Broker RFP Questions and Answers Round 1-BPM053853.pdf

Questions and Answers #1

REAL ESTATE BROKERAGE, TRANSACTION MANAGEMENT, AND STRATEGIC

PLANNING SERVICES

RFP # BPM053853

Ladies and Gentlemen:

This list of questions and responses is being issued to clarify certain information contained in the above-referenced RFP. The statements and interpretations contained in responses to any questions, whether responded to verbally or in writing, are not binding on the

Department unless the RFP is expressly amended. Nothing in any response to any questions is to be construed as an agreement to or acceptance by the Department of any statement or interpretation on the part of the entity asking the question.

1. Question: Table A starting on page 42 references Attachments L (Tab I), M (Tab J), P (Tab M), and N (Tab N) that do not appear to be provided with the RFP documents. Are these Attachments specific forms that must be completed? If so can you please provide? Thank you!

Response: The “Attachments” listed in Table A are not separate forms provided by the State. They are documents and information that the Offeror must include with their proposal under the specified tabs (Reference Checks, State Contracts, Subcontractor List, Legal Action Summary).

2. Question: We are unable to locate Appendix 3. This document is critical to our response. Please advise how access can be gained.

3. Question: Appendix 3 is missing from the RFP. This was referenced on page 8 of 57 Section 2.2, a list of all leases due to expire in the next 1-5 yrs. In order to assess the scope of the contract, we would like to see Appendix 3. If possible, please also include the renewal option information pertinent to any expiring lease.

4. Question: Are you able to share Appendix 3 which appears to be missing from the solicitation documents?

5. Question: Page 8 | 2.2 Background and Purpose: Could the State of Maryland provide Appendix

3, which lists all current applicable State leases due to expire in the next one (1) to five (5) years? It was not included in the original package of RFP materials?

CONTINUED RFP # BPM053853

Response: Questions 2–5: Appendix 3, listing current State leases due to expire in the next one (1) to five (5) years, has been added to the RFP materials through this amendment. Offerors should prepare proposals based on the information provided. No renewal option information beyond what is included in Appendix 3 will be provided.

6. Question: Can you please confirm that bid bond and corresponding Tab P, Attachment C Bid

Bond are not required for this solicitation? Bid bonds are typically not considered necessary for professional services. Thank you!

Response: Bid Bond is not required.

7. Question: Can you please confirm that Tab P, Attachment E, VOSBE Form E-1A should not be marked as red/required with submission since there are no VOSBE goals for this procurement? Can this form be removed from Table A? Thank you

Response: Please refer to the Key Summary Sheet, which confirms that there is no VSBE goal for this contract, as discussed during the pre-proposal conference. Offerors should bypass this portion of the RFP, as it does not apply to this solicitation. Tab P, Attachment E (VSBE Form E-1A) from

Table A is not required and will remain in the RFP for reference.

8. Question: Table A, Tab Q, Attachment Q (page 50) refers to a Labor Resume Form to be provided by Procurement Officer. Can this be provided or removed from Table A? Thank you!

Response: A Labor Resume Form will not be provided. Offerors may submit labor resumes using their own format. No amendment is required.

9. Question: 6.3 Financial Proposal Evaluation Criteria notes that all qualified offerors will be ranked from highest (most advantageous) to lowest (least advantageous) revenue to the State based on the Total Proposal Price within the stated guidelines set forth in this RFP and as submitted on

Attachment B - The Price Form. Can you please clarify which cell on the Price Form shall be evaluated for "Total Proposal Price"? Is it E:22?

Response: The following three cells on the Price Form will be evaluated: the DGS Rebate percentage (E11); Total DGS Rebate (E20); and Overall DGS Rebate (E23). The Technical evaluation will include all requirements identified in the RFP.

10. Question: Can you please confirm where on Attachment B we should include pricing for property sales per Section 2.3.6, G?

Response: No information is required on the Attachment B for Section 2.3.6 G.

