GSA Issues Draft Solicitation for New Leasing Support Services Contract
The New Contract is Expected to Generate Approximately $100M in Rent Credits to Tenant Agencies, and Was Restructured to Include Cost-Savings and Performance Measurements
WASHINGTON – Today, the U.S. General Services Administration (GSA) issued a draft solicitation for the third generation of its broker and leasing support services contract – formerly the National Broker Contract Program (NBC), now GSA Leasing Support Services (GLS). The new contract provides broker and leasing support services (i.e. market surveys, site visits, document preparation, negotiation) for GSA’s contracting officers, and is expected to generate approximately $100 million in rent credits to tenant agencies and significantly reduce lease cycle times by eliminating workload redundancy.
To address stakeholder feedback about previous generations of GLS (i.e. NBC1, NBC2), GSA changed the structure of the contract to promote cost-savings, reduce administrative burdens, increase contract flexibility, expand opportunities for small business, and increase utilization of the contract. GSA also added a strategic planning component to the contract. This change will allow brokers to use their knowledge, skills, and resources to provide GSA with an analysis of the debt market and take advantage of opportunities to restructure leases and renegotiate terms (i.e. length of firm-term and soft-term leases).
The most significant change to GLS was the cost-savings structure. While the commission structure is similar to previous generations of the contract, brokers can now earn a best-value commission incentive for beating GSA’s internal targets. In addition to this target-based approach, GSA has established internal measurements to not only measure cost-savings, but to also compare the cost of projects completed using GLS to the cost of projects completed in-house. These changes will be augmented by the division of GSA’s expiring lease portfolio into value tiers, which will help the agency more easily identify leases that are anticipated to bring the most value to the government.
From Chris Wisner, GSA’s Assistant Commissioner for Leasing:
"GLS is more than just another broker contract. It's a tool that provides GSA with beginning-to-end leasing support services, helping the agency accomplish one of its core missions: to provide the best value in real estate to the government and American taxpayers.
“By giving brokers more responsibility, flexibility, and measurability, and eliminating workload redundancy, GLS is now structured to realize the cost savings it was intended to and leverage the private sector’s knowledge, skills, and resources.
“We wanted to fully address the perception that this is a plug-and-play contract for national brokers. Brokers of all sizes will now be able to compete for prime awards, and those that receive awards will be a part of GSA’s strategic planning process.
“We welcome comments on the draft solicitation from stakeholders in and outside of government, and will use the comments we receive to make GLS even stronger.”
GLS by the Numbers
- Estimated Rent Credits to Tenant Agencies – $100 Million
- Estimated Square Feet of All Task Orders – 30-40 Million Square Feet
- Estimated Gross Commissions – $250-275 Million