RFP Appendix A- Scope of Services.pdf

APPENDIX A

SCOPE OF SERVICES: REAL ESTATE PROVIDER

A) Background

The Smithsonian Institution is a trust instrumentality of the United States established by the Congress of the United States in 1846 (20 U.S.C. 41 et seq.) and is a 501(c)(3) organization. The Smithsonian Institution is the largest museum and research complex in the world. It is comprised of more than 19 museums and a wide constellation of research facilities. A more detailed summary of those entities comprising the Smithsonian

Institution can be found on the World Wide Web at www.si.edu.

To fulfill its mission, the Smithsonian Institution maintains a diverse real estate portfolio.

The majority of its facilities are located in the Washington DC area (District of

Columbia, Maryland, and Virginia). However, the Smithsonian has facilities in New

York, Boston, Arizona, Florida, and Hawaii as well as in the countries of Panama, Chile, and Guyana. A complete list of the Smithsonian real estate portfolio (collectively

“Portfolio”) is included in Table (I).

The Smithsonian Portfolio is composed of both owned and leased facilities. The building types in the portfolio include the following: museums, research facilities, office and administrative space, collection storage facilities, warehouses, zoological facilities, museum /retail stores, art storage facilities, astrophysical observatories and assorted support facilities. The portfolio includes historically and culturally significant facilities.

The Smithsonian Institution is seeking the services of a real estate services provider and consultant with broad capabilities to perform a variety of tasks in support of the

Smithsonian’s Portfolio. Offeror/Contractor must have broad real estate services capabilities to support the categories of work defined below. Said capabilities may be augmented through the use of subcontractors when appropriate and/ or cost effective.

Contractor must have an office located within 50 miles of the Smithsonian campus in

Washington DC and requisite resources to support other facilities located outside of

Washington DC.

The Smithsonian’s Office of Facilities Engineering & Operations/OPPM/Real Estate

Division (“OFEO/RE”) is responsible for the management and oversight of the Portfolio and all real estate activity for the Institution. OFEO/RE works with the Smithsonian

Institution museums, program offices/units (“SI Units”) on the fulfillment of their ongoing real estate needs. Contractor would primarily be working with OFEO/RE staff, as well as other SI staff for task order work.

B) Scope and Categories of Services

The scope and categories of services include but are not limited to:

Portfolio Management and Strategy

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Transaction Management/Brokerage

Lease Administration Services

Miscellaneous Support Services

Contractor shall be fully capable of performing any of the following if and when specifically tasked by the Smithsonian, and must demonstrate the capability to perform all categories of work with its own personnel or subcontractors. Specific services to be provided under each category are listed below.

Offerors should consider the following services when preparing technical and price proposals. The specific scope of services and associated fees will be determined on a task order basis.

B.1) Portfolio Management & Strategy

Contractor will be responsible for providing Portfolio programmatic management and support services, which include but are not necessarily limited to:

o Assistance with and/or development of an overall Portfolio management strategy, which may be updated on a periodic basis.

o Assistance with and/or development of a strategy to create alignment with

Smithsonian institutional and/or SI Unit specific real estate objectives, needs, and initiatives. Assistance with and/or development of Portfolio management guidelines and initiatives, including development of programmatic transactional structures.

o Assistance with and/or development of a financial feasibility analysis on a real estate programmatic or SI Unit specific needs basis which may include financial modeling – lease versus owned analysis, discounted cash flow analysis, valuation analysis, etc.

o Assistance with improvement of Smithsonian-wide real estate policies and procedures, including evaluation, analysis, and recommendations for said improvement.

Assessment of OFEO/RE’s technological and non-technological systems for

OFEO/RE’s access and management of Portfolio information in real time.

B.2) Transaction Management/Brokerage

B.2.1) Program Management and Coordination:

o Procurement, management, and quality assurance of brokerage services on behalf of the Smithsonian.

o Identification of Portfolio transaction requirements and alternatives prior to lease renewal notification, and where necessary tender scope and schedule and estimated costs for proposed transaction requirements (sub-process from Portfolio planning activity).

Appendices Page 3 of 14 o Evaluation and recommendation of opportunities to reduce costs, produce revenue, and enhance the value of the Smithsonian’s real property in the assigned geographic area.

o Research and production of applicable real estate market data and other information as required.

o Identification to OFEO/RE and other applicable SI staff of any and all potential conflicts of interest on prospective real estate projects.

o Assistance with and/or development of an appropriate landlord dispute/resolution procedures.

