36C10F23R0075 - Nashville TN OPC - RLP Amendment 2 - Pre-Bid Presentation - Transcript - 8.24.2023.pdf

Nashville, Tennessee Veterans Affairs Medical Clinic

Pre-bid Conference

August 24, 2023

Location: Staybridge Suites-Nashville

350 22nd Avenue North

Nashville, Tennessee 37203

Reported by: Linda A. Wells, LCR, CCR

Linda A. Wells * (931)368-0228 2

DR. KATRINA BAPTISTE: Good morning.

Welcome. My name is Dr. Katrina Baptiste. A lot of you guys may know me as Dr. K.. You are here for the

Nashville pre-bid.

We are the U.S. Department of Veteran

Affairs so welcome.

This is the pre-bid conference for the outpatient clinic, Nashville, Tennessee; ROP Number

36-charlie-1-zero-foxtrot-23-romeo-zero-zero-75.

Today is August the 24th, 2023. Next slide, please.

Again, welcome. We appreciate your interest in this V.A. requirement.

The agenda today, we're going to go over the pre-bid purpose, project overview, design overview, review of the request for a lease proposal.

You will hear us say ROP package and then we're going to do some question-and-answer period.

All right. Here is a brief introduction.

Again, my name is Dr. Katrina Baptiste. I'm a senior lease contracting officer here from D.C..

Here, directly to my left...

Linda A. Wells * (931)368-0228 3

JEFF LEIKIN: I am Jeff Leikin. I'm a project manager...

DR. KATRINA BAPTISTE: Senior project manager.

JEFF LEIKIN: ...from the Office of

Real Property.

Rand: I am Rand Hakim-Rommel, (indiscernible) Planning.

DR. KATRINA BAPTISTE: Okay. And then we have our local V.A. team.

EDWARD PAYTON: Good morning. I'm

Edward Payton, Associate Director.

KENTON SMITH: Good morning. I'm

Kenton Smith. I'm the clinic administrator for the

Nashville hub.

SEAN CHAMBERS: I'm Sean Chambers, Active Strategic Planner for TVHS.

CARA GARCIA: I'm Cara Garcia, the

Activation Project Manager.

DR. KATRINA BAPTISTE: Then we have our contracting -- contractor representative.

MICHAEL McCOURT: Michael McCourt.

I'm from Atriax, PLLC, and I've assisted the V.A. with their programming efforts for this ROP.

Linda A. Wells * (931)368-0228 4

DR. KATRINA BAPTISTE: And we have our

V.A. adviser.

TOM LEAHY: Good morning. My name's

Thomas Leahy with Chartwell Enterprises

(indiscernible) V.A.

DR. KATRINA BAPTISTE: All right.

Thank you.

So before we get into our protocol regarding questions or a statement, I know you guys have been waiting, anticipating for this. It's been about three, four years since we have been authorized by this procurement.

I just want Mr. Payton to welcome you guys

in. He is part of the leadership at Tennessee Valley, so Mr. Payton, with no further adeu.

EDWARD PAYTON: Thank you so much, Dr. K.

Good morning, again. As I said before, I'm

Edward Payton. I'm the Associate Director for

Resources. I really appreciate all of you all being here. We are thrilled to be at this step in the process, so I don't know how much you all may know about Tennessee Valley, but we are one of the largest

V.A.s in the country so we have 21 sites of care across Middle Tennessee. And we are very fortunate, Linda A. Wells * (931)368-0228 5 in that, we are growing at an exponential rate as relates to veterans in this area. So we have outgrown our Nashville V.A. Medical Center, which is great, and so we are really looking forward to this.

Kenton Smith, who was actually introduced earlier, is my Nashville hub manager so the Nashville hospital and all of the surroundings CBOCs, he is responsible for so he asks me about space every day.

So Sean Chambers, who is our active strategic planner, also asks me about space every single day, so we're thrilled to be here and welcome, again. And we are here, should you have any questions, throughout the presentations so thank you.

DR. KATRINA BAPTISTE: All right.

Thank you.

So as I said before, this has been authorized by congress, what, Jeff, 2019, 2018?

JEFF LEIKIN: Yes.

DR. KATRINA BAPTISTE: So long-time overdue. I mean, as you guys can see, this room is packed.

Yesterday, we were in Clarksville, so we have adequate competition. By the time we finish, I hope we have this many people that actually submit their proposal, right? Because sometimes we get a lot

Linda A. Wells * (931)368-0228 6 of people that show up for these pre-bids and then when proposals are due, we get about two or three, right, so thank you for showing up. Thank you for your interest.

So protocol regarding questions and/or statements. Please hold all questions until the end.

State your name and the organization you represent.

So when you have a question, say: Hi, my name is Derek Weaver. I'm with Johnson Development.

I pick on Derek all the time. You'll hear me pick on

Derek. You'll hear me pick on Brad -- I mean, Matt from Molasky because I know them. I know their

(indiscernible). I know them because they always submit proposals. They show up. They represent so that's why.

Speak clearly and slowly for the stenographer. The court reporter is here for the transcript. We will get a transcript once we finish this pre-bid and I'll post it on sam.gov, okay?

Reference the ROP paragraph and section, if possible. 3.06, I said that yesterday what paragraph that you have your question about, and all questions must be submitted in writing to the contracting officer and/or broker.

