Mark Sears, Region 4 Capital Program Coordinator GSA’s Capital Projects Process Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA March 29, 2012

The “Prospectus” and Capital Program… What are they?

What makes a project a “Prospectus Project”? Any project that GSA PBS engages in that exceeds the prospectus threshold established by Congress/OMB: –New Construction $2.79 Million –R&A $2.79 Million –New Lease $2.79 Million –Alts in Leased Space* $1.395 Million *Only applies to alteration projects in leased space that occur after initial occupancy The prospectus threshold designates the ceiling of GSA’s blanket authority that we cannot exceed on our own

What makes a project a “Prospectus Project”? How do we determine if a project is above prospectus? New construction projects = ECC $ + Site Acquisition $ R&A projects = ECC $ New Lease projects = Net annual rent $ Alts in Leased Space projects = TEPC $ “ECC” = Estimated Cost of Construction “TEPC” = Total Estimated Project Cost Projects determined to be above prospectus must be submitted through the GSA Capital Investment & Leasing Program (CILP).

What makes a project a “Prospectus Project”? When going through the CILP process, all prospectus- level projects, with the exception of new leases, will ultimately require 2 things: Appropriation = Funding from Congress specifically for the project Authorization = Permission from Congress; specific authority to engage in a project that exceeds GSA’s normal blanket level of authority (i.e. below the prospectus threshold) New leases only require authorization

The CILP & the Budget Process & Schedule

The CILP & Budget Process & Schedule  The CILP Call is issued by GSA Central Office two (2) years in advance of target budget year (example: FY2014 CILP Call issued in FY2012) –Details requirements for submissions of R&A projects, new construction projects, new lease projects, and lease alteration projects –Specifies submission due dates/schedule for the program –Sets expectations for review and approval of submissions

The CILP & Budget Process & Schedule Anticipated schedule for this year’s FY14 CILP Call:  Feb-Mar 2012 GSA regions refresh & update project information  May 2012GSA Central Office issues directed call to regions  July 2012GSA regions submit prospectuses to GSA Central Office for owned construction/R&A  September 2012GSA submits FY14 owned program to OMB  October 2012GSA regions submit lease prospectuses to GSA Central Office  November 2012GSA receives “passback” from OMB  December 2012 Passback appeal; resubmit prospectuses  January 2013GSA submits FY14 owned program to Congress  Feb-Apr 2013GSA submits FY14 leased program to OMB  May 2013GSA submits FY14 leased program to Congress

The CILP & Budget Process & Schedule  Preparation of President’s FY14 budget in January 2013  President’s FY14 budget to go to Congress first Monday in February 2013  When GSA submits prospectuses to Congress, they are sent concurrently to GSA’s authorizing and appropriations committees (4 total)  ALL 4 committees must approve  President signs the FY14 budget (ideally before October 1, 2013)  Once we have an approved FY14 budget from Congress, signed by the President, and all required signed resolutions, we have an active FY14 project

FY2014 CILP

FY14 CILP Setting realistic expectations for the FY14 CILP  In the FY11 and FY12 CILPs, GSA planned between $2-2.5 billion (incl. new construction, major R&A, and minor R&A)  In both FY11 and FY12, GSA managed to get roughly $1.5 billion included in the President’s budget  In the final FY11 Budget, GSA received $408 million in construction/R&A appropriations  In the final FY12 Budget, GSA received $330 million in construction/R&A appropriations  Going into FY13, GSA has planned less than $2 billion  Current expectations: FY13 Budget will only include no more than the level of appropriations received in FY12, and probably less

FY14 CILP  Due to ever decreasing levels of appropriations, GSA cannot fund every project identified by the regions and requested by the client agencies.  In response to dwindling appropriations for construction and R&A, GSA’s CILP has evolved to deal with backlog in the capital project “pipeline”: Up thru FY09 – Traditional CILP Calls FY10 thru FY13 – “Directed CILP Calls” FY14 – “Decision Lens Modeling” & “Review, Refresh, READY”

FY14 CILP Traditional “Open” Call = GSA Regions determined on their own what their capital priorities would be, & submitted those priorities to GSA Central Office. GSA Central Office prioritized on a national level based on critical need and availability of appropriations Directed Call = GSA Central Office “directs” Regions on what projects to submit, and does not allow for non- approved submissions, except conditionally in cases of emergency or critical urgency. Designed to curtail the flood of “new start” projects and focus on projects already in the “pipeline”.

FY14 CILP Directed calls typically specify submissions for the following: –Partially funded projects –Priorities of US Courts 5-Year Plan for new courthouses –Priorities in DHS CBP-LPOE program –Submissions for specific projects, as designated by Central Office –Approved exceptions for “critical” new-start projects –Opportunity Purchase candidates

FY14 CILP New for FY14 CILP – “Review, Refresh, READY” GSA began work on a new 5-Year plan for all owned capital construction and renovation projects as part of the FY13 CILP effort. For FY14, GSA will review universe of projects identified in the 5-Year plan and similar efforts and refresh their data and support information. Potential projects identified will be weighed through the new “Decision Lens Modeling Tool” –Designed to weigh and prioritize each project via a set of critical measures and criteria Results of the Decision Lens Modeling analysis will determine the FY14 directed call

FY14 CILP FY14 “Review, Refresh, READY” effort will include: Outstanding FY11/12/13 projects not fully funded GSA 5-Year Plan projects Established program priorities from client agencies (like the Courts’ 5-Year Plan & DHS CBP LPOE program) Exigent need project submissions New approach will focus on: Ensuring that GSA puts forward the best program possible given our limited resources Developing capability to quickly adjust to changing priorities and readiness to offer a range of different project submissions.

What can you do to help?

FY14 CILP  Be ready to respond to requests from GSA for requirements, justifications, etc.  Short window for prospectus preparation – May to July  We may request information and need it quickly  Be prepared  GSA will provide schedule and budgeting estimates to help you plan on rent, relocation, etc  But be prepared for possible shifts in those plans (i.e. delays in appropriations, changes in Administration priorities, etc)  Be patient  The Capital Program is a long, slow process, and we cannot guarantee support or timeliness from our approvers (i.e. OMB & Congress)

FY14 CILP QUESTIONS? Feel free to contact me:Mark Sears (404)