NBC1 / NBC2 FAQ
- 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, four nationwide contracts have been awarded.Each contract has a small business set-aside goal of 23 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 five 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., the Staubach Company, and Trammell Crow Company. Due to internal changes with the Broker Companies, there are now three nationwide contracts functioning under the National Broker Contract: Jones Lang LaSalle Americas Inc., Julien J. Studley, Inc., and CB Richard Ellis.
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 October 4, 2004. The Contractor's were provided Notice to Proceed on April 1, 2005. The base contract year began on April 1, 2005, and ran through March 31, 2006. The Second Renewal Option was exercised for the period April 1, 2006 through March 31, 2007, Third Renewal Option was April 1, 2007 through March 31, 2008, the Fourth Renewal Option is April 1, 2008 through March 31, 2009 and the Fifth and Last Renewal Option year has been exercised for the period April 1, 2009 through March 31, 2010.
A follow-on nationwide procurement action is underway and the anticipation is that award will be made in time to issue a Notice to Procced effective not later than April 1, 2010. All procurement actions will be posted on the FedBizOpps.gov website.
Each awarded contract has a Government imposed target set aside goal of 23 percent of the total contract value to be specifically subcontracted with small businesses. Some of the contractors have a self imposed substantially higher target goal. This represents an extraordinary commitment to small business concerns.
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 Realty Associates, 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 Realty Specialist is, and shall remain, the primary point of contact for the customer from the initial notification throughout the entire project until occupancy. Under previous contracts the customer was, in several cases, left to work with the contractor with no oversight or management by the GSA Realty Specialist. Under the new 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.
GSA like other Federal Agencies solicits requests for contracted services through a regulated procurement selection process for all agency needs, as they arise. We will follow the process for the follow on national broker contract,. All information relative to the follow on acquisition that is public has and will be posted on our FEDBIZOPS public portal site at http://www.fbo.gov It falls under the NAICS 531210 and can be found at the following link : https://www.fbo.gov/spg/GSA/PBS/PQ/GSP0009BQR0218/listing.html