Proptech Piloting RFP

(1)

Proptech Piloting RFP

Information Session | January 7, 2021

(2)

Agenda

2

I. Program Summary

II. Application Process Overview

(3)

Program Summary

(4)

Context

At a time of intersecting challenges in

NYC – among them health, climate,

equity & justice, and economic –

the

capacity for innovation across the

Proptech sector is more important

than ever.

(5)

The Issue

The Proptech sector struggles with

equity challenges and tends to

address the needs of luxury/Class A

real estate, but

not the vast portfolio

of real estate assets managed by

local government entities, which has

more significant comparability to

other private assets.

(6)

Why This Matters

COVID-19 has further emphasized

the

digital divide;

we must do more so that

tenants

in publicly owned/managed real

estate, such as public and affordable

housing residents, small businesses, and

City agencies themselves, can

access and

benefit from innovative, policy-aligned

Proptech solutions.

(7)

The Need

NYCEDC, in partnership with DCAS +

NYCHA is seeking a

partner

to support

the sourcing, vetting, and

recommendations of Proptech

vendors who are interested in working

with NYC government entities

who own and/or manage local real

estate assets.

(8)

8

A partner to serve as the go-to organization for vetting and recommending Proptech startups

interested in working with the vast real estate portfolios of NYCEDC, DCAS, and NYCHA

Sourcing/Diligence Partner

Key functions include:

• Acting as an intermediary between local government entities and the Proptech sector, meeting regularly to understand the topline needs of our tenants and assets

• Seeking and sourcing Proptech solutions that address these topline needs

• Offering recommendations for startups whose technologies and innovations can be demonstrated/piloted in live environments on participating assets

Our Partner will act as intermediary to address City needs

Proptech Startups

(9)

9

Buildings span many typologies, conditions, use cases, sizes, boroughs, and tenants

Our public consortium owns/manages 490M+ sq ft in NYC

New York City Economic Development Corporation (NYCEDC)

New York City Department of Citywide Administrative

Services (DCAS)

New York City Housing Authority (NYCHA)

Specifics Actively managed real estate and ground leases, primarily serving non-City tenants including small businesses, startups, nonprofits, and more

The owned and operated municipal portfolio, including various City agency partners and cultural institutions

The largest housing authority in North America, created in 1935 to provide decent, affordable housing to low-and moderate-income New Yorkers. NYCHA Is home to 1 in 15 New Yorkers and

makes up 11.6% of the city’s rental apartments

Aggregate sq. ft under

management

(10)

About the New York City Economic Development Corporation

• NYCEDC is the City's primary public sector

engine for inclusive economic development

• Owns and manages 65M+ sq ft of real

estate, including industrial (ex. Brooklyn

Army Terminal), retail, office, aviation &

maritime, recreational

• Also leads sector-specific industry

development and innovation work

• Proptech program sits at the intersection of

NYCEDC's industry development work and

real estate portfolio

MANHATTAN

BRONX

QUEENS

BROOKLYN

STATEN

ISLAND

(11)

Support the City’s

Workforce Needs

The Department of Citywide Administrative Services (DCAS) serves as the “back office”

for all New York City municipal agencies, who are its clients

Manage the City’s

Portfolio of Facilities

and Real Estate

Procure Goods,

Services, and

Contracts for City

Agencies

Manage the City’s

Fleet

Manage the City’s

Energy Use

(12)

• Manage both supply and demand side programs citywide

• Staff of 70+ project managers, analysts, and design +

construction professionals

• Work closely with 80 City government agencies and

affiliates as clientele, top 20 are priority with the largest

footprint

• Plus 34 Cultural institutions + 3 Library systems

• Diverse array of programs, project delivery vehicles, and

requirements hosted by our office for agency partners

• Centralized hub for stakeholder engagement and technical

expertise internal and external to the City

• Charged with the public sector management of

executing the targets set forth by the Climate

Mobilzation Act (LL97 of 2019)

(13)

(14)

Proptech Piloting builds upon success of DCAS' IDEA program

14

Innovative Demonstrations for Energy Adaptability (IDEA) Program

• First launched in 2014 + has tested

to date 30 technologies in 50 sites

• Helps the City meet its emission

reduction goals by testing new and

underutilized energy technologies

• Has led to broadened market

engagement opportunities for

DCAS + partners agencies

• Now focusing on streamling the

process on behalf of the City,

expanding the program + ensuring

gov't is leading by example

(15)

• Founded in 1934

• Mission is to increase opportunities for

low- and moderate-income New Yorkers by

providing safe, affordable housing and

facilitating access to social and community

services

• More than 400,000 New Yorkers reside in

NYCHA’s 326 public housing developments

citywide

About the New York City Housing Authority

(16)

16

• Pilot innovative technologies that address the goals outlined in NYCHA's Sustainability

Agenda (currently being revised for 2021)

• Better understand the Proptech landscape in NYC and to establish collaborative dialogue

with local vendors

• Identify vendors with shovel-ready solutions that may wish to participate in an open

procurement

• Provide testing/proof of concept opportunities for local startups looking for real world

application of their products

(17)

17

The selected partner

will gain privileged

access, asymmetric

business intelligence,

and powerful market

positioning.

