Santa Cruz CA 36C24W25L0021 Amd 03.pdf

Lessor _______ Gov’t. ________ Page 1 of 2 Page _____ of _____

February 13, 2025

AMENDMENT # 03

RLP # 36C24W24R0070

Santa Cruz, CA

1. A memorandum regarding the Santa Cruz, CA CBOC Pre-Bid Conference, attached hereto, is provided for reference.

END OF AMENDMENT

John Paul Niega, MBA Contracting Officer

Lessor _______ Gov’t. ________ Page 2 of 2 Page _____ of _____

Acknowledgement of Receipt

Amendment # 03 – 36C24W24R0070 – Santa Cruz, CA

Company______________________________________________________________________

Name_________________________________________________________________________

Title__________________________________________________________________________

Signature of Offeror____________________________________________Date________________________

Return and initial/sign this amendment with your Proposal.

Department of Veterans Affairs

John Paul Niega, MBA, Branch Chief, Real Property Leasing, Regional Procurement Office West

Santa Cruz, CA – Community Based Outpatient Clinic (CBOC) – 36C24W24R0070

SUBJECT: Virtual Pre-Bid Conference

This memorandum serves as a summary of details shared during the virtual Pre-Bid Conference was held on January 24, 2025 with interested parties. The following details are a summary of the details shared during the pre-bid conference.

Pre-bid Purpose

The purpose of the conference was to provide a general overview of requirements set forth in RLP No. 36C24W24R0070 and clarify RLP requirements for potential offerors.

Additionally, the goal was to ensure potential Offerors refer to the RLP package for a complete understanding of the requirements to submit fully responsive and technically acceptable proposals. Finally, the objective is to promote competition in the procurement.

Project Overview:

This is a full and open competition for a VA Community Based Outpatient Clinic (CBOC).

VA is seeking a minimum of 13,000 ABOA SF to a maximum of 15,500 ABOA SF. The rentable SF should not exceed 20,000 RSF. The expected occupancy date is 10/1/2026.

Offered space must be an existing building on no more than two contiguous floors that has or will have undergone modernization or adaptive re-use by occupancy. The parking requirement is 90 on-site parking spaces or should at least meet local code requirements, whichever is more stringent.

The Government requires a modified-gross lease as part of the rental consideration.

Operating costs shall include all costs except expenses related to utility usage directly to the provider for electricity, gas, water and sewer. The minimum requirements for normal hours, utilities, and janitorial services are specified in the attached Lease and ASR documents.

Review of the RLP Package

An overview of the RLP package was conducted which also included a review of standard forms and clauses. The review was not comprehensive of every section of the RLP package but rather a highlight of various sections. A highlight of those sections included:

Memorandum

Date:

From:

Project:

• R100 Section 1 – Statement of Requirements: This section includes information about the lease term, delineated area, unique requirements, security requirements and other requirements.

• R100 Section 2 – Eligibility and Preferences for Award: This section includes that Offerors need to provide an efficient layout. VA has provided a conceptual plan in the Agency Specific Requirements (ASR) file. This section also provides information on floodplain, seismic safety, fire protection & life safety requirements, and additional due diligence requirements, as applicable.

• R100 Section 3 – How to Offer: Offerors shall prepare a complete offer, using the forms provided with this RLP, and submit the completed lease proposal package to the Government as indicated in the section.

o Section 3.02 Receipt of Lease Proposals: All offers need to be submitted via email or shared folder. The RLP package includes an Offeror Proposal Compliance Matrix which should be completed and included in the offer. It is a tool that VA provides for Offeror’s use to ensure compliance, and it includes reference to each applicable section of the RLP. A failure to address all the items here in the compliance matrix could result in an offer being technically non-compliant. Additionally, offers shall be submitted in two volumes as outlined in Section 3.02.

o Section 3.06 Additional Submittals: A small sampling of additional submittal requirements that were highlighted included:

▪ Para A. Evidence of ownership or control of Building or site. If the Offeror owns the Property being offered or has a long-term leasehold interest, the deed or lease must be submitted to the LCO evidencing the Offeror's stated interest in the Property and any encumbrances on the Property.

▪ Para B. Conditional commitment of funds – amount of loan, term in years, APR, length of loan commitment. Must be signed by authorized bank office or authorized financing official. If self-financing – must demonstrate adequate financial resources.

▪ Para C. Evidence that the property is zoned in compliance with local zones laws, including evidences of variances, if any, approved by the proper local authority.

