RFP FMFADA 108-2009

Request for Proposals for Leasing and Property Management Services

Fort Monroe Federal Area Development Authority Ft. Monroe, VA

Deadline for Proposals Due 2 pm EDT, Friday, February 5, 2010

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REQUEST FOR PROPOSALS (RFP) Issue Date: December 28, 2009

RFP#: FMFADA-108-2010

Title: Leasing and Property Management Services

Issuing Agency: Fort Monroe Federal Area Development Authority (FMFADA)

Where work will be performed: Fort Monroe, Virginia

Period of Contract: Date of Award through March 30, 2011

Contract Renewal Period: Four separate one-year options at the discretion of FMFADA

Proposals will be received until: February 5, 2010 2:00 P.M.

Pre-Bid Conference: January 13, 2010

All inquiries for information should be directed to: Yvonne Cash, FMFADA Procurement Manager Telephone: (757) 637-7778 Fax: (757) 637-7776 Email: ycash@FMFADA.com

Proposals should be sent or delivered to: Fort Monroe Federal Area Development Authority 151 Bernard Road, Fort Monroe, Virginia 23651 Attn: Procurement Manager

In compliance with this Request for Proposal and all conditions imposed herein, the undersigned offers and agrees to furnish the services in accordance with the attached signed proposal or as mutually agreed upon by subsequent negotiations.

Name:

Title:

Company Name:

Address:

Zip Code:

Telephone:

Fax:

Email:

Web Address:

FEI/FIN No.: SWaM No.:

Signature: Date:

T a b l e o f C o n t e n t s I. Purpose ......................................................................................................................... 3 II. Introduction and Background .................................................................................... 4

Location and History ................................................................................................................. 4 Existing Improvements and Amenities ..................................................................................... 4 Base Closure Process and Timing ............................................................................................. 5 The FMFADA ........................................................................................................................... 6 Fort Monroe Reuse Plan ............................................................................................................ 6 Land Use Entitlements and Permitting ...................................................................................... 7 Historic Preservation and Design Standards ............................................................................. 8 Applicable Laws ........................................................................................................................ 8 Provision of Municipal Services ............................................................................................... 8

III. Statement of Need ..................................................................................................... 9 Interim Leasing Strategy ........................................................................................................... 9 Program Description .................................................................................................................. 9 Objectives/Desired Benefits: ................................................................................................... 10 Scope of FMFADA’s Current Activities ................................................................................. 11

IV. Scope of Work: Leasing and Property Management Services ........................... 11 Services to be Provided ........................................................................................................... 11 Leasing .................................................................................................................................... 13 Property Management ............................................................................................................. 15 Contract Term, Form, and Compensation ............................................................................... 16

V. Leasing and Property Management Qualifications ............................................... 17 Experience ............................................................................................................................... 17 Capabilities .............................................................................................................................. 17

VI. Proposal Preparation and Submittal Requirements ............................................ 17 General Preparation Requirements .......................................................................................... 17 Specific Proposal Preparation Instructions .............................................................................. 18

VII. Evaluation Criteria, Selection & Award Process ................................................. 20 Evaluation Criteria .................................................................................................................. 20 Selection and Award Process .................................................................................................. 21 Reservation of Rights and Limiting Conditions ...................................................................... 21

VIII. Delivery Requirements and Schedule ................................................................. 22 IX. Method of Payment ................................................................................................. 22 X. Pricing ....................................................................................................................... 22 XI. Additional Information ............................................................................................ 22 XI. Additional Information ............................................................................................ 22

Additional Information ............................................................................................................ 23 Site Access and Building Tours .............................................................................................. 23 Bidder’s Conference ................................................................................................................ 24 FMFADA Contacts ................................................................................................................. 24

Appendix A: “Detailed Scope of Work” Appendix B: “Bid Schedule” Appendix C: “General Terms and Conditions for Goods and Nonprofessional Services”

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I. Purpose The Fort Monroe Federal Area Development Authority (“FMFADA”) is seeking a highly qualified and experienced firm to lease and manage residential and non-residential buildings at Fort Monroe, a U.S. Army garrison located in Hampton, Virginia. The selected firm’s team must have extensive experience with comparable luxury rental properties, including seasonal rentals, as well as ability to lease and manage commercial properties in a unique setting. Fort Monroe represents an outstanding opportunity for a motivated firm to partner with the FMFADA to achieve the authority’s goals of financial sustainability and opening the garrison to the public. Fort Monroe is a National Historic Landmark District and the U.S. Army is scheduled to leave on September 15, 2011 pursuant to the recommendations by the Department of Defense Base Realignment and Closure Commission.

