Real Estate Developement Investment Proposals

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Real Estate Developement Investment Proposals Powered By Docstoc
					        UNSOLICITED
PUBLIC – PRIVATE EDUCATION
INFRASTRUCTURE ACT (PPEA)
                    For the

DIVISION OF FORENSIC SCIENCE
              &
OFFICE OF THE CHIEF MEDICAL
         EXAMINER’S

    NORTHERN VIRGINIA
   FORENSIC LABORATORY


             Respectfully Submitted by:

   Cambridge / Alexandria Real Estate Equities
       Initial Submission: June 23, 2005
        Resubmission: August 24, 2005
Table of Contents:

  I .......Executive Summary / Qualifications and Experience

  II .......Project Characteristics

 III .......Project Financing

 IV .......Project Benefit / Compatibility
 V .......Appendix
SECTION I: QUALIFICATIONS AND EXPERIENCE:

Executive Summary

The enclosed material has been created to propose an unsolicited Offer to the
Commonwealth of Virginia (Commonwealth) pursuant to the Public – Private Education
Facility and Infrastructure Act of 2002 to develop for the Division of Forensic Science (DFS)
and the Office of the Chief Medical Examiner (OCME) a new Forensic Laboratory (Project)
in Manassas, Prince William County, Virginia.

The Offeror will be a single-purpose entity formed for the specific purpose of developing the
proposed project and leasing it back, or selling it to the Commonwealth. Alexandria Real
Estate Equities (Alexandria) and Cambridge Development Group (Cambridge) have teamed
up to form The Alexandria / Cambridge Team to be the Developer of the Project on behalf of
the Offeror. As detailed herein, Alexandria is highly experienced at developing laboratory
facilities for both public and private organizations on a national basis, and together with
Cambridge, have developed numerous such facilities throughout the Mid-Atlantic region. In
fact, Alexandria and Cambridge have worked together on 990,000 square feet of projects
over the past eight years, and Gaudreau Associates, the Project Architect has many of these
same projects, in addition to several others with Cambridge and Alexandria separately.

In fact, one of the most important strengths of the Alexandria / Cambridge Team is the fact
that all the major organizations comprising our Team have worked together on multiple
projects, several of which are major laboratory facilities.

Developer / Project Manager

Alexandria is a publicly traded (NYSE symbol: ARE) Real Estate Investment Trust (REIT)
that specializes in developing and operating life science, laboratory, vivarium and office
related facilities on a national basis. Services performed by Alexandria include: development
of build-to-suits and strategic facilities management of redevelopment and tenant
improvement projects, portfolio property management, leasing, project and construction
management and acquisitions of existing laboratory buildings.

Alexandria’s Vision Statement is to be the Landlord of Choice to the Life Science
IndustrySM, providing World Class Space for World Class ScienceSM. Accordingly,
Alexandria has constructed, developed or redeveloped nearly 2.9 million square feet of
World Class Space for World Class ScienceSM in our cluster markets since our IPO in May of
1997. Each Alexandria facility is designed to combine the generic needs of the industry with
the specific requirements of the tenant’s end user needs. The prevailing characteristics of an
ARE facility, whether acquired, converted or developed, are that it be essential to the
operations of the user and improved with infrastructure common to most life science industry
tenants. The technical and complex nature of life science facilities typically requires a
significant capital investment. Alexandria’s commitment to participate with its own capital as

            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 1
an at-risk developer combined with the unique expertise of its management team has allowed
Alexandria to attain a leadership position in the industry while allowing our tenants to focus
on their core business.

As a publicly traded real estate investment trust, Alexandria’s total market capitalization
exceeded $3.0 Billion as of August 1, 2005. In addition, since its IPO in May 1997 to
December 31, 2004, Alexandria has substantially outperformed the NAREIT Index and S&P
500 Index. (ARE 538.77%; NAREIT Index 254.22% based on total return assuming
reinvestment of all dividends).

Cambridge specializes in developing laboratory and office related facilities on a regional
basis, and we have worked with Alexandria to develop 9 laboratory projects, for a total of
990,000 square feet since 1997. Services performed by Cambridge include: development of
build-to-suits and strategic facilities management of redevelopment and tenant improvement
projects, portfolio property management, leasing, project and construction management and
acquisitions of existing laboratory buildings for our own account and also third-party clients.
The opportunity to work with Alexandria to develop the Northern Virginia Forensic
Laboratory fits perfectly with our strategic mission and area of expertise.

Cambridge has constructed, developed or redeveloped nearly 5.0 million square feet of
office, laboratory, flex and commercial space since our inception in 1982. Each Cambridge
facility is designed to combine the generic needs of the industry with the specific
requirements of the tenant’s end user needs. The prevailing characteristics of a Cambridge
facility, whether acquired, converted or developed, are that it be essential to the operations of
the user, especially in the case of laboratory projects with critical infrastructure requirements.
The technical and complex nature of life science facilities typically requires a significant
capital investment. Cambridge’s commitment to participate with its own capital as an at-risk
developer combined with the unique expertise of its management team has allowed us to
become one of the most active laboratory build-to-suit developers in the region.

Project Summary

The Project we are proposing is comprised of a 102,000 square foot facility to be developed
on a ten acre site to be selected by the Commonwealth and leased back to the Offeror at a to
be determined cost. For the purpose of this proposal, the Alexandria / Cambridge Team has
created a thorough program of requirement which is based on materials provided by, and
meetings held with members of the Division of Forensic Science. Moreover, since the total
requirement has not yet been designed, we have utilized a $200 per square foot interior
improvement allowance to cover the costs of design and construction for office, lab and
related areas. The specific program is included in Section II herein.




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Finance

The Alexandria / Cambridge Team has provided multiple scenarios for the Commonwealth to
choose from in Section III of this proposal. Our goal is to provide a series of choices to help
the Commonwealth select the most cost effective alternative, whether it be through our
investment banker Legg Mason Wood Walker, Inc. of Richmond, VA for a tax exempt
twenty (20) or thirty (30) year bond, a purchase option upon completion, or a long term lease
using Alexandria’s commercial capital relationships. Legg Mason Wood Walker is among
the top 10% of securities firms in the United States, based on their volume. The Alexandria /
Cambridge Team has no preference with respect to these scenarios, but our efforts to provide
the Commonwealth with a series of choices is indicative of the creative approach we will
take throughout this process to ensure you maximum input and to provide the
Commonwealth with the opportunity to control the destiny of the final structure.


1. Identify the legal structure of the firm or consortium of firms making the proposal.
   Identify the organizational structure for the project, the management approach and how
   each partner and major subcontractor ($1 million or more) in the structure fits into the
   overall team. All members of the operator/offeror’s team, including major contractors
   known to the proposer must be identified at the time a proposal is submitted for the
   Conceptual Stage. Identified team members, including major subcontractors (over $5
   million), may not be substituted or replaced once a project is approved and
   comprehensive agreement entered into, without the written approval of the
   Commonwealth. Include the status of the Virginia license of each partner, proposer,
   contractor, a major subcontractor.

Cambridge and Alexandria have assembled a strong team that is experienced in developing
comparable projects to that of the proposed Northern Virginia Forensics Laboratory
(“Project”) in order to develop the facility for the Commonwealth of Virginia
(“Commonwealth”) utilizing tax-free municipal bond financing through the creation of an
operating lease, or a commercial construction loan with one of our institutional partners if the
Commonwealth would prefer to own the Project as detailed in Scenario 2.

Legal Structure: In Scenario 1, the Alexandria / Cambridge Team will utilize a 501(c)3
organization chartered specifically to provide low cost, tax exempt financing solutions for
supported entities, such as the Commonwealth of Virginia.

Owner: Under Scenario 1, the 501(c)3 will act as Owner/Lessor and enter into an operating
lease with the Commonwealth. The lease will be based on the total improvement cost, the
debt service requirement of the bond financing. The capital required for the development is
procured through a tax-free bond offering. The Commonwealth, as lessee may have the
option to purchase ownership of the project at any point during the lease based on a forward-
looking appraisal that is discussed in further detail in Section III.


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Under Scenario 2, the Alexandria / Cambridge Team will sell the completed facility to the
Commonwealth upon completion.

Developer: Cambridge will the assist Alexandria as the development project manager to
oversee and manage the communication with the Commonwealth, along with the design,
entitlements and construction of the Project. Cambridge will be responsible for the overall
project, managing all team members, as well as maintaining the schedule and budget.
Cambridge Asset Advisors will handle the property management for the Project.

Financial Advisor: Northmarq Capital, Inc. (“Northmarq”) is the financial advisory firm to
Cambridge. Northmarq will assist Alexandria / Cambridge in structuring the underlying tax-
exempt bond for the transaction, along with being the adjunct to the Rating Agency for the
project. They will coordinate all aspects of the tax-exempt bond financing with the
Commonwealth and Alexandria / Cambridge, including ensuring the operating lease’s
conformance with the Government Accounting Standards Board’s (GASB) rules and
requirements, or if the Commonwealth elects to own the facility, Northmarq will assist
Alexandria / Cambridge to structure the construction loan to facilitate the development.
Cambridge has worked with principals at Northmarq for over fifteen years and financed
nearly $2.0 Billion of commercial development and acquisitions with them.

