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RHODE ISLAND DEPARTMENT OF ADMINISTRATION RHODE ISLAND COUNCIL ON POSTSECONDARY EDUCATION
RHODE ISLAND COLLEGE
Request for Information (RFI) Solicitation Information
July 7, 2017 RFI# 7554519 TITLE: Public-Private Partnership for New Residence Hall Project and Existing Residential
Facility Modernization Project at Rhode Island College SUBMISSION DEADLINE: Friday August 25, 2017 at 11:00 AM (Local Time) Questions concerning this solicitation must be received by the Division of Purchases at [email protected] no later than August 1, 2017 at 4 PM (LT). Questions should be submitted in a Microsoft Word attachment. Please reference the RFI# on all correspondence. Questions received, if any, will be posted on the Internet as an addendum to this solicitation. It is the responsibility of all interested parties to download this information.
Buyer Name, Title Applicants/Respondents must register online at the website of the Division of Purchases at www.purchasing.ri.gov Note to Applicants/Respondents: Proposals received without the entire completed Rhode Island Vendor Information Program (“RIVIP”) generated Bidder Certification Cover Form attached may be disqualified.
THIS PAGE IS NOT A BIDDER CERTIFICATION COVER FORM
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TABLE OF CONTENTS
SECTION 1 – OVERVIEW OF REQUEST FOR INFORMATION (RFI) ............................................................................................................................................... 6 1.1 Introduction
................................................................................................................................................6
1.2 Instructions and Notifications to Respondents................................................................................................................................................7
1.3 Disclaimer................................................................................................................................................8
SECTION 2 – PROJECT INFORMATION ............................................................................................................................................... 8 2.1 Rhode Island College Background
................................................................................................................................................8
2.2 Rhode Island College Residential Life Information................................................................................................................................................9
2.3 Residence Hall Feasibility Studies and Facilities Condition Assessment................................................................................................................................................10
SECTION 3 – PROJECT OBJECTIVES & PUBLIC-PRIVATE PARTNERSHIP MODELS ............................................................................................................................................... 12 3.1 New Residential Facility Project Description
................................................................................................................................................12
3.2 Residential Modernization Project Overview................................................................................................................................................13
3.4 Preliminary Project Schedule, Planning and Timeline for Objectives................................................................................................................................................14
3.5 Quality of the Work................................................................................................................................................15
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SECTION 4 – FINANCIAL CONSIDERATIONS, TRANSACTION STRUCTURE AND ANTICIPATED AGREEMENTS ............................................................................................................................................... 15 4.1 Financial Considerations
................................................................................................................................................15
4.2 Transaction Structure and Anticipated Agreements................................................................................................................................................16
4.3 Key Terms for Anticipated Agreements................................................................................................................................................16
SECTION 5 – PREPARING TO SUBMIT PROPOSAL ............................................................................................................................................... 17 5.1 Obtaining the RFI
................................................................................................................................................17
5.2 Pre-Submission Conference and Site Tour................................................................................................................................................17
5.3 Pre-Proposal Preparation................................................................................................................................................17
5.4 Understanding of Request................................................................................................................................................17
5.5 Proposal Preparation................................................................................................................................................17
5.6 Proposal Guarantee/Withdrawal................................................................................................................................................18
5.7 Modifications to Request for Information................................................................................................................................................18
5.8 Questions and Requests for Clarification................................................................................................................................................18
5.9 Response Format and Submission................................................................................................................................................18
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5.10 Communications between the College and Respondents................................................................................................................................................19
5.11 Cancellation of Request for Information................................................................................................................................................19
5.12 Rejection of Responses................................................................................................................................................19
5.13 Economy of Preparation................................................................................................................................................20
5.14 Clarification of Responses................................................................................................................................................20
5.15 Use of Information Submitted to the College................................................................................................................................................20
5.16 Public Records................................................................................................................................................20
SECTION 6 – SUBMITTAL REQUIREMENTS ............................................................................................................................................... 20 6.1 General
................................................................................................................................................20
6.2 Transmittal Letter................................................................................................................................................21
6.3 Submittal Requirements (Tab 1: Statement of Qualifications)................................................................................................................................................21
6.4 Submittal Requirements (Tab 2: Program Finance Plan, Business Model, Description of Partnership Model Concept(s))................................................................................................................................................24
6.5 Submittal Requirements (Tab 3: Facility Management and Maintenance Plan)................................................................................................................................................26
6.6 Submittal Requirements (Tab 4: Supplemental Information)................................................................................................................................................27
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6.7 Procurement Schedule................................................................................................................................................27
SECTION 7 – EVALUATION AND CONCEPT SELECTION ............................................................................................................................................... 27 7.1 Evaluation Process
................................................................................................................................................27
7.2 Evaluation Criteria................................................................................................................................................28
7.3 Interviews................................................................................................................................................29
APPENDIX I: PRELIMINARY KEY TERMS AND CONDITIONS OF A PUBLIC-PRIVATE PARTNERSHIP AGREEMENT ............................................................................................................................................... 30
APPENDIX II: RHODE ISLAND COLLEGE FEASIBILITY STUDY FOR A NEW RESIDENCE HALL, DATED MAY 2016, BY SACCOCCIO & ASSOCIATES, CBT, AND BRAILSFORD & DUNLEAVY
APPENDIX III: FEASIBILITY STUDY FOR THE MODERNIZATION AND RENOVATIONS TO EXISTING RESIDENCE HALLS AT RHODE ISLAND COLLEGE DATED APRIL 7, 2016, BY LLB ARCHITECTS, INC
APPENDIX IV: RHODE ISLAND DEPARTMENT OF ADMINISTRATION (DOA) FACILITIES CONDITION ASSESSMENT
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SECTION 1 – OVERVIEW OF REQUEST FOR INFORMATION (RFI) 1.1 Introduction
The Department of Administration, Division of Purchases on behalf of Rhode Island College (the “College”), in collaboration with the Rhode Island Office of Postsecondary Education and the Rhode Island Department of Administration, is issuing this Request for Information (“RFI”) to solicit informational proposals from qualified firms (“Respondent” or “Respondents”, and a selected Respondent sometimes referred to as the “Private Entity”) to accomplish the following objectives through a public-private partnership (sometimes, a “P3”):
1. Construction of a new residence hall on the College’s campus (the “New Residential Facility Project”);
2. Implementation of a program to update the existing residence halls on the College’s campus (the “Residential Modernization Project”); and
3. Plan for the development of potential future additional residential facilities as determined by the College (the “Residential Planning Project”).