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II. Introduction and Background Location and History Fort Monroe is located in Hampton, Virginia on Old Point Comfort where the Hampton Roads harbor and the Chesapeake Bay meet. (See Figure 1). Access to Fort Monroe is through Phoebus, with Mellen Street and Mercury Boulevard each leading to the installation’s main entry gate. Fort Monroe encompasses approximately 570 acres, including 110 acres of submerged lands and 85 acres of wetlands. In addition, the garrison has more than 180 historic structures and features that contribute to the National Historic Landmark District. The hallmark of Fort Monroe today is its stone fortifications and moat –the largest in the United States. It was constructed between 1819 and 1834. Originally named Point Comfort by Captain John Smith in 1607, the first fort at the site, erected in 1609, served to protect Jamestown colonists and was the first coastal fortification erected in British North America. Fort Monroe, and the fortifications that preceded it, have played a dominant role in every major American military conflict, from the Revolutionary War through current conflicts such as Operation Enduring Freedom in Afghanistan and Operation Iraqi Freedom in Iraq. Today Fort Monroe is host to several commands, including the U.S. Army Training and Doctrine Command Headquarters, Installation Management Command Northeast Regional Headquarters, U.S. Army Contracting Agency Northern Region Office, U.S. Army Accessions Command, and U.S. Army Cadet Command. Existing Improvements and Amenities Fort Monroe encompasses over 1.9 million square feet of built space in a diverse mix of real estate product types, including:

• 124 single-family homes and duplexes • 168 historic and non-historic apartments • 197,500 square foot Chamberlain Hotel offering luxury rental apartments

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• 716,500 square feet of existing office space • 208,000 square feet of storage and industrial shop space • 324,800 square feet of community and recreational facilities • 332 slip marina with 31,400 square feet of support space

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• Special event venues • Casemate Museum, Fort Monroe moat, and coastal defense batteries

The present operating garrison has a beachside former officer’s club, a state of the art fitness center, an activity center with lap pool, a regulation basketball court, a craft shop, a bowling alley, tennis courts, a baseball field, and miles of jogging tracks. Other amenities include access to several miles of beaches, shallow water at Mills Creek suitable for canoeing, sculling, and small boat usage, and a travel park for recreational vehicles.

1 This property is under a long-term lease to a private party and will not be offered as part of the solicitation.

2 The Old Point Comfort Marina will be offered under a separate Request for Proposals action.

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Not all these improvements will be immediately available to the selected Offeror(s) for leasing and property management, however. The FMFADA will allocate buildings and facilities to the selected Offeror(s) as circumstances warrant.

Figure 1 Regional Context

Base Closure Process and Timing Pursuant to the 2005 Base Realignment and Closure process, the Department of Defense will leave Fort Monroe on September 15, 2011. Much of the garrison’s land will revert to the Commonwealth of Virginia pursuant to original deed agreements that conveyed the property to the United States, while other areas will be conveyed to the FMFADA through an economic development conveyance to be negotiated between the U.S. Army and the FMFADA.

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Existing Army functions at Fort Monroe will primarily be relocated to nearby Fort Eustis, VA. However, it is expected that the U.S. Army will enter into an agreement with the FMFADA that allows for the Army’s continued presence in much of Fort Monroe’s housing and other buildings after the scheduled September 2011 transfer date, pursuant to a permit or other agreement until new Army facilities at Fort Eustis are ready for occupancy. In August, 2009, the U.S. Army released a draft Environmental Impact Statement for the 2005 BRAC Recommendation; Disposal and Reuse of Fort Monroe. This document can be viewed at http://www.hqda.army.mil/acsiweb/brac/eis_docs/FtMonroe_DEIS.pdf. The Offeror’s services will be rendered during a period when ownership and management of Fort Monroe transfers from the U.S. Army to the Commonwealth of Virginia. The FMFADA The Fort Monroe Federal Area Development Authority, or the FMFADA, is a political subdivision of the Commonwealth of Virginia established by the Virginia General Assembly in 2007. It operates pursuant to the Code of Virginia (§15.2-6300 through §15.2-6322), as well as other acts that provide it with additional specific authorities. The FMFADA is recognized by the Department of Defense as the Local Redevelopment Authority for reuse planning and implementation. The FMFADA will manage Fort Monroe in perpetuity. The FMFADA consists of a chairman, an executive director, and board members. The FMFADA is supported by staff and consultants with expertise in the fields of town planning, architecture and design, real estate and economics, military base reuse law, environmental and civil engineering, historic preservation, recreation and heritage tourism, and public relations and marketing. Further information regarding the FMFADA may be found at http://www.fmfada.com. Fort Monroe Reuse Plan In August 2008, the FMFADA adopted the Fort Monroe Reuse Plan (“Reuse Plan”). The Reuse Plan includes official policies, land use concepts and limits (see Figure 2), and fundamental planning principles as well as strategies related to preservation, economics, tourism, environment, transportation, infrastructure, and flood control. It is the officially adopted vision for the reuse of Fort Monroe. A separate Technical Support Manual complements the Reuse Plan and provides additional detailed analysis, supporting documentation, and recommendations. The text of these documents and additional information is available at the FMFADA’s website, http://www.fmfada.com/business/reuse_planning/. The Reuse Plan articulates five key principles for the reuse of Fort Monroe:

1. Respect the site’s historic assets 2. Open the site to the public 3. Achieve economic sustainability 4. Create an open space park 5. Allow new development under strict limits.

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Offerors for this solicitation will be expected to provide their services in a manner consistent with the goals and objectives of the FMFADA as expressed by these five key planning principles.

