Draft Section B .pdf

RFP - GS-XXX-XX-XXX-XXX (ITCM)Section B

PART I

Section B

Supplies or Services and Price/Costs

DRAFT

B.1 General Information and Conditions

The International Trade Center Manager (ITCM) contractor shall provide all property management and facility maintenance services for the Ronald Reagan Building & International Trade Center as outlined in Section C of this RFP, subject to the key terms outlined in Section B.2 below and as later negotiated as part of the contract. All management, supervision, labor, materials, supplies and equipment needed to ensure the effective performance of the Ronald Reagan Building & International Trade Center shall be planned and coordinated by the ITCM contractor.

For the purposes of this RFP and the future property management and facility maintenance service contract for the Ronald Reagan Building & International Trade Center, GSA shall operate under the following conditions:

1. GSA shall appoint the ITCM contractor as managing agent for the Ronald Reagan Building &

International Trade Center. The ITCM Contractor will be authorized to exercise powers necessary for the performance of its obligations under Section C. However, the ITCM contractor will have no authority to obligate GSA in any manner except as approved by GSA. Additionally, the ITCM contractor shall never perform or take any of the following actions:

a. Borrow money

b. Execute any promissory note or obligation or mortgage, deed of trust, security agreement or other encumbrance in the name of or on behalf of GSA

c. Enter into any contract, agreement, sale, purchase or understanding between the ITCM contractor and an affiliated or related entity of the ITCM contractor for goods or services on behalf of the Ronald Reagan Building & International Trade Center without the prior written consent of GSA

2. The ITCM Contractor shall perform the services covered under Section C of this RFP on behalf of GSA. The ITCM Contractor in performance of its duties under the contract is an independent contractor and it is understood and agreed that contract payments will be payments by GSA to the ITCM Contractor as an independent contractor and not as an employee, partner or joint venture of GSA.

3. As further defined below, GSA shall be responsible for costs, expenses, and disbursements incurred by the ITCM Contractor in performance of the services outlined in Section C.

4. GSA anticipates awarding a contract for a minimum term of three (3) years with the potential for seven (7), one- (1) year options exercised at GSA’s sole discretion.

5. The ITCM Contractor shall be compensated through a Base Management Fee, as defined below.

The Offer may also earn Brokerage Fee(s), Project Management Fee(s), and a Cost Savings Share as defined below.

6. GSA shall not require any Minimum Revenue Guarantees for any business stream of the Ronald

B-7

Reagan Building & International Trade Center.

B.1 Key Terms

ITCM Contractor shall propose certain fees and/or fee schedules to GSA in their Price Proposal, as required by Section L of this RFP and with a full understanding of the obligations of the ITCM Contractor outlined in Section C. The form for the Price Proposal is found below in Section B.3. ITCM Contractor shall consider the following key terms when proposing their fees and/or fee schedules to

GSA:

1. Base Management Fee – The Base Management Fee is a percentage of Gross Revenues, as defined below. The fee shall be paid to the ITCM Contractor by GSA monthly in arrears based on Gross Revenues received during the immediately preceding month or partial month.

In lieu of a Base Management Fee calculated as a percentage of Gross Revenues, ITCM Contractor may propose an annual fixed Base Management Fee, which shall be apportioned and paid monthly. If proposed, the annual fixed Based Management Fee shall not increase for the duration of the contract.

2. Brokerage Fee(s) – The ITCM Contractor shall be entitled to Brokerage Fee(s) for licensing private sector office and retail spaces within the Ronald Reagan Building & International Trade Center. Payment of any Brokerage Fee(s) shall be made by GSA as follows:

a. 50% of the Brokerage Fee paid at private sector tenant’s execution of license agreement

b. 50% of Brokerage fee paid at receipt of private sector tenant’s first month’s rental payment

Brokerage Fee(s) shall be based upon the agreed to commission rate(s) for office and retail tenant spaces as proposed by ITCM Contractor in Section B.3, and shall be determined by multiplying the commission rate by the amount of base rent for the initial fixed term of the license less any abated rent. If the initial fixed term is longer than 3 years , Brokerage Fee(s) shall be paid only on the first 3 years. If GSA and existing private sector tenants renew an agreement before license expiration, the ITCM Contractor shall only receive Brokerage Fee(s) for the period of time not overlapping the currently existing agreement. If the new agreement allows for higher rates, Brokerage Fee(s) will be on the difference between the old and new rates over the same term period.