Through this solicitation process, the College seeks to identify Private Entities with a portfolio of services and to understand how a public-private partnership would operate and be financially feasible. The College seeks to identify Private Entities with appropriate qualifications, experience, financial capacity and a proven track record of executing similar projects. Specifically, the College seeks responses including:
· Technical qualifications and prior experience in planning, development, construction, financing, operation and maintenance of university housing facilities;
· Financial capability of respondents to complete the proposed Project using private capital alone;
· Feedback on Project technical elements and process; and · Recommendations regarding potential transaction structures and their respective
benefits and risks for the College.
Entities responding to this RFI (each a “Respondent” and together the “Respondents”) will be required to submit a Statement of Qualifications complying with the requirements set forth in this RFI issued by the College for this Project. The College will review submitted responses only from those firms that it determines to be qualified. The information and terms for this Request for Information (RFI) and the terms of the State’s General Conditions of Purchase may be obtained at the Rhode Island Division of Purchases’ website at www.purchasing.ri.gov. This is a Request for Information (RFI). No award will be made as a result of this solicitation.
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1.2 Instructions and Notifications to Respondents 1. Potential Respondents are advised to review all sections of this RFI carefully and to follow
instructions completely, as failure to make a complete submission as described elsewhere herein may result in rejection of the information providence in the response.
2. The State invites feedback from the developer community on any questions posed in this RFI.
3. Alternative approaches and/or methodologies to accomplish the desired or intended
results of this RFI are solicited.
4. All costs associated with developing or submitting responses to this RFI, or providing oral or written clarification of their content shall be borne by the Respondent. Any costs relating to a follow-up interview shall be borne by the Respondent. The College and the State assume no responsibility for any costs.
5. Responses misdirected to other state locations, or which are otherwise not present in
the Division at the time of opening regardless of the cause will be determined to be late and will not be considered. For the purposes of this requirement, the official time and date shall be that of the time clock in the reception area of the Division of Purchases.
6. Respondents are advised that none of the materials submitted to the State for
consideration in response to this RFI will be considered to be Public Records as defined in Title 38, Chapter 2 of the General Laws of Rhode Island at this time. The responses may only be released for inspection once an award of a subsequent procurement for actual development has been made, and as long as the release will not place the State at a competitive disadvantage in its sole discretion.
7. Interested parties are instructed to review the Division of Purchases’ website
(http://www.purchasing.ri.gov) on a regular basis, as additional information relating to this solicitation may be released in the form of an addendum to this RFI.
8. Equal Employment Opportunity (R. I. Gen. Laws § 28-5.1-1, et seq.) – § 28-5.1-1
Declaration of policy – (a) Equal opportunity and affirmative action toward its achievement is the policy of all units of Rhode Island state government, including all public and quasi-public agencies, commissions, boards and authorities, and in the classified, unclassified, and non-classified services of state employment. This policy applies to all areas where State dollars are spent, in employment, public services, grants and financial assistance, and in state licensing and regulation. For further information, contact the Rhode Island Equal Employment Opportunity Office, at 222-3090 or via e-mail to [email protected]. The College is committed to equal employment opportunity and non – discrimination on all of its projects and will take affirmative action to ensure equal employment opportunity and to eliminate
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discriminatory barriers. The College will consider Respondents’ demonstrated commitment to equal employment opportunity and affirmative action in selecting the Private Entity for the Project.
9. In accordance with R. I. Gen. Laws § 7-1.2-1, et seq., no foreign corporation, or a corporation without a Rhode Island business address, shall have the right to transact business in the State until it shall have procured a Certificate of Authority to do so from the Rhode Island Department of State (401-222-3040). This is a requirement only of the successful Respondent(s).
10. Respondents should be aware of the State’s Minority Business Enterprise (MBE)
requirements, which address the State’s goal of ten percent (10%) participation by MBEs in all State procurements. For further information visit the website www.mbe.ri.gov
1.3 Disclaimer This Request for Information is solely for information and planning purposes and does not constitute a Request for Proposal. All information received in response to the RFI and marked as “Proprietary” will be handled accordingly. Responses to the RFI cannot be accepted by the State to form a binding contract. Responses to the RFI will not be returned. SECTION 2 – PROJECT INFORMATION 2.1 Rhode Island College Background Rhode Island College (the “College”) is a leading regional higher education institution located in Providence, Rhode Island. The College offers comprehensive and innovative curricula to undergraduate, graduate, doctoral, and non-degree students. The College is the oldest public higher education institution in Rhode Island established by the Rhode Island General Assembly in 1854. It is a component unit of the State of Rhode Island and is under the purview of the Rhode Island Council on Postsecondary Education and the Rhode Island Board of Education. The College’s official student headcount enrollment was 8,446 as of Fall 2016. The fiscal year 2017 all funds operating budget is $182.1 million. The campus has 42 buildings, totaling 1.5 million square feet. For more information on the College, please visit www.ric.edu. The College’s strategic action plan includes an objective to improve and expand residential options to assist in recruiting and retaining a diverse student body. As Rhode Island College competes for students, the quality of programs and services is seen as a critical component for decision making with students and their families. The living condition and availability of housing plays a significant role in that decision; therefore, it is vital that the College offer a living community that strives to meet students’ social needs as well as their academic needs.
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2.2 Rhode Island College Residential Life Information As of September 2016, the College’s undergraduate enrollment included 1,086 students living on campus. This is approximately 15% of all undergraduate students, and 13% of all students (including graduate and non-degree). There is currently no designated graduate-student housing on campus. There are six (6) residence halls on campus, which have a total capacity of 1,194 beds. Below is a breakdown of the residence halls:
Rhode Island College: Overview of Residence Halls Source: Rhode Island College Budget Office
* Occupancy percentages based on Fall 2016.
Residence Hall Financial Background:
· The College has not made significant investments into the residence halls since construction 50-60 years ago. (The sole exception is $4.0 million in fire grade improvements in 2003, required as a result of an updated fire code. The project was financed through a general obligation bond.)
· Original construction of the residence halls was financed through federal grants, which did not require capital reserves.