Investment Banker: The Alexandria / Cambridge Team has selected Legg Mason Wood
Walker, Inc. as our underwriter and investment bank for the tax exempt bond options due to
their vast experience in structuring bond issues for the Commonwealth of Virginia. Public
Finance has been a focus in Legg Mason’s fixed income business strategy for 20-years. Since
the founding of the group in 1983, our public finance bankers have been providing the
highest quality service to our clients by developing their expertise in several key sectors of
the public finance industry and applying that expertise in areas of the country where the firm
is a market leader.

Architect: Gaudreau Architects, Inc. (“Gaudreau”) is a second generation, privately owned
firm specializing in laboratory planning and architecture. Gaudreau has worked with both
Alexandria and Cambridge on numerous laboratory projects, including several large Federal
Government laboratory build-to-suits. As one of the region’s premiere laboratory designers,
Gaudreau has worked on projects for many notable institutions and companies in addition to
their work for Alexandria and Cambridge. Some of these other clients include: Human
Genome Sciences (HGS), MedImmune, American Type Culture Collection (ATCC), Bristol
Meyers Squibb, Celera Genomics, Drug Enforcement Administration (DEA), Food and Drug
Administration (FDA), Glaxo-SmithKline Beecham, Johns Hopkins University, National
Institute Of Health (NIH), Otsuka Pharmaceuticals, The Institute for Genomic Research
(TIGR), University of Maryland, University of Virginia, Virginia Tech and many others.

Gaudreau is also experienced working with and in Prince William County. Additional
information on Gaudreau Architects can be found in the Appendix herein.


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Forensic Lab Planner: Earl Walls Associates (EWA) is an architectural and engineering
firm specializing in laboratory design, planning, and engineering. EWA has earned the
reputation as the leader in their field, participating in over 1,900 laboratory projects since
their founding in 1961. Known worldwide as the firm who set the standard for modern
laboratory design with the development of The Salk Institute, EWA continues as the leader in
the advancement of casework, fume hood and systems design for the future.
 EWA has designed facilities for myriad clients representing commerce, government,
academia, health care and institutional research; housing nearly every scientific discipline
and ranging in all sizes and levels of complexity. EWA has been honored 22 times by R&D
magazine's "Laboratory of the Year" competition; the most recent receiving 2004 High
Honors for the U.S. Food & Drug Administration Southwest Regional Consolidated
Laboratory, 2004 Special Mention for the San Mateo County Sheriff’s Forensic
Laboratory/Coroner’s Office, 2003 Special Mention for Genentech Hall UCSF Mission Bay,
2000 Special Mention for The Vontz Center for Molecular Studies, University of Cincinnati.
Other recent awards include, 1999 Lab of the Year for Chiron Corporation’s Building 4, Life
Sciences Center, 1998 Special Mention for the Department of Energy Environmental
Molecular Science laboratory, 1996 Special Mention for the Schering Plough QAC
Laboratory, and 1995 Lab of the Year for the Ciba-Geigy Pharmaceutical Life Sciences
Building.
General Contractor: BE&K Building Group, General Contractor, is part of an employee-
owned, privately held company, uniquely positioned to meet short and long-term
construction service needs, and includes nearly 700 people who are responsible for more than
$1 billion of projects in 2005 - 2006. Aside from the projects they have done for Alexandria
and Cambridge, the BE&K Building Group has done major projects for institutional and
private companies including: Eli Lilly, Bayer, Duke University and Medical Center, Florida
State University, SmithKline Beecham, Institute for Scientific Research, Novo Nordisk
Pharmaceutical Industries, Perdue Pharmaceuticals and many others.

BE&K Building Group, Inc. (“BE&K”) is a national construction firm with a Manassas
office that has assisted Cambridge with pricing Gaudreau’s site plan and program found
herein. Both Alexandria and Cambridge have executed several laboratory projects with
BE&K’s subsidiary Suitt Construction. Headquartered in Charlotte, NC, BE&K is a
recognized leader in design-build. Although BE&K would be the General Contractor, all
scopes of work will be bid to multiple subcontractors. Additional information on BE&K can
be found in the Appendix herein.

Legal: Wilmer Cutler Pickering Hale & Dorr is a professional corporation of attorneys and
counselors at law for real estate finance, and commercial real estate. They are uniquely
qualified to provide our team with experience as bond council and assisting in gaining
support for this project.




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            Page 5
Mechanical, Electrical and Plumbing Engineering: Schlinger Pitz Engineering, Inc. is the
MEP firm that will work under Gaudreau, and they too have worked with Alexandria and
Cambridge on several laboratory development projects.

Civil Engineering: Rinker Detwiler Associates, Civil Engineer, is a mid-sized firm with 72
employees on staff, located in Manassas and City of Fredericksburg, Virginia. RDA has
been providing professional civil engineering services in Prince William County for over
twenty years. Rinker Detwiler has worked with Cambridge on several projects over the past
twenty years, including Federal Government laboratory build-to-suits. RDA is a leading
provider of professional civil engineering, surveying, transportation and land planning
services. For the past twenty-three years RDA has provided civil engineering consulting
services on literally thousands of private sector and public sector projects. Our successful
experience with Prince William County, The Virginia Department of Transportation, Fairfax
County, to name a few, and with our private sector clients illustrates our ability to produce
the highest quality plans while meeting very tight schedules.

In addition to the many projects RDA has done for Cambridge, some of their additional
projects include: Dominion Valley Commercial Center – Market Square, NextGen –
Innovation Park, Government Technology Services, Inc. (GTSI) Headquarters (Cambridge
project), Ashburn Corporate Center – Phase 1, LogisTech – Innovation Park, DEA –
Laboratory Facility for Special Testing (Cambridge project), Dulles International Service
Facility – United States Postal Service (Cambridge project), Chantilly Distribution Facility
totaling 510,660 square feet (Cambridge project) and many others.
Additional information on Rinker Detwiler is found in the Appendix herein.

Property Management: Alexandria Real Estate Equities, Inc. has an established and proven
method of performing facility maintenance and management of sophisticated life science
facilities Nationwide. In the Washington D.C. Metropolitan region, on a daily basis we
manage over 2.5 million square feet (8.1 million square feet nationally) of life science and
related space encompassing approximately thirty-seven (37) properties (with one hundred
twenty-five lab properties (125) nationally). The type of facilities we manage range from
single story flex buildings to multi-story office/laboratory facilities. Our philosophy of
maintenance and management is hands-on day to day management with qualified,
experienced personnel so we can provide world-class facilities for our tenants. Our
preventive maintenance systems are customized to each property and we take a proactive
approach to managing the affairs of each facility.

Management Approach and Team Philosophy

The Alexandria / Cambridge Team is structured upon the premise of an open, goal-oriented
partnership, which will extend to the Commonwealth for this Project. Every project
Alexandria has developed is of a laboratory nature, and we understand the complexities
associated with the design and construction of this product type. Since 1990, nearly every
project Cambridge has developed has been for a specific Tenant or occupant in the form of a

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build-to-suit, and it is the goals of that party that comprise overall project objectives. One of
the most important factors in executing a complex development is having a proven team that
has worked together on many other projects, and the Alexandria / Cambridge Team has a
long history of multiple development projects with a proven track record for success. A
comprehensive list of all the projects the team members have worked on together can be
found in the Appendix.

Success is a by-product of clearly established goals between all parties, timely decision
making, accurate budgeting and scheduling, diligent project management, communication
and issue resolution throughout the development process. Seamless involvement by critical
personnel greatly contributes to that, because developments of this nature are complex, and
lengthy. Designing a laboratory facility is much more exhaustive than any other commercial
product type, and the experience of the individual team members is only slightly more
important than the experience of the entire team together. Both Alexandria and Cambridge
began developing life science laboratory facilities in the early-1990’s, and ever cognizant of
the significant costs associated with this type of product, we have honed the process, and our
selection of team members down to a fine science. Our client’s primary benefit from this
experience is not only having their expectations met, but their schedules and budgets
maintained.

Financing Goals

The Alexandria / Cambridge Team’s primary goal is to provide the Commonwealth with
flexibility in selecting the most advantageous manner to develop the Northern Virginia
Forensics Laboratory. To that end we are proposing four different options: Scenarios 1 and 2
are for a 30 and 20 year tax exempt bonds, respectively, both combining with long term
operating leases; and Scenario 3 provides the Commonwealth the opportunity to purchase the
Project upon completion, while Scenario 4 provides an expeditious lease option utizing
commercial financing.

In accordance with our proposed tax-exempt Scenarios 1 and 2, all fees and costs will be
transparent in order to be in conformance with the law. The tax-exempt operating lease will
provide the best opportunity for the Commonwealth to be fully abreast of the total costs. This
method of financing most closely replicates the cost of funds as if the Commonwealth were
self-financing it instead.

Scenario 3 will involve the sale of the Project to the Commonwealth at cost plus a reasonable
manufacturing profit for the Alexandria / Cambridge Team, and Scenario 4 is a standard
triple net lease with no purchase options.

Development Management

Design: Success is achieved with a focused attention to detail beginning with the initial site
evaluation. The Alexandria / Cambridge Team has an extensive Site Checklist we utilize in

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every project we develop and it establishes the foundation for the entire design of the
proposed land parcel for a project. By fully analyzing not only the site to be developed, but
also the off-site infrastructure requirements and issues, a clear picture, budget and schedule
can be established on which to move forward. From there, our Team’s civil, structural and
MEP engineers, in conjunction with the project architect, have the pertinent data to make
recommendations for cost-effective and functional scenarios to the Owner and Client for the
best possible development concepts.