• Singular competitive positioning

as the go-to strategic

intermediary between our agency consortium, and the

pipeline of startups

interested in partnering with the City*

• An unprecedented opportunity

to serve as our partner and

help us accelerate policy-forward solutions for our combined

490M+ square feet of NYC real estate

• A proprietary view

into the priorities, needs, and opportunities

of

public sector real estate

in the nation’s largest urban

economy and one of the world’s global capitals for real estate

• We, as the City of New York, are not providing the financial

compensation

, as we believe most applicants will create and

capture greater economic value from the benefits above than

traditional fee-for-service remuneration

(18)

 Single organization or a partnership/joint venture between more than one organization, or a consortium of organizations

 Organization types may include: venture capital firms or other portfolio-based investors, corporate innovation firms, academic institutions, REITs, ecosystem support providers such as incubators, nonprofits or other organizations that facilitate pilots between startups and RE owners

 Because this role requires sourcing & vetting Proptech startups, we do not anticipate that Proptech startups themselves would be successful respondents to this RFP

 An ability to listen to Local Government Entities and their tenants with humility to deeply understand their needs and genuinely pursue solutions that fit those needs

 Financial sustainability and a sound business plan to maintain the program

 A focus on Proptech, healthy buildings, building energy efficiency/sustainability, and or women founders/founders of color – motivations beyond pure sector growth

 Familiarity with NYC’s real estate market or its ecosystem of Proptech startups, and the sector's equity disparities and challenges

18

Key Qualifications

Respondents should highlight expertise and impact

Respondent Organization

(19)

Performance/Track Record M/WBE Participation 20% 15% 30% 10% 10% 15% Quality of Proposal Financial Sustainability Mission Orientation

Relationship to City Goals

Evaluation Criteria

See RFP Section VI for additional detail

(20)

• History of successful partnerships, especially in the Proptech space

• Number and size of existing investments

• Assets under management, number of portfolio companies, and/or base of funders/LPs if

applicable.

Evaluation Criteria

(21)

• The creativity and effectiveness of the submitted proposal

• Degree to which it demonstrates the

Respondent’s full understanding of the Project & accomplishes the Project goals

• Ability to execute the proposed services

• Ability to launch program in a timely fashion

Evaluation Criteria

(22)

• Plan for financial sustainability, in recognition of the City’s fiscal constraints and the absence of a fee-for-service contract.

Evaluation Criteria

(23)

• The Respondent’s proposed plans for encouraging participation by minority and women-owned business (M/WBE) enterprises, described in subsequent slides

Evaluation Criteria

(24)

• Demonstrated mission orientation, as evidenced by industry certifications, investment theses, publicly available marketing materials, or other means.

Evaluation Criteria

(25)

• Alignment with City’s policy objectives

Evaluation Criteria

(26)

 M/WBE Program

 M/WBE Program established in NYC Administrative Code, LL129 of 2005 and LL1 of 2013  M/WBEs must be certified by NYC Dept. of Small Business Services

 M/WBE Participation Goal for RFP: 0-30%

 Respondents must submit Narrative demonstrating how they will meet the M/WBE Participation Goal. The Narrative should:  Speak in detail to respondent’s commitment to ensuring proposed level of M/WBE participation

 Outline specific strategies to drive participation and methods for ensuring accountability

 Include any other information that demonstrates the likelihood that the proposed M/WBE Participation Goal will be met or exceeded

 List of City-certified M/WBEs respondent plans to work with and a description of the activities that would be subcontracted to these firms  Plan will be rated and factor into selection

 Respondents submitting proposals with a Participation Goal lower than the lower bound of the range shall receive a score of zero (0) for this selection criteria

 The higher bound represents the optimum participation goal. Proposed Participation Goals that exceed this higher bound are welcome but do not receive extra points  15% of selection criteria corresponds to the quality of the M/WBE Narrative

 Final M/WBE Goals will be incorporated into the Contract

 Selected Respondents will be required to meet the stated M/WBE goals or demonstrate good faith efforts

M/WBE Goals Narrative

(27)



Identifying M/WBE Partners

 Use SBS directories to find M/WBEs in a specific field

 Check out the Interested Subcontractor and Supplier List for this RFP

 Refer to the ConstructNYC list for firms pre-qualified with EDC

 Network at this info session

 NYCEDC can assist in identifying M/WBEs

 Refer to good faith efforts section in draft contract for more ideas



Make use of the Contract Financing Loan Fund

 Mobilization loans for M/W/DBE firms participating as either prime or subcontractor

 Amounts up to $500,000

 May be used to buy long lead equipment, material, and/or labor costs

Meeting M/WBE Goals

(28)

(29)

 To access the RFP, go to edc.nyc/rfps and select the Proptech Piloting RFP

29

Application Background &

Quals Proposal M/WBE Business Plan Opt. Support Statement of Agreement Submission Procedures Timeline

(30)

 Respondent Background and Qualifications  Background information + personnel bios

 Sourcing, diligence, pilot partnership experience  Organizational mandate and/or investment theses  Other relevant experiences

 Familiarity with the New York City real estate market & Proptech ecosystem  Experience working with local or state government agencies

 For VCs or other investment firms (if applicable)

 Sample due diligence materials and/or investment memo.