· Room rates have historically been kept lower than those at peer institutions because of the condition of the dorms. This has had a detrimental financial effect and has hampered investment in the facilities.
· The Residential Life Auxiliary operating fund balance is projected to grow to $5.5 million by end of FY 2017, which is a result of steadily increasing room rates over the last few years.
· The College will be investing approximately $3.5 million from the fund balance in summer 2017 for general maintenance of the existing residence halls.
· The College still has annual debt service obligations with Sweet Hall and Penfield Hall.
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Rhode Island College: Residential Life Finances FY 2014 – FY 2016 Actuals and FY 2017 – FY 2018 Budget
Source: Rhode Island College Budget Office
Rhode Island College: Residential Life Rates & Meal Plan Rates
FY 2014 – FY 2018 Source: Rhode Island College Budget Office
2.3 Residence Hall Feasibility Studies and Facilities Condition Assessment
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The College is faced with the on-going challenge of providing a living environment for students that is safe, clean, comfortable, and conducive to learning. With the addition of Penfield Hall in 2007, the disparity of building amenities is glaring. The other five (5) residence halls have failing heating and air conditioning units, constant electrical and plumbing issues, technological challenges, and a lack of contemporary student use in common areas. None of the five (5) older halls (Thorp, Weber, Browne, Willard, and Sweet) have had significant renovations since construction. As a result of these challenges, the College included in its strategic action plan an objective to improve and expand residential options, which will assist in recruiting and retaining a diverse student body. This included the launch of two (2) feasibility studies, which were completed in spring 2016:
· Construction of a New Residence Hall. RIC contracted with Saccoccio & Associates to complete a feasibility study for the construction of a new residence hall. The study is included as Appendix II. The study included a student residential market demand analysis, site identification and evaluation, conceptual cost and schedule, and a financial plan.
· Renovation of Five (5) Existing Residence Halls. In conjunction and in unison with the Saccoccio & Associates study, the College engaged LLB Architects to develop renovation plans for five (5) of the existing six (6) residence halls on campus (Thorp, Weber, Browne, Willard, and Sweet Halls). This study is included as Appendix III.
Executive Summary Findings from Feasibility Studies:
· Overall unit configuration is 60% single rooms and 40% double rooms, which is not cost or revenue effective. Not ideal for modern student housing and social spaces.
· Browne, Thorp, Weber, and Willard are in poor condition: o Buildings are structurally sound generally, but have cracks; more investigation is
needed; o Building envelope and roof replacements are needed immediately; o Mechanical, electrical, plumbing, water, and sewer building systems are nearing
end or beyond useful life and need immediate replacement. There are interior air quality issues;
o Building code, egress, and compliance issues; o Hazardous materials are anticipated to be found due to era of construction.
· Willard is in worst condition; has structural issues with wooden frame and has security issues due to building layout.
· Sweet is the most recently built hall other than Penfield but requires repairs and replacement of some elements.
· Market demand analysis: campus could house at least an additional 135 students to live on campus; current on-campus population is 15% with target of 25% and ~2,000 beds (30% is peer average).
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In addition to the feasibility studies, the RI Department of Administration (DOA) completed a facilities condition assessment (“FCA”) of all of the existing residence halls on campus. These reports are included in Appendix IV. SECTION 3 – PROJECT OBJECTIVES & PUBLIC-PRIVATE PARTNERSHIP MODELS Rhode Island College is soliciting informational responses from Private Entities to accomplish the following objectives through a public-private partnership:
1. Construction of a new residence hall on the College’s campus (the “New Residential Facility Project”);
2. Implementation of a program to update the existing residence halls on the College’s campus (the “Residential Modernization Project”); and
3. Plan for the development of potential future additional residential facilities as determined by the College (the “Residential Planning Project”).
In order to implement these objectives, the College is evaluating which public-private partnership model will be most advantageous; therefore, Respondents should identify how they will accomplish the objectives through each partnership model indicated below, or suggest an alternative model:
No. Public-Private Partnership Model Option Public-Private Partnership Model Description
1 Design-Build-Finance (DBF) Private Entity responsible for design and construction of new residence hall. Project would be entirely financed by the Private Entity.
2 Design-Build-Operate-Finance New Residence Hall (DBOF)
Private Entity responsible for design, construction, and operation of new residence hall. Project would be entirely financed by the Private Entity.
3 Design-Build-Operate-Finance (DBOF) & Operate All RIC Residence Halls
Similar to option 2, but includes the option of the Private Entity to operate all residence halls on campus.
Each Respondent should indicate how a public-private partnership will be financially feasible to accomplish each of the College’s objectives. Proposed Program Finance Plans and Business Models should take into consideration the College’s current residential life financial and operating structure. It should be clear and evident how each proposed potential partnership makes financial sense. 3.1 New Residential Facility Project Description
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As a result of the feasibility study with Saccoccio & Associates, the College has decided to move forward with the construction of a new residence hall. The College’s goal is to have the new residence hall fit into the context of the existing residence halls, while having its own identity. The study outlined a plan for the construction of a 376-bed facility with a total estimated cost of $50 million. Respondents should use this as a framework for their responses, but the College reserves the right to update this plan. The new residence hall must meet the needs and expectations of today’s students within the College’s goals of developing a state of the art living/learning environment. It must offer a progression in room type that expands the existing complement of room configurations at the College. The proposed concept needs to respond to national trends and balance the residential vision of the College with its peer institutions to assure the College remains competitive in recruitment. As noted above, a full copy of the study, entitled “RIC Feasibility Study for a New Residence Hall,” dated May 2016, by Saccoccio & Associates, CBT, and Brailsford & Dunleavy (the “Feasibility Study”) is attached hereto and marked Appendix II. The approximate locations of the Project site will be:
· Parking Lot “L” in the back of the current residence hall village; or · Near the Mt. Pleasant entrance of campus/east side of campus
The College also wants to explore options of keeping approximately 15 percent of beds in the New Residential Facility available for Pell-eligible financial aid students. The business models and financial plans developed in response to this RFI should incorporate options of making rooms available to these students, which would include rooms at a discounted rate. This discounted rate has not been identified by the College, but appropriate assumptions should be used to make the Project financially feasible. The wage rates to be paid on the Project shall not be less than the Prevailing Wage Rates, in effect through construction, in conformance with applicable U.S. Department of Labor Davis Bacon Wage Determination for the Project, and with all applicable standards established by the State of Rhode Island and Providence Plantations – Division of Occupational Safety or equivalent authority. 3.2 Residential Modernization Project Overview After completion of the New Residential Facility, the College desires to upgrade and modernize its existing Residential Facilities, with a focus on the five (5) oldest of its six (6) existing residence halls: Thorp, Weber, Browne, Willard, and Sweet. The College engaged LLB Architects Inc. to perform an existing condition analysis and feasibility study. As noted above, a full copy of its “Feasibility Study for the Modernization and Renovations to Existing Residence Halls at Rhode Island College” by LLB Architects dated April 7, 2016 is attached hereto and marked Appendix III.