Figure 2 Management Zones

Land Use Entitlements and Permitting The FMFADA as a political subdivision of the Commonwealth of Virginia is solely responsible for all land use entitlements, and it will coordinate with Virginia Uniform Statewide Building Code officials or their designees regarding plan checking, building permits, dig permits, permit inspection, and issuance of certificates of occupancy for all buildings as may be required for the selected Offeror(s) to provide services pursuant to the scope of work. As needed, the FMFADA will coordinate with other agencies having jurisdiction regarding permits for construction activity at Fort Monroe, e.g. the Army Corps of Engineers for any projects impacting wetlands. Changes to historic structures or landscapes, including changes to buildings and landscaped managed by the selected Offeror(s), will be subject to review and approval by the State Historic Preservation Officer in the Virginia Department of Historic Resources (see also “Historic Preservation and Design

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Standards”). A Fort Monroe Historic Preservation Officer on site at the FMFADA offices will coordinate this process. Historic Preservation and Design Standards As part of the base reuse planning process, the U.S. Army and the FMFADA (as well as other parties) entered into a Programmatic Agreement (“PA”) under Section 106 of the National Historic Preservation Act (“NHPA”). The PA for this action recognizes the US Army’s federal undertaking in the closure of Fort Monroe and specifies actions to mitigate the closure’s effects on historic properties covered by the NHPA and future requirements in order to avoid, minimize, or mitigate adverse effects. The PA also sets forth the Commonwealth’s responsibilities, including designation of an on site Fort Monroe Historic Preservation Officer, to ensure that all rehabilitation, renovation, maintenance, and development activities are carried out in a manner consistent with Fort Monroe’s status as a National Historic Landmark District. The PA can be viewed at http://www.fmfada.com/business/fm_planning/preservation/. The selected Offeror(s) will be expected to work closely with the Fort Monroe Historic Preservation Officer in the course of providing ongoing maintenance services, making any required tenant improvements, or constructing other improvements. The FMFADA anticipates formulating a Historic Preservation Management Plan that would set forth guidelines and standards for maintenance of historic properties. Applicable Laws Procurement The FMFADA has developed its own procurement policies and procedures in conformity to the provisions of the Virginia Public Procurement Act (“Act”, Code of Virginia §2.2-4300 through §2.2-4377). The FMFADA Board of Commissioners is responsible for all decision-making and actions undertaken by the FMFADA pursuant to the Act. Construction activities, including those arising out of work by the FMFADA’s selected Offeror(s) will be carried out pursuant to the FMFADA regulations. Landlord-Tenant Law The FMFADA, as a master lessor under the Army prior to transfer and as the agency responsible for management of Fort Monroe after transfer of land and improvements to the Commonwealth of Virginia, will be subject to the provisions of Virginia landlord-tenant law (§55-217 through §55-248) and residential landlord-tenant law (§55-248.2 through §55-248.40). The selected Offeror(s) will be responsible for ensuring compliance with these laws. Real Estate Licenses and Other Licenses and Permits The selected Offeror(s) will be solely responsible for obtaining at its expense any real estate licenses, business licenses, or other licenses or permits required for itself or its employees or contractors pursuant to Virginia law. Provision of Municipal Services Prior to transfer, the U.S. Army will continue to provide most municipal services, including public safety, public works, facilities management, health inspections, parks and recreation, and certain utilities. These services are provided either by the U.S. Army directly or through its affiliated entities and contractors. As part of the transfer process, the FMFADA is discussing alternative methods of providing municipal

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services and utilities after transfer with local agencies, namely the City of Hampton and Newport News Waterworks. A more detailed description of utility services is indicated in Section F of Appendix A “Detailed Scope of Work.” Hampton City Schools provides education to school-aged children at Fort Monroe. The City of Hampton provides school bus service to residents. There is a Catholic parochial school close to the site in Pheobus.

III. Statement of Need The FMFADA seeks one or more firms offering leasing and property management services as a means to help the FMFADA implement its strategy of leasing existing buildings and residences on an interim basis (e.g. lease terms generally less than five (5) years) pending execution of its long term strategy to rehabilitate and/or adaptively reuse historic buildings and to plan new development as permitted under the Reuse Plan. The selected Offeror(s) will operate under the direction of the FMFADA Deputy Director of Real Estate. Interim Leasing Strategy  The FMFADA will establish an Interim Leasing Program prior to transfer of Fort Monroe by negotiating and executing a master lease agreement with the U.S. Army and engaging one or more experienced third party brokerage and property management firms to (i) help assess the rental market conditions in Hampton Roads, (ii) make recommendations on “refreshing” the space/units to enhance rental rates, and (iii) lease and/or manage and maintain the properties.    Program Description  The Interim Leasing Program will target existing commercial and residential structures that require a low level of investment by the FMFADA for occupancy.  

• This program will be implemented by entering into a master lease agreement with the U.S. Army prior to transfer, giving the FMFADA the right to lease and manage selected residential and commercial structures in accordance with the Army’s departure schedule (“Master Lease”).  

 • The FMFADA will then contract with one or more property managers qualified in commercial

and residential properties to provide support services, including refreshing of units prior to leasing and upon re-leasing, marketing and tenant selection, management of day-to-day tenant relationships, collection of rent and reimbursable charges, and property maintenance and repair.  

 • The property manager(s) will be reimbursed and compensated out of rental revenue generated.

The FMFADA may provide limited funds for selected initial improvements when determined to be cost-effective. Such amounts will be negotiated with the selected Offeror(s).  

 • Post-transfer, the FMFADA will continue to operate a rental program until long-term plans are

made and implemented for existing structures and new construction.  

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The relationships among the parties are illustrated in Figure 3.

