Facilities Administration

Real Estate Services Group

Suggested Outline RFQ and/or RFP

Section 1 Introduction

Summarize campus objectives in the solicitation process. Describe location, site layout, and important geographical relationships to other campus areas. Present an outline of the financial structure expected by the University business arrangement and general information regarding project.

Section 2 Project Goals

Clearly present the key results the campus is looking to achieve for the project in detail. The following is an example for an on-campus privatized student housing project on a ground lease:

Section 3 Project Requirements

Identify with as much specificity as possible the program elements of the project. For example, for student housing projects, this should include, but not be limited to, the following:

• number of units,
• minimum size of units, type of units (number of bedrooms and bathrooms),
• parking requirements,
• amenities – indoor and outdoor, staff units requirements,
• phasing flexibility, if any,
• apartment requirements (furnishings, kitchen and bath requirements, patio),
• technology wiring requirements,
• occupancy limitations,
• rental rates per unit (specify 9 or 12 month lease terms, specify whether utilities are included or separate),
• rental rate adjustment limitations,
• campus involvement in project (must be limited),
• prevailing wage requirements, and
• CEQA requirements.
• ADA requirements
• Sustainability requirements (construction materials, energy use, etc.)
• Fire, life-safety and seismic requirements
  

Section 4 Major Agreement Terms

The RFQ/RFP should include as detailed a summary of the key terms of the agreements that will be used to document the arrangement between the selected developer and the University as may be available. By way of example Attachment A presents key terms for a ground lease office building project and Attachment B shows key terms for a privatized housing project.

Section 5 RFQ/RFP Information Requirements

The RFQ/RFP should require information from potential respondents, including the following:

• Financial capability to complete the project
  o Developer equity contribution and source.
  o Lender for construction.
  o Lender for permanent debt (do equity or debt sources have a participation interest in the project?).
  o Developer/guarantor net worth.

• Management experience for this type of project
  o Design
  o Construction.
  o Property management
  o Institutional/university experience
  o Company information – Officers, principals and project manager (primary contact for this particular project)
  o Description of any litigation in which the developer or a major team member was a defendant (past five years or pending) or any bankruptcy filing by them or an entity they controlled (minimum past ten years)

• Professional and project references

• Optional – Preliminary project concept, pricing and financing information

In addition to RFQ items above, the development team’s response to the RFP should include –

• Detailed project design and outline specifications

• Financial plan showing how the project is to be financed, including letters
  of interest or commitment from potential lenders/partners

• Property management plan:
  o off-site responsibility/role, an
  o on-site management and staffing

• Detailed construction budget (hard & soft costs)

• Preliminary market analysis

• Detailed 10-year operating pro forma showing all significant income and expenses by line item

Section 6 Instructions to Proposers and Selection Process

To help potential respondents be responsive to the University’s needs, the RFQ/RFP should clearly identify the following:

• when responses are due
• what should be included
• where responses should be sent
• what are the acceptable (and unacceptable) methods of communicating with University representatives during the response period
• when and where the all-hands respondents meeting is scheduled

The RFQ/RFP should present a brief description of the approval process required for the project – both for developer selection and project approval. Developer team evaluation and selection criteria should be developed in advance of issuing the RFQ/RFP and be explained in the RFQ/RFP—an example is presented in Attachment C. These criteria should tie to the campus goals identified in Section 2 above.

Section 7 General Conditions

The RFQ/RFP should include a summary of general information regarding the RFQ/RFP process with the University, as presented in Attachment D.

Section 8 Project Schedule

Identify key dates in the process, including: RFQ issue date, RFQ conference, RFQ responses due, RFP issue date, RFP conference, RFP responses due, Developer Selection, completion of Ground Lease documentation, Project Approval (including CEQA), Ground breaking, Project Completion and Occupancy

Section 9 Confidentiality

Because confidentiality is a concern to proposers and the University has a limited ability to withhold certain information, it is important to inform potential bidders of these limitations.

Section 10 Equal Opportunity

Exhibit A Response Formats for Project Costs, Operating Costs and Cash Flow Analysis.

Common format makes comparison of responses easier. See example of a common submittal format for a student housing project in Attachment E.