A D D E N D U M # 2 March 14, 2017 Address all questions to: Lawrence Russell, Senior Procurement Analyst Multnomah County Purchasing 501 SE Hawthorne Blvd., Suite 125 Portland, OR 97214 503-988-7548 E-mail: Lawrence.e.russell@multco.us ITB NO: 4000004936 TITLE: REAL ESTATE CONSULTING SERVICES CLOSING DATE: MARCH 24, 2017 / NOT LATER THAN 4:00 p.m. This Addendum is issued to the above referenced to RFP make the following changes, additions, deletions, and/or clarifications: 1. Clarification Section 2.0, Purpose and Overview, Page 9 (Q) The seven listed items that are in this section does not include a request for Real Estate Appraisal Services. Is there a requirement for a Real Estate for Appraisal Services? (A) Those services were intended to be addressed in section 5b on page 11 of the RFP. (Q) Is a proposer defined as an entire firm, or as a team of professionals regardless of affiliation? (A) The preference of the County is to work with professionals with the best experience based on the team assembled. If the firm believes the best team structure involves assembly of various members from various organizations and can explain the reasoning behind that, the review team will take that into consideration. (Q) For Real Estate Service categories #4 and #7, please respond to the following: Do these cover all property types (retail, office, industrial, residential, etc.) Page 1 of 6
(A) Sections 4 and 7 are to address all property types leased and owned by Multnomah County. Does the county intend to have multiple Real Estate Providers awarded for one or both categories based on property types/uses? (A) Please refer to section 2.0, page 9 of the RFP. (Q) Please describe the key metrics considered in the Demographic Impact Analysis (2.b.)? (A) That would be best described in specific assignments awarded to the selected firm in that RFP category. 2. Clarification Section 2.11, Contract Award, Page 12 (Q) Section 2.11 suggests a single proposer may receive as many as three awards, while section 3.2.2 suggests that the maximum is two. Will there be more than two awards awarded to a single proposer? (A) The intent is to allow a maximum of three (3) awards of contract to a single provider. 3. Clarification Section 2.13 Compensation and Payment Method, Page 13 (Q) Is the County s intention to ensure that the Consultant will be paid a minimum of 50% of the full commission on acquisitions? (A) The intent of the language in this section is to illustrate Multnomah County s intent to recognize that commissions for real estate representation on behalf of a Tenant, come from building owners/sellers, NOT Multnomah County should the purchase of a building from a seller take place. The County does not ensure or guarantee commissions. 4. Clarification Section 3.2.1 Experience, Page 17 (Q) In your definition of development, public buildings, private developments, corporate office facilities and mixed-use projects with a minimum development value of $10M, does that include building value and tenant improvement projects? (A) Yes. 5. Clarification Section 3.2.3 Responsible Business Practices, Page 19 (Q). Can you clarify what the difference is between portfolio optimization modeling in Category 4 and portfolio optimization in Category 7? Page 2 of 6
(A) Section 4 is focused on Strategic Planning Portfolio Optimization which could include current and future real estate components. Section 7 is focused on strictly existing real estate components. (Q) The Social Equity evaluation criterion (3.2.3.2) discusses the county s commitment to utilizing MWESB firms, however the questions to be answered don t appear to specifically award points on whether MWESB firms are or are not included in the team. Will the participation of MWESB firms on a team be a factor in awarding points under this or any other criterion? (A) MWESB standing and participation level is an important criteria for scoring in the RFP process for this section of Social Equity. PUR 1 - Responses to the evaluation questions will be rated on the evaluation question and criteria given and scored based the total possible points assigned to that section. Describe how, in your business operations or delivery of service you reach out to and utilize diverse consultants, partners, contractors, and suppliers. How do you provide contracting opportunities to small minority firms. Examples include, but are not limited to inspectors, appraisers, cleaning services and, construction contractors? To address the participation of MWESB firms on a team should be included in your response to section 3.2.3.2. 6. Clarification General (Q) Is information available for the makeup (i.e. square footage, building type, makeup of the 3 million RSF Portland) of the County and the building locations? What is the size and scope of this portfolio and will there be any requirements to lease surplus space in the portfolio? (A) Multnomah County building locations and additional information can be viewed at: https://multco.us/facilities-and-property-management/countyproperty-and-building-locator Requirements to lease surplus space in the portfolio will be negotiated with the selected firm in that awarded category. (Q) How many requirements per year does the county expect? (A) The number of requirements vary from year to year. (Q) What has prompted the need for Real Estate Consulting Services and is there an incumbent? (A) There is no incumbent and Multnomah County is looking to engage experienced real estate advisory firms. Page 3 of 6