Figure 3 Interim Leasing Program - Organizational Relationships

U.S. Army

Manager

FMFADA

Master Lease Agreement

Management Contract

Cost Reimbursement

Rents less costs and fee

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PRE & POST TRANSFER

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Objectives/Desired Benefits An Interim Leasing Program will satisfy many of the FMFADA’s goals and objectives as follows:

• Generate near-term revenues to support the FMFADA start-up operations – The establishment of an Interim Leasing Program will effectively generate early income to fund the FMFADA’s operations. While rents may often be low to modest for buildings in their “as is” condition, the properties are debt-free and can, in the aggregate, generate potentially significant income.

• Preserve historic buildings by ensuring continuing occupancy - “Mothballing” existing historic buildings typically results in much higher rehabilitation costs in the future and should be avoided. Interim leasing is a common strategy employed by local reuse authorities to keep buildings in operation and avoid deterioration in physical condition.  

 • Establish a “Fort Monroe” and “Old Point Comfort” brand – The long-term financial

viability of Fort Monroe requires careful branding and the activities of the selected Offeror(s) must support the FMFADA’s development and marketing of Fort Monroe and Old Point Comfort. 

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 • Establish the FMFADA as an effective management entity - The establishment of the Interim

Leasing Program will help to build the FMFADA organization with the capacity to be responsive to tenant and community needs and changing circumstances by adopting the best practices of both the public and private sectors.  

 • Establish Rental Rates for Fort Monroe – The Selected Offeror(s) will help to establish rental

rates for various property types by preparing a comparative market analysis.   • Control the FMFADA’s operating costs – Implementing the Interim Leasing Program will

involve adopting a staffing plan that will minimize the number of permanent positions required for the FMFADA to manage its real property assets by securing the services of one or more third-party leasing and property managers that meet the high standards associated with Fort Monroe.  

 • Avoid the appearance of a “deserted” military base - An additional benefit of the Interim

Leasing Program is to ensure that Fort Monroe avoids the appearance of a deserted military base and to have “eyes and ears” onsite to discourage vandalism to unoccupied structures and facilities and theft of appliances or valuable building system metals. This is critically important for implementing the FMFADA’s long-term leasing programs. Fort Monroe needs to be perceived early on as an active and well maintained community to the greatest extent possible.  

Scope of the FMFADA’s Current Activities The FMFADA is currently undertaking the full range of actions needed to fulfill its long-term stewardship goals for Fort Monroe, including but not limited to: organizational development including hiring of staff and consultants; negotiations with the Army on terms and conditions of property conveyances and other transfer-related matters; infrastructure assessment and plans for improvements to support new uses; planning for provision of municipal and utility services, including public safety and permitting; coordination of intergovernmental affairs with other federal and Commonwealth agencies and Commonwealth political subdivisions; community and public relations; establishment of design, engineering, property management, and other capacities through hiring of appropriate vendors; preparations to solicit one or more developers to oversee restoration, rehabilitation, and adaptive reuse of historic buildings as well as allowed new development; developing its plan for future public educational and recreational programs, and financial planning to identify its future funding requirements and evaluate all potential funding sources. Given the high level of advance planning required to implement the Reuse Plan, the FMFADA needs to focus its time on other matters and prefers to engage professional leasing and property management firms that can meet the high quality standards associated with the Fort Monroe.

IV. Scope of Work: Leasing and Property Management Services Services to be Provided The FMFADA anticipates a need for the following services:

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• Routine local competitive market input and recommendations regarding rental rates and

concessions, needed property enhancements and terms and conditions for leases • Residential leasing of existing single-family homes, duplexes, and quadraplex apartments • Commercial leasing of existing office, industrial, and warehouse space • Residential and commercial property management • Construction of tenant improvements

The scope of services will vary pre-transfer and post-transfer of Fort Monroe from the U.S. Army to the Commonwealth. Prior to transfer a limited number of residences and small amounts of office space will be available. Post-transfer, however, the FMFADA anticipates that all existing residential units and a significant number of commercial buildings will become available for assignment to the selected Offeror(s). Prior to Transfer Prior to transfer, the U.S. Army will master lease, possibly as soon as March 2010, approximately 118 residential units known as the Monroe Apartments located in the Wherry Quarter. These units, primarily apartments in quadraplex configuration, are in good condition and have outstanding views of the Chesapeake Bay (see Table 1).

Table 1

In the period prior to the scheduled September 2011 transfer of Fort Monroe, the FMFADA does not anticipate a significant amount of non-residential space available for the Interim Leasing Program given current occupancy plans by the U.S. Army; however, this is subject to change without notice. Post-Transfer After transfer of Fort Monroe to the Commonwealth, the selected Offeror(s) must be prepared to scale up its residential program and property management functions and initiate a commercial leasing program as the Army vacates other existing residential and non-residential properties. With respect to residential, the total pool consists of 292 units as shown in Table 2. For non-residential, the total pool of properties from which buildings may be assigned to the selected Offeror(s) is presented in Table 3. Note that of the total of just over one million gross square feet, approximately two-thirds (676,000 square feet) is reported by the U.S. Army to be ADA compliant and would likely be suitable for leasing in the near term after transfer. Buildings will be assigned as warranted by market conditions and as determined by the FMFADA in conjunction with the selected Offeror(s). Further note that property management services would extend only to buildings assigned to the selected Offeror(s).