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In addition to the feasibility study to renovate the existing residence halls, the College also had a Facilities Condition Assessment completed for each residence hall. The existing needs for each are documented in these assessments, which are included as Appendix IV. 3.3 Residential Planning Project Overview Along with the New Facility Project and the Modernization Project, the College seeks to work with a Private Entity to develop and implement a Master Plan regarding the Housing and Campus Life Facilities on the campus. 3.4 Preliminary Project Schedule, Planning and Timeline for Objectives After responses to this Request for Information (RFI) are received, the College will review the responses, finalize the Project concept, and identify the most advantageous public-private partnership model. Once this is completed, it is then likely that the College will advertise a Request for Proposals (RFP) for the development of the New Residential Facility Project. The College will review responses to the RFP to identify the one or more Respondents that, in its judgment, are most qualified and offer the greatest financial and program based incentives for the students of Rhode Island College. The College reserves the right to enter into a public-private partnership agreement for the completion of the Project but will also retain the right to not enter into any agreements. Throughout all phases of the Project, the Private Entity will be responsible for working closely and cooperatively with the College to create a high-quality facility that meets the needs of the College in the most economical and efficient manner. During the design phase, the Private Entity shall provide all necessary advisory, consulting, and other services for the design process, including, but not limited to, logistics planning, constructability analysis and any early material or equipment procurement and early construction that the College may deem necessary or desirable. The final design will be negotiated with the College through a rigorous review process, during which the selected Private Entity will be required to make submissions to the College demonstrating compliance with the College’s Design and Construction Standards. Such review will include, but not be limited to, the following disciplines:
· Site · Architectural Design · Interiors · Mechanical/Plumbing/HVAC · Electrical/Telecommunications/IT · Environmental Health and Safety · Utility Infrastructure
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· Sustainability Review by the College will be required at each of the phases of design listed below, and design may not proceed to a subsequent phase without written approval from the College of the prior phase. In the event that the Private Entity should proceed without such prior written approval, the Private Entity will be proceeding at its own financial risk.
· Program Completion · Schematic Design · Design Development · Construction Documents 90% · Construction Documents 100% · Final “released-for-construction” review to ensure 100% CD comments are
satisfactorily addressed in final construction-issue documents
The Private Entity will be responsible for obtaining all applicable governmental approvals for the construction and occupancy of the New Residence Hall. During the Construction Phase of the Project, the Private Entity will provide all construction-related services, labor, materials, equipment, tools, administration, management, and supervision required to perform, complete, and deliver a fully-operational Project in accordance with, as required by, or as reasonably inferable from, the P3 Agreements (as described below). 3.5 Quality of the Work The Private Entity shall construct facilities of high quality, durability, operability, and maintainability. The quality of construction as to construction type, finish type, mechanical systems, electrical systems, plumbing systems, tel/data systems, telecommunications, computer network, audio-visual systems and video systems, hardware, furniture, fixtures, furnishings, equipment, building appurtenances, site amenities and all other aspects of the Project shall be consistent with the level of design intent in overall quality developed during the Design Phase of the Project and depicted in the Contract Documents developed for the Project. The quality of construction shall be appropriate for a state-of-the-art academic facility and a facility with a useful life of at least fifty (50) years. In addition, the Project will require a level of design and construction consistent with applicable federal, state, and local laws and regulations. SECTION 4 – FINANCIAL CONSIDERATIONS, TRANSACTION STRUCTURE AND ANTICIPATED AGREEMENTS
4.1 Financial Considerations
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The College seeks to identify the most advantageous public-private partnership model with a Private Entity that will accomplish the College’s objectives. In engaging in a public-private partnership, the College seeks to achieve the following goals:
· Deliver the Project on a cost-effective basis in terms of initial costs, annual operating expenses, and required student charges per bed.
· Explore options to move the Project off the College’s balance sheet, with little or no impact on the College’s credit rating, and that of the State.
· Develop a strong partnership with the selected Private Entity in connection with the development and financing of the Project, as well as property management, and residential life.
· Permit the College to retain control over bed assignments and management of residential life component of the Project, while exploring the option of the Private Entity providing facilities management services.
· Long-term Project viability with equitable economics based on anticipated revenues, expenses, capital costs, reserves, debt and/or equity return requirements, and risk, among other factors.
· Ability to maintain real estate property tax exemption. · Termination provisions and associated fees in the event that the College should choose
to terminate the post-construction arrangement before the end of the term. · The College has engaged or will engage in impact bargaining with the current employee
labor unions (“Unions”) representing employees maintaining the existing facilities. The goal of the impact bargaining is to enter into Memoranda of Agreement with the Unions to document the terms that will govern the transition of operations to the successful Respondent.
4.2 Transaction Structure and Anticipated Agreements The College seeks detailed proposals from each Respondent describing how a contractual agreement would be executed by the parties with respect to all phases of the Project, both with respect to the design, development and financing of the facility, and the maintenance, management and operation of the facility once it is complete. The College will evaluate a variety of transaction and financial structures proposed by the Respondents and will make a determination which best serves its needs and achieves its goals for the Project. The College anticipates entering into a series of agreements with a Private Entity for design, financing and construction of the Project and for the subsequent maintenance, management and operation of the facility for a period, which has not yet been determined (together, the “P3 Agreements”). 4.3 Key Terms for Anticipated Agreements Key terms and conditions which must be included as a part of any proposed transaction and financial structures and P3 Agreements are identified in Appendix I, which is attached hereto and incorporated herein by reference.
