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New Supervisor’s Office and Ranger District Building
Some interesting things that can happen when initiating a build-to-suit lease
Mike Shoup2007
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Old Supervisor’s Office and Ranger District Office
30,629 sq ft
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New Supervisor’s Office and Ranger District Office
25, 203 sq ft
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Old Warehouse/Shop
12,840 sq ft
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New Warehouse/Shop
10,132 sq ft
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Lease Statistics
• $ 21 per square ft lease price awarded, for a total of $742,000 per year
• 15 year lease with a five year renewable option.
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Challenging Items:
• Creative Press reports
• General Contractor Safety, schedule, & quality issues
• Telecommunications
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Press Reports• It was reported that
the Forest Service chose to leave it’s current office lease of $404,000 to move into a new office and pay $742,000
• The press indicated the current building owner offered a better deal than $742,000
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Facts Omitted by the Local Press:
• The $404,000 lease price was last awarded in 1982. Lease costs rose with each extension and were currently well over $750,000 per year.
• The government is at the end of its lease extensions and a new solicitation is required for best price competitiveness.
• The government received five offers and selected the best value based on price, location, and conformance with the solicitation.
• The old building owners’ proposal to offer a cut rate price did not meet the requirements for the building code, energy code, space requirements, or solicitation and could not even be considered.
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Schedule, Safety, Quality Issues with the builder.
• Weird Dynamic– Owner: a Business
Man– On site
superintendent: owner’s former son-in-law.
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Poor Emphasis on Safety.
• It was a drain on contract administration time to continually explain basic employee safety requirements to the general contractor.
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Schedule
• Notice to Proceed delivered November 2006.
• Lease expiration was Oct. 15, 2007
• Eleven month construction contract that began in the winter didn’t allow for any schedule problems. Float in schedule was not available.
• Schedule commitments to the CO were not backed up with accelerations in the construction effort.
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Move In Day• No siding
– Consider what it takes to put on siding (just a little noise).
• Boarded up windows due to window delivery problems
• Numerous punch list and quality issues.
• No phone or computer hook-up
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Telecommunications Challenge
• Oct. 5th was scheduled telecommunications move date. Movers, phones, computer access, vacating current lease, and public opening pivoted around the Oct. 5th date.
• Sept. 21st, we received notice from the Facilities Move Strike Team that Qwest would not be able to connect phone and data until Oct. 22nd.
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Results of Telecomm Challenge
• Planned telecomm move dates of cut service on Friday Oct. 5th and resume service and open for business on Tuesday Oct. 9th turned into partial telecomm service available Oct. 24th, 9 days after the current lease expiration.
• Strike Team departed with phone and data only 75% connected.
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Telecommunciations
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Good News
• Moved from 43,469 sf to 35,335 sf leased space
• Made an 8,134 sf reduction in square footage or 19%
• At $21 per sf, made a $170,814 reduction in lease cost per year, $3.4 million over the terms of the lease.
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How did we do it?
• Each employee gets a 9’x 9’ (81 sf) modular work area
• Staff gets a 10’x12’ office
• Forest Supervisor and District Ranger have a 150 sf office. Forest Supervisor down from 266 sf office.
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Modular Work Stations
• Each employee gets a 9’x 9’ (81 sf) modular work area
• We used HON furniture company.
• Total price for the modular furniture contract was $ 214,000
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More Good News• Combined the Forest
Supervisors Office with a Ranger District Office and the Interagency Fire Dispatch Center.
• Energy efficiency is in the top 25% for buildings in its class
• Eventually, everything was completed and the building became a big improvement over the old building