Linda A. Wells * (931)368-0228 7

I'm busy a lot. I travel probably three weeks a month, maybe more. Please put "Jeff Leikin" on the e-mail. He'll respond before I do; him or

Patty, Patty Restrepo. She's actually our adviser.

She's not here today but make sure you put

"Jeff Leikin" on there, as well, and you must reference the ROP and section.

Official responses will be posted again, like I said, sam.gov through an amendment.

Respect, procurement, integrity, and sensitivity. They're important to me. It will make or break the procurement. I don't play about procurement. Integrity, procurement, sensitivity will halt (ph) our procurement, and we will not go forward;

either, protest or something.

And then as you heard from Commission

Payton, they've been waiting a long time for this, right. Sean has been talking about space. He's been talking about space so we want this procurement to go forward.

Okay. Purpose: Provide a general overview of requirements set forth in the ROP, Number

36-charlie-1-zero-foxtrot-23-romeo-zero-zero-75. To encourage offers to refer to the ROP packet for a complete understanding.

Linda A. Wells * (931)368-0228 8

Other requirements: Submit fully, responsive and technically-acceptable proposals. We want your proposals to be technically acceptable, right? We want to understand. I mean, when we have our TEB Board, which is once you submit your proposal, our Board evaluates them. They don't see price (ph), but they look at your proposal and they evaluate.

They make a recommendation to me, right? And if they can't read them and understand them, then either you'll actually get a reject letter saying you're kicked out of the competitive range, and we don't want that.

Okay. Answer questions of interested parties related to the ROP bid. So even if a developer does not submit an ROP, they're still considered an interested party. Anyone is an interested party, so I want you guys to know that.

Okay. Promote competition. Everybody's here, interested party. We have adequate competition so please submit your ROP.

V.A. will provide online conference transcript and PowerPoint presentation of the pre-bid meeting at sam.gov. How many of you have actually hit that link on sam.gov to say "follow?" All right. So it will come.

Linda A. Wells * (931)368-0228 9

You guys know that every procurement, all you have to do is hit "follow" and it will come in your e-mail to let you know what has been posted on the amendment, right?

All right. Project overview. Veteran

Affairs Outpatient Clinic is a full and open unrestricted solicitation. We try to attempt to set it aside. There was not enough SDVOSBs, VOSBs that was capable; capable, meaning, capable and financial, right, for us to set it aside. Meaning, they have done this size, right; project size and scope and have the resources.

This is a fully-serviced lease net

(indiscernible) janitorial service so let janitorial service, meaning, janitorial service inside of the building is pulled (ph) out but exterior is still in there. So all the landscaping, and landscaping's very important to us.

So the maximum space of 188,712 ABOA square feet. Contiguous space, a minimum of two floors. So at a minimum, two floors. You can go up as high as you want to. It can be eight stories. We don't care.

But if you go up that high, you're dealing with cost, right? So for us, a minimum of two floors, and

1,100 onsite parking spaces.

Linda A. Wells * (931)368-0228 10

And at this point, I'm going to turn it over to our adviser. Thank you.

TOM LEAHY: Awesome. Good morning, everyone. Again, my name is Thomas Leahy. I work with Chartwell Enterprises. We support V.A. in this procurement.

Are there any individuals/organizations that it's their first-time interaction with V.A.? Can you put your hand up? Okay. Good. Excellent.

Well, good. We're going to run through different portions of the ROP, so we can talk about specifics and provide some detail and some context for some of the more important features of the total package to help you as offerers to submit a more competitive and thorough offer.

So as Katrina said, if you have questions, we want to hear those questions but if you could hold them 'til the end, we appreciate that. So we'll jump into this.

We'll start off with ROP Section 1 here.

Section 1.02F: the Government requires that for each offer, you need to submit pricing for two different scenarios; one is a 15-year firm term, and the second is a 20-year firm term. So both of those are requirements.

Linda A. Wells * (931)368-0228 11

I know we start off in Section 1. You're going to see here there are a couple of references to

Section 3, and we do that intentionally because these are some very high-visibility items that we want the offerers to pay particular attention to. The first one is right here, and it deals with scoring.

The Government will award a lease pursuant to the ROP only if the lease will score as an operating lease under the OMB Circular A-11, Appendix B, right? Only offers that are compliant with the operating lease limitations will be eligible for an award.

In 3.11, as Katrina said, the Government requires a fully-serviced lease that is net of janitorial services as part of the rental consideration. The base for the operating lease adjustment will be established during negotiations based upon the rentable square footage. The proposed methodology for operating cost adjustments shall include all items specified in the attached lease document.

The minimum requirements for normal hours, utilities, and janitorial services are specified in the attached lease document. The offer shall clearly state whether a rental is affirmed throughout the term

Linda A. Wells * (931)368-0228 12 of the lease or if it's subject to annual adjustments of operating costs as indicated above.

The operating costs will be so adjusted as costs (indiscernible) specify in the proposal.

Okay. Back here at Section 1.03. For those who participate in a market survey, you'll recognize these borders for the delineated area and here is a representation on the map of that delineated area for the procurement.

Moving on here to Section 1.06, list of documents that have been provided, requirements. You should ensure partly as a guide for your submission.

Moving on now to Section 2 for eligibility and preference for award. In 2.01, the procurement requires that there should an efficient layout as judged by the LCO. In addition, the site cannot be in that 1 percent annual chance floodplain. That was formerly referred to, of course, as the 100-year floodplain.