11. Question: The Scope of Work includes services related to property acquisition and disposition.

Can DGS clarify whether and how, the Contractor would be compensated for brokerage services related to property sales or acquisitions that are not lease transactions?

Response: Compensation for brokerage services related to property acquisitions or sales that are not lease transactions will be determined at the time such services are requested.

12. Question: Can you please clarify the relative weights of the Technical Proposal vs the Cost

Proposal in the evaluation process? Thanks!

Response: Proposals will be evaluated according to the criteria outlined in the RFP. The solicitation does not assign specific numerical weights to the Technical Proposal or Cost Proposal beyond the guidance provided in the RFP.

13. Question: Can DGS provide additional details on how proposals will be scored, including whether a points will be allocated for certain segments of the Offeror’s response?

Response: Proposals will be evaluated based on the criteria in the RFP. Specific points for different parts of the proposal are not provided.

14. Question: Page 52 | 6.2 Technical Proposal Evaluation Criteria: In preparing our firm’s response to the requirements detailed in “Appendix 8 – Economic Benefit Factors”, could the State of Maryland provide the economic benefits of the existing state-wide brokerage contract? Seeing how the incumbent vendor has calculated the economic impact would be helpful for guiding our calculations.

Response: The State does not provide details of prior contract economic benefits. Offerors should prepare their proposals based on the information provided in the RFP and Appendix 8 - Economic

Benefit Factors.

15. Question: What is the contract date of the award?

Response: The anticipated contract date of award is May 1, 2026.

16. Question: When does the contract go into effect? Go into effect after award?

Response: The contract would go into effect on May 1, 2026, or thereafter based upon the procurement process.

17 Question: Will the State consider extending the due time and date for questions beyond January

27, 2026, 10:00 AM. The inclement weather has had an impact on the ability to communicate and compile critical information/questions.

18. Question: Will the State consider extending the due time and date for questions beyond

January 27, 2026, 10:00 AM. The inclement weather has had an impact on the ability to communicate and compile critical information/questions and formulate our response?

Response: Questions 17 & 18 -Unfortunately, the deadline for submitting questions is as stated in the RFP. Any changes to the schedule will be communicated through an official amendment.

19 . Question: Is the 24hr per week on-site requirement for the Primary Contractor or split between their MBE/VSBE contractor?

Response: The Prime Contractor is responsible for ensuring the total 24 hours are met, but they can

(and typically do) utilize their MBE/VSBE team members on-site to achieve that quota.

20. Question: Please identify the address/location of on-site work to be provided by the

Contractor’s Key Personnel.

Response: Department of General Services, Office of Real Estate 300 W. Preston St., Rm. 601

Baltimore MD 21201.

21. Question: Does any of the state university assets will fall under this contract?

Response: Currently, DGS does not handle commercial leases for the University System of

Maryland.

22. Question: Please further explain the software referenced in Section 2.8.8 (C). Specifically, what is the State currently using? Does the State wish to continue to use this software? How will your existing software and the pertinent information that it houses be transferred if a new service provider is chosen?

Response: The current software, Visual Lease, meets the department’s needs. All data and information housed in the system will be made available to the selected service provider in accordance with the contract requirements.

23. Question: Page 13 | 2.3.8 Supplemental Lease Administration Services – Is the State asking for

Contractor to provide a separate Lease Administration software package or is the Contractor to pick up the existing State software license and assume those costs?

Response: Yes - DGS is asking that the contractor pick up the existing Visual Lease software license if possible or enter into a new license for Visual Lease.

24. Question: If possible, would it be acceptable to DGS that the existing lease management software operated by CBRE (the incumbent) be transferred to another Offeror to satisfy the requirement specified in the Scope of Work?

Response: DGS is asking that the contractor pick up the existing Visual Lease software license if possible or enter into a new license for Visual Lease.

25. Question -Would commissions paid to a Broker’s independent associates/agents count towards the MBE goal if they are an independent MBE Certified Business?

Response: A. Commercially Useful Function. A procurement agency may count participation of a certified MBE contractor toward MBE goals only if the certified MBE is performing a commercially useful function on that contract.

