38_am_2_FINAL.pdf

(x)

33330218RF0010038

x x copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted ; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT

THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted , such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

x

OCON

Washington DC 20013-7012

MRC 1200

P.O. BOX 37012

OCON

OCON

Washington DC 20013-7012

MRC 1200

P.O. BOX 37012

SMITHSONIAN INSTITUTION

08/31/20180002

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

12. ACCOUNTING AND APPROPRIATION DATA (If required) is not extended.is extended, Items 8 and 15, and returning

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended , by one of the following methods: (a) By completing

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FACILITY CODE CODE

10B. DATED (SEE ITEM 13)

10A. MODIFICATION OF CONTRACT/ORDER NO.

9B. DATED (SEE ITEM 11)

9A. AMENDMENT OF SOLICITATION NO.

CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

7. ADMINISTERED BY (If other than Item 6)CODE 6. ISSUED BY

PAGE OF PAGES

4. REQUISITION/PURCHASE REQ. NO.3. EFFECTIVE DATE2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO. (If applicable)

1. CONTRACT ID CODE

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

08/31/2018

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

E. IMPORTANT: Contractor is not, is required to sign this document and return __________________ copies to the issuing office.

ORDER NO. IN ITEM 10A.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

This is amendment 2 of RFP F18R010038, which incorporates the attached questions and answers into the solicitation, as well as amendments to Appendix 5.Cost proposals must include a completed Cost Proposal Worksheet. A word document is uploaded for use in bid preparation. Changes to Appendix 5 are not permitted except by amendment to RFP F18R010038.

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)15A. NAME AND TITLE OF SIGNER (Type or print)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer)

Thomas Dempsey

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA

FAR (48 CFR) 53.243

NSN 7540-01-152-8070

Previous edition unusable

Except as provided herein, all terms and conditions of the document referenced in Item 9 A or 10A, as heretofore changed, remains unchanged and in full force and effect .

SI RFI

QUESTION RESPONSE

1 Please confirm that the building is required to meet the

Smithsonian Institution Security Design Criteria (2015). If yes, please confirm which Facility Security Level (FSL) it is required to provide – I, II, III, IV or V.

FSL II is applicable. Attached please find the Smithsonian's standard form of

Non-Disclosure Agreement which must be executed without changes to obtain the referenced criteria.

2 Does the Offeror fill in all of the blocks in the Cost Proposal

Worksheet?

Yes.

In Section 1, please define Total Base Cost and Total Build-out.

"Total Base Cost" should reflect the purchase price of the proposed headquarters facility without improvements. The "Total Buildout" should include the cost of constructing improvements needed to comply with

Smithsonian requirements described in the RFP.

In Section 1 – “Annual Operating Costs” Should the Offeror make assumptions for operating costs for a 25-year period or a single calendar or fiscal year?

Please include Annual Operating Costs in your financial analysis as they occur during the 25 year period.

In Section 1 - “Rebates, Credits, et cetera” Should this represent an annual amount or total over a 25-year period?

Please see above.

Is Real Estate Tax relief (due to Smithsonian being a non-profit owner) applicable for Section 1?

Yes.

Is relief from an existing lease obligation applicable for this section?

No.

RESPONSES TO BIDDER QUESTIONS-Set 2 RFP Solicitation No. F18R010038

RESPONSES TO BIDDER QUESTIONS, RFP Solicitation No. F18R010034 Page 1 of 4

RFP - Consolidated Administrative Headquarters

In Section 1 – “Assigned Lease income” Should this section represent the sum of cash flows from existing non-

Smithsonian leases in the subject property through their natural expirations or the sum of cash flows for such spaces over a 25-year period?

Existing leases through their natural expirations, including options.

How should these spaces be treated upon expiry? If the assumption is that they will be re-leased to market, what assumptions should be used for market: i. Base Rent /

Recovery Structure ii. Lease Term iii. Rent Steps and iv.

Concessions

The Smithsonian will want to assess such spaces for SI use as a preliminary matter. For a third party lease, please assume a five year base term at 95% of market, with 2% per year escalation, with concessions to be granted on a case by case basis.

Will the net present value calculations be completed by

Smithsonian or the Offeror? If the latter, the following clarifications are required to complete the calculations:

Offeror

What discount rate should be assumed for the Net Present

Value calculations?

4%

What assumption(s) should be made to estimate what the property is worth at the end of the 25-year period?

2% asset appreciation per annum

What should be the start dates for these calculations? May 1, 2021.

If the property includes space that is not currently occupied by Smithsonian, should “RSF” represent the entire property

RSF or only that which is occupied by Smithsonian?

"RSF" should include any space the Smithsonian would occupy, in addition to any space the Smithsonian would hold leases on or otherwise be responsible for.

Please explain what “Assignment Estimates” means Assigned leases--their estimated value and cost--should be included in this section. The Smithsonian retains the right to review confidential rent rolls after a notice of intent to award is made, contingent upon the confirmation that the estimates are feasible to the proposed successful transaction.

What is the difference, if any, between “Receivable Rental

Income” & “Assigned Lease Income”?

None. We apologize for the confusion.

How does Section 6 differ from Sections 1 & 3? Section 6 is a 'roll up' of Sections 1 and 3

RESPONSES TO BIDDER QUESTIONS, RFP Solicitation No. F18R010034 Page 2 of 4

Confirm that there is no broker representing Smithsonian for both the lease option and purchase?

Confirmed. No broker has been retained.

