@Mmi/M? OVERVIEW GSA and FBI are presenting a revised plan for the FBI Headquarters Consolidation project which remains a critical project and high priority. In response to the Senate Committee on Environment and Public Works hearing on August 2, 2017 and letter from December 1, 2017, the following items are covered: • Project Urgency • Revised Strategy • Project Elements + Cost • Recommendation GSA and FBI are committed to working closely with Congress to find a viable solution which: • Meets FBI Critical National Security and Intelligence Operations • Provides a Good Deal for the Taxpayer 1 2/12/2018 CANCELLED FULL CONSOLIDATION 5 3 5 1 4 3 6 3 2 4 Note: Conceptual Model Only, Not Based on a Particular Site DESIGN + CONSTRUCTION: $2.65B 1 HQ Main Operations Building 2 • SCIF (Sensitive Compartmented Information Facility), RF (Radio Frequency) Shielding + Intrusion Detection Systems • SIOC (Strategic Information Operations Center) • Mission Briefing Center • Blast, Ballistic + CBR (Chemical/Biological/ Radiological) Protection • Health + Fitness • Upgraded IT (Information Technology) 2/12/2018 2 Central Utility Plant (CUP) • Island Mode: 72-Hour Back-up Power and Redundant Utility Feeds 3 Visitor Center (VC) • Remote Visitor Center + Upgraded Access Control Systems 4 Parking Garages 5 Truck Inspection Facility (TIF) • Remote TIF + Perimeter Security 6 Site Work • Perimeter Security Design Land + GSA + Contingency Space Utilization: 220 USF (Usable Square Feet) per Person (Existing) 182 USF per Person (Planned) FBI FIT-OUT: $915M • • • • • • • Active IT Furniture, Fixtures and Equipment (FF&E) Security Equipment + Services Program Management Office Moves Decommissioning / Dual Operations GSA Reimbursable Work Authorizations Fees TOTAL COST: $3.57B CANCELLED FULL CONSOLIDATION: CAMPUS PROGRAM ELEMENTS The full consolidation program funding strategy was a combination: 72 Hour Back-up Power + Redundant Utility Feeds JEH Exchange Value + Federal Appropriations Upgraded IT (Information Technology) • In an attack against the U.S. Government, the initial national security operations will be hosted from the SIOC. • FBI requires multiple operations networks at various classification levels and several monitoring networks for mission protection. • Provides continuous operations capabilities until the mission can be moved to a more permanent, stable location if needed. • These networks add considerable scope and complexity to the IT infrastructure versus a corporate facility of comparable size. The Exchange Procurement was cancelled in July 2017. It was jointly determined by GSA and FBI that making a contract award without full funding put the Government at risk of cost escalations and the potential reduction in value of the JEH site. SCIF, RF Shielding + Intrusion Detection Systems • Unclassified auditorium to brief non-FBI law enforcement partners on joint operations as well as a large SCIF to support high level SCI briefings between IC partners. • Home of all intelligence operations; prevents classified information from leaking out and stops outside threat from listening into sensitive conversations. • Designed as dual purpose training and conference area amid operational use to maximize value. • Perimeter barriers protect against vehicle borne threats into the facility. Blast, Ballistic + CBR Protections • FBI’s symbolism and high security threats due to national security missions mandate enhanced protection. • Critical operation space with large square foot + technical requirements.  • To ensure mission continuity, the headquarters must be built with blast and ballistic protection against a classified threat and some mission spaces have to be protected against CBR attacks. • May host the President and the Attorney General during critical operations. • Visitor Center and upgraded access control system prevents unauthorized personnel intrusion. • Unclassified briefing space has been a multidecade inadequacy of the J. Edgar Hoover (JEH) Building. • Heart of the FBI’s operational capability and the nerve-center for managing all operations at both global and national scale.  • Integrates cases with U.S. Department of Justice and other IC agencies and partners. 2/12/2018 Visitor Center, Perimeter Security + Upgraded Access Control Systems • A SCIF is a cube with protective layers on all six sides and outfitted with RF (Radio Frequency, electromagnetic radiation) shielding and Intrusion Detection systems to avert surveillance efforts. Strategic Information Operations Center (SIOC) 3 Mission Briefing Center Acronym List CBR IC RF SCI SCIF SIOC Chemical Biological Radiological Intelligence Community Radio Frequency (electromagnetic radiation) Sensitive Compartmented Information Sensitive Compartmented Information Facility Strategic Information Operations Center URGENCY OF PROJECT Cost of Inaction: $84 M Annually For Construction Escalation Using a Conservative 2% on $2 B + JEH Sustainment Cost Expensive Operations + Maintenance Cost • $142M Annually for Leases (2.7M SF of Leased Space) • $42M Annual Maintenance Costs for the J. Edgar Hoover Building (JEH) • $160M Potential Emergency Repairs that put FBI Operations at Risk, Probability Increasing Exponentially Each Year of Delay Delay = Increased Cost Criteria for Success: 99 A Headquarters (HQ) Capable of Supporting the FBI National Security + Intelligence Operations 99 A Good Deal for the Taxpayer 4 2/12/2018 Scattered Mission + Inadequate Capacity Lease 1 Lease 2 Lease 3 Lease 5 • FBI Operations are Scattered Across JEH and 13 Leased Locations Causing Significant Challenges to Command and Control of Mission Elements • JEH was Built in the 1960s as a Police Precinct Not Intended to House Operation Centers for 21st Century’s Rapidly Changing, Asymmetrical National Security Missions (Intelligence, Terrorism, Cyber) • The Current Infrastructure does not have Adequate Capacity to Support the Significant Demand of the Operations Space Failing Infrastructure • JEH Infrastructure is on a Path to Catastrophic Failure with Key Building Systems Past their Expected Service Lives • Exterior and Interior Concrete Structure is Failing Lease 4 Lease 6 Lease 7 Lease 8 Lease 9 Lease 13 Lease 12 Lease 11 Lease 10 REVISED APPROACH TO ACHIEVE ESTABLISHED GOALS The FBI HQ Program has undergone a number of starts and stops. After multiple years of unsuccessfully pursuing a Fully Consolidated HQ in the National Capital Region (NCR), the FBI along with GSA took the latest restart as an opportunity to re-evaluate all project elements, including: • Scope • Location • Cost • Acquisition Strategy This re-evaluation resulted in a revised approach which focused on achieving the following goals: • Reduce Cost • Explore Viable Acquisition Strategies • Identify an Acceptable Funding Solution between All Stakeholders This revised approach presents an opportunity to resolve the longterm goal of delivering a consolidated FBI Headquarters. 5 2/12/2018 FBI HEADQUARTERS – A REVISED, NATIONALLY-FOCUSED CONSOLIDATION ORIGINAL HQ CONSOLIDATION PLAN DC Region Focus (2013-2017) Govt Owned (J. Edgar Hoover) 5,692 DC Leases (x4) 2,115 VA Leases (x7) 2,413 MD Leases (x2) 188 Subtotal Growth (0.2% annually over 10 years) DC Region HQ Staff WASHINGTON, DC 10,408 POCATELLO, ID 198 National Headquarters (JEH Building + Thirteen Off-site Locations) Data Center + Administrative Services 10,606 FBI NATIONAL CAPITAL REGION HEADQUARTERS 8,300 Personnel AL, WV, ID CLARKSBURG, WV Criminal Justice Services, Data Center + Biometrics REVISED, NATIONALLY-FOCUSED CONSOLIDATION PLAN (2018) DC Region HQ Staff National HQ Staff: AL, WV, ID 8,300* QUANTICO, VA 2,306* Training, CIRG, Laboratory + Operational Technologies HUNTSVILLE, AL FBI Reduced its DC Region HQ Program Significantly to Form a Nationally-Focused Portfolio Allowing Greater Mission Resiliency and Flexibility *Preliminary Estimates - Subject to Revisions 6 2/12/2018 TEDAC + HDS Nationally-Focused Consolidation Benefits: • Moves Critical Roles that do not Need to be in DC to Federally-Owned Sites • Enhanced Mission Resiliency + Continuity