Brokerage Fee(s) shall be full compensation for all costs relating to licensing of space, including but not limited to the following:

a. Payments to third parties (i.e. tenant representation) for their services including any brokerage fees

b. Advertisements relating to the leasing of the space, for the building, or portions thereof

c. Special signs, plans, marketing materials, brochures, etc.

d. Licensing related promotional activities or events

e. Staffing specifically assigned to execute licensing of spaces

f. Office space for licensing staff

g. Telephone and administrative expenses

h. Legal fees, taxes, administrative and general overhead expenses associated with licensing activities

i. Profit

3. Project Management Fee(s) – The ITCM Contractor shall be entitled to Project Management

Fee(s) for services requested by GSA in writing. GSA may request the ITCM Contractor provide construction management services for private sector tenant build out, Ronald Reagan Building & International Trade Center alterations/repairs, or other Ronald Reagan Building & International Trade Center construction work.

4. Gross Revenues – Equals the total monthly collections received from the Ronald Reagan

Building & International Trade Center, including:

a. All rents paid by private sector tenants

b. All revenue collected from parking operations

c. Operating expense pass-throughs to private sector tenants

d. All revenue from conferences, events, and concessions

e. Private sector tenant security deposits applied to the payment of rent

The Base Management Fee shall be adjusted for any refunds of collections that originally had a Base Management Fee charged to it.

5. Gross Revenue Exclusions – Gross Revenues shall exclude the following:

a. Payments by private sector tenants for amortization of license improvements over building standards, as determined by GSA

b. Reductions in the security deposits as a result of damage from tenant misuse of or damage to the Ronald Reagan Building & International Trade Center

c. Receipts arising out of the sale of assets, settlement of fire losses or liability claims, condemnation proceeds, etc.

d. Rebates, discounts, or other credits received by the ITCM Contractor related to purchases, contracts, or other arrangements entered into pursuant to operating the Ronald Reagan Building & International Trade Center

e. Abated rent

f. Possessory interest tax paid by private sector tenants

g. Sales tax

h. Sales and use tax for parking patrons

i. Interest income

6. GSA Costs – GSA shall be responsible for costs, expenses, and disbursements incurred by the

ITCM Contractor for the performance of its obligations under Section C of this RFP. These costs include, but are not limited to, the following:

a. Staffing

b. Cleaning

c. Landscaping

d. Parking garage management

e. Maintenance and engineering of Ronald Reagan Building & International Trade Center

f. Supplies and equipment

g. Onsite office rent of the ITCM Contractor (if any)

h. On-site telephone expenses, stationery, and postage relating to the Ronald Reagan

Building & International Trade Center

Expenses, which will not be paid by GSA include, but are not limited to:

a. Costs associated with brokerage activities as described above in Brokerage Fees

b. Late fees on utility bills

c. Fees to acquire surety bonds which may become necessary as a result of late fees

d. Overnight mail or courier services for any documents not related to the management of the Ronald Reagan Building & International Trade Center

e. Overhead, accounting, billing, travel, and staffing expenses related to the operation of any the ITCM Contractor offices not located at the Ronald Reagan Building & International Trade Center and devoted exclusively to the management of the Ronald Reagan Building & International Trade Center

The ITCM Contractor shall not incur any expenses or make any expenditures except as expressly permitted in the contract, in accordance with the Approved Operating Budget as defined in Section C, or as otherwise agreed to in writing by GSA. Under no circumstances shall the ITCM Contractor be required to advance funds from its own account for the operation, maintenance, repair, or management of the Ronald Reagan Building & International Trade Center.