And finally as per 2.07 and 2.08, the offered space must meet the standards for accessibility, fire protection, and life safety.

2.11, at the offerer's sole cost, a phase one must be submitted with that initial offer and that phase one can be dated no earlier than

Linda A. Wells * (931)368-0228 13

180 days prior to the initial submission date, okay?

The Government, of course, is responsible for compliance with NEPA, and they can and may turn to the offerer for their assistance and cooperation when it comes to compliance.

For B4 here, the Government does reserve the right to reject any offerer where the studies or documentations supporting the NEPA process provided by the offerer for the offered property are inadequate, okay? The offer entails unacceptably adverse impacts on the human environment, or the identified adverse impacts cannot be readily mitigated, or the level of

NEPA analysis is more extensive than is acceptable, okay?

Next, the Government, of course, is responsible for compliance with Section 1.06 of the

National Historic Preservation Act and a cultural research study must also be submitted with the initial offer from each offerer.

Moving onto Section 3, how to offer. I ask you pay particular close attention here with regard to these due dates: September 1st, which is just literally next week is the due date for questions. So take that to heart, submit it via e-mail, and that submission is -- it's detailed in Section 3.02. So

Linda A. Wells * (931)368-0228 14

4:00 p.m. on the 1st of September.

The due date for offers is the 17th of

October also at 4:00 p.m.. Those offers should be submitted in the following manner which are 12 CDs for the technical portion, Volume I; and 2 CDs for the pricing, which is Volume II, okay?

Again, directions on how to submit and where to submit, Section 3.02 of the ROP.

Okay. We're going to get now into the compliance matrix which should be your guide for each offerer to ensure that you are submitting everything that the Government is looking for. The first section is in front of us here. You'll see, as we talk through this, there will be Section 1 here on the side which includes, you know, Volume I. And then we go through these portions which mirror these evaluation factors, okay: Technical quality, past performance, and so on.

Okay. So starting here: Technical proposal, technical quality. You can see the requirements here which really sort of ends up being the teeth of the proposal, which is the architectural plan, the site layout, the landscaping, the architecture. All those sort of nuts and bolts that really are the important -- the -- it's call the main

Linda A. Wells * (931)368-0228 15 part of the proposal. But that compliance matrix, of course, will be your guide.

As we move onto past performance, this focuses, of course, on the experience and past performance of not only the offerer but the general contractor and the design team, and it has all these supporting documents that go along with that, to include the 330, 527, the licensing, and so on.

Next, we move into the financial piece for the conditional commitment letters, the financial resources plan, and the financial statements, and then the project management plan detailing how the work will be performed, looking for specific guidance in that regard.

Next is the operations and maintenance plan; staffing. And maintenance plan, not only interior but exterior, as well.

And then finally that socio-economic piece here at the bottom of the page. As Katrina said, this is fully noted but if you are an entity that falls within one of these categories in a SDVOSB, VOSB, service disabled veteran-owned small business or veteran-owned small business, please feel free to apply. Please submit the information that you have that validates your business as an entity like that.

Linda A. Wells * (931)368-0228 16

Still in Volume I here, right? Still in

Volume I: Offering a -- these are additional submittals, additional documents that need to be provided from the offerer to the Government that validate such things as evidence of ownership or control of the site. Proof of signing authority, compliance with local zoning, right? All those are just sort of -- those are vital points that the

Government needs to see and to review.

It continues on here under building site materials. Some focus on the offerer. Some focus on the building site itself.

And then we get to the end here: Evidence within the consideration.

And then, finally, to the documents, the documents that we provide you. We ask that you initial all those documents that we provide, every page of every document, and then return that to us.

So the package is substantial, of course, as most of you know. What we ask is that you initial those to signify that you have read those documents, and you agree with what we're asking for.

Now, we move into Volume II, which is the pricing. And what we're looking for, obviously, the

1364 for the pricing elements; 1217 for the operating

Linda A. Wells * (931)368-0228 17 costs; the vendor document; historical preference, as well as the Attachment 1 to that 1364.

Okay. Moving down to 3.06 for additional submittals: Evidence of ownership. This is a key element of the proposal.

If the offerer owns the property being offered or has a long-term leasehold interest, then that ownership or that interest needs to be evidenced, and you need to show any sort of incumbrances that hinder that interest or ownership.

Okay. In addition, offerer must submit written evidence that's authorized by the owner. So if you don't own it, you need to submit evidence from the owner that gives you permission to put forward that piece of property; evidence that is authorized by the owner of the site to present the site.

In addition, the offerer must provide evidence of site control for longer than the duration of the lease term. So over -- in addition and over to

20 years, including post award and construction phases.

Documentation that constitutes evidence of that could include an option to purchase. I see those contracts, a deed showing fee-simple ownership, right, or an option to lease. Again, lease term plus

Linda A. Wells * (931)368-0228 18

(indiscernible).

One added new point here is the future lease awardee is going to be required to submit their files in Revit format, all right? That's going to be required for that post-award phase.

Okay. Continuing in Section 3 here:

Offerer must provide documentation, proposed green globe for new construction to prove and show that they're seeking credits for two green globes.

The Government understands the parties are fully-service lease, net of janitorial -- and we'll talk about the specifics there with regard to the janitorial and what's required, what's expected -- and the offerer, too, must submit a building operating plan.

