan,Room

Templates

Industry:

JointCommission,NFPA99,FGI

Federal:

ISC,PG-18-14,

ABA,SignageGuide

ASR&DesignNarrative

Post-Award

LocalCodes,FGI,NFPA,

etc.

DDsandCDs

MainParticipants:VAMC,A/E,CFM

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RLP/LeaseAppendices

•  A-ProgramforDesign(PFD):SEPS,RoomContentsList

•  B-DesignDrawings:FloorplansandRoomTemplates•  C-DesignNarrative:FurtherdefineProjectandAgencySpecific

Requirements(ASRs),applicationofHealthcareStandards(e.g.FGIandNFPA99),andaddressVArequirements.

•  D-HealthcareStandardsandCodes:TJC,FGI,NFPA99,ABA,PG-18-14,VASignageDesignGuide,LocalCodes(NFPA101ifnolocalcodeandforAmbulatoryOccupanciesperTJC).

•  E-ITRequirements:StandardsprovidedbytheOfficeofInformationandTechnology

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A.ProgramforDesign:SEPS,RoomContents

Roomtypes,SF,GSF,etc.

Contents,JSN,VV/VC/CC,Qtys,etc.

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B.DesignDrawings–SimplifiedFloorPlan

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B.DesignDrawings–DetailedRoomTemplates(BIM)

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C.DesignNarrative

•  SpecifyAgencySpecificRequirements•  Specifyhowtoapplycertainreferencedstandards(e.g.TJC,FGI,NFPA99)

•  ISCFSLII(PhysicalSecurity)

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D.HealthcareStandardsandCodes

•  TheJointCommission(TJC)•  TheFacilitiesGuidelinesInstitute(FGI):HospitalandOutpatientFacilities

•  NFPA99:HealthcareCode•  ArchitecturalBarriersAct(ABA)•  PG-18-14:RoomFinishes,DoorsandHardware•  VASignageDesignGuide•  LocalBuildingCodes(NFPA101ifnolocalcodeandforAmbulatoryOccupanciesperTJC).

41

E.ITRequirements(15pages)

Questions?

LeasingQ&A

44

PLUS/DELTA

1. __________2. __________3. __________

1. __________2. __________3. __________

EventClose&NextSteps

BackupMaterials

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ORPLeasingProgramMagnitude,cont.LeasesbySizeofBuilding(NUSF)

48

OfferedAnnualRentWhatisBaseBuilding?

•  Buildingshellisthecompleteenvelopingstructure,thebasebuildingsystems,andthefinishedcommonareas(buildingcommonandfloorcommon)ofabuildingthatadjointhetenantareas.

•  PricingDeskGuideChapter2