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Table 2

Units Avg.Cluster SFD Duplex Quads Total Unit SizeColonel's Row 5 12 8 25 5,085General's Row 9 2 4 15 4,587Inner Fort Residences 3 20 12 35 3,314Marina View Townhomes 0 28 0 28 1,721Moat Walk Row 1 8 0 9 1,746Monroe Beach Apartments 0 6 112 118 995Pratt Street Residences 2 28 0 30 2,052Reeder Circle Apartments 0 0 32 32 2,743Total/Avg. 20 104 168 292 2,201

Existing Residential Inventory by Cluster

Table 3

Total ADA-

Category by Current Use Buildings Total SF Compliant SFOffice 51 716,514 458,845Industrial/Storage 30 207,955 76,209Casemate 5 105,634 63,826Medical 1 67,900 67,900Lodging 1 9,634 9,634Total 117 1,107,637 676,414

Sources: U.S. Army; FMFADA; BAE, 2009.

Non-Residential Building Inventory Summary Relationship to Long-Term Reuse Plan Implementation The selected Offeror(s) will be responsible for the leasing and property maintenance of buildings assigned to it. Concurrent with the selected Offeror’s activities, the FMFADA anticipates that it will prepare and release a competitive public solicitation to select one or more developer partners who will make major investments in rehabilitation and adaptive reuse of historic buildings as well as plan and construct new development. The FMFADA expects that such rehabilitation, adaptive reuse and new construction will be phased over a multi-year period as market conditions warrant. As these phases of rehabilitation and new construction occur, the inventory of properties available for leasing and property management services provided the selected Offeror(s) may be adjusted from time to time as necessary to support the approved activities of the FMFADA’s development partners. Hence, the FMFADA seeks a leasing and property management firm that will be able to work with the FMFADA and its selected developers to coordinate near-term leasing and management activities with long-term development plans. Leasing The selected Offeror(s) will provide residential and commercial leasing services. The ideal service provider will be one that can support the FMFADA’s efforts to establish a strong “Fort Monroe” and “Old Point Comfort” brand and as well as possessing successful marketing and leasing experience in high-end rentals (including seasonal rentals), commercial office, retail and warehouse/storage space. The following is a summary of desired services and a detailed description of leasing services is provided in Section C.2 of Appendix A “Detailed Scope of Work.” Residential Leasing The residential leasing program will first target the 118-unit Monroe Beach Apartment complex and later expand after transfer to ultimately encompass the entire 292-unit inventory of residences. The FMFADA

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anticipates the need for an onsite residential leasing agent and manager who would work out of an existing office at the complex. The scope of residential leasing would encompass: Preferential Year-Around Program. As part of its interim leasing strategy, the FMFADA seeks to encourage short-term residential tenancies at Fort Monroe to avoid potential conflict with long-term rehabilitation and occupancy plans. The FMFADA will work with the selected Offeror(s) to establish a preferential system that provides the first opportunities for occupancies to households in the following order of preference:

Existing and new U.S. military families Foreign military families on assignment with NATO or other military commands Federal employees on short-term assignment or detail Visiting faculty and graduate students affiliated with local colleges and universities Local agency public safety employees

The FMFADA anticipates that a significant number of existing military families will desire to remain at Fort Monroe for the duration of their duty rotation. The depth of market for the preferred renter categories is analyzed in the 2009 Fort Monroe Real Estate Strategy “Interim Leasing” chapter. To the extent demand is insufficient to achieve full occupancy; units will also be offered to the general public at market rates. Rental rates for military families will be based upon the Base Allowance for Housing (“BAH”) provided based on the rank of the military household member. Rental rates for NATO families will be based upon the lesser of market rates or scheduled military housing allowance provided by their government. All other rental rates will be at current market rates. Seasonal Rentals. As part of an effort to establish Fort Monroe as a major leisure destination in the region, the FMFADA seeks to work with the selected Offeror(s) to design and test a seasonal rental program with units deemed most suited for such a program. Note that in the first phase comprising the 118 units at Monroe Beach, sixty-four (64) directly face the water. The fifteen (15) homes that comprise the General’s Row Residences also face Chesapeake Bay. Commercial Leasing The FMFADA seeks an experienced and knowledgeable commercial brokerage firm that can provide commercial leasing services to the FMFADA. Again, the ideal commercial broker will be one that can focus its marketing efforts for compatible commercial tenants that support the development of the “Fort Monroe” and “Old Point Comfort” brand. As non-residential buildings are vacated by the U.S. Army, the FMFADA anticipates working with the selected Offeror(s) to determine whether such buildings should be assigned to the Offeror’s contract. The FMFADA will pay commissions as proposed by the Offeror in Appendix B “Bid Schedule.” Note that as indicated in the “Reservation of Rights and Limiting Conditions” set forth in Section VII of this RFP, the FMFADA reserves the right to award multiple contracts under this RFP, including but not limited to a separate contract to a commercial brokerage firm, separating this function from residential leasing and property management.. Leasing Agent Responsibilities The Offeror(s) providing residential and commercial leasing services will be responsible for formulating a cost-effective leasing program that will maximize visibility in the marketplace for Fort Monroe properties and generate tenant interest. The leasing agent will also be responsible for conducting periodic surveys of local market area rents and tenant expenses for residential and commercial buildings comparable to those being managed pursuant to the contract, and providing the FMFADA with recommendations for market

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rate rents. Anticipated elements of the program would include advertising (as approved by the FMFADA), online presence, publicity, direct marketing, flyers, and other materials. Compensation for these costs will be as set forth in Appendix B “Bid Schedule.” Property Management The FMFADA seeks a property manager who can provide all services indicated in Section C of Appendix A “Detailed Scope of Work”, including the following services: Revenue Collection / Account Management / Financial Reporting As indicated in Section C.10 of Appendix A “Detailed Scope of Work,” the selected Offeror(s) will be responsible for all aspects of revenue collection, establishment and management of a trust account for revenues and expenditures, and preparation of financial reports, all as directed by the FMFADA and subject to its approval. These duties will include but may not be limited to:

