Real Estate Services & Strategies
Suggested outline for RFQ/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:
At a minimum, the Project shall:
- Consist of an architecturally and visually appealing apartment complex, which reflects varied elevations in buildings from approximately 30 feet to an approximate maximum of 90 feet in height (see Appendix: Design Guidelines) in order to meet the program target range of 1,050 apartment beds (single occupancy bedrooms).
- Provide housing at rental rates that are comparable to other on-campus housing facilities now and in the future. (See Appendix XX – Campus Housing Rates.)
- Deliver the total number of beds for occupancy no later than September 1, 2005.
- Feature high quality construction comparable to the projects listed in Appendix XX.
- Use first class maintenance and operating standards.
- Be staffed with experienced property management professionals showing sensitivity to student needs.
- Provide the university with participation in cash flow from Project revenues in the form described in Appendix XX.
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,
- 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
- Developer equity contribution and source.
- Lender for construction.
- Lender for permanent debt (do equity or debt sources have a participation interest in the project?).
- Developer/guarantor net worth.
- Management experience for this type of project
- Property management
- Institutional/university experience
- Company information - Officers, principals and project manager (primary contact for this particular project)
- 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:
- off-site responsibility/role, an
- 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.