Cambridge will be the Team Leader that collects all information, and manages the staffing,
production, bidding and oversight of the entire Project. All consultants will report to
Cambridge, and Cambridge will be responsible for disseminating all information, contracts
and communication externally and to the Team.

Commencing with the Gaudreau and Earl Walls design process, the Alexandria / Cambridge
Team will hold Team Meetings at a time and place convenient to all. Members from each
respective company comprising the Team will be in attendance, and open to representatives
from the Commonwealth. Meeting Minutes will be disseminated within forty-eight hours
from a meeting to ensure a proper record is maintained, and to give all participants the
opportunity to validate the entire process. Weekly Team Meetings will continue on-site once
construction commences. After twenty years of development experience, we have found that
this level of communication is critical to Project success.

In addition, a Project Schedule is established from the outset of a Project (a copy of one for
this proposed Project is contained herein), and subsequently updated and issued upon
achieving major critical path hurdles throughout the course of work. Schedule milestones
pertaining to decisions or information required from the Tenant / Client are always included
in order to keep everyone abreast of all outstanding aspects of the Project, not only critical
path items. Once a Project moves forward, and the Team is fully in place, a CPM schedule
will be utilized as the format for the balance of the Project.

Value Engineering: Periodically throughout the design process, and later the construction
process, the Alexandria / Cambridge Team will evaluate the benefits of potential value
engineering options to save cost and time for the Commonwealth.

The most effective value engineering occurs in the design development phase of a project.
The designer, contractor, developer and owner act as a team to build-in value and quality.
This teaming approach combines the client’s program requirements and the architect’s design
solution with the builder’s knowledge of cost and construction methods. This enables the
team to better achieve the client’s goals for cost, schedule and quality. BE&K has an
integrated approach that fosters the fluid involvement of all team members:
• Provide recommendations regarding construction logistics, availability of labor and
    materials, time and cost impact of alternate designs and methods.



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•   Provide interim cost estimates developed from detailed line item estimates and take-offs.
    Level I, II and III estimates to fully identify scope quantities with up to date benchmark
    pricing.
•   Provide a detailed review of all building systems to identify potential cost or time savings
    as the result of using alternate materials or construction methods.
•   Participate in design/budget progress meetings to present estimates, value engineering,
    monitor progress, and identify pending items which need resolution to avoid an impact on
    the project costs, budget, or schedule.
•   Develop an overall project schedule integrating the design team activities and the
    construction activities.
•   Provide “checkset” review comments of the drawings and specifications to identify areas
    of conflict, additional clarification and/or other items that may affect schedule, costs,
    budgets, or constructability.
•   Provide recommendations and overall project schedule interface for the purchase of long-
    lead equipment and materials. Provide recommendations for the phasing of bid packages
    for the work to facilitate a continuous flow of work and an expedited completion and
    recommendation of bid alternates.
•   Provide information for the planning and implementation of the integrated
    estimating/operations team approach to ensure transition from preconstruction services of
    the contractor to those required in the construction contract.

These efforts would be open to, and only applied with the full agreement of the
Commonwealth.

Entitlements: Team composition and design are elements of the overall Project that the
Alexandria / Cambridge Team can control and execute to meet the overall schedule and
budget, even one as complex as the proposed Forensic Laboratory, but all of that can be
squandered without a thorough understanding of the entitlement process. However, by
selecting the right team, qualified in the proposed jurisdiction and the type of design and
construction, months of revision and re-design can be avoided. That approach was carefully
considered in balancing the location of the proposed Project with our Team Members, and
their credentials make the rationale behind their inclusion self-evident.

Construction: Another area where the laboratory experience of the Alexandria / Cambridge
Team will benefit the Project is the approach to construction. The selection of BE&K
Building Group was made because of our joint success and cohesion on previous like-kind
projects. Moreover, even though all scopes of work will be bid to multiple subcontractors to
ensure a competitive bottom line, we will also be particularly selective to make sure each
prospective subcontractor is well versed with laboratory development.

Upon the completion of the Design Intent Drawings, and during the development of
Construction Drawings, particular attention will be focused on long-lead items. To the extent
that items such as steel, air handlers, chillers, switch gear or other long-lead items can be
identified, and established to be in accordance with the Tenant’s requirements, then they

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could potentially be ordered in advance of the drawings full completion. This, of course,
would only be done with complete approval by the Commonwealth, and would only be
proposed if there was a material benefit to the Project.

Both Alexandria and Cambridge are very experienced in negotiating or bidding work, and as
noted herein, we propose to negotiate this case so that the general contractor could be
involved with the design aspects of the Project. A closed-bid process would be used with
subcontractors, and representatives from the Commonwealth would be invited to the bid
opening at the due date.

Once the construction team is in place and site work commences, there will be a Cambridge
Vice President involved on a day-to-day basis, overseeing the efforts at the site. It is
imperative that the Team Leader remain ahead of any potential construction issues, and work
diligently at resolution management to ensure the steady progress toward the goal of
completing the Project based on the approved budget, schedule, Construction Drawings and
specifications, while simultaneously managing the contractor to keep a safe and clean job-
site.

Cost Control: BE&K’s general approach to cost control centers on their cost management
system. The integrated system combines purchasing, accounts payable, accounts receivable,
equipment, and job status to provide on-line status of project cost. The budget dollars, hours
and quantity are input into the cost management system at a level of detail suitable for
managing the project and furnishing the owner necessary feedback. BE&K breaks work into
a minimum of two phases: one for general conditions and one for direct work. The costing
system is capable of handling over 1,000 phases if necessary. Within direct work, both self-
performed and subcontracted work can be tracked. BE&K maintains a cost code catalog of
over 1,100 standard accounts, but if project requirements dictate, the system can handle as
many cost codes as necessary. The system further allows for separation of labor, labor
burden, subcontract, material, equipment, and other costs.

The system focuses on predicting Estimated Cost at Completion (ECAC). It compares
committed cost, incurred cost, and the project manager’s forecasted cost. Forecasts can be
made on the basis of cost at completion, cost to complete, or current percent complete. The
system compares ECAC to the budget to show variances, and compares ECAC to forecasted
revenue to show Estimated Margin at Completion.

The system is capable of forecasting self-performed labor cost. Productivity and unit cost
data is also available for monitoring and analysis purposes.

Quality Control: Quality control is really a factor of design review involvement from the
time the contractor comes on board, and is made part of the decision making process.
BE&K’s quality control program emphasizes planning and prevention as the best means of
achieving overall project goals for quality, cost, and schedule. They view quality as more
than a simple measurement of conformity to specifications. True quality is obtained by

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building a team atmosphere with clearly understood expectations for each party involved in
the project. Areas such as design review, subcontractor selection and decision processes are
the critical keys to an overall quality effort.

Close Out: Substantial completion and the client taking occupancy does not mean that a
project is completed, especially with a laboratory facility. Important factors including
systems commissioning, punch-lists, warranty exercises, bond and lien releases, operating
manuals, synthesizing the client’s facilities representatives with the Landlord’s are critical to
creating a seamless and efficient occupancy at the building. Cambridge has a systematic
approach, which includes having our Property Manager and Building Engineer (where
applicable) in attendance at the final two months of Project team Meetings. The goal, just as
it is with design and construction, is to maintain communication, schedule and quality, and to
make sure the client is up and operational as quickly as possible.

Schedule: BE&K’s scheduling function addresses one of the most important resources
available to a project — TIME. In today’s market, time management is of critical
importance to our clients. Responsible time management allows the client to optimize the
Project’s schedule and budget.

•   BE&K favors the Primavera Project Planner (P3) project control program to perform all
    scheduling functions.
•   The schedule must be a dynamic tool which is constantly modified to reflect the current
    job status for completing the project without losing sight of the original plan.
•   The scheduling system’s prime objective is to define the project and its progress in a
    sufficient level of detail and accuracy to:
    − Provide assurance that the work is progressing according to plan.
    − Plan activities and resources needed to execute the project on schedule.
    − Explore various “what if” scenarios to optimize the project schedule utilizing critical
        path analysis.
    − Provide management with an overview of the project’s schedule.
    − Identify pertinent issues for project management action.

2. Describe the experience of the firm or consortium of firms making the proposal and the
   key principals involved in the proposed project including experience with projects of
   comparable size and complexity. Describe the length of time in business, business
   experience, public sector experience and other engagements of the firm or consortium of
   firms. Describe the past safety performance record and current safety capabilities of the
   firm or consortium of firms. Describe the past technical performance history on recent
   projects of comparable size and complexity, including disclosure of any legal claims, of
   the firm or consortium of firms. Include the identity of any firms that will provide design,
   construction and completion guarantees and warranties and a description of such
   guarantees and warranties.