• Rent and bad debt collection • Trust account opening and management • Annual and monthly financial reporting

Property Operation, Maintenance, and Repairs As indicated in Section C of Appendix A “Detailed Scope of Work,” the selected Offeror(s) shall act as the FMFADA’s agent, with day-to-day responsibility for the performance of all tasks needed to ensure high quality property management operations, and maintenance of buildings and sites in good condition, including performance of necessary repairs. These duties for buildings assigned to the contract will include but not be limited to:

• On-site staffing (to the extent required and cost-efficient) • Property management plan • Formulation of Tenant Rules and Tenant Handbook (consistent with DoD military family housing

policies) • Tenant move-in and move-out • Utility services (coordinate with providers for metered and unmetered buildings) • Building maintenance • Site and landscaping maintenance • Parking lot maintenance • Coordination with U.S. Army (as directed by the FMFADA)

Property Improvements / Construction Management As indicated in Sections H of Appendix A “Detailed Scope of Work,” the selected Offeror(s) will undertake property improvements including:

• Start-up repairs, preparation for occupancy • Negotiated tenant improvements

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The Detailed Scope of Work set forth in Appendix A differentiates between normal, routine repairs and maintenance that is specified in the Property Management Plan and what is called “Improvement Work.” Improvement Work represents out of scope projects that will be negotiated under separate task orders under the contract, specifically: ’Improvement Work’ means the construction of capital improvement work beyond the scope of

the Property Management Plan, undertaken by Contractor pursuant to a Task Order from the FMFADA pursuant to Section A.7, for the purpose of performing rehabilitation in Fort Monroe. Improvement Work may include Construction Management services that are provided by another entity than Contractor.

In other words, Improvement Work would include initial projects to make a building ready for occupancy, tenant improvements, or major utility repairs/replacement related to buildings assigned to the Selected Offeror(s). In the case of complex projects or projects that are undertaken by a third party general contractor, the selected Offeror(s) will be expected to provide Construction Management services that would be separately negotiated and compensated. Other Property Management Services In addition to the above-stated services, the FMFADA seeks flexibility to obtain other property management services if determined to be cost-effective, including:

• Property insurance • Unlawful detainer/legal services • Additional services

Submittals to this RFP will be considered responsive only if they describe how the Offeror would be able to provide all of the services summarized in Section IV of this RFP and set forth in detail in Appendix A “Detailed Scope of Work.” Contract Term, Form, and Compensation Term The FMFDA anticipates that the initial term of the Contract will be one-year, commencing in mid-March 2010. This is subject to a successfully executed Master Lease and is subject to change. The FMFADA will have the option to extend the contract for up to four separate one-year periods, for a maximum term of five years. Form The selected Offeror(s) and the FMFADA will negotiate a contract for leasing and property management services. Compensation Compensation for the selected Offeror(s) will be as set forth in the contract.

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V. Leasing and Property Management Qualifications

Experience The FMFADA seeks a firm with the following experience and qualifications:

• Demonstrated record of success with marketing and leasing higher-end, luxury residential properties, including communities with seasonal rentals.

• Demonstrated record of success in marketing and leasing commercial office and warehouse/storage space.

• Demonstrated record of success in managing residential and commercial properties with a focus on revenue generation, cost-effectiveness, tenant satisfaction, and tenant retention.

• Demonstrated capacity to perform appropriate maintenance, repairs, tenant improvements on historic buildings and in a historic context.

• Depth of experience of key staff proposed to be assigned to this contract.

• Demonstrated ability to work with unique client requirements and in highly visible unique settings.

Capabilities The FMFADA seeks a leasing and property management firm (or team) with the full range of capabilities to perform the work described in Appendix A “Detailed Scope of Work.” While the facilities to be managed as identified in this RFP are only a portion of Fort Monroe’s total building inventory, the FMFADA also seeks a firm with the ability to provide the full range of services for additional properties as needed.

VI. Proposal Preparation and Submittal Requirements

General Preparation Requirements RFP Response In order to be considered for selection, Offerors must provide six (6) bound copies of the proposal, one unbound original, and an electronic copy on a CD-ROM that includes the entire proposal in a single Adobe Acrobat pdf file. Images are to be managed so that the pdf file is of reasonable size, and no more than 10 MB. No other distribution of proposal shall be made by the Offeror. Proposal Preparation

1. Proposals shall be signed by an authorized representative of the Offeror. All information requested shall be submitted. Failure to submit all information requested may result in the Offeror receiving a lowered evaluation of the proposal. Proposals which are substantially incomplete or lack key information may be rejected by the FMFADA. Mandatory requirements are those required by law or regulation or are such that they cannot be waived and are not subject to negotiation.

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2. Proposals shall be prepared simply and economically, providing a straightforward, concise description of capabilities to satisfy the requirements of this RFP, including Appendices A and B. Emphasis should be placed on completeness and clarity of content.