of Operations • Stronger Posture + Flexibility in Support of an Evolving FBI Mission • Reduces National Capital Region HQ Project Cost REVISED NATIONAL CAPITAL REGION STRATEGY Reutilization of the federally owned JEH site will provide the FBI with a headquarters capable of supporting national security and intelligence operations while providing a good deal for the taxpayer. FBI NATIONAL CAPITAL REGION HEADQUARTERS 8,300 Personnel J. EDGAR HOOVER Under a reduced program size, GSA and FBI also reevaluated site alternatives; reutilization of the federally owned J. Edgar Hoover (JEH) site provides multiple benefits to the FBI and will save the Taxpayer $500M+. These benefits include: • No Land Acquisition Cost • Reduced Off-site Transportation Mitigation Cost • Reduced Parking Needs and Cost • Reduced Site Development Cost • Maintains Established and Close Proximity to FBI Mission Partners Much of the prior work can be leveraged for this approach, including: • Provides Multiple Points of Access for FBI Employees • FBI Program of Requirements (POR): Substantial Reuse • Environmental Impact Study (EIS): Partial Reuse; data and analysis related to the JEH site • Request for Proposal (RFP): Partial Reuse; Security (Process + Procedures), O&M, and Commissioning Content Remains Unchanged 7 2/12/2018 DEMOLISH + REBUILD: PROGRAM ELEMENTS + TOTAL COST DESIGN + CONSTRUCTION: $1.93 B* HQ Operations Building: 2.6M GSF • SCIF (Sensitive Compartmented Information Facility), RF (Radio Frequency) Shielding + Intrusion Detection Systems • SIOC (Strategic Information Operations Center) • ESOC (Enterprise Security Operations Center) • SOC (Security Operations Center) • Mission Briefing Center • Blast, Ballistic + CBR (Chemical/Biological/ Radiological) Protection • Health + Fitness • Upgraded IT (Information Technology) • Visitor Center (VC) • Parking • Furniture, Fixtures + Equipment • Active IT/AV • Security Equipment + Services • Program Management • Moves • Decommissioning • Escalation FBI FIT-OUT: $923 M* Swing Space 14% SWING SPACE**: $479 M* FBI Fitout 28% HQ Operations Facility 58% • Design • Tenant Improvements • Furniture, Fixtures + Equipment • Active IT/AV • Moves TOTAL COST: $3.3 B* 8 2/12/2018 *Preliminary Estimates - Subject to Revisions ** Rent not Included in this Estimate as the Differential with Current Rent Payments not Determined COMPARISON OF URBAN/SUBURBAN MISSION ELEMENTS NO CHANGES TO MISSION ELEMENTS Detached Central Utility Plant (CUP): 72 Hour Back-up Power + Redundant Utility Feeds Remote Truck Inspection Facility (TIF) Detached Visitor Center (VC) + Access Control 9 2/12/2018 Mission Briefing Center Blast, Ballistic + CBR Protections URBAN MISSION REQUIREMENTS Strategic Information Operations Center (SIOC) SUBURBAN MISSION REQUIREMENTS SCIF, RF Shielding + Intrusion Detection Systems Upgraded IT (Information Technology) No Separate Central Utility Plant (CUP) – All Functions Located within the Main Building No Remote Truck Inspection Facility (TIF) – Continued Use of the Cheverly Facility No Detached Visitor Center – All Functions Located within the Main Building LEVERAGING THE JEH SITE: RENOVATE VS. DEMOLISH + REBUILD ALTERNATIVE 1: DEMOLISH + REBUILD CRITERIA COMPARISON ALTERNATIVE 2: FOUR-PHASE RENOVATION $3.3 B PROGRAM COST $3.8 B 2025 YEAR OF OCCUPANCY 2035 ~4,000 Personnel SWING SPACE NEEDS ~1,800 Personnel Full Compliance SECURITY Progressive Collapse Compliance Concerns Planned MISSION DISRUPTIONS Unplanned 8,300 CONSOLIDATION 7,750 Plus 550 in Leased Space ~182 USF Per Person SPACE UTILIZATION + EFFICIENCY ~215 USF Per Person ALTERNATIVE 1: DEMO + REBUILD ALTERNATIVE 2: PHASED RENOVATION Award Swing Space JEH Demolition 2019 2020 2021 Award Swing Space Construction + Fit-Out 2022 Phase 1 2023 2024 RECOMMENDATION: DEMOLISH + REBUILD Performs Better in Criteria Comparisons: • Cheaper Program Costs • Faster Delivery • Mitigates Security Concerns • Less Mission Disruptions • Improved Efficiency Occupancy 2025 2026 Phase 2 2027 2028 2029 Phase 3 2030 2031 2032 2033 Phase 4 