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SECTION 5 – PREPARING TO SUBMIT PROPOSAL
5.1 Obtaining the RFI It is the responsibility of each firm desiring to respond to this RFI to obtain the documents and any and all Addenda that may be issued in connection with this Request. It is also the responsibility of each interested party to monitor the Division of Purchases’ website for any procurement related postings such as Addenda. If technical assistance is required, call the Help Desk at (401) 462-4357. 5.2 Pre-Submission Conference and Site Tour To be determined 5.3 Pre-Proposal Preparation
5.3.1 Existing Conditions Before submitting a Statement of Qualifications and Response to this RFI, each Respondent is encouraged to fully acquaint itself with all existing conditions, facilities, difficulties, and restrictions that pertain to the Project site, the surrounding area, and the site access. 5.3.2 Review of Documents Respondents are advised to review all sections of this RFI carefully and to thoroughly examine and be familiar with the two (2) feasibility studies, the Facilities Condition Assessment for the existing residence halls, and all other documents relating to this RFI. Failure of any Respondent to make a complete or responsive submission as described herein may result in disqualification and rejection of the submitted information.
5.4 Understanding of Request By submitting a response to this RFI, each Respondent warrants and represents that: (i) it has examined both the site and all documents made available by the College in connection with the Project; (ii) it has reviewed all Addenda, if any, issued in connection with this RFI; and (iii) such documents are adequate for all purposes necessary to submit a Statement of Qualifications and a Response. 5.5 Proposal Preparation By submitting a response to this RFI, each Respondent acknowledges and agrees that all costs and expenses, including but not limited to, legal fees and costs incurred by the Respondent in connection with developing and/or submitting a response to this RFI, or incurred in connection with any verbal or written clarification thereof, including all presentation materials and related costs and travel expenses, shall be borne solely by the Respondent; and under no circumstances
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shall the College be responsible for any such costs or expenses incurred by any Respondent. The College assumes no responsibility for any such costs and expenses. 5.6 Proposal Guarantee/Withdrawal Respondents may withdraw their submittal, by written request only, received by the College prior to, but not after, the deadline set for submission. Thereafter, responses shall be irrevocable for a period of not less than one hundred eighty (180) calendar days, and may not be withdrawn or modified. 5.7 Modifications to Request for Information The College reserves the right to modify this RFI, in whole or in part, prior to the date fixed for submission of the responses, by issuance of one or more Addenda. The College may extend the deadline for submission if, in the College’s judgment, such extension is necessary for any reason. It is the responsibility of each firm desiring to submit a response to obtain the complete Request for Information and any and all Addenda that may be issued in connection with this RFI. 5.8 Questions and Requests for Clarification Questions concerning this solicitation must be e-mailed to the Division of Purchases at [email protected] no later than the date and time indicated on page one of this solicitation. No other contact with State parties is permitted. Please reference RFI# on all correspondence. Questions should be submitted in writing in a Microsoft Word attachment in a narrative format with no tables. Answers to questions received, if any, will be posted on the Division of Purchases’ website as an addendum to this solicitation. It is the responsibility of all interested parties to monitor the Division of Purchases website for any procurement related postings such as addenda. If technical assistance is required, call the Help Desk at (401) 462-4357. Interested parties must submit responses to provide the services described in this Request on or before the date and time listed on the cover page of this solicitation. Responses received after this date and time, as registered by the official time clock in the reception area of the Division of Purchases, shall not be accepted. 5.9 Response Format and Submission Submissions should be typed, single spaced on 8 ½” by 11” pages with 1” margins using Calibri or Times New Roman 12 font. Responses should be limited to twenty-five (25) pages, not including attachments and appendices. All pages of the response are to be sequentially numbered in the footer, starting with number 1 on the first page of the narrative (this does not include the cover page or table of contents) through to the end, including all forms and attachments. The Respondent’s name should appear on every page, including attachments. Each attachment should be referenced appropriately within the response section and the
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attachment title should reference the section it is applicable to. Printed copies are to be bound only with removable binder clips. Each Respondent shall submit the following:
1. Ten (10) printed paper copies of its submission, marked “RFI 7554519 Response - Original” and signed.
2. One (1) Electronic copy in PDF on a CD-R, marked “RFI # 7554519 Response - Original”. (Note: USB Drives or other electronic formats, shall not be accepted.)
Responses should be mailed or hand-delivered in a sealed envelope marked “RFI# 7554519” to:
RI Dept. of Administration
Division of Purchases, 2nd floor One Capitol Hill
Providence, RI 02908-5855 NOTE: Responses received after the above-referenced due date and time shall not be accepted. Responses misdirected to other State locations or those not presented to the Division of Purchases by the scheduled due date and time shall be determined to be late and shall not be accepted. Proposals faxed or emailed to the Division of Purchases shall not be accepted. The official time clock is in the reception area of the Division of Purchases. Based on the responses received, the State may invite one or more Respondents to present their approach and demonstrate their technical solution. 5.10 Communications between the College and Respondents Prospective Respondents shall not communicate with the College or any of its agents or representatives regarding the RFI or the Project at any time during the RFI process. Please see Section 5.8 for questions and/or concerns regarding this solicitation. 5.11 Cancellation of Request for Information The College may cancel or modify this RFI, in whole or in part, at any time and for any reason, or for no reason, if such action is determined to be in the best interest of the College. The College shall have no liability to any Respondent or prospective Respondent for any costs or expenses incurred in connection with the development or submission of a response. 5.12 Rejection of Responses The College reserves the right to accept or reject any or all responses, in whole or in part, received in response to this RFI if it determines that such action is in the best interest of the College. Any response that is incomplete, conditional, contingent, difficult to understand, or are otherwise not
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in conformance with this RFI may be rejected at the sole discretion of the College; however, the College reserves the right, but shall not be obligated, to deem any nonconformity, omission, condition, or contingency as a deviation or informality for which a response need not be rejected. 5.13 Economy of Preparation A response may be considered nonconforming to the requirements of the RFI if it includes extraneous information not specifically requested in this RFI. The clarity and conciseness of responses will be valued over sheer volume of material submitted. 5.14 Clarification of Responses The College reserves the right to request clarification from a Respondent of any aspect of any submitted response and/or to request additional information that might be required to evaluate the response. If the RFI or any applicable law requires submission of certain information or documentation and a Respondent neglects to furnish such information or documentation with its response, the College may reject the response of such Respondent as incomplete; however, the College reserves the right to deem any such omission as an informality for which the response need not be rejected and to subsequently receive such information or documentation at any time prior to the award of the contract. 5.15 Use of Information Submitted to the College By submission of a response, each Respondent acknowledges and agrees that all information and/or materials submitted with its response in response to this RFI shall become and remain the property of the College. The College shall have the right to use any and all portions of any submittal as it considers necessary or desirable in connection with the Project. By the submission of a response, a Respondent thereby grants to the College an unrestricted, royalty-free license to use the response and all materials and information therein in connection with the Project. 5.16 Public Records Respondents are advised that, once an award has been made, responses submitted in response to this RFI are considered public records as defined by R.I. Gen. Laws § 38-2-1 et seq.; however, financial statements, which may, but are not required to, be submitted in a separate sealed envelope shall remain confidential and shall not be treated as public records to the fullest extent permissible under the law. SECTION 6 – SUBMITTAL REQUIREMENTS 6.1 General Each submittal must contain all of the information and documentation described herein and must