(1) Commercially Useful Function.

(a) A certified MBE performs a commercially useful function when it is responsible:

(i) For execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved; and(ii) With respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where applicable) and paying for the material itself.

(b) To determine whether a certified MBE is performing a commercially useful function, the procurement agency shall evaluate:

(i) The amount of work subcontracted;

(ii) Industry practices;

(iii) Whether the amount the certified MBE is to be paid under the contract is commensurate with the work it is actually performing; and

(iv) Other relevant factors.

(2) A certified MBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of MBE participation. In deciding whether a certified MBE is such an extra participant, the procurement agency may examine similar transactions, particularly those in which

MBEs do not participate.

(3) A certified MBE is presumed not to perform a commercially useful function if it does not perform or exercise responsibility for at least 30 percent of the total dollar value of its contract with its own work force, or the certified MBE subcontracts a greater portion of the work of a contract than would be expected on the basis of industry practice for the type of work involved. A procurement agency may, however, upon evaluation of the work involved and industry practices, decide that the certified MBE is performing a commercially useful function.

26.Question: How would the MBE participation requirement be treated where 35% of a Joint

Venture ownership is held by a certified MBE?

Response: Joint Venture. When a certified MBE performs as a participant in a joint venture, a procurement agency may count, subject to §D of this regulation, a portion of the total dollar value of the contract equal to the distinct, clearly defined portion of the work of the contract that the certified MBE performs with its own forces toward fulfilling the contract goal and not more than one of the contract subgoals, if any.

https://regs.maryland.gov/us/md/exec/comar/21.11.03.12-1#D

27. Question: Section 2.4.3 Consulting Services- If such services as defined are provided by

MBEs, will the cost/payment to an MBE be counted towards the MBE goals?

Response: Yes, the total cost/payment to a certified Minority Business Enterprise (MBE) for eligible consulting services will generally count 100% toward the Maryland MBE goals, provided the MBE is performing a commercially useful function.

The specific conditions for counting an MBE's participation include:

• Certification: The firm must be currently certified as an MBE by the Maryland Department of Transportation (MDOT) at the time of the contract.

• Commercially Useful Function (CUF): The MBE must be responsible for the execution of the work by actually performing, managing, and supervising the work with its own forces.

The payment must be for legitimate work performed on the contract, not just a fee for using the MBE's name.

• Documentation: The MBE firm and the prime contractor must list the specific commitment and description of work on the required MBE participation schedules submitted with the bid/proposal.

• Service Type: For services (including consulting), 100% of the payment can be counted toward the goal, unlike materials/supplies provided by a regular dealer, where only 60% might count, or a broker, where only the reasonable fee counts.

The work must be a distinct, clearly defined portion of the contract that the MBE performs with its own workforce

28. Section 2.3.A lists certain legal services requiring a licensed attorney under Maryland law. Do these, or any other legal services provided by the Contractor or its consultants, qualify for hourly compensation under Section 2.4.3? Also, if performed by a certified and responsive MBE, will such legal services under Section 2.3.A or otherwise count toward the MBE subcontracting goal?

Response: 1. Hourly Compensation for Legal Services (Section 2.4.3)

Legal services, including those requiring a licensed attorney under Maryland law (listed in Section

2.3.A), generally do not qualify for hourly compensation under standard Maryland Master

Service Agreements (IDIQ contracts) or typical consulting services, unless specifically categorized as a "time and materials" line item in the Request for Proposals (RFP).

• Fixed-Price Nature: Most service contracts of this type are fixed-price.

• Compensation Structure: If the services listed in 2.3.A are part of a larger, fixed-price deliverable, they are typically compensated via milestone payments, not hourly rates.

• Exceptions: If the solicitation explicitly defines Section 2.4.3 as a "Time and Materials" category for specialized, as-needed legal counsel, then they would be eligible for hourly compensation, usually capped at rates negotiated during the proposal phase.

