Recovery Act: Business Opportunities in Buildings & Real Estate

GSA provides workplaces to the government by constructing, managing, and preserving federal buildings and by leasing and managing commercial real estate through its Public Buildings Service (PBS).

To accomplish this mission, GSA looks to the private sector for the following:

Construction

All GSA design and construction contracting opportunities are advertised on Federal Business Opportunities ("FedBizOpps") at www.fedbizopps.gov.  To receive drawings and specifications for projects, contractors must be registered in the Central Contractor Registration (CCR) system and in FedBizOpps, as drawings and specifications are usually issued electronically there  Announcements will contain instructions on obtaining classified drawings and specifications which are not distributed through FedBizOpps. The following areas are included in construction:

  • Design Acquisition: Design Services are competed using a qualifications based selection process under the Brooks Act – Public Law 92-582 as amended and  Federal Acquisition Regulation (FAR) part 36.6.  This is a two step process where technical submissions of qualifications are reviewed and the highest technical proposals are interviewed so that a final list can be developed.  The Architect-Engineer firms are ranked based on their technical qualifications and negotiations are conducted with the top rated firm for the contract award.  If the government and firm cannot come to agreement during negotiations, the government will then go to the next-ranked firm for negotiations.

    GSA uses this process to award Indefinite Delivery Indefinite Quantity and small project contracts.  A variation of the process, known as “Design Excellence” is used for the major (prospectus) projects.  In this process, the “Lead Designer” submits his qualification portfolio and the portfolios are evaluated.  In the second stage the Designers submit the whole team qualifications and are interviewed.  The firms are ranked and negotiations are begun with the top ranked designer/firm.  The selection and award process takes 6 to 12 months.
  • Construction Acquisition: In general, construction projects below the prospectus level (http://www.gsa.gov/annualprospectusthreshold) are procured using either sealed bidding procedures, low price technically acceptable competitive proposals or competitive orders against existing multiple award indefinite delivery indefinite quantity (IDIQ) construction contracts.  The award will go to the lowest responsive, responsible bidder in accordance with the Federal Acquisition Regulation (FAR).

    Major Construction Contracts are selected using the Federal Acquisition Regulations “Source Selection” Method.  (FAR 15.1).  There are many variations of this method.  The basic method requests both Technical or Management Proposals and a Price Proposal.  Once the proposals are received they are evaluated technically and then the prices are evaluated.  Tradeoffs may be made and the selection of the “Best Value” is made.  The Solicitations must state the relationship between the technical and price proposals.  e.g. Tech more important than price; tech equal to price or lowest price technically acceptable.  Competitive range can be determined and discussion/negotiation held to allow the offers to correct technical proposals and to clarity the pricing.

    There is a two-step advisory process that allows for technical proposals to be evaluated and offerors are advised of whether they are technically viable to compete in a particular procurement.  The final evaluations are the same as the one-step process and deal with selecting the best value for the government.  Most awards are made within 60 days of receipt of offers.
  • Performance and Payment Bonds: In accordance with FAR 28.102, all construction projects over $100,000 are subject to the Miller Act which requires Performance and Payment Bonds.  Performance bonds represent a promise of surety assuring the government that once the contract is awarded, the contractor will perform its obligations under the contract.

    Payment bonds represent a promise of surety assuring payment to all persons supplying labor or materials in the work provided for in a contract.

    The penal amount of each performance bond is 100 percent of the original contract price plus 100 percent of any price increases, unless the contracting officer determines that a smaller amount will adequately protect the government.  The penal amount of each payment bond is 100 percent of the original contract price plus 100 percent of any price increases unless the contracting officer makes a written determination that a payment bond in this amount is impractical, however, the amount of the payment bond must be no less than the amount of the performance bond.

Facilities Management

GSA provides facilities management services for more than one million federal workers through its Public Buildings Service. Facilities management services include the following: cleaning, ground maintenance, utilities, building systems, and equipment maintenance. Although a majority of the federal workforce is housed in buildings owned by GSA, a substantial number are located in privately owned and operated buildings nationwide.

Leasing

GSA leases space in diverse locations when leasing is the best solution for meeting federal space needs. More than 50 percent of GSA leases are for 10,000 square feet or less, so owners do not have to be corporate giants to compete for lease contracts.

Concessions

GSA has the authority to hire contractors to provide retail services in federally controlled facilities.  These services can include food, craft and dry goods stores, restaurants, vending machines, pay telephones and financial and other services.

 


 

 

Last Reviewed 3/18/2009