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be arranged in the order indicated below to facilitate efficient evaluation of all submittals. In addition, each submittal should provide tabs correlating to each of the submittal requirements listed below:
· Cover page – RI Vendor Information Program generated Bidder Certification Cover Form · Table of Contents · Transmittal Letter · Executive Summary · Tab 1: Statement of Qualifications, including Firm Background and History, Experience
and Financial Capability · Tab 2: Program Finance Plan, Business Model, Description of Partnership Concept(s) · Tab 3: Property Management and Maintenance Plan/Budget · Tab 4: Supplemental Information
6.2 Transmittal Letter Each submittal must include a letter signed by an individual authorized to bind the responding firm or organization making the submittal, indicating the interest and capability of the responding firm or organization to provide the Scope of Services required for all phases of the Project defined in this RFI, and identifying the number of each Addendum on which the submittal is based. 6.3 Submittal Requirements (Tab 1: Statement of Qualifications) Each Respondent shall submit a Statement of Qualifications, which includes all of the following information; and in the event that any Respondent is a joint venture such information must be provided for each joint venture partner. The information shall include:
· Firm Description; · Prior Experience and References; · Project Team Description; and · Evidence of Financial Ability to Perform the anticipated obligations of the Private Entity
selected by the College. Please Note that if any Respondent’s Statement of Qualifications fails to provide all of the information detailed in this Section 6.3 or such Statement of Qualifications reveals any matter not meeting the College’s requirements, the balance of such Respondent’s response shall not be read or further considered by the College. The College shall be the sole determiner of each Respondent’s satisfactory demonstration of these requirements. The College’s purpose in establishing these minimum requirements is to ensure that the College excludes firms lacking these qualifications and experience and thus assures that the responses to be reviewed and evaluated are provided by experienced firms, which in the judgment of the College are capable of providing the requested scope of services.
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6.3.1 Firm Description
The Firm Description shall include the following information for the Respondent and each participating joint venture partner, if any:
A. Name of the organization B. How many years has the organization been involved as a P3 developer? C. How many years has the organization been in business under its present business
name? Under what other names has your organization operated and during what periods of time?
D. If the organization is a corporation, provide the following information: · Date of incorporation · State of incorporation · President’s name · Vice President’s name(s) · Secretary’s name · Treasurer’s name
E. If the organization is a partnership, provide the following information: · Date of organization · Type of partnership (if applicable): general, limited, limited
liability · Name(s) of general partner(s)
F. If the organization is a limited liability company, provide the following: · Date of organization · State of organization · Name of Manager or Managing entity · Name of person authorized by the records of
the Secretary of State to execute document(s) G. If the organization is individually owned, provide the following information:
· Date of organization · Name and address of owner
H. List jurisdiction and categories of work in which the responding organization is legally qualified to do business, and indicate registration or license numbers, where applicable.
I. Identify any law suits or requested arbitration filed by the organization with regard to any phase of a P3 project, whether design, construction, financing, management or operations within the last five (5) years.
J. List and provide a complete and accurate description of all proceedings brought within the past five years, against the Respondent, any of the firms that form a part of the Respondent, any owner or partial owner of the Respondent or such joint venture firms, or any person in any way associated with or employed by the same, to debar, suspend, disqualify or otherwise preclude the Respondent or such firm from bidding or offering a proposal on contracts with any municipality or any
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agency or department of the State of Rhode Island, other states, or the Federal Government.
K. Provide the address of your Rhode Island office, and indicate whether it constitutes your home office, a branch office, one of your principal places of business or otherwise, and state the number of years you have maintained an office in the State of Rhode Island.
L. If the Respondent or any joint venture firm was not formed in Rhode Island, indicate the State in which it was organized, and indicate whether it is currently authorized to do business in Rhode Island, as well as the date such authorization was obtained.
M. Prior Experience and References:
Each submittal must describe the Respondent’s experience both regionally and nationwide with higher education institutions. This includes experience in executing long-term, comprehensive partnerships. This experience should address the Respondent’s ability to renovate existing and develop new on-campus facilities, as well as successfully conduct the day-to-day operations and maintenance of these facilities. Each submittal must include a description of the number and type of facilities currently managed, their location, the length of time managed, and any information relevant to financial performance and client satisfaction. Each submittal must include a detailed description of at least three (3) higher education institutional projects of similar size and scope that the Respondent has undertaken within the last five (5) years with a particular emphasis on projects with (i) a construction value in excess of $25 million each, (ii) a P3 structure, and (iii) long-term maintenance and operations responsibilities, including the following:
· Name and location of institution and/or project · Name, address, phone number and email address of a reference who can be
contacted for each project · Description of project, including:
o Facilities o Square footage o Site conditions (all new construction, demolish and rebuild, etc.) o Construction type (e.g., low, medium, high rise) o Number of phases, and duration, of project o Number of beds, units and types o Rent ranges o Environmentally responsible design components and LEED™ certifications.
· Respondent’s project team and contact information for each member (financial partners, architects, management firm, and other major consultants)
· Original estimated and final actual cost of project construction and total cost of project. Specify for both, (i) total cost; (2) cost per bed; (3) cost per square foot; and (4) cost per unit
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· Date of completion · Photographs and overall project plans · Management plan (in-house or third party) and evidence of property management
experience in renting to College students and ability to maintain high standards of maintenance and landlord/tenant relations
· Demonstrated experience regarding labor harmony and tracking of project workforce requirements.