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Following is a matrix identifying the Alexandria / Cambridge’s Team members for the
proposed Northern Virginia Forensic Laboratory:

         Company                Lead Person(s)          Phone /                  E-Mail / web page
          (Role)                                         Fax
 Cambridge Development         John Cunningham      P: 703-709-8866        jhcunningham@cambridgeus.com
 Group, LP                     Scott Roberts        F: 703-709-0638        sroberts@cambridgeus.com
 (Project Manager)                                                         www.cambridgeus.com

 Alexandria Real Estate        Larry Diamond        P: 301-947-1770        ldiamond@labspace.com
 Equities                                           F: 301-947-0905        www.labspace.com
 (Developer)

 Legg Mason Wood Walker        W. Randall           P: 804-698-5957        rdunning@leggmason.com
 (Investment Bank)             Dunning              F: 804-343-0724        www.leggmason.com

 BE&K                          Mark Hefferin        P: 703-396-6142        mhefferin@suitt.com
 (General Contractor)                               F: 703-257-0618        www.bek.com

 Gaudreau & Associates         William Gaudreau     P: 410-837-5040        walgaudreau@gaudreauinc.com
 (Architect)                                        F: 410-837-8093        www.gaudreauinc.com

 RMF Engineering               Duane Pinnix         P: 410-576-0505        dpinnix@rmf.com
 (MEP Engineer)                                     F: 410-385-0327

 Earl Walls Associates                              P: 858-457-2400
 (Forensic Lab Designer)                            F:858-450-3318         www.ewalab.com

 Rinker Detwiler               Edward Snider        P: 703-368-7373        esnider@rinker-detwiler.com
 (Civil Engineer)                                   F: 703-968-9027        www.rdacivil.com


Alexandria’s Management Team and Experience:

Alexandria’s mission as the Landlord of Choice to the Life Science IndustrySM includes
providing real estate solutions to the national life science community. This is our primary
and foremost objective. The following projects detailed herein, for both Alexandria and our
Team members demonstrate our experience and understanding of sophisticated and complex
laboratory developments comparable to what is anticipated for the proposed Forensic Lab.
Our portfolio, client references and the insightful, detailed quality of buildings that we design
and develop set Alexandria apart from any other real estate operating company in this field.
A long term and mutually beneficial relationship with AFS and OCME will augment both
parties and serve to create a first class relationship as the foundation for the development of
the Property.




             Division of Forensic Sciences, Northern Virginia Laboratory
             Page 12
Cambridge’s Management Team:

As a full service real estate company, Cambridge is capable of handling the full range of
development and operational services in a first-class and professional manner. As the
affiliated owner and manager of over 3.0 million square feet of commercial and laboratory
space, Cambridge is committed to the market where the proposed facility is situated, and
moreover, we have the proximate skill and experience in the market to develop and operate
the Project in a timely, cost effective and efficient manner.

Cambridge’s Office is located in Herndon, Virginia which is where we would manage and
operate the entire process of planning, developing and operating the proposed Project until
construction commenced, at which time, management of the Project would move on-site.

The divisions of our organization that would be involved in planning, financing, developing
and managing this project include: Executive Management; Accounting and Finance;
Construction and Development; and Asset Management. All of these functions will be
conducted and managed by officer level personnel within Cambridge.

In 2004, Cambridge acquired or placed over 1,109,000 Square Feet of commercial office and
laboratory space with a total value of $235,000,000; provided development services on over
482,000 Square Feet of new projects with a cost of $90,000,000 in total value; provided asset
management services on 4,000,000 square feet of office and laboratory properties; leased in
excess of 730,000 Square Feet; and provided construction management and general
contracting services on over 510,000 Square Feet. 2005 is already shaping up to exceed those
figures.

BE&K Construction Company (See additional material in the Appendix herein):

The BE&K Building Group was formed to bring together and capitalize upon the strengths of
the people who make up three well recognized and highly respected construction service
providers, Suitt Construction Company, Inc., FN Thompson and a group of healthcare and
commercial construction executives who helped build their former employer into a consistent
Top Five Modern Healthcare and Top Three ENR Construction Management performer.
Together, the individuals who lead these three groups have been responsible for some of the
most significant commercial, healthcare, industrial, and institutional projects in the Southeast
and Mid-Atlantic areas and have created and maintained relationships with some of the most
sought after construction clients, from private developers to large corporate and institutional
accounts.

The BE&K Building Group is part of an employee-owned, privately held company, uniquely
positioned to meet short and long-term construction service needs, and includes nearly 700
people who are responsible for more than $1 billion of projects in 2005 - 2006. The parent
company of the BE&K Building Group is BE&K, Inc., which, through a variety of
construction and engineering subsidiaries has been a major force in pulp and paper, power

            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 13
and heavy industrial construction, as well as design and maintenance. Creation of the BE&K
Building Group marks an increased commitment by BE&K to the commercial construction
business.

Suitt Construction Company, with offices throughout the Southeast, is a 37-year-old firm
highly respected for its design-build capability — Suitt has been a consistently top-ranked
ENR design-build firm with more than 750 design-build projects successfully completed and
has been the proud recipient of two national Design Build Institute of America (DBIA)
Project of the Year awards, as well as other regional and local awards. Like other members of
the BE&K Building Group, Suitt has long been known for maintaining long-term
relationships with key clients — 80% of Suitt’s work comes from such clients. Suitt is also
noteworthy for its market sector focus on life sciences (including pharmaceutical), food and
beverage, manufacturing, and themed hospitality and entertainment projects, as well as for an
exemplary safety record.

FN Thompson is 118 years old and has been a consistent Top Ten performer in the rankings
of North Carolina’s largest general contractors/construction managers. In addition to having
built some of the most noteworthy office campus, sports and public facilities in Charlotte, FN
Thompson has a market focus upon higher education in the Mid-Atlantic area, as well as
judicial and detention centers and retail projects. FN Thompson has delivered outstanding
value for clients for many years while, like other members of the BE&K Building Group,
compiling an enviable safety record. In addition, FN Thompson also has one of the best
diversity records of any construction manager in the Southeast and has one of North
Carolina’s best HUB programs.

The Building Group’s commitment to a safe work environment is illustrated by our current
safety record of .61 against the industry’s standard of 1.0.
Award winning projects include:

   •   1999 National Design-Build Award
       Best Private Sector Project
       Awarded by the Design-Build Institute of America
       Eli Lilly and Company/RTP Laboratories
       R&D Facility
       Research Triangle Park, NC

   •   2001 Grand Prize Winner for Excellence in Specialty Buildings
       Awarded by Florida Institute of Consulting Engineers
       JDS Uniphase
       Fiber optics plant
       Melbourne, FL




            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 14
Gaudreau Architects (See additional material in the Appendix herein):

Gaudreau, Inc. was founded in 1927 and is one of Baltimore’s oldest and largest architectural
practices. Over the past 12 years, the Baltimore Business Journal has consistently ranked
Gaudreau, Inc. among the top five architectural firms in the Baltimore area. Since its
founding, Gaudreau has completed nearly four billion dollars of architectural, planning and
engineering projects. This project experience is broad-based and ranges from research,
manufacturing, educational, healthcare and religious facilities to buildings for government,
industry and commerce. Our professional staff offers a diversity of in-house services typical
of much larger firms. The Gaudreau staff retains a core of long-term employees, which
maintains strong continuity in project staffing, expertise, and personal and professional
relationships. We have developed new fast-response services, including quick pre-design
schematic studies, models, conceptual estimates, and site capacity planning. Our firms in-
house services include:
    • Architecture
    • Master Planning
    • Programming / Strategic Planning - long-term reorganization, expansion/relocation
        planning, equipment inventories, projections and procurement scheduling
    • Pre-Design
    • Interior Architecture & Design materials and furnishings selections, specifications,
        procurement, installation supervision
    • Computer-Aided Graphic Technology
    • Site / Civil Engineering
    • Cost Estimating
    • Construction Contract Administration
    • Design-Build / Construction Management

Gaudreau’s professional staff of 40 practices on a team system, providing a design process
for each project individualized to meet the special needs of its clients. We believe that this
design process is itself a definition of architecture, ever changing, placing greater demands
on the creativity of man as our environment seeks new levels of culture and utility. During
our 78 years of continuous service, three generations of the Gaudreau family have served as
principals of the firm, guiding our personnel in the pursuit of our corporate goals, which
include providing exceptional service and quality design to all of our clients. We are proud of
our track record, and have developed an outstanding professional reputation which is
reflected in long relationships with private, corporate, public, institutional, and state and
federal agency clients, some extending more than 30 years.

3. For each firm or major subcontractor ($1 million or more) that will be utilized in the
   project, provide a statement listing all of the firm’s prior projects and clients for the past
   3 years and contact information for same (names/addresses/ telephone numbers). If a
   firm has worked on more than ten (10) projects during this period, it may limit its prior
   project list to ten (10), but shall first include all projects similar in scope and size to the
   proposed project and, second, it shall include as many of its most recent projects as

            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 15
   possible. Each firm or major subcontractor shall be required to submit all performance
   evaluation reports or other documents that are in its possession evaluating the firm’s
   performance during the preceding three years in terms of cost, quality, schedule
   maintenance, safety and other matters relevant to the successful project development,
   operation, and completion.


Recent Alexandria Projects:

Following are some specific project examples that Alexandria has recently developed, all of
which are owned by Alexandria in their entirety, although single purpose entities have been
formed for each. Alexandria also handles the property management and leasing for all of
these buildings, although several of our large, single-tenant facilities are triple net. All our
facilities are maintained to the highest commercial standards.