2. MBE Participation Goal Credit

If the legal services (including those requiring a license) are performed by a certified and responsive

Minority Business Enterprise (MBE) that is duly certified by the Maryland Department of

Transportation (MDOT), they will count toward the Maryland MBE subcontracting goal, provided they are performing a "commercially useful function.

29. Question: Do hourly consultants authorized under Section 2.4.3 need to meet all insurance requirements specified in Section 3.16?

Response: Yes. Hourly consultants authorized under Section 2.4.3 are required to comply with all insurance requirements specified in the RFP.

30. Question: Will DGS allow applicants to self-insure to meet any or all of the listed insurance requirements, if the applicant has sufficient assets to do so?

Response: Offers must meet all insurance requirements as stated in the RFP. Self - insurance is not an approved alternative unless explicitly allowed in the solicitation.

31. Question: Please provide as much information on the current contract (the past 5 years) as possible, to include the following: total transaction amount, gross fees earned by the current service provider, amount of fees reimbursed to the state, square footage or acreage (if land) serviced, properties managed, and any other information on the existing contract that can be provided.

Response: We are unable to disclose this information specific to the existing contract.

32. Question: Pursuant to the Maryland Public Information Act (General Provisions Article, §§4-

101 et seq.), I respectfully request copies of records related to the most recent prior Request for

Proposals issued by the Department of General Services, Office of Real Estate, for Real Estate

Brokerage, Transaction Management, and Strategic Planning Services, including but not limited to:

1. All proposals submitted by responding firms, including technical and financial proposals

2. Evaluation committee score sheets and written evaluations

3. Award recommendation memoranda and selection justifications

4. Any Best and Final Offers (BAFOs), if applicable

5. The executed contract and any amendments

6. A list of all firms that submitted proposals

If any portion of these records is exempt from disclosure, please provide the non-exempt portions with redactions clearly identified.

Response: Requests for records under the Maryland Public Information Act (MPIA) should be submitted directly to the State agency’s Public Information Act Officer. Any records provided will be subject to applicable exemptions and redactions as required by law.

33. Question: This request is made for business and informational purposes. Please advise of any anticipated fees prior to processing.

Response: Requests for records under the Maryland Public Information Act (MPIA) should be submitted directly to the State agency’s Public Information Act Officer. Any records provided will be subject to applicable exemptions and redactions as required by law.

34. Question: Can you please provide a portfolio list that includes the following information for each location?

a. Building/Site Name

b. Address (City, State, Zip)

c. LXD

d. Lease Term

e. Square Footage

f. Rent

g. Ownership Type (Lease, Own, Sublease)

h. Primary Use

i. Lease Type

Response: This information was provided.

35. Question: Are you currently using a lease administration system? If so, which system are you using?

Response: Yes - this system is Visual Lease.

36. Question: Are you satisfied with your current lease administration platform, or are you considering a change?

Response: We are satisfied and would like to continue to use the system.

37. Question: Are you satisfied with the accuracy and completeness of your existing lease data?

Response: The existing lease data meets the agency’s requirements.

38. Question: Do hourly consultants authorized under Section 2.4.3 need to meet all insurance requirements specified in Section 3.16?

Response: Yes. All hourly consultants authorized under Section 2.4.3 are required to comply with the insurance requirements specified in Section 3.16 of the contract.

39.Question: Do you currently own the license to the lease administration system, or is it owned by a third party?

Response: The license for the lease administration system is currently held by the incumbent contract broker.

40. Question: Are you seeking Financial Management services, including verification of landlord-billed charges against lease documents and monthly reporting of rent payables owed?

Response: Yes, for verification of landlord-billed charges against lease documents, but no to monthly reporting of rent payables owed. We refer to the first category as the escalation payment review, which occurs in September of each year and is handled by a team of DGS staff and broker supporting staff. For the second category, each agency occupying leased space is responsible for paying its monthly rent directly.

