Broker Services - GSA Leasing Support Services (GLS)
The National Broker Contract (NBC) Program has been a vital program within the Leasing community for the past eleven years. As a result, three National contracts have been awarded, which have been very instrumental in the success of the leasing program. NBC1, the first generation of broker contracts, reached expiration in 2010 after a successful five-year run. That year, NBC2, the second of its kind, was put into effect. It offered a number of improvements over the prior generation contracts. Task orders were awarded against the NBC2 contracts through 2015. The latest contract, GSA Leasing Support Services (GLS), was awarded in September 2015 with a NTP, issued January 2016.
The brokerage program is a highly visible program, involving Congressional stakeholders, private sector interests, and other Government agencies. To date, the broker program has been used to procure 3,622 leases with a rental avoidance of $297M for the Government.
- What is the basic structure of the National Broker Contract?
- What is a "no cost" National Broker Contract?
- Who was awarded the National Broker Contract Award?
- What is the duration of the contract?
- When will there be an opportunity to compete for the next generation contract action?
- How will GSA ensure that small businesses have adequate opportunity to compete under the new contract?
- What is the customer service initiative driving the NBC?
- Will customers be charged an additional Broker's fee?
- Will GSA continue to be the primary contact?
- What plans does GSA have to become better educated about who has the authority to make decisions for the agency?
- Will the brokers add another level of approval to the process?
- How does this affect the cost of my lease?
- Where can information concerning future solicitations for GSA brokerage services be found?
Under the National Broker Contract 2, four nationwide contracts have been awarded.Each contract has a small business set-aside goal of ranging from 27 to 30 percent that was evaluated as part of the award. All successful offerors are to meet or exceed this goal. The contracts were awarded as a 1 year base and can be extended for a total of four years, subject to annual renewal options.
The Government Accountability Office Advisory Ruling allows GSA to enter into contracts with real estate brokers without augmenting its appropriations since the proposed contracts do not contemplate the government receiving funds from the brokers. This contract vehicle is what we are commonly calling the "No Cost" contract. It is where the contractor will negotiate and collect the commissions typically paid in the private sector as payment for contract services with no payments being made directly by the government.
Under the National Broker Contract, four nationwide contracts were awarded to the real estate companies of Jones Lang LaSalle Americas Inc., Julien J. Studley, Inc., CB Richard Ellis, and DTZ (formerly UGL Services Equis Operations). .
These four contracts were awarded as modified performance-based contracts with a 1 year base period, and they can be extended for a total of five years, subject to annual renewal options. The contracts were awarded on June 21, 2010. The Contractor's were provided Notice to Proceed on October 1, 2010. The base contract year began on October 1, 2010 and ran through September 30, 2011.. The Second Renewal Option was exercised for the period October 1, 2011 through September 30, 2012, Third Renewal Option was October 1, 2012 through September 20, 2013, the Fourth Renewal Option is October 1, 2013 through September 30, 2014 and the Fifth and Last Renewal Option year has not been exercised for the period October 1, 2014 through September 30, 2015.
A follow-on nationwide procurement action is underway. All procurement actions will be posted on the FedBizOpps.gov website. You can also visit the BC3 website for additional information.
Each awarded contract has a Government imposed target set aside goal ranging from 27 to 30 percent of the total contract value to be specifically subcontracted with small businesses. The National Broker Contract 2 (NBC2) program through relationships with prime contractors compensated small businesses $931,479 in FY13 for a total of $1.96M since contract inception.
To be able to deliver high-quality leased space in a consistent manner at the best value for customer agencies. It will minimize confusion for our government agency clients and will allow PBS associates to better manage the entire space delivery process so that customers can concentrate on their core missions. The contract will allow GSA to leverage our position in the market that will enable us to negotiate the best market rates for our customers..
No, the customers will not be charged any additional fee for work accomplished by Brokers. Under this contract, the National Brokers are collecting their fees in commissions from the landlord. In previous contracts, GSA paid the broker fees under traditional services contracts for no commissions. Any commissions were negotiated or rebated back as an offset to the lease. Under the new "no cost" contract, the contractor will have the opportunity collect the commissions they negotiate with the landlord minus a pre-priced percentage of the commissions that will be applied to the customers' shell rent. The customer will benefit directly and immediately from any commission credits. Under an expedited lease action, GSA and the customer will receive no commission offset to rent.
GSA Realty Professionals will continue to be the primary contact and the focal point for all transactions. The National Broker Contract is one of the tools for our leasing personnel to add capacity in servicing our customers.
In coordination with our GSA/PBS Human Capital Strategy, increased emphasis is placed on understanding our customers better. We are integrating our business process into the Transaction Management Playbook to improve our customer interactions. The National Broker Contracts contain the process to facilitate that interaction by the means of project orientation discussions among the GSA Realty Specialist, the Customer, and the Broker. At the project orientation meeting, a communication plan is developed by all parties in order to ensure the communications flow is being conducted in the manner and frequency the agency would like to receive. Communications contacts, as well as approval authority, are to be clearly identified and adhered to by all.
The brokers are not an approval level in the leasing process. Their work is strictly monitored through GSA oversight and contract compliance reviews. The GSA leasing personnel is, and shall remain, the primary point of contact for the customer from the initial notification throughout the entire project until occupancy. With the NBC2 contract, GSA has instituted new internal management controls for improved oversight.
We anticipate better rental rates for our customers from the National contractors due to the fact their future work with GSA is dependent on their performance on each individual project. One of the performance criteria we will monitor is the rental rates they negotiate.