 Performance metrics and recent investment examples within the past three years

30

(31)

 Programmatic Proposal / Scope of Services

 Description of the proposed ambition/scope

 Proposed number of pilots brokered per year, grounded in your organization’s historical experience performing this work.

 Description of planned program operations

 Existing and proposed channels to source potential solutions beyond current portfolio companies (including but not limited to NYC-based startups, women/(co-)founders of color)

 Proposed frequency of meetings  Stakeholder engagement plans

 Description of planned stakeholder engagement  Description of target companies

 Investment round target range (e.g. pre-seed, seed, Series A, etc) or approximate non-dilutive/grant size, if applicable.

 Description of Pilot Selection/Evaluation Process

31

(32)

 M/WBE Participation Narrative

 The Respondent must complete and submit as part of its Proposal an M/WBE Participation Narrative setting forth:

 The proposed Participation Goal, and

 A narrative related to Respondent’s implementation of the proposed Participation Goal, including, but not limited to:

 Strategies and methods that will facilitate participation by M/WBE firms as partners  Methods for identification of M/WBE firms

 Strategies and methods for the engagement of Proptech solutions by minority and women founded or co-founded firms; and

 A statement that Respondent will make good faith efforts to meet the participation goals

32

(33)

 Business Case/Plan for Financial Sustainability

 Anticipated yearly operational costs + affirmation of no fee-for-service funding associated with this procurement.

 Sources of funding to sustain the organization

 Intention (non-binding) to make investments in piloting startups selected by Local Government Entities, if applicable

33

(34)

 OPTIONAL:

 Additional non-financial support that NYCEDC and/or other participating Local Government Entities could provide to support this program, or proposed non-financial alterations to the described Program in order to better deliver on the goals of the Program

34

(35)

 Statement of Agreement

 Respondent affirms that it has read this RFP + related

Appendices and fully agrees to the terms and conditions set forth therein

35

(36)

 Submission Procedures:

 Each of the categories outlined in the Submission Requirements section should be clearly labeled and

pagination should be easy to follow.

 Please limit your response to the questions in the Submission Requirements section to no more than twenty

(20) pages.

 Text pages of all submission documents, including appendices and supporting documents, should be in an 8½”

x 11” format.

 Respondents shall submit their proposals pursuant to the instructions set forth on the project web page (which

can be found on edc.nyc/rfps)

 Potential respondents should address questions to [email protected]. Please note that Chrome Browser is

the preferred method to upload your electronic response

 All submissions should be in searchable PDF format; please provide financials in both Excel and PDF format.

Additionally, please submit the Doing Business Data Forms located in Appendix V in the zip file as well.

 Respondents should submit their proposals by Friday, February 5, 2021, 11:59 p.m. EST

36

(37)

 December 8, 2020 – RFP Launch (DM Been keynote at Propel by MIPIM)  January 7, 2021 @ 12:00 p.m. EST – Information Session (now!)

 January 15, 2021 @ 5:00 p.m EST – Final opportunity to submit questions to

[email protected]

 January 22, 2021 – Answers to all questions will be posted to edc.nyc/RFPs  February 5, 2021 @ 11:59 p.m. EST – SUBMISSIONS DUE

 Late February 2021: Evaluation Committee finalizes selection

37

(38)

Partner with us

to bring the

benefits of Proptech to NYC’s

publicly owned and managed

real estate – and those that

depend on it.

38

(39)

Questions

39

OR ASK LATER:

Contact the team at

[email protected]

.

(40)

(41)

Appendix

(42)

42

Proptech Piloting, at a Glance

RFP for Sourcing & Diligence

Partner (S&D) currently live with participating govt entitiesSelect + onboard S&D partner See "Potential Pilot Sourcing & Diligence Process" (next slide)

S&D partner hands off to Pilot Implementation Facilitator

(forthcoming RFP)

PIF works with startups + agencies to determine scope,

site, duration, and KPIs

(End to end pilot deployment/ implementation)

For successful pilots, participating govt entity

may then decide to enter into contract with the startup for purchase/

portfolio-wide deployment

Sourcing & Diligence Partner SOW

(43)

Potential Pilot Sourcing & Diligence Process

Selected partner meets with Local Government Entity to understand pain-points + key goals

Selected partner sources a set of relevant Proptech solutions

Selected partner presents diligenced shortlist to Local Government Entity

Local Government Entity determines, at their sole discretion, which/whether to pilot suggested solution

If pilot is selected, startup is contracted through

streamlined, no-cost

demonstration procurement process

Selected partner works with local government agency to determine piloting site and launch pilot

(44)

Requires NYC government operations to reduce GHG building emissions 40% by

2025, and 50% by 2030, relative to FY06 levels

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Em is si ons in MT Fiscal Year

Buildings Transportation Streetlights and Traffic Signals Wastewater Treatment Water Supply Solid Waste Facilities

Fugitive and Process Emissions

29% emission reductions achieved between FY06

and FY17

40x25 50x30

80x50