Where and to whom to submit the offer? Eve Errickson, Contracting Officer; Smithsonian Office of Contracting; 600

Maryland Avenue SW; Suite 5001-Capital Gallery West; Washington, DC 20024

What does “dependent lease” mean on page 6 of 24, number 2)?

Any lease interest included in your purchase offer is a 'dependent lease.'

Does Smithsonian need Congressional approval to complete a purchase? If so, what is the process for, and status of, such approval?

We have submitted a funding request for FY2019, as is consistent with

Smithsonian policy and Congressional procedure.

3 Appendix 5 – Cost Proposal Worksheet: Is S.I. asking for full, turn-key pricing in Appendix 5?

The Smithsonian is requesting pricing for this proposal for its headquarters be developed with breakouts that are outlined in Appendix 5. "Turn-key" building practices would be consistent with the approach requested in the RFP.

However, we will require that your cost proposal be sufficiently detailed so that we can conduct an 'apples to apples' cost comparison. If you have specific changes you would like to request to Appendix 5, please let us know.

Appendix 5 – Cost Proposal Worksheet: Can you further explain the columns in Appendix 5, Section 2? For example, in the first column, is S.I. asking for the cost to prepare Test

Fits during the DD period? What is meant by

‘Build/Temporary’?

We have edited and annotated Appendix 5 for your use. Section 2 should include a breakdown of costs associated with a build out of the purchase offer described in Section 1, including test fits. The estimated cost of constructing proposed improvements, to include any services, labor, materials, parts, products, equipment, systems or structures required for the Smithsonian's possession, should be included in 'build/temporary.'

If no space study or Program of Requirements has been completed to date, does S.I. plan to issue any such material in the future?

Currently the Smithsonian's standard building guideline for office space provides for 150 useable sf per person. There is no plan to issue a material program of requirements during the RFP.

How can offerors accurately estimate costs if there is no

Program to price?

Please see above.

RESPONSES TO BIDDER QUESTIONS, RFP Solicitation No. F18R010034 Page 3 of 4

Is Smithsonian Institution instead considering a request for a sale price (base cost) and a standard Tenant Improvement

Allowance package from all parties? This would eliminate the incentive for owners to underbid the build out costs and the standardization would help prevent potential future protests over pricing.

Please see above.

General Question - Funding: Have the total amount of funds necessary for the purchase of up to 460,000 sf been appropriated and set aside?

Please see above.

RESPONSES TO BIDDER QUESTIONS, RFP Solicitation No. F18R010034 Page 4 of 4

Appendix 5 COST PROPOSAL WORK SHEET—RFP for CONSOLIDATED ADMINISTRATIVE HEADQUARTERS

1. Purchase Offer for {Property Address}

Total Base Cost

Total Build out

Annual Operating Costs (25 years)

Rebates, Credits, et cetera

Assigned lease income

Net Present Value RSF

Purchase Offer— Portion 1

100.00 25.00 1.00 -5.00 10.00 $155.00 1.55

2. Preliminary Assessment & Test Fits for {Property Address}

Test fits Preliminary Assessment (Environmental, Historic Preservation)

Design/Concept Build/Temporary Total RSF

Purchase Offer— Portion 1

5.00 2.50 5.00 12.50 $25.00 .25

3. Leasing for {Property Address}

Total Rent

TI

Allowance

Annual Operating Costs

Rebates, Credits, et cetera

Utilities Net Present Value

RSF

Lease Offer – Portion 2

Option 1

Option 2

Option 3

Option 4

TOTAL

Commented [EE5]: Net Present Value = (Total Base Cost) + (Total Build Out) + (Total Operating Costs)–(Rebates and Credits)–(Assigned Lease Income).

Commented [EE6]: RSF = Net Present Value/Square Footage

Commented [EE4]: Lease income, if applicable, based on estimates described in Section 4 of this Appendix

Commented [EE1]: Please provide cost information related to your purchase offer in Section 1.

Commented [EE2]: Purchase offer for base building, unimproved

Commented [EE3]: Estimated cost to improve base building per RFP

Commented [EE7]: Please include costs required to build out the headquarters facility. This information should be reflected in Section 1, as part of ‘Total Build Out.’

Commented [EE8]: Please provide cost information related to leasing a dependent part of a headquarters facility in Section 3.

4. Assignment Estimates for {Property Address}

Rebates, Credits Receivable rental income

Net Present Value RSF

5. Preliminary Assessment & Test Fits for {Property Address}

Test fits Preliminary Assessment (Environmental, Historic Preservation)

Design/Concept Build/Temporary Total RSF

Lease Offer—Portion 2

TOTAL

Commented [EE9]: If necessary, please provide estimated value, costs, and information related to leases assignable to the Smithsonian, if they are referenced in your proposal.

This information should be reflected in Sections 1 under “Assigned Lease Income” and Section 6, under “Assigned Lease Income.”

Commented [EE10]: Please provide cost information related to tenant improvements associated with leasing a portion of a facility described in Section 3. This information should be reflected in Section 3, under “TI allowance.”

6. Overall Offer for {Property Address}

Base & Improvements or Assignment terms

Annual Operating Costs

Assigned lease income (total)

Relevant credits, rebates or savings

Net Present Value

RSF

Purchase Offer— Portion 1

Lease Offer— Portion 2

TOTAL

Commented [EE11]: Section 6 should include information set out in Sections 1, 3, and 4.

Commented [EE12]: Please be advised that modifications to this form are subject to the Smithsonian’s sole discretion.