u.s. general services administration reimbursable work authorizations background public buildings...
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U.S. General Services Administration
Reimbursable Work AuthorizationsBackground
Public Buildings Service
Reimbursable Services Division Office of Facilities Management & Services Programs General Services AdministrationMay 2010
Reimbursable Services Division Office of Facilities Management & Services Programs General Services AdministrationMay 2010
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About Us
• Ashlee Carlson and Steve Sacco
• Reimbursable Services Division• Established January 2009• Program and Finance functions separated
• Areas of Focus• Policy Management• Customer Analysis & Outreach• Data Management & Process Improvement
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Managing RWA Business
• $4.4 Billion business annually
•$2.9 Billion in UFCO (FY09 year end)
•Approx $1.5 Billion across 12,000 new RWAs accepted annually
• $856 Million in Recovery Act (ARRA) RWAs Anticipated
•Approx $428 Million accepted to date (5/2/2010)
•Approx $428 Million additional anticipated
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Managing Reimbursable Services
• How can we work smarter, not harder?• How can we proactively manage our Customer’s
business needs?• What can we do to standardize customer reporting?• How can we provide easy access to information for
our customers?
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What Are Customers Telling Us?
Top RWA Customer Issues: RWA policy inconsistently applied RWA billing is not detailed enough RWA communication
– RWA receipt vs. acceptance– Funding balances– Project status– RWA close-out
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Improvements to Reimbursable Services Program Management
• Implemented a National, Standard Workflow Tool: the RWA Entry and Tracking Application (RETA)
• Enhanced the Process: Consistency and Communication (letters)
• Improved the Bill – easier to read, more details
•Additional improvements coming soon…
• Fee Consistency – Automated 4% Fee in July 2009 to avoid inconsistent, lump sum fee charges
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• Accountability: Developed Performance Measures to change behavior
• Training: Ongoing efforts to educate employees and customers (Level I/II/III)
• Audit findings: taking corrective actions to fix all outstanding audit problems
• Continuing to implement changes based upon customer feedback
Improvements to Reimbursable Services Program Management con’t
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When Do Customers Use RWAs?
Alterations to existing space
Above Tenant Improvement costs
Above standard services (e.g. overtime utilities)
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What is an RWA?
RWA Definition
• Agreement between GSA and customer whereby PBS agrees to provide materials and services and the customer agency agrees to reimburse GSA
• Provides written documentation of a formal agreement (GSA Form 2957)
• Identifies specific needs of customer agency and establishes financial arrangements
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Types of RWAs Recurring:
When above-standard service costs cannot be readily identified and separated from standard operating costs
– Example: Overtime utilities where service is not separately metered and/or billed from “9 to 5” utilities
– One fiscal year limit
Non-recurring: When above-standard service costs can be specifically
identified and separated– Example: Overtime utilities where service is separately
metered and/or billed– Example: Alterations– Example: Consulting or Estimating
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Types of RWAs R-type
Example: overtime utilities Recurring Charged over the duration of the service Closed at end of fiscal year
C-type Example: utilities for private retail tenants space
on first floor of Federal building Recurring Non-Federal Customer Must be prepaid
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Types of RWAs A-type
Example: construction and/or design services Non-recurring, one time need Non-prospectus repair and alteration when associated with
federally owned property only Funding of project shared by both customer (RWA) and
GSA N-type
Example: space changes in owned or leased Space Non-recurring, one time need Non-prospectus repair and alteration
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Types of RWAs B-type
Example: tenant funded work associated with a prospectus project
Non-recurring, one time need RWA is associated with any prospectus project (leased or
owned), regardless of RWA amount F-type
Example: changing key locks Non-recurring, good for maximum of one fiscal year Small, miscellaneous items Purchase limits apply:
– Up to $250,000 for year (per RWA), up to $25,000 per project
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Types of RWAs E-type
Example: move associated with declared natural disaster
Non-recurring FEMA mission assignments
D-type Example: high school prom in a federal building Non-recurring Non-Federal customer Must be prepaid
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GSA Policies & Guidelines GSA RWA Form 2957
Need signatures from both the Customer and GSA RWA File Requirements:
– All Signed RWA forms (including amendments)– Copies of the cost estimate– All correspondence between the GSA & customer