B.2.2) Transaction Management and Brokerage Services:

o Assistance with and/or development of marketing/negotiating strategies for real estate transactions, including preparation of recommendations and plans for implementation of such recommended marketing/negotiating strategies for all real estate and Portfolio-related transactions.

o Attendance at and/or management on behalf of the Smithsonian of market/space tours as required o Preparation of acquisition and disposition recommendations for prospective real estate opportunities and/or Portfolio projects to OFEO/RE in a format which facilitates comparison to the appropriate real estate market or submarket.

o Assistance with and /or development of a real estate transaction strategy which includes multiple viable alternatives for accommodation of SI Unit requirements.

o Assistance in conducting a public selection process for Smithsonian requested real estate opportunities (leases, lease renewals, purchase and sale of property), including but not limited to preparation, drafting, and issuance of a rfp document, management of the process, receipt of proposals, evaluation of proposals, development of cost/benefit analyses, and final recommendation for award by the

Smithsonian and all on the Smithsonian’s behalf.

o Assistance with and/or development of standard real estate contracts and forms for the Smithsonian’s day-to-day use.

o Assistance with and/or development of an occupancy strategy. Communication of project information with all appropriate SI Units and stakeholders.

o Coordination with brokers to perform physical inspections and conduct client inspections of all comparables considered for acquisitions o Assistance with and/or development of real estate feasibility studies and due diligence reports which may also require procurement of additional consultant services (e.g. appraisers, surveyors, etc.) and coordination on the Smithsonian’s behalf with said as third-party consultants.

o Evaluation of real estate transactional structures as appropriate, taking into consideration tax, book, and budget effects

Appendices Page 4 of 14 o Coordination with local governments to locate proper municipal incentives.

o Review and analysis of financial impacts of multiple SI-related scenarios.

o Assistance with and/or development of strategies that maximize financial goals and objectives o Where requested by OFEO/RE, Contractor shall serve as a non-exclusive representative in certain real estate transactions and facilitate the exchange of information into and out of the Smithsonian; assist in the preparation of relevant legal, transactional and real estate documents; coordinate with all relevant parties

(within and outside of the Smithsonian) in order to facilitate the execution of the particular SI real estate transaction.

B.3) Lease Administration o Contractor shall be responsible for assisting the Smithsonian in enhancing and or re-engineering its current lease administration program. Contractor shall assist in

OFEO/RE’s implementation, introduction, and training of new technology/systems or other recommendation for enhancements to its lease administrative program, including but not limited to: Review, analysis, and recommendation for a best-in-class lease administration solution that supports the

Portfolio database of leases, subleases, and Smithsonian-owned properties.

Assistance with and/or development of an improved property file organization and physical filing management system.

o Assistance with and/or development of a lease expense tracking, reconciliation system which would reconcile operating expense invoices, prepare monthly rent roll and variance reports, etc.

(a) Review of existing data systems, analysis, and recommendation for a new lease administration system to optimize: (a) Lease Compliance, such that the Smithsonian can develop a methodology to ensure that the

Smithsonian, or its landlords and/or sub-tenants remain in compliance with all terms specified within the leases, including notification of rent escalations, common area maintenance (CAM) tracking, coordination of responses for estoppels, subordination and non-disturbance agreements, and insurance certificates, etc.

(b) Critical Dates, such that the Smithsonian can establish a report or methodology of notifying it of approaching critical dates, including notice dates for lease options, expirations, early terminations, audit rights, etc.

(c) CAM and Escalation Audits, such that Contractor shall perform desk audits of rent escalation payments and operating expenses, annual operating expense reconciliations, and property tax bill reconciliation.

(d) Tenant Improvement Allowance, such that the Smithsonian can through a new and improved system track and report on all tenant improvement allowance obligations, completions and receipts.

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(e) Sublease Administration, such that the recommended system can provide limited property management capability for Smithsonian subleased properties, including coordination of subtenant services; shall be responsible for the collection of rents, pass through of operating expenses or other billable expenses, sublease data management and reporting, and collection of certificates of insurance.

(f) Lease Audit Services, such that the Smithsonian would be able to engage Contractor to provide such services as necessary.

B.4) Miscellaneous Support Services

Contractor’s real estate services may also include, but not be necessarily limited to:

Vendor management and reporting

Preventive maintenance and asset preservation programs

Energy management strategies in support of the Smithsonian’s sustainability initiatives

Lease audit & recovery

Real estate tax management

Relocation and move of management services

Business continuity (disaster recovery, operating risk analysis, incident reporting)

Space planning and utilization

Governmental coordination

Enhanced use leasing (EUL’s) policies and procedures

Project accounting

Subleasing and lease buyouts

Coordination of tenant eviction and debt collection

Assistance with and/or preparation of presentations to senior management, Regents and other stakeholders.