3. Proposals should be organized in the order in which the requirements are presented in the

“Specific Proposal Preparation Instructions” of this RFP. All pages of the proposal should be numbered. The proposal should contain a table of contents. Information which the Offeror desires to present that does not fall within any of the requirements of the RFP should be inserted at an appropriate place or be attached at the end of the proposal and designated as additional material. Proposals that are not organized in this manner risk elimination from consideration if the FMFADA is unable to find where the RFP requirements are specifically addressed.

4. As used in this RFP and Appendices A and B, the terms "must", "shall", "should" and “may”

identify the criticality of requirements. "Must" and "shall" identify requirements whose absence will have a major negative impact on the suitability of the proposed solution. Items labeled as "should" or “may” are highly desirable, although their absence will not have a large impact and would be useful, but are not necessary. Depending on the overall response to the RFP, some individual "must" and "shall" items may not be fully satisfied, but it is the intent to satisfy most, if not all, "must" and "shall" requirements. The inability of an Offeror to satisfy a "must" or "shall" requirement does not automatically remove that Offeror from consideration; however, it may seriously affect the overall rating of the Offeror’s proposal.

5. Each copy of the proposal should be bound or contained in a single volume where practical. All

documentation submitted with the proposal should be contained in that single volume.

6. Ownership of all data, materials, and documentation originated and prepared for the FMFADA pursuant to the RFP shall belong exclusively to the Issuing Agency and be subject to public inspection in accordance with the Virginia Freedom of Information Act. Trade secrets or proprietary information submitted by an Offeror shall not be subject to public disclosure under the Virginia Freedom of Information Act; however, the Offeror must invoke the protections of § 2.2 4342F of the Code of Virginia, in writing, either before or at the time the data or other material is submitted. The written notice must specifically identify the data or materials to be protected and state the reasons why protection is necessary. The proprietary or trade secret material submitted must be identified by some distinct method such as highlighting or underlining and must indicate only the specific words, figures, or paragraphs that constitute trade secret or proprietary information. The classification of an entire proposal document, line item prices, and/or total proposal prices as proprietary or trade secrets is not acceptable and will result in rejection of the proposal.

Specific Proposal Preparation Instructions Proposals should be as thorough and detailed as possible so that the FMFADA may properly evaluate your capabilities to provide the required leasing and property management services. Offeror’s are required to submit the following items as a complete proposal:

1. RFP Cover Sheet. Return the RFP cover sheet and all addenda acknowledgments, if any, signed and filled out as required.

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2. Firm and Team Description. Describe the legal structure of the submitting entity or organization (e.g., corporation, joint venture, limited partnership, 501(c)(3), etc.). Provide the name and relationship of all companies and organizations included in the proposal. Describe how the Offeror possesses the capability to provide the services described in the RFP. Clearly indicate what entities will be providing:

a. Residential leasing services b. Commercial leasing services c. Property management d. General contractor/construction management services including for historic

structures e. Legal services

Provide the following information, where applicable, for all entities involved in the proposal:

a. Description of core services b. Number of years in business c. Number of full-time (or equivalent) employees d. Volume of business/units under management e. Indicate if entity is certified small, woman- or minority-owned (including

certificate no.) f. Organizational chart, if needed

3. Leasing and Property Management Approach. Describe the Offeror’s specific plans for

providing the proposed services including:

a. Describe in detail your approach to performance of the leasing and property management services described in the RFP. Describe the issues you anticipate having to deal with, and how you will ensure a successful resolution.

b. Describe how your approach to property management will meet the FMFADA’s requirements and objectives as listed in this RFP.

c. Describe any recommendations you may have for changes, additions, deletions, or other improvements to the property management and leasing services described in this RFP and in Appendix A “Detailed Scope of Work” that you believe would better meet the FMFADA’s goals.

4. Description of Relevant Experience. Provide information on the team’s past experience

and qualifications that demonstrates the Offeror’s ability to provide leasing and property management services, including:

a. Describe experience in marketing and leasing for high-end, luxury residential

properties b. Describe experience in marketing, leasing commercial office, industrial, and

warehouse/storage space c. Describe experience in property management for both residential and commercial

properties d. Indicate experience in managing historic properties, including compliance with

Section 106 of the National Historic Preservation Act and with standards for historic preservation set forth by the U.S. Secretary of the Interior

e. Describe previous experience in managing property in a brownfields site, or property containing hazardous materials such as lead based paint, asbestos containing material, or other items, including compliance with regulatory procedures and risk management

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f. Describe your experience in marketing unique communities and property types to different categories of buyers and users

g. Property or project information should include: • Property name, location, and jurisdiction • Property type and size, including any historic context • Photos of the property, if available • Offeror’s role in marketing, leasing and/or property management • Property performance attributable to the Offeror’s services • Reference and/or owner full contact information (minimum three

references)

5. Resumes of Key Staff. Indicate key staff to be assigned to the Fort Monroe leasing and property management contract and provide resumes of staff, including the person who will represent the organization in negotiations, the person who will be the primary client contact, as well as other key staff.

6. Cost Proposal. Complete Appendix B “Bid Schedule” indicating costs to provide services

under this RFP and Appendix A “Detailed Scope of Work.” For any costs that are priced on an hourly rate or absolute dollar unit rate, indicate the proposed annual escalation during the contract term (up to four one-year extensions).

