Government Contract | Tennessee
Real Estate Cost Review

Bid Information

Bid Alert No: 00000519784

Bid Title: Real Estate Cost Review

Agency Bid No. Title: 31701-16100

Received Date: 03/21/2016

Close Date: 03/29/2016

Purchase Type: 180 days

Delivery Point: Various Locations, Tennessee

Delivery Date: Not Stated

Special Notices: Pre-Bid Conference 03/24/2016 01:00 PM, Questions Due By 03/29/2016 02:00 PM


Specifications include, but are not limited to: On behalf of the 6.5 million residents of the State of Tennessee, the State is exploringways to improve service and lower costs in its real estate operations - one of the State'slargest budget expenditures. The State's Facilities Management project is an initiative toexplore whether savings can be achieved through the use of a contract serviceprovider(s) at state facilities following $10.8 million (not including energy) in costavoidance in the first two years with such an arrangement at 10 percent of the State'sproperties. A team consisting of a cross section of stakeholders that included HigherEducation and General Government representatives conducted analyses as part of abusiness justification and is seeking to engage an independent third party to objectivelyverify/validate certain Agreed Upon Procedures (found in Pro Forma Contract AttachmentC) (Agreed-Upon Procedures) relating to the benchmarking cost analysis performed aspart of the project's business justification analysis. The State is seeking a qualifiedindependent third party to attest that the results of the Agreed Upon Procedures supportthe related results as presented in the business justification.1.1.2 The State of Tennessee has conducted a comparison of the actual costs of operatingcertain state facilities against a benchmark document created by CBRE|Whitestone titledThe Whitestone Facility Operations Cost Reference 2014-2015 (Whitestone CostReference). The actual costs were drawn from the Accounting Systems of the State andthe Higher Education systems. These were then compared to the operating costs ascalculated using the Whitestone Cost Reference. This comparison was conductedinternally by individuals from General Government and Higher Education. At a high level,the process for the comparison included: Determining appropriate mapping of square footage of State facility usagetypes in General Government and HEGIS categories to the 74 differentWhitestone asset types in Higher Education (Office Building, College LectureClassroom, etc.). Determining the appropriate Whitestone Service Level (Low, Medium, High)that best describes the current level of each of the selected eight services(Custodial, Grounds, Maintenance & Repair, Management, Pest Control,Refuse Collection, Road Clearance and Security) being performed in thatfacility, based on the descriptions for service in that asset type in theWhitestone Cost Reference. Based on Section above, importing the appropriate WhitestoneCost/Square Foot and Location Index from the Whitestone Cost Reference intoa spreadsheet. Multiplying the square feet for that asset type by the Whitestone Cost/SquareFoot and Location Index, and summing up all asset types within a campus todetermine the total benchmark costs for that institution. Summing up the total Gross Square Feet (GSF) for that institution. Dividing the total benchmark costs by the total GSF to determine the specificBenchmark Value ($/GSF) for that institution.RFQ # 31701-1610029-03-15 RFQ1.1.2.7 Collecting the actual cost spent for all of the activities related to the eightservices (Custodial, Grounds, Maintenance & Repair, Management, PestControl, Refuse Collection, Road Clearance and Security), includingoverheads, cost of acquisition, etc. Estimating the costs of activities performed on the campuses that are notcovered by the Whitestone Cost Reference (e.g., utilities infrastructurebetween the utility company supply point and the actual building, maintenanceof NCAA Division I athletics fields, etc.) and adding those costs to the totalWhitestone cost estimates. Deducting from these costs the actual costs of services performed in certainlocations that exceed the selected Whitestone Service Level (See Section1.1.2.2 above), such as uniformed security services when Low Level Security(access control only) is specified. Dividing the actual costs (The figures from Sections + the GSF to determine the Current Cost per gross square foot ($/GSF) forthat institution. Dividing the Benchmark Value by the Current Cost to determine a ratio expressed as the percentage of the Whitestone Benchmark Value currentlybeing spent. Performing the Steps outlined in Sections as described aboveagainst the current State properties being managed under a facilitiesmanagement contract for General Government (current DGS portfolio) todetermine the current ratio for those properties.1.1.3 All statistical and fiscal information contained in this RFQ and its exhibits, includingamendments and modifications thereto, are provided as is, without warranty as to theaccuracy or adequacy of the data or information so provided, and reflect the departmentsbest understanding based on information or belief available to the department at the timeof RFQ preparation. No inaccuracies in such data or information shall be a basis fordelay in performance or a basis for legal recovery of damages, actual, consequential orpunitive.

Product Codes: 94615, 91889

Agency Information

Issuing Agency: State of Tennessee - Central Procurement Office

State: Tennessee

Agency Type: State and Local

Contact: Trey Norris 312 Rosa L. Parks Avenue, 3rd Floor, WRS Tennessee Tower, Nashville, Tennessee, 37243

Phone: 615-741-7148

Fax: 615-741-0684




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