C) Transaction and Project Volume

It is anticipated that the majority of the task for the real estate services provider under this contract will be related to transaction management /brokerage services and lease administration. The volume and nature of work will vary from year to year depending on

Smithsonian Institution needs.

Attachment

Exhibit 1, Portfolio Composition zaratec Typewritten Text

Property Location Number of

Facilities

Gross sf

(Owned)

Rentable sf

(Leased)

19 MUSEUMS AND NATIONAL ZOO

National Museum of African American History and Culture DC 1 TBD

National Museum of the American Indian DC 1 441,302

NASM, Steven F. Udvar-Hazy Center VA 8 1,189,617

Anacostia Museum DC 1 33,598

National Museum of African Art DC 1 89,355

Ripley Center (Quad Building also houses African Art and Freer-Sackler) DC 2 198,154

Arthur M. Sackler Gallery DC 1 101,010

National Air and Space Museum DC 3 686,873

Hirshhorn Museum and Sculpture Garden DC 3 174,052

National Museum of American History DC 4 777,556

Freer Gallery of Art DC 1 181,159

National Postal Museum DC 1 73,369

National Museum of Natural History DC 7 1,981,138

NMAI, George Gustav Heye Center NY 1 272,679

Cooper-Hewitt National Design Museum NY 6 108,708

National Zoological Park DC 80 746,709

Arts & Industries Building DC 2 279,254

Renwick Gallery DC 1 39,397

Smithsonian Institution Castle DC 1 147,867

Donald W. Reynolds Center (POB) DC 1 669,931

19 Museums and National Zoo - Total 125 7,812,082 379,646

SCIENCE RESEARCH FACILITIES

NZP / Conservation and Research Center (CRC) VA 163 388,616

Smithsonian Astrophysical Observatory (SAO) AZ 26 74,683

SAO (including Chile) HI 11 24,711

Smithsonian Environmental Research Center (SERC) MD 62 99,150

Smithsonian Institution Marine Center FL 11 28,621

STRI Panama 244 434,367 18,838

Research Facilities - Total 517 922,133 146,853

OFFICE, COLLECTIONS AND SUPPORT

L'Enfant Plaza DC 2 22,777

Pennsy Drive Collections and Support Center MD 1 355,138

Suitland, Museum Support Center MD 7 787,953

Suitland, NMAI, Cultural Resources Center MD 2 164,253

Suitland, Paul E. Garber Facility MD 42 397,476

Victor Building DC 1 123,718

Capital Gallery DC 1 189,354

Crystal City VA 1 51,481

Crystal City - Crystal Mall 3 VA 1 5,020

Herndon 380 VA 1 47,462

Naturalist Center (NMNH) VA 1 9,291

Carrie Bow Marine Field Station (NMNH) Belize 1 5,430

Aerospace Building - 901 D Street DC 1 14,954

NASM - Dulles Shuttle Storage VA 1 19,800

San Francisco State University - Romburg Timburon Center CA 1 1,305

Storage USA MD 1 225

Apollo Drive MD 1 69,212

Columbia Gateway MD 4 25,356

Forestville (Ely Property) MD 1 700

Archives of American Art NY 1 5,539

Iron Mountain / National Underground Storage PA 4 19,328

Hirshhorn Storage MD 1 3,380

Cooper-Hewitt Offsite (Crozier Fine Arts) NJ 1 25,930

Cooper-Hewitt Storage (ADE) PA 1 6,241

Security Storage (DC Mall Museums) VA 4 1,152

Nation's Capital Archives VA 1 670

Smithsonian Enterprises (SE) - Herndon 400 VA 1 19,533

SE - Genco Distribution Center MD 1 45,716

SE - SI Magazine (Graybar Bldg.) NY 1 14,055

SE - Raegan National Airport (Retail) VA 1 2,374

SE - Dulles Airport (Retail) VA 1 2,109

Smithsonian Astrophysical Observatory (SAO) - 1 Hampshire Street MA 1 23,402

SAO - Boston Storage MA 1 3,000

SAO - Harvard College Observatory MA 5 102,267

SAO - Discovery Park MA 1 81,500

SAO - 160 Concord Avenue MA 1 37,603

SAO - Church Street MA 1 6,408

Office, Collections and Support - Total 99 1,355,112 1,336,000

Owned & Leased - Subtotals 10,089,327 1,862,499

GRAND TOTAL FACILITIES 741

SMITHSONIAN INSTITUTION REAL ESTATE PORTFOLIO

11,951,826 zaratec Typewritten Text

EXHIBIT 1

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