Each submittal must include at least five (5) references for the College to contact, with the name, title, organization, address, telephone number and/or email address of the contact person.
6.3.2 Project Team
Each submittal must include the following:
· Identification of proposed Project Team for each phase of the Project, including design, development, construction, financing, management and operations of the New Facility, and for the Update and Master Planning Projects, and a team organizational chart.
· Description of the Project Team’s background and experience working together on projects of similar size and scope.
· Background information on all firms that will play a role in any phase or aspect of the Project.
· Resume for each key individual Project Team member, which outlines the individual’s academic and professional achievements including the number of years of experience dealing with similar projects and tenure with the firm. Provide the name, company and current telephone number and email address for at least three (3) professional references for each key team member. Provide a cross reference for each team member to any project listed in Section 6.3.1 above.
6.4 Submittal Requirements (Tab 2: Program Finance Plan, Business Model, Description of
Partnership Model Concept(s)) Each submittal must include a program finance plan providing the information listed below. Respondents should submit a program finance plan for each of the public-private partnership options discussed in Section 3 or indicate an alternative method and provide a program finance plan for each such alternative.
· Describe the proposed transaction structure, using illustrations as necessary. Describe how the proposed transaction will affect the College’s ability to meet key priorities, including but not limited to, balance sheet and credit impact, College control and ownership, student affordability, and degree of risk transfer to the Private Entity.
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· Describe the governance structure associated with the proposed transaction structure and how the program will be managed, from day-to-day operations to major program decisions.
· Describe the proposed financial structure of the Private Entity and specify whether any of the proposed funding sources will have any recourse to the College, identifying any expected default provisions or acceleration rights that could adversely impact the College.
· Provide the following Program Pro Forma statements for the first 10 years of the Project scope set forth herein (longer, if reasonably achievable), clearly indicating assumptions:
i. Income Statements – Years 1 through 10 ii. Balance Sheet – Years 1 through 10
iii. Statement of Cash Flow – Years 1 through 10 · These statements should be accompanied by a narrative that describes the flow of
funds. Please include in the narrative all assumptions regarding: i. All revenue and expenses, including operating and maintenance expenses
and net operating income ii. Initial cash and start-up payments
iii. Potential defeasance of current debt iv. Annual rent payments v. Retained service fees and partner fees. Please provide a detailed summary
and explanation of how the Private Entity’s business model and profit margin works.
vi. Disclose cost of capital assumptions for funding the full term of the agreement (including projected interest rates)
vii. Replacement reserves viii. All Private Entity compensation
· Management of the Project includes, but is not limited to, administration, capital renewal, maintenance, information technology, and security. Management does not include the residential life education program or associated administrative services, which will be the sole responsibility of the College.
· Financial plans and models should also incorporate an option of keeping approximately 15 percent of beds in the New Residential Facility available for Pell-eligible financial aid students, which would include room charges at a discounted rate. This discounted rate has not been identified by the College, but assumptions should be used to make the Project financially feasible.
The College is looking for each Respondent to indicate how a public-private partnership will be financially feasible to accomplish its objectives. Proposed Program Finance Plans and Business Models should take into consideration the College’s current residential life financial and operating structure. It should be clear and evident how a potential partnership will make financial sense.
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6.5 Submittal Requirements (Tab 3: Facility Management and Maintenance Plan) The College desires a developer with facility management experience in public higher education student housing. This includes the ability to maintain high standards of maintenance and landlord/tenant relations, including administration, capital renewal, custodial services, elevator, electrical and plumbing maintenance, HVAC, landscaping, maintenance, staffing, trash removal and recycling. As such, the College is interested in each Respondent’s qualifications and experience with respect to:
· Facilities rules and regulations; · Residential Life programming and administrative lease terms; · Facilities staffing plan; · Provisions for 24-hour/7-day building monitoring, operating systems, and
emergency response systems necessary to address critical facility maintenance issues;
· Collaborating with campus officials, e.g. working together for compatibility in processes and programs;
· Policy regarding signatures on leases where the tenant is under 18 years; and · Generating facilities operations manuals (please provide a sample).
Describe at least three (3) higher education institutional housing projects the Respondent has managed directly or by sub-contract within the last five (5) years, preferably, but not required, for public universities, and P3 projects. Identify a similar project that College representatives may visit, and provide contact information for a representative at that project. The College is also interested in any information on facility management philosophy/style and whether a Respondent generally directly manages P3 projects or subcontracts with a management firm. If a Respondent typically subcontracts with a management firm, please provide information similar to that provided in Section 6.3 for the entity that will be responsible for the maintenance of the residential facilities sought in this RFI, and describe prior joint projects and their duration. Each submittal must include: · Description of the Respondent’s typical maintenance plan for projects similar to those
outlined in this RFI, providing specific examples, and its proposed maintenance plan if different.
· Description of the Respondent’s typical and proposed method of funding program reserves, including a capital repair and replacement reserve for projects similar to those outlined in this RFI, including detail regarding the amounts typically funded annually, and provide specific examples.
· Description of how the Respondent anticipates working with the College to market the
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facility. · Detailed description of the proposed fee structure, including a typical range the
Respondent will charge as property management fees. · Description of how the Respondent’s approach will enable and facilitate future capital
improvements and repairs, as well as major repairs, renovations and replacements over the anticipated long-term duration of the Project and how that structure will be self-sustaining during the term.