Okay. TIs. TIs take that space from finished shell to a finished product, okay? TIs are expected to be paid lump sum, but the Government does reserve the right to amortize that sum across the firm term of the lease if they choose to do that.

Okay. Method 4, method of award. Best value; this is the best value procurement per 415, (indiscernible) negotiated best-value tradeoff, selection procedures will be used to evaluate the proposals and an award will be made to the responsible

Linda A. Wells * (931)368-0228 19 party that puts forward the best complete offer in terms of contract price and non-price technical factors. The Government intends to evaluate proposals and award a contract without discussions with the offerer; therefore, the offerer's initial proposal should continue offerer's best terms for price and technical.

As we break into the factors here, I want to remind you, of course, that these are in descending order in level of importance, okay? So technical quality, Factor 1, is the most important. There is no ranking among the areas of consideration; just within the factors, okay. Technical quality, the most important factor, okay?

Under technical quality, the Government is looking at architectural concept and building design, quality of site characteristics, and sustainable design and energy efficiency.

Okay. Factor 2 offers qualifications and past performance. A, offers past performance as evidenced by those PPQs that are submitted by third parties directly to us, then the design team and general contractor qualifications that are part of the package submitted by the offerer.

Linda A. Wells * (931)368-0228 20

In addition here in this factor will be the financial resources plan and the project management plan.

Factor 3, operations and maintenance plan.

Interior and exterior maintenance. Telling the story of how that operation will take place. Routine emergency calls, procedures and times, and then that staffing plan, all right? Building a picture of what your operations and maintenance plan will look like throughout the life of the property.

And then Factor 4. As we spoke about, full and open, but there may be some SDVOSBs or VOSBs that apply, and we encourage that, of course, report and reviewing your documentation.

Okay. Moving into Section 5, additional terms and conditions. 5.02, cost of offsite improvements are the responsibility of the lessor.

They have to perform due diligence in order to understand those costs and build that into their rental rate. The lessor acknowledges his duty to conduct reasonable site inspections of the proposed site as per 5.03.

And 5.06, the offerer needs to show there's evidence of a teaming arrangement between the offerer and the general contractor, as well as the AE (ph)

Linda A. Wells * (931)368-0228 21 firm.

Okay. As we move here, just a review of the sections of the ROP. The ones -- the sections I, you know, particularly want you to focus on: How to offer, Section 3. Just real specific directions within Section 3 and 3.02. That will tell you how to offer or -- how to offer, how to send in your offer, what we're looking for, and the specifics of that.

In addition, the method of award that we just spoke to, you know, that's your guide. Along with your compliance matrix, that's your guide of how to -- the material to include and how to package it to make it just as easily digestible by V.A. as possible.

Okay. And we look at the lease, as you're familiar with the lease, you know, we have the seven sections here. In particular the ones to focus on here, Section 3 which outlines the shell components.

Section 5 outlines the TI components.

Okay. Now, we're in design.

Did you want to take a moment for questions?

DR. KATRINA BAPTISTE: Yes. So that was a lot for you guys to unpack before we go to design overview.

Linda A. Wells * (931)368-0228 22

Do we have any questions regarding the ROP and how to submit before we go to the design overview.

No questions? Yes?

DEREK WEAVER: With regard to -- I'm sorry. Derek Weaver with Johnson.

With regard to evaluation Factor 2, sustainability of design, we've recently learned that

Global Building Initiative, or GBI, is adopting the new 2021 standard for green globe's right towards the purchase this year, and it will affect this development.

The new standard substantially raises the bar, if you would, for design and construction. And the two green globes in this new format, the new standard, will significantly increase the cost of these projects.

Would the medical center or the V.A.

consider reducing the requirement to one green globe to still have a sustainable design, yet, manage costs for the shell?

DR. KATRINA BAPTISTE: Do you want to take that one?

JEFF LEIKIN: Yeah. We'll look into that as far as the new standards are concerned. I mean, if the one green globe is equal to what a two

Linda A. Wells * (931)368-0228 23 green globe was on the previous, that's a possibility that we could do that.

DEREK WEAVER: That's very much what we're seeing.

JEFF LEIKIN: Okay.

DEREK WEAVER: I liken it to

(indiscernible), but it's sort of like going from lead silver to lead gold (ph).

DR. KATRINA BAPTISTE: Uh-huh.

JEFF LEIKIN: Yeah.

DEREK WEAVER: Then I think if we did one green globe, we could still accomplish what everyone remembers being lead silver.

DR. KATRINA BAPTISTE: Uh-huh.

JEFF LEIKIN: Yeah.

DEREK WEAVER: Have the same effect without the substantial increase in cost.

JEFF LEIKIN: And we'll talk with our

RE, resident engineers, who probably are a little more privy to the new language, so...

DR. KATRINA BAPTISTE: Yeah. And if you could, Derek, also submit that as a question...

DEREK WEAVER: Certainly.

DR. KATRINA BAPTISTE: ...so that we can also answer that and post that, as well.

Linda A. Wells * (931)368-0228 24

JEFF LEIKIN: Yeah.

DEREK WEAVER: Will do.

DR. KATRINA BAPTISTE: Thank you.

MICHAEL McCOURT: Okay. Thank you.