7. Operating Account/Funding – TO BE ADDED BY GSA

Currently the ITC is funded quarterly, as long as it is something similar to the current way of funding. Will need help wording this.

B.2 Form Price Proposal

ITCM Contractor shall complete the following Form Price Proposal with applicable fee rates subject to the Key Terms outlined above. This form should be completed by ITCM Contractor and submitted to GSA pursuant to the submittal requirements in Section L of this RFP.

Figure 1: Form Price Proposal

Key Term ITCM Contractor Proposed Pricing

1. Base Management Fee

% of Gross Revenues

If ITCM Contractor is proposing a fixed fee in-lieu of a percentage fee:

Annual fixed fee: $

2. Brokerage Fee(s)

ITCM Contractor shall complete the following table with applicable commission rates. To the extent ITCM Contractor envisions other possible licensing and/or representation scenarios than those listed in the table below, please add them in the rows provided.

License Type1

ITCM Contractor Role2 Tenant Type

Commission Rate3

New Landlord Representation Only Office % New Landlord & Tenant Representation Office % New Landlord Representation Only Retail % New Landlord & Tenant Representation Retail %

Renewal Landlord Representation Only Office % Renewal Landlord & Tenant Representation Office % Renewal Landlord Representation Only Retail % Renewal Landlord & Tenant Representation Retail %

1. A “new” license assumes a new private sector tenant executes a license agreement for space at the Ronald Reagan Building & International Trade Center. A “renewal” assumes an existing private sector tenant extends their current license agreement and/or executes a new license agreement.

2. “Landlord Representation Only” assumes the ITCM Contractor represents GSA only for a specific licensing effort. “Landlord & Tenant Representation” assumes the ITCM Contractor represents both GSA and prospective private sector tenants.

3. Per Section B.2, all Brokerage Fee(s) paid to the ITCM Contractor by GSA shall be full compensation for all activities associated with licensing space. Proposed commission rates should reflect the possibility of working with third-party tenant representation where appropriate.

3. Project Management Fee(s)

ITCM Contractor shall complete the following table, inputting their proposed percentage Project Management Fee(s) and an applicable range of total project cost. To the extent ITCM Contractor proposes a fixed fee percentage regardless of applicable total project cost, please input the percentage in the first “Fee Percentage” cell, write “Not Applicable” in the corresponding “Total Project Cost” row and leave the rest of the table blank.

Fee Percentage Total Project Cost Range

% $0 - $

B.3 PRICING TABLE

The Offeror shall submit proposed pricing for Section B. Proposed Costs and Fee shall be provided for each applicable CLIN identified in the solicitation. Contract award will be made at the proposed Price (costs plus fee) of the successful Offeror using that Offeror’s proposed Section B pricing.

NOTE: The Offeror's Section B pricing will take precedence at the time of award should there be any discrepancy with any other documentation related to cost or price. However, the cost realism will be conducted based on the detailed information provided in the Offeror’s Cost Summary Format