Pursuant to confidentiality agreements in our transactions, the specific development costs,
financing terms and economics of the following developments is closely-held information.
However, most of these projects were developed using 100% equity, although financing may
have later been placed on the asset. All of these facilities were won by Alexandria in
competitive markets, using commercial contractors, design and engineering teams based on
negotiated terms acceptable to the clients. Included with the following are the contact name,
address, telephone, e-mail and fax numbers for each of the example clients/stakeholders:


Alexandria Technology Center – Science Park Phase 1
Biogen-IDEC Pharmaceuticals
La Jolla, California

The 75,000 square foot facility is located in
the heart of San Diego’s life science
community in the Torrey Pines area of La
Jolla, California. It is part of the Alexandria
Technology Center-Science Park, a 285,000
square foot master planned campus developed
by Alexandria and solely dedicated to the life
sciences community. This building is a build-
to-suit for Biogen-IDEC Pharmaceuticals and
was fully built out to accommodate its
scientific research needs, including enhanced
structural design, elaborate MEP systems and
state-of-the-art laboratory bench design.




            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 16
Alexandria Technology Center – Science Park Phase 2
La Jolla, California

The 47,000 square foot facility is located in the heart of San Diego’s life science community
in the Torrey Pines area of La Jolla, California. It is part of the Alexandria Technology
Center-Science Park, a 285,000 square foot master planned campus developed by Alexandria
and solely dedicated to the life sciences community. The Phase 2 building, a two-story
structural steel frame building, was designed and constructed to accommodate laboratory
research and development users with such added features as a structural 125 pound psf live
load, enhanced floor to floor heights and a 100% outside air water cooled HVAC system
design.




            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 17
Memorial Drive Buildings #1 & #2
Cambridge, Massachusetts

Built in 2002, Memorial Drive Buildings #1 and #2 are 51,000 and 48,000 square foot 3+
story research and development buildings located in Cambridge, Massachusetts. Building #1
is a single tenant building with state-of-the art laboratory improvements constructed for
Infinity Pharmaceuticals. Building #2 is a multi-tenant building built to accommodate the
needs of young, emerging life science companies and provides a host of services to meet
these users needs such as central air, vacuum and gas, centralized glass wash facilities on
each floor, telecommunications services and other common amenities such as conference
rooms and break rooms. The buildings were sited to take advantage of views of the Charles
River.




Alexandria Technology Center – Oyster Point Building 1
Sunesis Pharmaceuticals
South San Francisco, California

The 54,000 square foot facility is located in the heart of
the San Francisco Bay Area’s life science community
along the bay in South San Francisco, California. It is
part of the Alexandria Technology Center-Oyster Point,
a 108,000 square foot master planned campus developed
by Alexandria and solely dedicated to the life sciences
community. This two-story building is a build-to-suit
for Sunesis Pharmaceuticals and was fully built out to
accommodate its scientific research needs, including
enhanced structural design, elaborate MEP systems and
state-of-the-art laboratory bench design. The building
was also sighted to take advantage of sweeping views of
the San Francisco Bay.



            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 18
Eastlake Avenue Building #3
South Lake Union
Seattle, Washington

This 165,000 square foot, 5 story building
over 3 stories of subterranean parking is
located in the fast growing South Lake
Union life science community in Seattle,
Washington. The building was originally
designed as a pure office building, but was
redesigned      during    construction   to
accommodate research and development
users, including modifying the structure to
increase floor heights, modifying the HVAC
from an office grade system to a 100%
outside air lab grade system, and doubling
the electrical supply to accommodate
research users power demands. The building is home to the Accelerator Corporation, a
unique full service company catering to the needs of young, emerging life science
companies.



Plantation Street #2
Worcester, Massachusetts
Built in 2000, this multi-tenant, 93,000 square
foot, 3-story facility is located in the master
planned      Massachusetts       Biotechnology
Research Park, home to such research and
development institutions and companies as the
University of Massachusetts Medical Center,
Abbot Laboratories and numerous other life
science companies. The building is a masonry
and steel structure with 15’ floor heights,
100% outside air HVAC capacity, a boiler
system and a sophisticatedly designed MEP
system (including a central neutralization
system) which provides for high density
laboratory tenants.




            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 19
Alexandria Innovation Center – Kit Creek
Research Triangle Park, North Carolina

Alexandria Innovation Center – Kit Creek comprises 3 2-story buildings with an aggregate
147,000 square feet of existing and in-process state-of-the art laboratory research and
development space. Building #1 is a
completed, fully functioning multi-tenant
lab facility while Buildings #2 and #3 are
under construction and scheduled for
completion in 2004.         The campus,
building structures and elaborate MEP
systems are designed to accommodate a
wide range of life science tenants from
young emerging to middle stage
companies. Cambridge is performing as
Alexandria’s Project Manager on
Buildings #2 & #3.


Biogen-Idec Pharmaceuticals                              75,000 square foot, two story research
Mr. Paul Draper                                          facility over underground parking
Director of Facilities                                   Torrey Pines, California
(858) 431-8764                                           Completed – June 2001
(858) 431-8890 Fax                                       Part of 285,000 square foot, 4 building
paul.draper@biogenidec.com                               master planned laboratory/office campus


Merck & Co., Inc.                                        160,000 square foot, 3 phase,
Mr. Joseph Milano                                        3 building laboratory research campus
Sr. Real Estate Associate                                Torrey Pines, California
(732) 302-7389                                           Phase 1 - Completed June 2001
(732) 302-7659 Fax                                       Phase 2 – Under construction
joseph_milano@merk.com                                   Phase 3 – In design


Corixa Corporation                                       75,000 square foot, 4 floor redeveloped
Ms. Michelle Burris                                      laboratory research facility
VP & Chief Financial Officer                             Seattle, Washington
(206) 754-5720                                           Part of 215,000 square foot, 3 building
(206) 754-5994 Fax                                       master planned research campus
burris@corixa.com




           Division of Forensic Sciences, Northern Virginia Laboratory
           Page 20
Critical Therapeutics Inc.                               40,000 square foot redeveloped lab ready
Mr. Trevor Phillips                                      shell building located in Lexington,
Chief Financial Officer                                  Massachusetts with turn-key laboratory
617-354-9311                                             and office tenant improvements designed
617-354-9318 Fax                                         to accommodate the needs of Critical
tphillips@criticaltherapeutics.com                       Therapeutics; Target Completion date 4/04

Digene Corporation                                       110,000 square foot, two story research
Mr. Charles M. Fleischman                                and manufacturing facility
President and COO                                        Gaithersburg, Montgomery County, MD
301-944-7000                                             Completed – December 1999
301-947-7017 Fax                                         Part of 400,000 square foot, 4 building
charles.fleischman@digene.com                            master planned laboratory/office campus


The J. Craig Venter Science Foundation                   59,000 square foot redeveloped lab /
Mr. Marshall R. Peterson                                 shell located in Rockville, Maryland with
301-309-3419                                             Chief Technology Officer state-of-the-art
mpeterson@venterscience.org                              laboratory research and development
                                                         improvements designed and constructed
                                                         exclusively for the use of The Center for
                                                         the Advancement of Genomics

References

Midwest Research Institute                                Department of Defense
1330 Piccard Drive                                        1413 Research Blvd., Building 101
Rockville, MD 20850                                       Rockville, Maryland 20850-3125
Mike Ehret, Vice President                                Colonel Brion Smith
240-632-0888 x 228                                        Chief Deputy Medical Examiner
ehret@mriresearch.com                                     Office: 301-319-0124
                                                          Fax: 301-295-5932
                                                          Email: smithbc@afip.osd.mil

Armed Forces Institute of Pathology
1413 Research Blvd., Building 101
Rockville, Maryland 20850-3125
Atten: Mr. Jim Canik
Deputy Program Manager
Office: 301-319-0250
Fax: 301-295-5932
Email: canik@afip.osd.mil




             Division of Forensic Sciences, Northern Virginia Laboratory
             Page 21
Recent Cambridge Projects:

Food And Drug Administration
College Park, Maryland

This project is an 82,000 square foot
facility located at the University of
Maryland’s Technology Research Park in
College Park Maryland. The FDA space
consists    of   analytical lab   and
administrative space. The Project was
completed in October 2004.

The FDA building is a fine example of the
Offeror’s ability to develop highly
technical space for a Government-leased
build-to-suit. In addition, there were
numerous challenges the Lessor had to overcome with this project, including an SFO which
was severely under-budgeted by the Tenant. GSA was forced to go back to the Tenant after
the completion of the Design Intent Drawings when it was determined by the Lessor that the
GSA’s budget was disparate with the Tenant’s budget. Many months of Tenant delays were
avoided by the Lessor working with the GSA in this proactive, team-oriented manner.
Gaudreau Architects was the architect on this project.

Contact: The GSA Contracting Officer is Mary Hewson, (202) 219-2497, and fax: (202) 219-
2371, e-mail: mary.hewson@gsa.gov.

Drug Enforcement Agency, Special Testing Laboratory
Sterling, VA

The DEA Special Testing Laboratory is a
50,978 square foot, single story building
includes      a    mechanical     equipment
penthouse. The exterior of the building is a
combination of colored masonry units,
curtain wall and metal panels creating a
state-of-the-art hi-tech look. The interior is
a fully equipped analytical and research
laboratory with support and training areas.
Gaudreau Architects was the architect on
this project. Contact: The GSA Contracting
Officer is Larry Sutton, (202) 401-0344,
fax:       (202)       708-4730       e-mail:
larry.sutton@gsa.gov.