Again, I'm Mike McCourt. I was with the architectural or (indiscernible) Architectural

Engineering firm for their basic layout for the programming effort for the V.A.

So just to give you a little bit of background on what we did is, we kind of took the -- a lot of the data, a lot of the specifications, the regulations, and we sat down with the leadership of the V.A.. We also sat down with the experts and the users and kind of took it to the next step to ensure that the facility can house all the functions that they want in there, all the clinics that they want in the facility, making sure that the sizes are correct and that it's going to service not only the patients but the staff, as well.

All right. So I'm going to go over some documents that are going to help you with your design concept for your package, okay?

So within the design concept itself, right, you're going to come up with your layout. I high ly recommend doing some renderings, right? That's going

Linda A. Wells * (931)368-0228 25 to be in the package. But along with that, you are also going to provide the narrative: How did you come up with your plan, right?

And I'm -- in a little bit I'm going to go over what we developed, right? We developed a three-story facility but, of course, you know, you guys will improve upon that. You might even change it up quite a bit, right, but that's why you will be hired and that's why you'll be given the award, right, to bring it to fruition.

That design that you come up with, that will be evaluated with the technical evaluation board at the end of this process, right? And then your concept that you come up with will be kind of the starting point if you are awarded this contract.

And, of course, if you don't follow those plans and specifications, you will be deemed unacceptable, all right? So next slide.

And here are some of the things that you should follow, right? Follow the ROP, right? Follow that format. As the factors they went through, follow those factors. Make it easy. Make it easy for the team to review. Follow the federal regulations and

FPA (ph). You know, life (ph) and safety codes, all of those, right? You guys are in the business. You

Linda A. Wells * (931)368-0228 26 understand those federal regulations.

Building codes and ordinances. You know, there's quite a bit of data out there, okay? You guys are experienced. Sometimes there's some conflicting information within the regulations that are out there or the codes and the ordinances. Just follow the most stringent, right? Follow the most stringent and if there's something that you are seeing you may not understand, just submit an R5, all right?

Green globe, that's what we just talked about. Right now the standard is two. It looks like the V.A. is going to take a look at that. Of course, we want a healthy facility that's energy efficient.

You know, keep that in mind in all your designs and aspects, all right?

And of course with these facilities, medical facilities, V.A. -- I'm a veteran myself. I'm kind of broken down. I want to be able to make sure that I can move around so please follow the accessibility standards, the ADA, the V.A. Program

Guide, the UFAS and AVAS. And then, of course, you follow the Davis Bacon factor (ph), okay?

So these are all the appendices to the ROP.

And this is again -- these -- this is a list of products that we provided that will help you with your

Linda A. Wells * (931)368-0228 27 design concept, right, and we -- we went a little bit further than what's cause (ph) and regulations, right?

Next slide. And I'll just point out the

ABOA is 188,712 square feet. That's your rentable space. I would imagine that your facility at the end is going to be larger than that. And, again, we'll kind of go through that when I go over the layouts.

All right. Next slide.

So this is the first one that you'll see.

And I -- don't get too caught up into the charts themselves, all right? This is the first page of every product, so they all look a little bit different. But this is a matrix here, the program for design. This is a list of every space and every room that should be going into your facility or our facility, okay?

So once you're going through there, you'll see the quantity of rooms or the quantity of space, the area of that room, the net area, the net-to-gross factor, you know, and there's some additional notes.

When you're looking at the product that we produced, it is color coded so this color here (indicating) will -- you'll see the same color within the design concept -- or design layout, again, which I'll go over here at the end.

Linda A. Wells * (931)368-0228 28

Next slide. All right. Along with the previous slide, we have the project room contents list so the previous spreadsheet was about 400 lines. This one's about 4,000 lines. What this provides to you is probably about 95 percent -- don't quote me on these numbers -- but about 95 percent to 99 percent of the equipment and the materials that are going to go into each room. It's line-by-line; again, color coded to the layout itself. It gives you an idea of the space that's required in each room, how things should be configured. And, again, it's pretty detailed as far as the equipment and the materials that are going into each room, all right?

And also I'll give you the acquisition code here that allows you to plan as far as designing and what you'll do in the future and construction. But it's -- VV is government furnished and installed. VC is government furnished and contractor installed. And then CC is contractor procured, contractor installed.

And, again, some additional notes for each piece of equipment. And there's also some cost estimates in there as well, as far as how much each piece of equipment costs, okay? Next slide.

All right. This is the standard that the

V.A. provides. Again, this kind of -- it gives you a

Linda A. Wells * (931)368-0228 29 listing of all the codes, standards, and references but it also goes into the functional areas within the facility itself. And then also it starts looking at each clinic, and it's something that goes above and beyond the codes and standards; some highlights, some areas that the users and the experts feel that need to be highlight. Go ahead. Next.

Okay. Kind of what I just said. I think I already said this but there is a prototype that we used, or the V.A. that -- they produced that. We use that prototype. Yeah, it's just a good prototype that there's a certain structure that the V.A. wants to see within their facilities themselves. Over the years, they've gotten pretty smart on how to build these things, all right?

Okay. Next slide.

You can reference this as Tennessee Valley

Health Care (ph) System for the interior finish materials, you know, for ceilings, walls, baseboards, et cetera. Next slide.

This chart here, the room data matrix, it gets a little bit more into the details. Again, every room is listed. Every space is listed, and it goes into finishes for door handles, for walls, ceilings.