41.Question: Are you seeking Sublease Management services for the revenue leases in your portfolio?

a. If so, please specify the quantity

b. Please indicate the level of service required:

i. Sublease data management only, or

ii. Provider visibility into Accounts Receivable to monitor collections and aging balances

Response: No, we are not seeking Sublease Management services for revenue leases. These leases are handled separately by DGS and the agency that owns the property.

42. Question: Per RFP Section 5.4, Volume II – Financial Proposal, and Appendix 2 instructions, participants are not allowed to alter the Price Form. However, the Price Form does not appear to include fields for Lease Administration pricing. Can Lease Administration pricing be submitted in a separate document attached to the proposal, or is there a specific format that should be used?

Response: Offerors shall submit pricing only in the Price Form provided in Appendix 2. No separate pricing documents or alternative formats will be accepted. Any services not specifically listed on the Price Form should not be priced separately.

43. Question: Per RFP Section 2.3.8(D), please clarify what is required for the “Periodic review of space standards.”

Response: The period review of space standards requires the broker team to update DGS on new and evolving industry space standards that may affect new lease procurement requests and future modifications of existing leased space.

44. Question: Per RFP Section 2.3.8(G), please clarify what is required for “Manual preparation.”

Response: This refers to updating the 1989 Space Management Manual, which can be found at this link:

http://msa.maryland.gov/megafile/msa/speccol/sc5300/sc5339/000113/001000/001191/unrestricted/

20053310e.pdf.

45. Question: Does occupancy (headcount) and capacity (seat count) information currently exist for leased space, or will this information need to be collected by the Contractor? If collection by the

Contractor is required, how will this impact the timing of the Strategic Plan, which is due 90 days after contract commencement?

Response: The most recent Strategic Plan used available data. The Contractor will need to collect updated information for all leases.

46. Question: Can you provide a full listing of the State’s entire real estate portfolio, broken down by leased locations, owned locations, and subleases?

Response: Per Section 2.2, there are “280 State commercial office leases which include office, warehouse and storage leases. These facilities range in size from 390 net usable square feet to

500,000 net usable square feet”. The total square footage of the commercial lease portfolio reported as of February 2026 is approximately 6.1 million square feet. Outside of this information, we are unable to provide further details.

47. Question: Does the State of Maryland have owned property records included within the scope of services?

Response: No there are no responsibilities associated with owned property, other than those identified in 2.3.6 G.

http://msa.maryland.gov/megafile/msa/speccol/sc5300/sc5339/000113/001000/001191/unrestricted/20053310e.pdf http://msa.maryland.gov/megafile/msa/speccol/sc5300/sc5339/000113/001000/001191/unrestricted/20053310e.pdf

48. Question: a. If so, how many owned locations are included?

Response: DGS is unable to provide a list of owned locations that could be considered for disposal in the future. These properties would be identified in the future as the agency’s needs change, and they notify DGS of the surplus property, which will be disposed of.

49. Question: b. What scope of work is desired for the owned locations?

Response: See 2.3.6 G for this response. These services may or may not be needed in the future.

DGS typically sells property without the need for broker services.

50. Question: Can the State of Maryland provide an estimate of the number of transactions greater than 25,000 square feet expected to occur within state-owned space?

Response: We are unable to provide this information. As the agency’s needs change, this would become known.

51. Question: Historically, what percentage of landlords do not pay commissions on State of

Maryland lease renewals?

Response: Landlords are contractually obligated to pay commissions as per the state standard lease agreement.

52:. Which services does the State of Maryland expect to be paid through market commissions versus hourly rates as reflected in the pricing template?

a. Strategic planning services (one-time vs. ongoing)

b. Space and occupancy planning services (one-time vs. ongoing)

c. Lease administration services (one-time vs. ongoing)

A. The services identified above would be paid through market commissions. Specifically, the one-time strategic report due at the start of the contract would be included; the space and occupancy planning for each new lease procurement and lease renewal would be included; and the lease administration services would be included. For additional services required in Section 2.4.3, proposers should complete the Attachment B Financial Proposal Form.

End of Questions for Rond 1.