6.6 Submittal Requirements (Tab 4: Supplemental Information) This Section may be used for the presentation of additional supporting materials and information that the Respondent deems helpful to the College in evaluation of its submittal. These materials should be kept to a minimum and should be provided only if they directly support the response. 6.7 Procurement Schedule The College expects to adhere to the following schedule but reserves the right to modify this schedule as it deems necessary and/or convenient:
PRELIMINARY PROCUREMENT SCHEDULE TENTATIVE TIMELINE · Issuance of RFI June 2017 · Pre-Proposal Conference July 2017 · Deadline for Submission of Questions July 2017 · Deadline for Submission of Proposals July 2017 · Interviews August 2017 · Identify Best P3 Model August 2017 · Issuance of RFP September 2017
SECTION 7 – EVALUATION AND CONCEPT SELECTION 7.1 Evaluation Process An Evaluation Committee appointed by the College shall review and evaluate the Statements of Qualifications and Responses submitted pursuant to this RFI. Specifically, upon receipt of the submittals in response to the RFI, the Evaluation Committee shall evaluate the Statement of Qualifications from each Respondent to determine its qualifications to provide the P3 services sought. After submittals are received, the College will review the responses, finalize the Project concept, and identify the most advantageous public-private partnership model. Once this is completed, it is then likely that the College will advertise a Request for Proposals (RFP) for the development of the New Residential Facility Project
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The College will review responses to this RFP to identify the Respondent that, in its judgment, is most qualified and offers the greatest financial and program-based incentives for the students of Rhode Island College. The College then reserves the right to enter into a public-private agreement for the completion of the Project but will retain the right to not enter into any agreements. 7.2 Evaluation Criteria 7.2.1 General The College will conduct a comprehensive evaluation of the Statements of Qualifications and submittals received. Each Respondent is encouraged to develop a team and a submittal that can best address these criteria. Submittals will be evaluated against the criteria set forth in Section 7.2.3 of this RFI to facilitate rating each submittal. The rating process will be qualitative rather than quantitative and no numerical point ranking of the submittals will be generated as a result of the evaluation and ranking process. 7.2.2 Minimum Requirements
· Respondents shall have significant experience as P3 developers on projects of similar size, scope, and complexity. Specifically, the Respondent must have provided design, build, finance, operate, management services on a P3 basis with respect to at least three (3) new building projects of similar size, quality, scope and complexity fully completed within the past five (5) years, each of which had a complete design and construction cost of not less than $25 Million Dollars ($25,000,000.00).
· Respondents must demonstrate that, in the reasonable judgment of the College, they possess sufficient financial resources and stability, and are otherwise financially responsible and able to satisfactorily perform and complete the Project.
7.2.3 Evaluation Criteria Each submittal that conforms to the requirements of this RFI and includes all of the information requested in Section 6 will be evaluated using the following criteria:
· Anticipated ability of Respondent to achieve the College’s goals and objectives set forth in this RFI;
· Indication of the credit worthiness of the individuals, entities, and financial institutions involved in financing the Project;
· The Respondent’s recent and demonstrated success in delivering P3 housing projects in the higher education context that have comparable goals and objectives as this Project;
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· Preliminary thoughts on the economics and transaction structure of the Project; · The amount of equity/debt that the Respondent and any financial partners may initially
invest in the Project and the equity to be maintained over time; · Potential for a favorable transaction structure for the alignment of interests of the College
and the Respondent; · The mechanism, if any, for the College to assist the successful Respondent in referring
potential students to achieve full occupancy of the Project; · The annual cost per bed to be charged to student occupants initially and over the Term; · The mechanism for funding necessary capital improvements, repairs, and maintenance
over time; · Ability to complete the design, permitting, and construction of the Project; · The terms for transferring ownership of the improvements to the College/State at the
end of the Term; · Expertise, experience, local knowledge, and qualifications of the design team,
construction team and consultants proposed for the Project, including examples of projects constructed in similar climate conditions;
· The experience of the Respondent and its proposed design and construction management team in building projects of similar size, scope, and complexity;
· The ability of the Respondent and its proposed design and construction management team to demonstrate an understanding of the Project goals, particularly the quality standards required, the Project schedule constraints and expectations, and the ability to meet the identified deadlines;
· Demonstrated commitment to equal opportunity, diversity, and inclusion in the context of MBE/WBE business participation;
· Demonstrated commitment to diversity and inclusion in the context of minority, women, veteran, and resident workforce goals;
· Demonstrated experience regarding labor harmony and tracking of project workforce requirements;
· Expertise, experience, and qualifications of the facility management firm proposed for the Project, if any;
· Favorable reference checks; and · Overall experience, qualifications, and credibility of the proposed team.
7.3 Interviews The Selection Committee will interview all of the responding firms that it deems qualified based upon the submittals received in response to this RFI.
End of Document
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APPENDIX I: PRELIMINARY KEY TERMS AND CONDITIONS OF A PUBLIC-PRIVATE PARTNERSHIP AGREEMENT The following preliminary minimum terms and conditions of a potential public-private partnership agreement should be incorporated into each Respondent’s submittal. For purposes of such agreement, the party contracting with the College/State is identified as the “Private Entity”. The College reserves the right to change these terms and conditions, which should be used as a framework from developing a response to the RFI.
· If a ground lease is executed, it will be unsubordinated and have a term of no more than a period to be determined (the “Term”);
· Residence in the facility will be restricted to RIC students; · Ground Lease payments to the College will be based on (i) current market value of
the land if used for the Project; and (ii) financial performance of the Project over the Term;
· College approval of “major decisions” and important operational items, such as changes to the Private Entity’s team and key personnel, debt and equity financing, Project design, construction contract/contractors, ongoing Project management teams and services, annual operating budget, required capital investments, sale of the Project, etc. Any such approvals shall be within the College’s sole discretion and shall be based on matters such as reputation, experience, financial capacity, ability to perform, impact on residents and residential life at the Project, and other factors deemed relevant by the College;
· Quarterly and annual financial reports to the College throughout the Term; · Annual audit of the Private Entity’s financial statements at the Private Entity’s expense; · Standard default and cure rights (including self-help) upon the default of Private
Entity/Manager; · College options to acquire the Project at various times at fixed prices; · Reversion of the Project “as improved” to the College at no cost at the end of the Term
in a condition acceptable to the College or – at the College’s prior written election – that it be demolished;
· Provisions for the Private Entity to contract for a capital needs assessment and to make annual contributions to a capital reserve fund throughout the Term;
· An obligation to re-price the maintenance costs related to the Project at stated intervals during the Term;
· An agreed-upon process to establish annual rental charges, and increases, for rent of the beds.
In conjunction with the P3 Agreements, the Private Entity will:
· Be solely responsible for financing all aspects of the Project through its own equity and bonding/debt capacity. It should be noted that some public funding may be incorporated into the start-up costs of the Project
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· Be responsible for all Project costs, including hard costs, soft costs (including furniture), infrastructure needs, permitting and consultant fees, among others; and
· Assume management of the Project throughout the Term, which shall include bidding of all contracts consistent with the State’s competitive bidding requirements to the extent applicable.