(Q) Is there currently an organizational chart that demonstrates the strategy and implementation? (A) Multnomah County Facilities department structure varies from month to month but carries many similarities found in other county structures. (Q) Who comprises the current internal real estate team and what are their functions? Is everyone in the same physical location? Who currently prepares the business cases/financial analyses? Will the proposer: Interface with one person or the entire real estate team and will the proposer interface with internal clients/stakeholders/ interface with internal groups for planning (e.g. real estate, facilities, IT, finance, HR, accounting, tax, legal, etc.)? Who signs leases and how are they currently routed for execution? Is there a lease approval package that is prepared and routed? (A) The following questions are best discussed in detail with the prevailing firm in each category. (Q) Is the county currently managing, evaluating and reporting on its process improvement? Does the county currently have a lease administration system/department? If so, are these services outsourced, or in-house and are there current metrics in place that help judge the quality of service? (A) Multnomah County currently uses an in-house lease administration system and yes there is a current metric in place. (Q) What drives current site selection decisions? a. Proximity to clients b. Proximity to workforce c. Proximity to neighborhoods d. Other (A) That varies from assignment to assignment. (Q) How is the county currently tracking leases, critical dates, GAAP accounting, new FASB rules, and rental forecasting? (A) Through our in-house lease administration system, Finance advisory teams and market research. (Q) Is the county currently utilizing a Business Intelligence tool or other technology solution for strategically managing its portfolio? If so, is it proprietary to the county or to your current service proposer? Page 4 of 6
(A) Strategic Planning of the Multnomah County Real Estate portfolio uses a combination of optimization analysis tools, institutional knowledge and various real estate advisors to manage its portfolio. (Q) What key metrics does county integrate into the Regional Growth Modeling? (A) That varies from assignment to assignment but includes Regional Growth data from Metro Regional Government advisors as well as other private and public sector sources. (Q) At what point, pre-proposal submittal or post-proposal submittal, will the service proposer(s) have access to headcount data and other strategic information to assist in comprehensive strategic planning? (A) That would be best determined in specific assignments awarded to the selected firm in that RFP category. (Q) Describe your understanding of the work to be performed and the major challenges facing work of this type and how they would be addressed in your project approach. Is there a specific project this question is addressing? (A) No specific project is addressed (Q) If there is no proposal submitted in a category, then the County reserves the right to negotiate with any Proposer in one of the awarded categories for those category services at the County's discretion. By this definition, can a company be awarded more than (3) of the real estate categories if one of the categories has no proposals submitted? (A) That decision remains at the discretion of Multnomah County. (Q) Would you have a list of specific projects, other than those listed, to help better identify the scope define the scope of this RFP? (A) Nothing to that Multnomah County is prepared to address in the RFP at this time. (Q) Is there guidance on the type of strategic master planning the county is interested in? For example: potential consolidations, sales of surplus owned assets, sale-leasebacks, acquisitions, monetization of surplus leased space (subleasing), etc. In that regard, are there any immediate vs longer-term objectives the county is seeking from such strategic planning? (A) Multnomah County is looking for support which would address many of the above services both for immediate and long term objectives. Page 5 of 6
(Q) Could the request of Regional partner engagement strategy be elaborated on a bit further for clarity? (A) Multnomah County is looking for real estate support services by providers with both Regional Knowledge as well as a National understanding of market influences (Q) Is there a lease approval package that is prepared and routed? Is the county currently managing, evaluating and reporting on its process improvement? Does the county currently have a lease administration system/department? If so, are these services outsourced, or in-house? (A) Multnomah County currently uses an in-house lease administration system. Page 6 of 6