Authorized amount on the RWA form must match the cost estimate
RETA allows users to generate, retain, and share an electronic copy of these documents
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GSA RWA Form 2957
Page 1:Customer Only
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GSA RWA Form 2957
Page 2:GSA Only
Page 3:Terms & ConditionsPages 4&5:Instructions
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GSA Policies & GuidelinesYear-End Internal Controls
• Non-recurring RWA request deadline (receipt date) is established by GSA annually. In FY2009,• DoD – June 15th
• All Others – Sept 1st
• RWAs submitted after the deadline (receipt date) may not be accepted if the request cannot be sufficiently reviewed and estimated prior to the end of the fiscal year
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Year 1 Year 2 Year 3 Year 4 Year 5
FY2006 FY2007 FY2008 FY2009 FY2010
Period Of Contract Performance(Liquidation Period)
Year 6
Appropriation Year
GSA Accepts
RWA 1/15/2005
Example: Single-Year Appropriation
As of 9/30/2005 period of
funding appropriation expires for new obligations
FY2011
FY2005
As of 9/30/2010 Appropriation is cancelled by
congress
One-year or Annual appropriation: An appropriation that is available for obligation only during a specific fiscal year. This is the most common type of appropriation. It is also known as a “fiscal year” or “annual” appropriation. (RETA FAQs #37)*
Customer appropriations are to be executed within the life of the appropriation (in this instance 1 year) for obligation & five years for expensing, at which time the appropriation is cancelled. (RWA National Policy Document Sec 3.2.2)
Period Of Funding Appropriation
Availability
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RWA Phases
Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3 Phase 4Phase 4 Phase 5Phase 5
RequirementsRequirements Cost
Estimate
Cost
Estimate AcceptanceAcceptance ExecutionExecutionCompletion
and Close-out
Completion and
Close-out
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Phase 1: Requirements
Customer Submits Request Customer contacts GSA with a bona fide need Work together to develop requirements Establish a fully defined scope of work
RequirementsRequirements
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GSA Acknowledges Receipt of RWA GSA Project Manager assigned GSA processes RWA in pending status
– Assigns RWA number
– Sends “Receipt” Customer Letter
Phase 1: RequirementsRequirementsRequirements
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Description of Requested Work
• Summary level scope of work, including:• Type of Work:
• Detail work to be performed• Location(s) of work (e.g. building, floor, room)• Should not be open-ended or vague
• Amount or Magnitude of Work:• Square footage• The number of hours of service
• This information goes in Block 7
Phase 1: RequirementsRequirementsRequirements
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• Created by GSA. However, if provided by customer, GSA must validate.
• Includes all direct costs
• Examples: Design, construction management, contingencies, travel, moving, furniture, etc.
• Includes all indirect costs (if applicable)
• 4% project management fee
• sliding scale overhead fee or flat overhead fee of $100
Develop Cost Estimate
Cost EstimateCost Estimate Phase 2: Cost Estimate
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Fees: Project Management (4%)
Covers Regional oversight of delivering RWA projects– Example: Budget Analyst time entering RWAs into RETA– Example: GSA PM coordinating efforts with contractors– Example: Contracting Officer awarding/administering
contracts
Fee does not apply to:– Example: Personal property costs such as Furniture,
Equipment, and Supplies– Example: Moving Costs– Example: Overtime Utilities
Cost EstimateCost Estimate Phase 2: Cost Estimate
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Fees: GSA’s Sliding Scale
Recovers the nationwide indirect cost of managing and operating the PBS Reimbursable Services Program
– Example: Reimbursable Services Division– Example: Financial Operations Division– Example: Office of Finance – Example: Managing and maintaining RWA Systems
Overhead Fee is based on actual expenses
The scale is capped at $30,000 per RWA
Cost EstimateCost Estimate Phase 2: Cost Estimate
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Fees: Recurring RWAs
Incur a flat overhead fee of $100 per RWA Minimal administrative costs associated with
managing recurring RWAs
Cost EstimateCost Estimate Phase 2: Cost Estimate
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Common Estimate Components
Construction Costs & Contingencies
+ Architecture/Engineering (A/E) Costs
+ Construction Management (CM) Costs
+ 4% Project Management (PM) Fee
+ Personal Property Costs
+ RWA Overhead Fee (sliding scale)
= Authorized Amount of RWA
Cost EstimateCost Estimate Phase 2: Cost Estimate
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Needed for Acceptance of RWA
Scope of Work is fully defined Cost Estimate sufficiently supports the scope of work Bona Fide Need is established by customer Agency Fund Certifying Official is knowledgeable about
funding authority
AcceptanceAcceptance Phase 3: Acceptance
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Acceptance of RWA Customer Funds Certifying Official must sign