            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 22
Digene
Gaithersburg, MD

The 110,000 square foot facility
(the property is currently being
expanded by 40,000 s.f.) is the
Digene Corporation’s headquarters
and     provides    state-of-the-art
laboratory, manufacturing and
administration space. This build-
to-suit was developed at the
Alexandria Technology Center in
Gaithersburg,            Maryland.
Cambridge performed as Project
Manager to Alexandria Real Estate
Equities on this development.
Contact: Vin Ciruzzi (858) 530-
8190, fax: (858) 530-8191 e-mail:
vciruzzi@labspace.com

National Aeronautical Charting Office (NACO)
Greenbelt, MD

Cambridge has been awarded this 130,000 square foot office (printing/production facility) by
the General Services Administration. NACO creates and produces over 15,000 aeronautical
and nautical navigation charts on behalf of the Federal Aviation Administration (FAA) and
National Oceanographic Atmospheric Administration (NOAA) which are distributed world
wide. This facility is being created as a consolidation of these NACO facilities and planned
as their long-term production headquarters. Contact: The GSA Contracting Officer is Glenita
Jones: (202) 401-1035, fax: (202) 401-2003 e-mail: nina.jones@gsa.gov




            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 23
Alexandria Technology Center
Gaithersburg, MD
The 100,000 square foot, three-
story building was developed as
a      strategic      multi-tenant
laboratory facility. It is a
masonry and steel building with
15’ slab-to-slab floor heights,
100% outside air capacity in the
HVAC system, a boiler system
and an elaborately designed
MEP system to provide for high-
density     laboratory    tenants.
Cambridge        performed      as
Alexandria Real Estate Equities
Development Manager.
Contact: Vin Ciruzzi (858) 530-8190, fax: (858) 530-8191 e-mail: vciruzzi@labspace.com

Alexandria Innovation Center – Kit Creek
Research Triangle Park, North Carolina
Alexandria Innovation Center – Kit Creek comprises three 2-story buildings with an
aggregate 147,000 square feet of existing and in-process state-of-the art laboratory research
and development space. Building #1 is a completed, fully functioning multi-tenant lab
facility while Buildings #2 and #3 were completed. The campus, building structures and
elaborate MEP systems are designed to accommodate a wide range of life science tenants
from young emerging to middle stage companies. Cambridge performed as Alexandria Real
Estate Equities Development Manager. Suitt (a wholly owned subsidiary of BE&K)
Construction was the general contractor on this project. Contact: Vin Ciruzzi (858) 530-8190,
fax: (858) 530-8191 e-mail: vciruzzi@labspace.com




            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 24
Recent BE&K Building Group Projects:

Eli Lilly, RTP Laboratories
Research Triangle Park, NC
Winner of the Design-Build Institute of
Americas’ “Best Private Sector Project,”
this $30 million, 161,000 square foot
assignment houses more than 200
researchers and support staff located in
Research Triangle Park, NC. It develops
and conducts combinational chemistry and
ultra-high throughput screening. This allows
Eli Lilly to identify and develop the next
generation     of    novel   pharmaceutical
therapies for treatment of cancer,
cardiovascular and infectious diseases,
endocrine disorders, and central nervous
system disorders. Under our leadership, the
facility was designed and constructed in just
16 months, saving approximately four
months on the schedule adding $5 million to
the project’s value.

Purdue Pharmaceutical
Wilson, NC
This $30 million grassroots solid dosage facility in Wilson, NC formulates medications for
pain relief and asthma. The scope of work included preparation of the 49 acre site and
construction of the 140,000 square foot precast concrete building. The facility features Class
10,000 and Class 100 clean rooms with systems for laminar airflow, HEPA filtering and
positive air pressure. The facility was completed in 12 months, ready for owner occupancy in
10 months and
was delivered
under budget.
This     success
led to a second
award at the
site          for
approximately
$16 million.




            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 25
Institute for Scientific Research (ISR)
Fairmont, WV

This $65 million, 5 story Corporate
Headquarters and Research and
Development Facility is located in
Fairmont, WV. Currently under
construction, the facility will
provide       secure,    ultra-modern
research space for several hundred
scientists,                 engineers,
mathematicians,             physicists,
information technology specialists
and managers. The finished facility
will have TV-quality streaming
video to all desktops; bandwidth-
intensive       computer       research
capabilities;     complete      security
coverage;        energy       efficient,
environmentally sustainable design
and wireless network technology.

                                                                           Kit Creek 2&3
                                                                           Research Triangle, NC

                                                             Cambridge        Development
                                                             Group acted as Development
                                                             Project      Manager        for
                                                             Alexandria      Real    Estate
                                                             Equities, a REIT who is one
                                                             of the nation’s largest
                                                             developers of laboratory space
                                                             with over 4 million square feet
of related space. Their Kit Creek development in Research Triangle Park is to complement
this Life Science portfolio. Kit Creek is a 96,000 square foot, $19 million multi-use
laboratory facility that includes BSL 3 and vivarium space. Specialty laboratories are built
with emergency power and plus two degree HVAC systems. It included installation of cage
washers, autoclaves, sterilizers, glass washers, cold rooms, dedicated waste and ph
neutralizers.

BE&K provided preconstruction and construction services for this negotiated, design assist
at-risk to a GMP project. The owner was Alexandria Real Estate Equities, contact: Melissa
Verdery 919-993-3420. The architect was O’Brien Adkins, Contact: Dudley Lacey 919-941-
9000.

             Division of Forensic Sciences, Northern Virginia Laboratory
             Page 26
Kit Creek 1
Research Triangle, NC

Cambridge Development Group acted as owner’s representative for Alexandria Real Estate
Equities Kit Creek development in Research Triangle Park. Kit Creek 1 is a 38,000 square
foot $7.2 million multi-use BSL2 laboratory that includes full mechanical systems including
air, gas, vac and DI systems.

BE&K provided preconstruction and construction services for this negotiated, design assist at
risk to a GMP project. The owner was Alexandria Real Estate Equities, Contact: Melissa
Verdery 919-993-3420. The architect was O’Brien Adkins, Contact: John Adkins 919-941-
9000.

1330 Piccard
Rockville, MD

Cambridge Development is currently acting as the owner’s representative for Alexandria
Real Estate Equities. The 1300 project is a 138,000 square foot, $9 million bio-defense /
BSL 3 under NIH guidelines that include primate and vivarium facilities, central utility plant
and all mechanical criteria for BSL 3 labs such as one pass air, autoclaves, clean room and
glove box.

BE&K provided preconstruction and construction services for this negotiated, design assist at
risk to a GMP project. The Owner is Alexandria Real Estate Equities, Contact: Melissa
Verdery 919-993-3420. The architect is DNC, Contact: Jeff Fuller at 301-840-1100.

A complete list of projects currently underway is contained in the AIA 305 document in the
Appendix.

Earl Walls Associates Select Project Experience, Forensic Laboratories:

Armed Forces Institute of Pathology                  General Services Administration / Bureau
(AFIP)                                               Of
Walter Reed Army Hospital Campus                     Alcohol, Tobacco, Firearms & Explosives
Master Plan                                          (ATF)
Washington, D.C.                                     National Laboratory Center
340,000 gsf                                          Ammendale, Maryland
Cost: $100M (est.)                                   176,000 gsf
Completion: 1998                                     Cost: $51M (est.)
Role: Master Planning                                Completion: 2003
                                                     Role: Programming through Construction
                                                     Services



            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 27
San Mateo County                                     San Mateo County
Sheriff's Emergency Services & Forensic              Sheriff’s Forensic Lab / Coroner’s Office
Laboratory / Coroner's Office                        San Mateo, California
Needs Assessment, Design Program, Site               R&D Magazine's 2004 Lab Of The Year
Evaluation Study                                     Special Mention
Redwood City, California                             41,606 gsf / 27,432 nsf / 11,000 nsf lab
41,606 gsf / 27,432 nsf                              Cost: $17M
18,332 gsf forensic lab                              Completion: 2003
2,984 gsf forensic administration
5,014 public safety comm. / 911 dispatch             Sheriff’s Forensic Lab / Coroner’s Office
1,903 gsf sheriff's emerg. operation center          San Mateo, California
3,170 gsf sheriff's training unit                    R&D Magazine's 2004 Lab Of The Year
2,040 gsf coroner's office                           Special Mention
Role: Programming, Design Standards and              41,606 gsf / 27,432 nsf / 11,000 nsf lab
Guidelines for forensic laboratories and lab         Cost: $17M
related areas                                        Completion: 2003
                                                     Role: Programming through Construction
State of Iowa - Iowa Laboratories Facility           Services
Hygienic Lab, Agriculture Lab, Forensics
Lab, Medical Examiner Lab                            State of Wisconsin
Des Moines, Iowa                                     Madison Crime Laboratory
167,013 gsf / 100,208 nsf                            Madison, Wisconsin
63,140 nsf lab/lab support                           53,790 gsf / 32,274 nsf
Cost $51.8M                                          18,888 nsf lab/lab support
Completion: 2005                                     Cost: $12M
Role: Programming, Schematic Design and              Completion: 2004
Design Development                                   Role: Program Review, Schematic Design
                                                     and Design Development