B.3.1 Transition-In Period - TBD

CLIN Description of Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

0001 Transition-In Services set forth in Section C.4

3 Month $_____________ $_____________

B.3.1.1 Transition-Out Option Period -

Quantity Unit of Measure

Unit Price Firm Fixed Price

7003 Transition Out Services for 60 days set forth in Section C.45

2 Month $_____________ $_____________

B.3.1.2 Transition Close-Out Option Period

Quantity Unit of Measure

Unit Price Firm Fixed Price

7004 Close Out Services set forth in Section C.46

1 Each $_____________ $_____________

B.3.2 CFM-Type Services

Base Period: 3/8/2021 - 3/7/2024

CLIN Description of Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

0002 O&M Services at RRB/ITC as set forth in Section C.5.12 and Section C.6

36 Month $_____________ $_____________

Option Period 1: 3/8/2024 - 3/7/2025

Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

1001 O&M Services at RRB/ITC as set forth in Section C.5.12 and

12 Month $_____________ $_____________

Option Period 2: 3/8/2025 - 3/7/2026

Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

2001 O&M Services at RRB/ITC as set forth in Section C.5.12 and Section C.6

12 Month $_____________ $_____________

Option Period 3: 3/8/2026 - 3/7/2027

Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

3001 O&M Services at RRB/ITC as set forth in Section C.5.12 and

Option Period 4: 3/8/2027 - 3/7/2028

Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

4001 O&M Services at RRB/ITC as set forth in Section C.5.12 and

Option Period 5: 3/8/2028 - 3/7/2029

Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

5001 O&M Services at RRB/ITC as set forth in Section C.5.12 and Section C.6

12 Month $_____________ $_____________

Option Period 6: 3/8/2029 - 3/7/2030

Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

6001 O&M Services at RRB/ITC as set forth in Section C.5.12 and

Option Period 7: 3/8/2030 - 3/7/2031

Services

Quantity Unit of Measure

Unit Price Firm Fixed Price

7001 O&M Services at RRB/ITC as set forth in Section C.5.11 and Section C.6 thru Section C.44

TYPE OF CONTRACT - ITEMS BEING ACQUIRED

The scope of the International Trade Center Manager as per Section C.1 thru C.5.10) ITCM is a Cost-Plus-Incentive-Fee (CPIF) contract that includes cost performance incentive.

CONTRACT FUNDING PROFILE

Subject to the availability of funds, the contract will be funded in accordance with the schedule provided below. Such funds shall provide for all allowable and allocable billings for cost and fee for the indicated fiscal year. It is anticipated that annual contract funding will be provided on or before Month, Day of each year in the amounts as stated below.

Bae Period Option Period 1 Option Period 2 Option Period 3

Option Period 4 Option Period 5 Option Period 6 Option Period 7

TOTAL:

TOTAL CONTRACT TARGET COST, FEE, AND COMPLETION DATE

The total contract target cost and target fee shall not exceed $_______________ million within the annual funding limitations detailed in (CONTRACT FUNDING PROFILE). The target cost is $_______________ million. The target fee is $_______________ million. The total contract target cost and target fee are set at a contract completion date of Month, Day, Year.

INCENTIVE STRUCTURE

The cost incentive in no case shall the total maximum fee exceed ____% of the Target Cost. The minimum fee shall not be below ____% of the Target Cost.

B.3.3 INCENTIVE FEE TO BE PAID BY THE GOVERNMENT FOR INTERNATIONAL

TRADE CENTER MANAGER (As Set in Section C.5 - thru C.5.10)

Base Period: 3/8/2021 - 3/7/2024

Target Cost $___________________________________

Target Fee $___________________________________

(Target Cost + Target Fee) = Target Price $___________________________________

Minimum Fee $___________________________________

Maximum Fee $___________________________________

For a total actual cost greater than target cost, costs exceeding the target cost shall be shared as follows:

Government’s Share %

Contractor’s Share %

For a total actual cost less than target cost, costs less the target cost shall be shared as follows:

Government’s Share %

Contractor’s Share %

TARGET COST TARGET FEE TOTAL TGT COST + FEE MINIMUM FEE MAXIMUM FEE

SHARE RATIO ABOVE TARGET SHARE RATIO BELOW TARGET

Proposed Revenue Incentive Fee Unit Price Total Price

No Fee Less than 5% of the Proposed

Amount

5.5%

6.0%

6.5%

7.0%

7.5

8.0%

No Fee Less than 5%

6.5%

7.0%

7.5

8.0%

No Fee Less than 5%

6.5%

7.0%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

6.5%

7.0%

No Fee Less than 5%

6.5%

B.3.4 INCENTIVE FEE TO BE PAID BY THE GOVERNMENT FOR CONFERENCE ROOM

RENTAL (As Set in Section C.5)