VII. Evaluation Criteria, Selection & Award Process

Evaluation Criteria

Proposals will be evaluated by the FMFADA using the following criteria: CRITERIA POINTS

Understanding of the Assignment 10

Offeror’s expertise, qualifications, relevant experience and references 30

Proposed methodology/procedures 20 Price 30 Small, Women- and Minority-owned

Business (“SWaM”) Certification 10

TOTAL 100

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Selection and Award Process This RFP shall be a negotiated contract with final details as to scope of work and price determined upon mutual agreement. The FMFADA will use a selection panel to review the proposals. The panel will consist of experts in general management, real estate, facilities management, historic preservation, and/or planning and architecture. During this evaluation process, the FMFADA reserves the right to interview or to request additional information from any or all of the respondents. The FMFADA reserves the right to contact references and conduct other independent investigation regarding the information presented in proposals. Reservation of Rights and Limiting Conditions

• Any selection of a leasing and property manager will be made at the sole discretion of the FMFADA.

• The selection of a leasing and property management firm will be based on those proposals that

best address the criteria identified by this RFP

• The FMFADA reserves the right to make an award to multiple firms, including but not limited to a separate contracts for (i) residential leasing and property management; and (ii) commercial leasing and brokerage.

• The FMFADA is under no obligation to select any proposal, and may, at its discretion, reject any

or all proposals and terminate the selection process.

• The FMFADA is not liable or responsible for any costs associated with responding to this Request for Proposals.

• The FMFADA reserves the right to deviate from any provision of this Request for Proposals

consistent with applicable statutes, regulations and policies. The FMFADA reserves the right to substitute sites or change other aspects of the proposed property management and interim leasing program.

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• All facts, data, and opinions included in this Request for Proposals and in reference documents

are based on the best information currently available. No representation or warranty, expressed or implied, is made as to the accuracy or completeness of any facts, data, opinions or other information contained in this Request for Proposals or in reference documents.

VIII. Delivery Requirements and Schedule As a negotiated contract, final details as to scope of work and price shall be determined upon mutual agreement.

• The initial contract period will end on March 30, 2011. Contract renewals are at the sole discretion of the FMFADA.

• Specific agreed upon tasks, products and deliverables within the Contract period shall be

completed pursuant to Appendix A “Detailed Scope of Work” as approved by the FMFADA.

IX. Method of Payment

• Payments will be made monthly to the selected Offeror(s) for the proportional part of the services rendered during the period.

• The selected Offeror shall submit to the FMFADA by the 5th day of the month a statement for approval and payment.

X. Pricing Pricing of services shall be as presented in Appendix B “Bid Schedule”.

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XI. Additional Information Additional Information Interested parties are asked to provide their names, mailing address, phone number, and email address to the FMFADA contact listed on the cover sheet of this RFP, in order to facilitate transmission of questions and answers, addenda, or other materials related to this RFP. All items related to this RFP will also be posted on the FMFADA’s website at www.fmfada.com. The FMFADA is not responsible for any interested party’s failure to receive any supplemental information or instructions issued by it regarding this RFP. Site Access and Building Tours Fort Monroe is normally open to members of the general public who are U.S. citizens, with visitors allowed onto the base after producing a valid drivers license (or other government issued-identification) and vehicle registration at the entry gate. Interested parties are encouraged to tour the Wherry Quarter area and Fort Monroe at their convenience. Interested parties are reminded that speed limits and traffic laws are strictly enforced by military police within Fort Monroe, and compliance is required with posted signs restricting access to certain areas or buildings. NOTE THAT WHERRY QUARTER RESIDENCES ARE CURRENTLY OCCUPIED. UNDER NO CIRCUMSTANCES ARE INTERESTED PARTIES TO CONTACT CURRENT RESIDENTS OR APPROACH THE UNITS; DOING SO MAY BE GROUNDS FOR DISQUALIFICATION TO SUBMIT A PROPOSAL FOR LEASING AND PROPERTY MANAGEMENT SERVICES UNDER THIS RFP. One or more sample Monroe Beach Apartments residential units are expected to be made available for examination in conjunction with the bidder’s conference described in the next section. No other access to structures will be provided.

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Bidder’s Conference A bidder’s conference will be held to review the requirements of this RFP, allow interested parties to ask the FMFADA questions, and tour one or more sample Monroe Beach Apartments residences. The bidder’s conference will be held:

January 13, 2010 9:30 a.m. to 12:00 p.m.

Tours to immediately follow ___________________

The Chapel Center Building 21

54 Bernard Road Fort Monroe, VA 23651

Those planning to attend are asked to RSVP to Yvonne Cash, Procurement Manager before January 11, 2010 by email at ycash@fmfada.com to help the FMFADA ensure that adequate seating and numbers of handouts and materials are available. FMFADA Contacts THE FMFADA CONTACT, LISTED ON THE COVER SHEET OF THIS RFP, IS THE ONLY PERSON TO BE CONTACTED REGARDING THIS RFP. INTERESTED PARTIES ARE HEREBY NOTIFIED THAT CONTACTING ANY OTHER FMFADA STAFF MEMBER OR MEMBER OF THE FMFADA BOARD OF COMMISSIONERS REGARDING THIS RFP IS GROUNDS FOR IMMEDIATE DISQUALIFICATION TO SUBMIT A PROPOSAL FOR LEASING AND PROPERTY MANAGEMENT SERVICES. Questions will be accepted up to five business days prior to the deadline for proposals. The FMFADA requests that all questions be submitted by email. All questions and answers will be circulated to parties who have registered their interest in this RFP with the FMFADA Point of Contact, and may be posted to the FMFADA website.