United States Secret Service                         United States Department of Justice
Forensic Division                                    Drug Enforcement Administration
Washington, District of Columbia                     Special Testing Laboratory
3,000 gsf of lab                                     National Capitol Region area
Cost: $3M                                            52,000 gsf
                                                     Cost: $11M
Washington State Patrol                              Completion: 2002 est. (contingent on
Crime Laboratory Division                            funding)
State-Wide Needs Analysis Study                      Role: Programming through Construction
State of Washington                                  Administration Services
162,398 gsf projection
Role: Study completed in 1998 (Subsequent
lab planning and design performed in 2002)



            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 28
Washington State Patrol Southwest                   United States Food & Drug
Washington Regional Crime Lab                       Administration
Vancouver, Washington                               National Forensic Chemistry Center
36,012 gsf / 21,506 nsf                             Cincinnati, Ohio
15,590 nsf lab/lab support, crime scene             64,000 gsf / 46,000 nsf / 27,000 nsf lab
response, evidence control and holding              Cost: $10M
Cost: $10M                                          Completion: 1998
Completion: 2005                                    Role: Program Review, Design Development
Role: Programming - Construction Services           through Construction Administration
                                                    Services

Building 227, Advanced Chemical                     United States Department of Justice
Sciences Laboratory (ACSL)                          Drug Enforcement Agency
Gaithersburg, Maryland                              Laboratory Design Guide and
18,512 gsm (199,256 gsf)                            Prototypical Laboratory Design
7,531 nsm (81,066 nsf)                              DEA Regional Laboratories Nationwide
Cost: $52.5M                                        United States Department of Justice
Completion: 1999                                    Drug Enforcement Administration
Role: Programming - Construction                    North Central Laboratory
Administration Services                             Chicago, Illinois
                                                    40,000 nsf

United States Department of Justice                 Wyoming State Laboratories
Drug Enforcement Administration                     Public Health & Department of
Regional Laboratories Design - Southwest,           Environmental Quality (DEQ)
Southeast, Western, and Mid-Atlantic                Laramie, Wyoming
51,000 gsf each                                     25,000 gsf / 14,000 nsf
$13M maximum cost                                   Construction Cost: $4.65M
$52M total cost                                     Completion: 1997
Completion: 2002
Role: Programming and Design
Development

California Department of Health Services            United States Fish & Wildlife Service
Richmond Laboratory Phase I                         Audubon Center For Research of
133,434 gsf / 40,855 nsf lab                        Endangered Species (ACRES)
9,189 nsf animal facility                           New Orleans, Louisiana
2,560 nsf BSL3 area                                 23,000 gsf / 13,000 nsf lab
Cost: $36.6M                                        Cost: $15.3M
Completion: 2001                                    Completion: 1996
Role: Programming - Construction Services           Role: Programming and through
                                                    Construction Administration Services




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California Department of Health Services            Kaiser Permanente
Richmond Laboratory Phase II                        Cytology/Lab Instrumentation Renovation
255,000 gsf / 107,000 nsf lab                       Burbank, California
12,700 nsf BSL3 area                                19,428 gsf / 12,790 nasf
Cost: $77.3M                                        6,700 nsf lab/lab support
Completion: 2003                                    Cost: $1.5M
Role: Programming through Construction              Completion: 1996 (EWA’s role)
Services                                            Role: Program Review, Schematic Design
                                                    and Design Development


Texas Department of Health - Bureau of              Bureau of Alcohol, Tobacco and Firearms
Laboratories New Public Health                      United States Department of Justice
Laboratory                                          National Laboratory and Fire
Austin, Texas                                       Investigation
200,000 gsf                                         Research and Education (FIRE) Center
72,000 nlsf                                         Washington, D.C.
Cost: $ 35M                                         160,000 gsf / 48,000 nsf lab
Completion: 1996                                    Cost: $44M
Role: Programming

Nebraska State Patrol
DNA Testing Laboratory
Lincoln, Nebraska
5,000 net square foot addition
2,250 nsf laboratory
Cost: $500,000 (est.)
Completion: 1996
Role: Program review and consulting during
design development of laboratory areas
National Institute of Standards &
Technology




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4. Provide the names, addresses and telephone numbers of persons within the firm or
   consortium of firms who may be contacted for further information.


Key Contacts for Alexandria and Cambridge Team

Alexandria:

Lawrence J. Diamond
Vice President
Asset Services, Mid-Atlantic Region
Phone:         (301) 947-1770
Fax:           (301) 947-0905
E-Mail:        ldiamond@labspace.com
DOB:           May 14, 1958
SSN:           218-50-5154

Lawrence J. Diamond - Vice President Asset Services, Mid-Atlantic Region. Mr. Diamond
has been employed with Alexandria Real Estate Equities, Inc. since 1998. Mr. Diamond
operates Alexandria’s Maryland regional office in Gaithersburg, Maryland. Prior to his
employment with Alexandria, Mr. Diamond was Senior Director of Facility Services for
Manor Care Health Services and Vice President of Zuckerman Kronstadt, Inc., a regional
property management firm. Mr. Diamond has expertise in all phases of asset management,
property management, leasing, construction, engineering, development and accounting. Mr.
Diamond received his Bachelor of Science in Accounting from Frostburg University and has
worked in the Montgomery County real estate market for over 20 years.

Vincent R. Ciruzzi
Senior Vice President
Construction & Development
Phone:        (858) 530-8190
Fax:          (858) 530-8191
E-Mail:       vciruzzi@labspace.com
DOB:          September 24, 1962
SSN:          573-49-5834

Vincent R. Ciruzzi has served as Senior Vice President, Construction and Development of
Alexandria since June 2000. Mr. Ciruzzi previously served as a Vice President from
September 1996. Since Alexandria’s IPO in May of 1997, Mr. Ciruzzi has been responsible
for the Company’s development and redevelopment portfolio and has managed the
completion of nearly 4.9 million square feet of complex life science projects on behalf of the
Company’s diverse tenant base. In 1993, Mr. Ciruzzi founded a real estate development and
consulting business, which provided consulting services to Alexandria from September 1995

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until his appointment as Vice President of the Company. From 1986 to 1993, Mr. Ciruzzi
served as Project Manager for Home Capital Development Group, a real estate development
company, where he specialized in project management of master planned communities,
including the management of a 2,600-acre mixed-use community, as well as other real estate
development opportunities. Mr. Ciruzzi received his Bachelor of Science degree in Finance
and Real Estate from the University of Southern California.


James H. Richardson
President
Phone:       (650) 286-1200
Fax:         (650) 286-1256
E-Mail:      jrichardson@labspace.com
DOB:         December 15, 1959
SSN:         570-35-6487

James H. Richardson has served as President of Alexandria since August 1998 and as a
director since March 1999. Mr. Richardson previously served Alexandria in Executive Vice
President and Senior Vice President positions since joining the company in August 1997.
Prior to joining the Company, Mr. Richardson held management and brokerage positions for
15 years at CB Richard Ellis, Inc., a full-service provider of commercial real estate services.
Most recently, from March 1996 until August 1997, Mr. Richardson served as Senior Vice
President, Area Manager, for the San Francisco Peninsula and San Jose offices of CB
Richard Ellis, and from December 1982 until March 1996, he was a top producing
professional within the brokerage operations group. During his tenure at CB Richard Ellis,
Mr. Richardson was instrumental in the creation and development of the biosciences and
corporate services practice groups. Mr. Richardson received his Bachelor of Arts in
Economics from Claremont McKenna College.

Insurance coverage: Alexandria has a comprehensive package of insurance from strong
carriers covering property, liability, errors and omissions and other risks. Alexandria will
provide full details upon being awarded this project. Our team architect, Gaudreau &
Associates carries $2,000,000 of per occurrence Errors and Omissions insurance from
Security Insurance of Hartford, and Whiting-Turner, our team General Contractor carries a
$75,000,000 for any one project Builder’s Risk policy with St. Paul Fire and Marine, through
their Insurance Agent: Riggs, Councilman, Michaels & Downes, located at 555 Fairmont
Avenue, Baltimore, MD 21286. In addition, Whiting Turner carries an umbrella policy with
Zurich American Insurance Company, through the same agent, and can provide additional
insurance to cover an aggregate of $25,000,000.




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Cambridge

                           Andrew J. Czekaj
                           Chairman, and Chief Executive Officer
                           Phone:       (703) 709-8866
                           Fax:         (703) 709-0638
                           E-Mail:      andrew.czekaj@cambridgeus.com

                           Andrew J. Czekaj is the Chairman and Chief Executive Officer of
                           Cambridge Holdings, and Chairman of its operating subsidiaries.
                           Mr. Czekaj has an extensive background in commercial real estate
                           including development, project and portfolio financing, asset
acquisition/disposition as well as asset restructures.
Mr. Czekaj has been instrumental in the development, financing, acquisition, and structuring
of nearly $2.0 billion of commercial real estate. Mr. Czekaj has structured the acquisition of
in excess of 9 million square feet of office and industrial product on behalf of partners and
clients. Since June of 1999 Mr. Czekaj has structured the acquisition of 2.4 million square
feet, comprised of 16 office buildings, in the District of Columbia, for a total value of
$580,000,000.
Mr. Czekaj is a graduate of Rutgers University where he graduated Summa Cum Laude and
Phi Beta Kappa. He then attended The Fletcher School of Law and Diplomacy, Tufts
University and obtained his Masters degree from the Harvard Graduate School of Business
Administration. Mr. Czekaj is a member of NAIOP, Urban Land Institute, and has been
selected to the National Directory of Who’s Who in Executives and Professionals 1994-1995,
and the International Who’s Who of Entrepreneurs 1999. In addition, Mr. Czekaj has been
selected to the Rollins College Board of Trustees.