▪ Para D. Offeror must submit written evidence that it is authorized by the owner of the site to present the site. In addition, the Offeror must provide evidence of site control for longer than the duration of the lease term required in this RLP, including the post-award design and construction phase as well as all renewal options.

Documentation that constitutes evidence of control includes, but is not limited to, the following fully-executed documents:

• An option to purchase;

• A sales contract;

• A deed showing fee simple ownership; or

• An option to lease the site for longer than the lease term plus the post-award design and construction phase and any renewal options

▪ Para E. Requirements for option to purchase – submit a fully executed copy of the written agreement with a statement from the current owner that the agreement is in full force and effect and that the Offeror has performed all conditions precedent prior to closing.

Offeror is required to submit updated documents as required.

▪ Para I. Offeror must have an active registration in the System for Award management (SAW). Offerors must be registered for purposes of “all Awards,” including completion of all required representations and certifications within SAM.

▪ Para L. A plan and short narrative as necessary to explain how the Offeror will meet the parking requirements.

▪ Para M. Architectural plans for modernization if needed.

o Section 3.07 TIs Included in the Offer: Tenant Improvements are the finishes and fixtures that typically take the Space from the shell condition to a finished, usable condition. The TI allowance is $800.00/ABOA SF.

▪ The Government reserves the right to amortize any portion of the Tenant Improvements at the amortization rate proposed by the Offeror on Attachment 1 to GSA Form 1364.

▪ The unamortized portion of the Tenant Improvements will be paid by the Government in lump sum upon acceptance of the space by the Government.

▪ No costs associated with Shell shall be included in the TI pricing.

o Section 3.11 Operating Costs: The Government requires a modified-gross lease as part of the rental consideration. Operating costs shall include all costs except expenses related to utility usage directly to the provider for electricity, gas, water and sewer. The minimum requirements for normal hours, utilities, and janitorial services are specified in the attached Lease and ASR documents.

o Section 3.12 Utilities Separate from Operating Plan: The cost of certain utilities is not included as part of the rental consideration. VA will pay all expenses related to utility usage (electricity, gas, water, and sewer). The Lessor shall provide separate meters to measure VA usage versus Lessor usage. Pro-ration is not permissible. Prior to occupancy by VA, the Offeror shall furnish to the Contracting Officer written certification of the meter numbers and certification that these numbers measure VA usage only.

• R100 Section 4 – Method of Award o Section 4.04 Other Evaluation Factors: In accordance with FAR Part

15.101, competitively negotiated best value trade off source selection procedures will be used to evaluate proposals, and award will be made to the responsible Offeror offering the best value to the Government after evaluation of both the total evaluated contract price and non-priced technical factors.

▪ The combination of factors below is significantly more important than price. As proposals become more equal in price, their technical merit becomes more important. Likewise, as technical factors become more equalized, price becomes the most important component.

▪ All technical evaluation factors are of equal importance.

o Section 4.05 Evaluation Factor Descriptions: Offerors are encouraged to spend time reviewing this section so that you understand how your proposals are going to be evaluated and what you need to do to be compliant in your submissions. The following evaluation factor(s) will be considered:

▪ Factor 1 Technical Quality

▪ Factor 2 Offeror’s Qualifications and Past Performance

▪ Factor 3 Operations and Maintenance Plan

▪ Factor 4 Price o Section 4.09 Present Value Evaluation: Free rent will be evaluated in the year in which it is offered. The gross annual price is adjusted to reflect free rent. The fees for architectural and engineering design (A/E) services and the Offeror’s project management fees associated with Tenant Improvements (TI).

• R100 Section 5 – Additional Terms and Conditions o Section 5.03 Tenant Improvements: If tenant improvement specifications in the Lease differ from the Agency Specific Requirements (ASR) attached to the Lease as Exhibit B, the specifications contained within the ASR shall govern.

o Section 5.04 Rent Adjustments: VA will not be providing automatic rent adjustments for operating costs or real estate taxes. Offerors are encouraged to include any potential future changes to operating costs or taxes in their price proposal, in the form of escalated or stepped rent.

• R100 Summary: Offers should read all parts of the RLP in its entirety and submit a complete response.

• Lease: A copy of the Lease (GSA Template L100 for VA) is included in the RLP Package. Upon selection for award, VA will transcribe the successful Offeror's final offered rent and other price data included on Offeror’s submitted GSA Lease Proposal Form 1364, (hereinafter Lease Proposal Form) into a Lease Template, and transmit the completed Lease Template, together with appropriate attachments, to the successful Offeror for execution.