RWA Form confirming:– Funds are legally available– All unique funding and procurement requirements of
the Requesting Agency have been disclosed GSA Funds Certifier officially accepts RWA by signing
RWA Pending RWA is submitted and accepted into RETA GSA sends “Acceptance” Letter to customer
AcceptanceAcceptance Phase 3: Acceptance
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RWA Amendments• Amendments are accepted from customers, however…
• Changes in scope must meet 3 requirements:
1. Funds are legally available for new purpose
2. Bona Fide Need exists
3. The appropriation has not lapsed for obligational authority
• Agencies amend RWAs to increase or decrease RWA amount
AcceptanceAcceptance Phase 3: Acceptance
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Recovery Act (ARRA) RWAs “Recovery Act” box (Block 13C) should be checked Customers should follow ARRA RWA Checklist Naming convention: prefixed as N40 (Block 2)
– GSA assigns RWA number– RETA has built-in internal control for ARRA funds
Mixed Fund Projects (i.e. ARRA funds & Traditional funds):
– Must complete two separate RWAs
AcceptanceAcceptance Phase 3: Acceptance
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RWA Management Acquisition Plan established
Scheduled milestones established (if necessary)
Regular and periodic review of RWA inventory
– Example: RWAs with no financial activity in last 90 days
– Example: RWAs with expiring customer funding
ExecutionExecution Phase 4: Execution
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What triggers a Bill?– Inspection or Receiving Report identifies delivery of service
(partial or full) 4% Project Management Fee automatically applied on
top of “eligible” expenses Overhead automatically applied to all expenses
Billing Term is identified on GSA Form 2957– Block 9B– Monthly (M), Quarterly (Q), or Advance (A)
ExecutionExecution
RWA Billing
Phase 4: Execution
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RWA Payment Customers can make payment via:
– Treasury’s IPAC System (most federal customers)– Interfund (internal GSA customers only)– Check (non-federal customers and non-IPAC customers)– Credit Card (non-federal customers; federal customers in
limited cases - not preferred)
ExecutionExecution Phase 4: Execution
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Old Bill and IPAC
ExecutionExecution Phase 4: Execution
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New RWA Bill (Top half)
ExecutionExecution Phase 4: Execution
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New RWA Bill (bottom half)
ExecutionExecution Phase 4: Execution
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RWA Substantial Completion
Physical work is complete– “Punch list” items may exist, however work has
been substantially complete– GSA sends “Completion” Letter to customer
Completion/ Closeout
Completion/ Closeout Phase 5: Completion & Closeout
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Phase 5: Completion & Closeout
RWA Financial Closeout All costs have been billed and all invoices have
been paid – GSA sends “Closeout” Letter to customer– Agency may de-obligate remaining funds– Residual/Excess funds cannot be used for a
different RWA or a new scope of work
Completion/ Closeout
Completion/ Closeout
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RWA Cancellations Customer Agency may cancel an RWA anytime
before charges are incurred by PBS against an RWA
– Customer must submit an Amendment to cancel the RWA
If GSA has incurred costs, GSA will bill the Customer
– Any remaining funds may be de-obligated by the customer upon receipt of the “Closeout” Letter
Completion/ Closeout
Completion/ Closeout Phase 5: Completion & Closeout
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RWA Customer Letter Templates
**RWA Project Follow-Up Letter to be used only if needed
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Improvements and Successes
FY2008:– Standardized Cost Estimate Template– Improved Customer Bill
FY2009:– Electronic Documentation Tool and RETA
Email Functionality– Automated Customer Letters– 4% Fee Automation
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Education and Outreach:– Updated and enhanced RWA Level I Training (available
August 2010) Available at www.gsa.gov/rwa
– Specific Competency RWA Level II and III Training Region by Region Classroom training (April-August
2010)
Policy:– Updating National Policy Document (anticipated June
2010)
Program Initiatives Going Forward
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Process Streamlining and Systems:– External RETA Access for Customer Agencies
Read-only Documentation Tool access (anticipated August 2010)
Electronic RWA Request Submission capabilities (anticipated FY2011/2012)
– Consolidating additional RWA tools into RETA
Program Initiatives Going Forward
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Customer Tools
RWA Customer Portal: –www.gsa.gov/rwa
RWA Search–www.finance.gsa.gov–To be replaced with external RETA access
Billview Website–www.finance.gsa.gov
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PBS Regional RWA Network
Available at www.gsa.gov/rwa
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Questions?
Process/Data ManagementSteven Sacco
Customer Analysis/OutreachAshlee Carlson
Policy ManagementLester Boggs
Director
Denise Funkhouser