It gives you HVAC, fire. It just gives you further

Linda A. Wells * (931)368-0228 30 detail for each room. Next slide.

And then the IT specs here. There's -- the

V.A. is transitioning to the EHRM, Electronic

Healthcare Records Modernization System. So this gets very specific into how to develop those data centers.

How to run your lines. What cables to use. Where your telecommunication room should within the facility to give you the proper coverage, but this really gets into those details for your IT requirements. Next slide.

This facility itself is going to be a facility security level 3, which means there's a few more security measurements that are going to be needed within the facility. And this will outline everything that you -- that will need to be within the facility itself, right. This will go over intrusion detection systems, cameras, and outline what areas really need a little bit more security. But, again, it's all within this document here. Next slide.

Okay. So this is the layout we came with, right, or that we developed. Really basic design.

Again, we came up with a three-story facility. The requirement is two. So, again, as Dr. Katrina said, you can go up to ten but that's going to affect other factors of your design.

Linda A. Wells * (931)368-0228 31

So, again, we kind of -- we used -- didn't kind of. We did use the prototype layout. We also incorporated the PACT design, the Patient Aligned...

EDWARD PAYTON: Care team.

MICHAEL McCOURT: ...Care Team, all right. Thank you.

And essentially you are putting your teams in the area to better serve the patients, okay? And you can kind of see that in mental health here where you have your -- you have your providers in the middle and then, for the most part, you have the patient rooms, the exam rooms on the outside. And so -- I'm sorry. A little bit of space here.

But, you know, you have your public area, patient area out front, so anybody can come in these front doors and they have waiting areas. They have the cafe here up front, as well. I know this is very small and you probably can't see this, but I'm just going to point out and highlight a few things.

But -- so they'll come in here

(indicating). They need to check into whatever clinic they're coming into, and then they'll be escorted through the outer corridors of these -- these clinics.

And so the patient rooms basically have two doors; one for the patients to enter on the outside, and then the

Linda A. Wells * (931)368-0228 32 providers enter from the inside of that area, right?

And then you have a corridor in the back and that's more for the staff themselves, for deliveries, for equipment, for cleaning.

You know, we put some of the areas that need a little bit more privacy on the outside. So mental health, they like their own separate areas so that's -- they have their own wing on the first floor here. PMNR, physical medicine and rehabilitation, that's on the outside, along with prosthetics. They want access to the outside on the first floor. You have your admin and educational services, some patient support functions. You have radiology. Some of your lab right here in the middle, along with your OIT; you know, offices, leadership offices, police. We put some of those functions that really need to get out to the facility very quickly sometimes that are, you know, central to the facility itself.

And then everything that you see here in gray is either lessor or building support so that's not counted against your ABOA.

All right. Next slide.

Second floor. A lot of primary-care space that's needed and this is a really great example of that, that PACT design. Again, you have the exam

Linda A. Wells * (931)368-0228 33 rooms on the outside, the providers in the middle, and then they have access to the rest of the facility through the corridor in the back. You have shared space in the back, as well, so you have break space, conference rooms. The yellow is that shared space.

And then audiology and speech. Again, on the outside. They need a more quiet space, right, with all the testing and the care that they're giving their patients. All right. Next slide.

And the last four here is just multi-specialty and eye clinic. Again, it's the same concept as the other floors and that's it.

TOM LEAHY: Thank you. Awesome.

Okay. Back to me.

All right. We said full-service lease, no janitorial. Here are the specifics about that, right?

So we have the interior piece on top, exterior on the bottom. This interior piece details the portion that the lessor will be responsible for, so it's a small list. I don't expect you to be able to read it here, but it is part of the package so you can reference it there.

This exterior piece of the landscaping with the site management is also the responsibility of the lessor.

Linda A. Wells * (931)368-0228 34

Okay. And now we're going to review the standard forms and clauses as we get here towards the end.

We're back here to compliance matrix. This is your guide. Please use it. Very helpful for you.

Very helpful for us, and it guides -- causes you to stay organized with what you're submitting to us. It allows the V.A. and the government reviewers to reference that to find the material in an efficient way. And so, you know, let this be your tool. Let it be your guide.

The 1364: Outline the financial terms of the deal and any specifics that go along with that, like, free rent, step rent, and so on.

1217: Offerers must ensure that all operational costs and any annual maintenance required for the lease are included within the submission on the 1217 form. And then specifically line 27, a summation there of the services and utility costs.

And then line 33, which is summation of these items that go into shell, okay?

Contract requirements include adherence and conformity with the standards of fire safety, physical security, accessibility, sustainability. The offered space must be zoned for the intended use.

Linda A. Wells * (931)368-0228 35

That zoning must be provided by the time construction begins. And with your initial offer, you do need a letter from the authority having jurisdiction that talks about that compatible zoning.

Per codes (ph), as we spoke about before here. The lease and design (indiscernible) references local, national, and federal codes so you know, of course, you must adhere with those with the local level, as well as on the federal level.

As Mike talked about, Davis Bacon, of course, does control here, as well as accessibility standards.

Okay. And then here we have a few pages with some final notes, just reminders; reiterate some of these things: Please read all parts of the ROP, right? Never too early to dive into that. Obviously, very experienced group here, but it's always a good idea to revisit those things to make sure that you're understanding -- your current understanding complies with the documents. Obviously, as many of you know, these documents change often so please spend time with the ROP package.