2034 2035 Occupancy Schedule Not Dependent on Acquisition Strategy 10 2/12/2018 FUNDING GAP ANALYSIS FULL CONSOLIDATION $ 10,606 2017 3,565 $ 2,650 JEH REBUILD M PERSONNEL CONTRACT AWARD TOTAL $ 8,300 2019 3,328 M M DESIGN + CONSTRUCTON $ 1,926 M $ (703) M $ $ $ $ $ (703) (750) (315) 882 1,632 M M M M M FY16 + FY17 APPROPRIATIONS ANTICIPATED JEH* DOJ WORKING CAPITAL FUND INCLUDING JEH CREDIT EXCLUDING JEH CREDIT $ $ $ $ $ 915 (135) M M M $ $ $ $ $ $ $ 780 M FBI FIT-OUT TEMPORARY SWING SPACE FY16 PRIOR YEAR AUTHORIZATION DOJ WORKING CAPITAL FUND SUBTOTAL $ 2,412 M TOTAL SHORTFALL * Presented value used for planning purposes. Actual bids procurement sensitive. **Rent not included in this estimate as the differential with current rent payments not determined. 11 2/12/2018 Comments Includes: Design, Construction, Developer Fees, Land, Contingency GSA + FBI Construction Appropriations Account requires contributions before withdrawals 1,223 M 1,223 M 923 479 (135) (315) 952 M M M M M 2,175 M Includes: IT, Security, FF&E, Move, Decommissioning, PMO Design and construction excluding rent payments ** Recommend DOJ WCF be applied to Fit-Out FUNDING OPPORTUNITY • Two-Year Budget Cap Deal Provides a Unique Opportunity to Secure Appropriations for the FBI Headquarters • The Administration is Seeking $2.175B in Appropriations to Fully Fund Federal Construction to Demolish and Rebuild JEH • Congressional Support and Timely Funding will be Critical to Ensure a Successful Project 12 2/12/2018 IMPORTANCE OF TIMELY FUNDING Federal Phased Appropriations - Actual Example Operating Lease - Actual Example FDA WHITE OAK DEPARTMENT OF TRANSPORTATION Appropriations by Year in $Millions FY1996 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Total Required for Phased Appropriations: Total Required for Single Appropriations: Completion Year: Original Planned Phases: Total Phases: $55 $35 $92 $19 $38 $42 $89 $128 $178 $58 $163 $140 $43 $10 $1,090 $584 2014 5 12 Delays Associated with Funding Increases Cost Substantially, with Each Phase Needing Re-Compete and Re-mobilization 13 2/12/2018 Insufficient or Delayed Funding Can Lead to Sub-Optimal Decisions Payment in $Millions FY2007 – FY2037 Developer Cost: Purchase Option: Second-Term (if purchase is not made): $422 $767.5 $920* 15-Year Shell Rent + Purchase Option: Total Estimated Lease Payments (30 years): $1,293 $1,445 Completion Year Original Planned Duration: Actual Years to Complete: 2006 5 5 The Bush Administration sought funding to begin Federal construction of a new DOT headquarters, but Congress did not provide requested funds. Instead, in P. L. 105-277, GSA was directed to enter into an operating lease, provided that the lease met OMB A-11 Guidelines for Operating Leases as determined by the OMB Director. * Estimated using program rate. PATH FORWARD 1. GSA submits additional Prospectus. 2. GSA proceeds with the planning and procurement consistent with the existing authorization and/or appropriations. 3. The Senate and House authorize a Prospectus and provide appropriations. 14 2/12/2018 mu. :0 Oojmo__Qm:OD HISTORY OF BUDGET REQUESTS + APPROPRIATIONS History of Budget Requests + Appropriations for GSA (Nationwide) New Construction (Dollars in Thousands) $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 Requested $800,000 Appropriated $600,000 $400,000 $200,000 $0 2005 16 2/12/2018 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 GSA AUTHORITIES FEDERAL CONSTRUCTION • 40 U.S.C. § 3305: Construct a new public building to take the place of an existing building Traditional Full funding made available after authorization and constructed in a single phase. Phased Renovation Phased construction spreads funding and construction over 14 years in four major phases. Gaps in funding causes significant costs for re-procurements and re-mobilization (e.g. St. Elizabeths). Hybrid: Federal + GL-LB Half Federal Construction + half Lease Construction in a single phase. Full funding made immediately after authorization of Capital and Lease prospectuses. Expiration of the ground lease provides for Federal ownership. 