Base Period: 3/8/2021 - 3/7/2024

Proposed Revenue Incentive Fee Unit Price Total Price

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

No Fee Less than 5%

6.5%

7.0%

B.3.5 INCENTIVE FEE TO BE PAID BY THE GOVERNMENT FOR LICENSE FOR

RETAIL/FOOD TENANT SPACE (As Set in Section C.5)

Base Period: 3/8/2021 - 3/7/2024

Proposed Revenue Incentive Fee Unit Price Total Price

No Fee Less than 5%

6.5%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

7.5

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

6.5%

7.0%

B.3.6 INCENTIVE FEE TO BE PAID BY THE GOVERNMENT FOR LICENSE FOR TENANT

OFFICE SPACE ((As Set in Section C.5)

Base Period: 3/8/2021 - 3/7/2024

Proposed Revenue Incentive Fee Unit Price Total Price

No Fee Less than 5%

6.5%

7.0%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

B.3.7 INCENTIVE FEE TO BE PAID BY THE GOVERNMENT FOR LICENSE FOR FOOD

BEVERAGE AND SERVICES (As Set in Section C.5)

Base Period: 3/8/2021 - 3/7/2024

Proposed Revenue Incentive Fee Unit Price Total Price

No Fee Less than 5%

6.5%

7.0%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

7.5

8.0%

B.3.8 INCENTIVE FEE TO BE PAID BY THE GOVERNMENT FOR LICENSE FOR

ANCILLARY SERVICES (As Set in Section C.5)

Base Period: 3/8/2021 - 3/7/2024

Proposed Revenue Incentive Fee Unit Price Total Price

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

7.5

8.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

No Fee Less than 5%

5.5%

6.0%

6.5%

7.0%

No Fee Less than 5%

6.5%

7.0%

ITCM Brokerage Fees

BASE PERIOD (YEAR 1, YEAR 2 & YEAR 3):

RETAIL/FOOD SERVICE SPACES: Broker Commission based on percent of lease value as defined in Section C.

CLIN Description of Services Percentage to be Paid to the Government

1001A TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

1001B TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

OFFICE SPACES: Broker Commission based on percent of lease value as defined in Section C.

CLIN Description of Services Percentage to be Paid to the Government

1001C TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

1001D TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

OPTION PERIOD 1 (YEAR 4):

Section C.

CLIN Description of Services Percentage to be Paid to the Government

2001A TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

2001B TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

Government

2001C TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

2001D TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

OPTION PERIOD 2 (YEAR 5):

Section C.

CLIN Description of Services Percentage to be Paid to the Government

3001A TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

3001B TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

Government

3001C TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

3001D TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

OPTION PERIOD 3 (YEAR 6):

Section C.

CLIN Description of Services Percentage to be Paid to the Government

5001A TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

5001B TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

Government

5001C TCM as Sole Broker as set forth _________% (The ITCM in Sections C.4 Contractor shall propose the

5001D TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

OPTION PERIOD 4 (YEAR 7):

Section C.

CLIN Description of Services Percentage to be Paid to the Government

6001A TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

6001B TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

Government

6001C TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

6001D TCM with Cooperating Broker _________% (The ITCM participation as set forth in Sections C.4

OPTION PERIOD 5 (YEAR 8):

Section C.

CLIN Description of Services Percentage to be Paid to the Government

6001A TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

6001B TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

Government

6001C TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

6001D TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

OPTION PERIOD 6 (YEAR 9):

Section C.

CLIN Description of Services Percentage to be Paid to the Government

7001A ITCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

7001B ITCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

Government

7001C TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

7001D TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

OPTION PERIOD 7 (YEAR 10):

Section C.

CLIN Description of Services Percentage to be Paid to the Government

1001A TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the

1001B TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM

Government

1001C TCM as Sole Broker as set forth in Sections C.4

_________% (The ITCM Contractor shall propose the broker commission percentage.)

1001D TCM with Cooperating Broker participation as set forth in Sections C.4

_________% (The ITCM