(Indiscernible) ensure compliance with

Section 3.02, right, that compliance matrix. Again, you've heard me say it a few times, and I keep beating

Linda A. Wells * (931)368-0228 36 that drum because it's super important to you and to us.

Initial every page. Electronic signatures are fine. That's good. Make it -- you can make it simple on yourself, right, but do sign those.

Ensure completeness and consistency throughout your proposal. Ensure that all forms are completed in their entirety. Don't recycle past proposals, right? We see that more than we like to but, you know, you're submitting on Site A for Town A, Nashville, but you're talking about another location.

Please avoid that.

Make sure your documents are signed by that authorized signatory to make sure the right person, as authorized by the target (indiscernible) corporation, you know, are signing that document, okay?

You're offering entity needs to have the correct NIXA (ph), right -- 531-120 -- and has to be consistent with the operating agreement. It has to be consistent with the information that's put on an offering entity acknowledgement form, okay?

Again, please provide a 1364 and an

Attachment 1 for each scenario; the 15-year firm term and the 20-year firm term.

Linda A. Wells * (931)368-0228 37

Okay. Phase one and cultural resources study. Got to have them in the initial offer.

Authority having jurisdiction letters, right? You heard me mention about the zoning, but it's also applicable for these other factors here.

Life and safety, utilities, and so on, okay.

Near (indiscernible) substantiations. As

Mike spoke about, there are portions within there where you can talk about, you know, what you're doing, whether it's the design or whether it's about your partners and, like, the contribution that they are bringing to the team.

Eliminating discrepancies. Just to expand on my comments from a moment ago, make sure there's consistency, right? Make sure that there is good proofreading and editing of your documents.

The address. The address should be the same for the property throughout the proposal. The

ABOA, the RSF should be consistent throughout the documents; price and cost and those things, right? It pays to go through it to make sure it's as consistent and professional as possible.

V.A. is not going to accept conditional offers, as you're aware. No contingencies, nor changes to the ROP should be submitted or expected.

Linda A. Wells * (931)368-0228 38

Evidence of control of the site. Katrina will speak about that shortly.

Occupancy AA (ph) project management plan.

It's super important to have a thorough, detailed project management plan that's focused on this specific site and this specific project.

Financial resources. You must submit that required information, right? All the financial information needs to be included in that technical proposal. Additional information is submitted after the fact is not going to be accepted. That includes, you know, specifically the funding piece, right;

near-term funding, permanent funding, construction funding. All of that has to be part of the submission on the technical side.

And here we are. I'm going to turn it over to Katrina in just one moment. I know she has some comments before the questions or after the questions.

The one thing I want to say is, if you are going to submit a question after the fact -- and I know you are -- probably most of you will have questions, please use this format. Use Excel; two cells for one -- you know, for the question: A reference cell and a question cell. Just makes it easy. Makes it organized. We appreciate your help

Linda A. Wells * (931)368-0228 39 with that.

DR. KATRINA BAPTISTE: Yes. And it makes it cleaner for us because all your questions and answers, it will go into one Excel spreadsheet, right, so that everyone can see it because we'll post it at one time.

If you can go back to slide 67.

TOM LEAHY: (Complies.)

DR. KATRINA BAPTISTE: All right. So any questions? Yes?

DEREK WEAVER: I have a -- Derek

Weaver with Johnson.

I have a facility security level question specifically for this one, FSL-3.

We pursued over the years many of these projects. Been fortunate to develop a good number of them as well. We have not seen FSL-3 requirements before. It's very rare. It's almost always been

FSL-2.

There's a significant increase in cost related to the structure of the building itself, not that anyone would see it, but the physical structure of the building that goes up with the FSL-3 requirement. I actually have a call with a company that wrote the facility security standards this

Linda A. Wells * (931)368-0228 40 afternoon to really try to get all details of what is in FSL-3.

Since that's so rare and the V.A. just customarily does FSL-2, would you consider reducing that requirement here to FSL-2 to be more standard with other V.A. facilities and to reduce costs of the project?

DR. KATRINA BAPTISTE: Well, I know that that is a requirement that came down -- it came down --

JEFF LEIKIN: Yeah. The medical center --

DR. KATRINA BAPTISTE: Requested that.

JEFF LEIKIN: -- security specialist, they go through their process. And as with

Clarksville, Nashville came up with it as FSL Level-3

(sic). Again, I would refer to the appendices, physical security appendices -- I forgot which appendices number that is -- but to see what the specific requirements are.

We looked at FS Level-3 requirements as a baseline and added and took things out, so there may be things that are not included in that appendices that you may think are part of the FS Level-3 marks

(ph).

Linda A. Wells * (931)368-0228 41

DR. KATRINA BAPTISTE: And that's a question that we can take back to the medical center and maybe have a conversation with them. And...

JEFF LEIKIN: And just to let you know, I mean, there are other V.A. projects that are coming in at FS Level-3.

DR. KATRINA BAPTISTE: Yeah.

JEFF LEIKIN: In know out of five or six that I'm doing, at least three of them are

FS Level-3.

DR. KATRINA BAPTISTE: Yeah. Any other questions? No? Oh, you guys.

How many of you guys -- I know at least I saw one hand up -- is their first requirement with the

V.A.? How many of you have V.A. -- have won a procurement? Yay. Good.