All offerors should read the Lease (GSA Template L100 for VA) in its entirety as there are revisions from the GSA L100 specific to VA. The information below serves as an example of a VA deviation from the GSA L100. This deviation indicates that all HVAC systems shall be provided as part of the shell rent.

• Agency Specific Requirements (ASR): If requirements in Exhibit B, ASR, exceed the requirements within this Lease, then the more stringent shall apply and shall be included in shell rent as applicable under the Building Shell Requirements subsection in Section 3 herein. In such circumstances, the Lessor will provide pricing detailing associated additional costs.

o The ASR file is available upon request. Interested parties shall email David Stonehouse, Caitlin Cunningham, Jennifer Shaw, and Alex Ortiz to request access to the ASR file.

o There are additional links with additional documents, additional requirements located within the ASR file. The links within the ASR grants access to access additional documents.

Review of Standard Forms and Clauses

• GSA Form 1364 Proposal to Lease Space: Make sure the RSF and ABOA SF in this form also match Form 1217 and other sections of the proposal. Check your math – make sure all numbers add up and make sense. Form 1364 asks for figures to be broken down between Shell Rent and Tenant Improvements (TI). Offerors should make sure their pricing is categorized correctly.

Specifically for this Santa Cruz project, VA will not be providing annual adjustments for CPI or operating expenses. Therefore, offerors will need to take this into consideration when proposing pricing. Offerors may attach a rent schedule to the 1364 if they are proposing something like stepped rent or escalated rent that is not easily input into the form.

• GSA Form 1217 Lessor’s Annual Cost Statement: Offerors must ensure that all operational costs and any annual maintenance required for the Lease are included in their submissions. Like Form 1364, make sure information is consistent across the entire proposal, and double-check the math. Ensure Line 27 of the 1217 is carried over to Line 17 of Form 1364. The numbers should be identical. If VA is not occupying the entire facility, ensure that the amounts allocated to the VA space are accurate when looking at VA’s proportionate share of the space.

The Government requires a modified-gross lease as part of the rental consideration. Operating costs shall include all costs except expenses related to utility usage directly to the provider for electricity, gas, water and sewer.

• GSA Form 3517 General Clauses: Offerors were encouraged to read this form in its entirety and ensure that all requirements are understood. This form will be incorporated into the lease contract regulations that govern the contract and how it is going to be administered. The document also contains regulations that the lessor must adhere to as a government contractor.

• Contract Requirements: Offerors were encouraged to thoroughly review all of the contract requirements as outlined in detail in the lease and associated appendices.

Reminders

• Read all parts of the RLP in their entirety & respond accordingly.

• Audit/ensure compliance with Section 3.02. Fully complete and include Offeror Proposal Compliance Matrix with proposal.

• Initial EVERY page of the ENTIRE offer (insert a footer) – Electronic signatures are acceptable.

• Ensure completeness AND consistency throughout the proposal. Ensure all forms have been completed in their entirety (e.g., check all boxes) and do not recycle from past proposals.

• Make certain all documents that require signature have been signed by the authorized signatory for the Offering Entity.

• The Offering Entity must be registered in SAM and must be registered under the NAICS code for this procurement which is 531120. Must be consistent with Operating Agreement and completed “Offering Entity Acknowledgement Form.”

• Provide completed GSA 1364 & Attachment #1.

• Submit AHJ letters for life/safety services, utilities, zoning, etc.

• Structure and formatting – follow the RLP.

• Narrative substantiations – provide adequate detail for all RLP requirements.

• Eliminate discrepancies.

o Offering entity consistency (form) – consistent nomenclature o ABOA/RSF, parking, etc.

o Price/Cost o Forms

• VA will not accept conditional offers. No contingencies nor changes to the RLP may be submitted.

• Evidence of Ownership & Evidence of Site Control

• Occupancy Date – Project Management Plan. Comprehensive solution to deliver and mitigate risks (methodologies and actual techniques).

• Financial Resources. You MUST submit the required information. ALL financial information MUST be included in the Technical Proposal. Materials sent separately will not be considered. Additionally, submit a Financial Resources Plan (Narrative) addressing all relevant funding (e.g., near-term requirements, construction financing, permanent financing, etc.).

• All questions must be submitted in writing to the Broker and must reference the RLP paragraph and section.

• Questions related to the presentation/RLP were due by 2:00 pm PT on January 29, 2025. Official responses were posted on Amendment via SAM.gov.