17 2/12/2018 LEASE CONSTRUCTION • Pub. L. 108-447 § 412: “...may convey, by sale, lease, exchange or otherwise, including through leaseback arrangements, real and related property, or interest therein...” • 40 U.S.C. § 585 (a): Enter into a lease agreement for the accommodation of a federal agency; terms not to exceed 20 years • 40 U.S.C. § 585 (c): Execute a lease/leaseback arrangement for up to 30 years Lease Sale of JEH to selected developer. Traditional build-to-suit lease of new building. No Federal ownership (e.g. DOT HQ). Lease with Purchase Option Sale of JEH to selected developer. Traditional build-to-suit lease of new building. Purchase option provides possible Federal ownership. Ground Lease Leaseback Property is demolished then ground leased to developer for 35 years. Developer constructs new facility and leases back to GSA for 20 years with two renewal options, not to exceed a total of 30 years. Facility ownership reverts to US Government upon expiration of ground lease. SCENARIOS The scenarios illustrate potential ways the two acquisition authorities might proceed. The following pages are snapshots of additional scenarios providing comparative information on key factors. LEGEND Scenario Title Schedule Pros and Cons of the Scenario 18 2/12/2018 Scenario Description Process for Completion of the project FEDERAL CONSTRUCTION – TRADITIONAL Estimated Optimal Schedule Contract Award: 2019 Full Occupancy: 2025 Full funding made available, constructed in a single phase after Congressional authorization. PROCESS GSA PROS Provides for Immediate Long-Term Ownership Lower Cost of Capital Full Occupancy Congress Authorizes Capital Prospectus CONS Risk of Funding Delays + Cost Increases Higher Risk of Change Orders GSA Makes Necessary Procurements 19 2/12/2018 Congress Appropriates Funding LEASE CONSTRUCTION – GROUND LEASE-LEASEBACK Estimated Optimal Schedule Contract Award: 2019 Full Occupancy: 2025 Property is demolished then ground leased to developer for 35 years. Developer constructs new facility and leases back to GSA for 20 years with two renewal options, not to exceed a total of 30 years. Facility ownership reverts to US Government upon expiration of ground lease. PROS Timely Completion Delivery Responsibilities Transferred to Private Industry Provides the Taxpayer with Federal Ownership at the End of the Ground Lease at Year 30 (Max. Term) PROCESS GSA Site Reverts at End of Ground Lease Congress Authorizes Lease Prospectus CONS Higher Cost of Capital May Score as a Capital Lease Full Occupancy Operating Lease – Options Coterminous with Ground Lease 20 2/12/2018 35-Year Ground Lease DEVELOPER Developer Finances, Designs, and Constructs Facility LEASE CONSTRUCTION – LEASE Estimated Optimal Schedule GSA sells land to Developer. Developer builds facility. GSA enters into traditional Contract Award: 2019 Full Occupancy: 2025 operating lease from Developer. Developer retains ownership of land and facility. PROCESS GSA PROS Timely Completion Move Forward Quickly Transfers Funding + Delivery Risk to Private Sector Building Remains in Private Ownership at End of Lease Congress Authorizes Lease Prospectus CONS No Eventual Ownership Higher Cost of Capital May Score as a Capital Lease Developer Constructs Facility 21 2/12/2018 GSA Procures Operating Lease Full Occupancy DEVELOPER FEDERAL RENOVATION – PHASED Estimated Optimal Schedule Contract Award: 2019 Full Occupancy: 2035 PROS Reduce Impact of Upfront Appropriations Required Provides for Immediate Long-Term Ownership Lower Cost of Capital Phased construction spreads funding and construction over 14 years in four major phases. PROCESS GSA jo Four Ma r Times CONS 14 Years to Complete Delay Increases Project Costs Every Phase Runs Risk of Insufficient Funding and Delay Structural Renovation of an Occupied Facility Disruption to Ongoing Operations Congress Authorizes Project Full Occupancy GSA Makes Necessary Procurements Congress Appropriates Each of Four Phases Four M ajor Times 22 2/12/2018