No? No, you (indicating). Yes.

FRASER SCHAUFEL (ph): A long time ago.

DR. KATRINA BAPTISTE: Okay. So...

FRASER SCHAUFEL: So I didn't want to...

DR. KATRINA BAPTISTE: Raise your hand? SFO or ROP?

FRASER SCHAUFEL: ROP.

Linda A. Wells * (931)368-0228 42

DR. KATRINA BAPTISTE: Okay.

No? How many of you are familiar with the

ROP? Okay. Yeah. It's different from the SFO to

ROP.

So a couple of things that we talked about.

V.A. would not award a lease if it doesn't score, right? If it scores, it's a (indiscernible) lease.

And I know we had a lot of questions yesterday about scoring, right?

We know that these leases were authorized back in 2018 or '19, so we know that we may deal with some scoring challenges. Right now we have one procurement that's almost at award, so we're looking at the Raleigh procurement to see what it is. But we did have about one or two developers that did present some options with scoring, okay?

So if it scores, we -- if it doesn't, we do have rounds of negotiation. And if you meet that competitor range, we'll ask you to put your best foot forward, right, which are final revision proposal if you meet that competitor range, right?

Okay. Do you understand that part? Okay.

Net janitorial. I think we talked about that. We are having a lot to issues with Ability One.

If it was in the previous CBOC -- so I'm just going to

Linda A. Wells * (931)368-0228 43 be honest and transparent, right?

So a couple of clinics in Florida, they were in the previous procurement, right -- or CBOC.

So the scope has changed and whether it was one CBOC or two CBOCs, if the scope has changed, Ability One, being that they belong in the current CBOC or the CBOC that we are procuring. I don't think so because the way that GSA -- and they protested and won (ph) GSA.

They think that they should be in there. Well, the way that Ability One and JWAD (ph) Act was written it says, yes. But if the scope has changed, I said, no, because you can't compare apples to oranges. It should be apples to apples.

So if I say that we are in 116,000 ABOA, they should be at 116,000 ABOA, not 39,000; 116,000, so Ability One.

If they are in a previous CBOC, they need to go into the new CBOC. So you will have Ability One reach out to you saying that we need to be in the

CBOC. If they are not in a CBOC, then you're good.

It will be fully serviced so that's why this one was pulled out, okay.

All right. COs have a discretion to not do as they please, but they have a lot of latitude, right? So one CO may say: I want it this way.

Linda A. Wells * (931)368-0228 44

Another CO may say that they want it this way. With me, you may find that I may be the CO that's really hard, and I am. I will probably kick you out the first time, but we will have a discussion, and I will tell you if you continue to submit, you will probably get a procurement.

I will not play about due diligence. Due diligence is a requirement and it has to be complete.

You have to submit a fully phase one. It has to be complete. It has to be -- your site has to be clean.

So your phase one has to be complete, and your cultural resource study has to be complete.

All right. So with your phase one, I think it's 180 days? 180 days. So -- and we will ask questions if you submit it and that's okay if we ask questions, right, but at least submit it and have it complete, right?

So if you submit it and it's not complete, you're going to be eliminated. Some COs will not eliminate you. They probably will have discussions with you. I will not, so don't get mad at me, okay?

Let's see. Questions are due September

1st. Nashville, we did 60 days. I usually don't do

60 days. I give you 25 days. Not going to give you extra time.

Linda A. Wells * (931)368-0228 45

Clarksville, you got 75 days. I'm not giving you extra time. I was being nice. Very generous, okay?

Any questions on that?

Ownership. Land ownership, I'm going to be very generous when you submit your site. If you submit a letter, that's fine with me. I don't -- land option, that's fine with me. I mean, I don't expect you to own it but I expect you to do at least have something, not just a letter from Joe Snow with a purchase or something saying that, you know...

If there's four developers on the site, I would like to see that. We talked about that yesterday.

JEFF LEIKIN: And the land options will be reviewed.

DR. KATRINA BAPTISTE: Oh, yeah, they will be reviewed.

JEFF LEIKIN: So -- and make sure --

DR. KATRINA BAPTISTE: Well, they will be reviewed if you go to award. Yeah, if you go to award, yeah.

JEFF LEIKIN: Okay.

DR. KATRINA BAPTISTE: If you go to award because our council looks at that if you go to

Linda A. Wells * (931)368-0228 46 award. Because what we -- what we have seen is landowners will take it away, right...

JEFF LEIKIN: Uh-huh.

DR. KATRINA BAPTISTE: ...and then we're left with nothing, or they'll remove it. Like we were, I guess, talking about this morning with the

Hampton project. It belonged to the City, and they just re -- what did they say, Matt or Derek? That they're no longer interested.

MATT CONNOLLY: That's right.

JEFF LEIKIN: Yeah.

DR. KATRINA BAPTISTE: Right? So if you have four people on one site and -- or one person on one site, and the Government is actually interested in that site and that person being kicked out of the competitor ring, guess what? Sorry, Government, You're going to have to go a site that's probably crappy or someone who submitted a -- it happened.

Someone who submitted a proposal (respite) -- I've had it happen.

So the more competition we have, it's better. So that's why I'm so thankful that a lot of you guys are here.

So it's okay to, you know, congregate amongst your fellow developers and say: Hey, we know

Linda A. Wells *…