                            T. Michael Scott
                            Vice Chairman and President
                            Phone:           (703) 709-8866
                            Fax:             (703) 709-0638
                            E-Mail:          tmscott@cambridgeus.com

                            T. Michael Scott is the Vice Chairman and President of
                            Cambridge Holdings, and senior executive of its operating
                            subsidiaries. Mr. Scott has comprehensive experience in real
                            estate including land planning, development, asset management,
                            leasing, acquisition financing, and asset disposition.

Mr. Scott has directed lease and sale transactions for retail, office and industrial projects in
excess of 13 million square feet as well as development of two 30-acre parks. NAIOP
recognized three developments as outstanding project of the year. Mr. Scott serves as

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Principal Broker for Cambridge in MD and VA and in the District of Columbia and as such
has overseen in excess of 5 million square feet of least transactions.

Mr. Scott is an honor graduate of Cornell University where he obtained a degree with
distinction in Operations Research Engineering. He earned his Masters degree at the Harvard
Graduate School of Business Administration. Mr. Scott is an active member of NAIOP and
serves on the Executive Committee of the Washington/Baltimore Chapter of the Young
President’s Organization. He serves on the Board of two publicly traded companies; Tier
Technologies (NASDAQ) and American Community Properties Trust (AMEX).


                           Steven E. Scaplehorn
                           Chief Financial Officer
                           Phone:        (703) 709-8866
                           Fax:          (703) 709-0638
                           E-Mail:       sscaplehorn@cambridgeus.com

                         Steven E. Scaplehorn is the Chief Financial Officer of Cambridge
                         Holdings and its subsidiaries. In this capacity, Mr. Scaplehorn
                         oversees all accounting, reporting and administrative functions of
                         Cambridge Holdings, its subsidiaries and investor portfolios. Along
                         with his team of accounting professionals, Mr. Scaplehorn is able to
provide individualized investor reporting, detailed asset analysis, asset performance
projections and assurance of required internal controls.

Mr. Scaplehorn joined Cambridge in 1991 and has served in the capacities of Manager of
Financial Reporting for Cambridge Asset Advisors L.P. and Sr. Vice President of Finance.
During his tenure, Mr. Scaplehorn has assisted with the due diligence and acquisition of over
6 million square feet of office and flex product. Mr. Scaplehorn has also been instrumental in
the establishment and implementation of financial reporting policies and procedures.

Prior to joining Cambridge, Mr. Scaplehorn was Controller of Walt Robbins, Inc., a privately
held commercial real estate company with a portfolio of 2.3 million square feet. Mr.
Scaplehorn has over 20 years of financial and accounting experience within the real estate
industry including acquisitions, development, property management and partnership
syndication. Mr. Scaplehorn is a graduate of Radford University.




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                             John H. Cunningham
                             Executive Vice President, Cambridge Holdings
                             President, Cambridge Development Group
                             Phone:        (703) 709-8866
                             Fax:          (703) 709-0638
                             E-Mail:       jhcunningham@cambridgeus.com


                          John H. Cunningham is the Executive Vice President of
                          Cambridge, and President of Cambridge Development Group L.P.
                          The core focus of his development program has been to structure
build-to-suit development opportunities for institutional investors and corporations interested
in developing and owning their own facilities. The scope of service covers all aspects of the
development process from site selection, financing, programming, design and the permit
process through bidding and construction.

Mr. Cunningham spearheaded the development process for in excess of 3,500,000 square feet
of commercial space in the Washington D.C. metropolitan area, which has included build-to-
suit facilities for an array of users such as Government Technology Services, Inc. (GTSI),
Hitachi Data Systems, Westinghouse Airbrake, American Systems Corporation, Digene, the
United States Postal Service (USPS), the Drug Enforcement Administration (DEA), the Food
& Drug Administration (FDA) and the National Aeronautical Charting Office (NACO).

Mr. Cunningham joined Cambridge in 1987. He is a native of the Washington area, and
currently serves on the Board of Trustees for both Loudoun Country Day School in
Leesburg, Virginia, and Scenic Loudoun Legal Defense, Inc. in Leesburg, Virginia. He is
also the Applicant to add nearly 1,000 acres of rural, agricultural land into Loudoun County’s
and the State of Virginia’s Goose Creek Historic District. Mr. Cunningham is a graduate of
the University of Maryland.

                            Scott Roberts
                            Vice President - Development
                            Phone:         (703) 709-8866
                            Fax:           (703) 709-0638
                            E-Mail:        sroberts@cambridgeus.com

                        Scott Roberts is the Vice President of Cambridge Development
                        Group, L.P. and brings 30 years of experience in the Construction
                        and Development fields. Since joining Cambridge in 1997, he has
                        been responsible for the delivery of $100,000,000 of commercial,
                        laboratory and highly technical product. He is responsible for the
day-to-day operations of project delivery and budget maintenance for major ground-up
projects.


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Mr. Roberts has had 25 years of design–build experience completing more than 90 major
projects in 35 states. His experience has spanned all facets of the business from project
superintendent to Senior Vice President.

Mr. Roberts is a graduate of The University of Delaware where he completed his Bachelor of
Science degree. He has also obtained a certificate in Construction Management from
Middlesex University and holds a General Contractor License for the States of California,
North Carolina and Hawaii.


Key Contacts for Legg Mason and Wood Walker:

W. Randall Dunning
Managing Director, Senior Vice President, Southest Region
1021 East Cary Street, Suite 100
Richmond, VA

Mr. Dunning is a Managing Director based in our Richmond, Virginia Public Finance office.
He manages the firm's Southeast Region practice and coordinates the activities of the Higher
Education Group. He joined Legg Mason in 2003 after 3 years as a Managing Director for
Morgan Keegan & Company. Prior to that, he was a Senior Vice President with BB&T
Capital Markets (formerly Craigie Incorporated and Scott & Stringfellow) for 15 years and
Union Planters Investment Banking Group for 4 years. Mr. Dunning concentrates his efforts
almost exclusively on Not-For-Profit clients. He has been involved in numerous financings
for a variety of NFP clients including both private and public higher education, hospitals,
nursing homes, continuing care retirement centers, stand-alone elderly housing, private
primary and secondary education, and charitable organizations. His experience also includes
low-income multi-family housing.

He has senior managed issues for healthcare clients such as Arlington Hospital, Alexandria
Hospital, Chesapeake Hospital, Convalescent Care, Inc., HCMF Group, Martha Jefferson
Hospital, Mary Washington Hospital, National Orthopaedic Hospital and Retreat Hospital. A
sample of his education clients includes, George Mason University, Mary Baldwin College,
Norfolk State University, Randolph-Macon College, Randolph-Macon Woman's College,
Virginia Commonwealth University, Virginia Tech and Wake Forest University. He has
served on a variety of housing issues including bonds issued by Norfolk RHA, Richmond
RHA, and Roanoke RHA.

Mr. Dunning has been very active in industry-related activities. He served as a Board of
Governors and President of the Bond Club of Virginia. He has held numerous leadership
roles with the Healthcare Financial Management Association including long-time service on
the Virginia Chapter Board of Directors and President of the organization in 2000. He has
been an author and speaker on variety of capital finance topics and served as an instructor for

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candidates of the HFMA fellowship exam. He holds a Bachelor of Business Administration
degree in Finance, Insurance and Real Estate from the Fogelman College of Business and
Economics at the University of Memphis. Mr. Dunning is a Registered General Securities
Principal and Municipal Securities Principal with the NASD.

Key Contacts for Gaudreau Associates and Earl Walls:

(following resumes)




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Key BE&K Building Group Contacts:

Mark Hefferin — Project Executive
Mark has more than 22 years of professional experience in the pharmaceutical,
biotechnology and life science industries. He is the operations executive for BE&K Building
Group’s Life Science and Technology group. Mark has headed regional offices in North
Carolina, Virginia and Maryland and has extensive experience in pharmaceutical and
biotechnology projects to include work at Eli Lilly, Glaxco, Novo Nordisk and Barre. His
role on the Northern VA Forensics project will be to oversee the project construction team to
ensure that all project controls and policies and procedures are in place and are implemented
throughout the duration of the project.

Joe Raimondi — Project Director
Joe has over 17 years in the construction industry that includes bio-containment projects with
one of the nation’s largest private developers of laboratory space, Alexandria Real Estate
Equities (ARE) and with Cambridge. Both are repeat clients and Joe has ongoing projects
with them currently. He has related experience working with BSL 2 & 3 through ARE at
Kit Creek 1, 2&3 in RTP, NC and 1300 Piccard in Rockville, MD a bio-defense, BSL 3
laboratory. Joe will be team leader with responsibility of communication, quality assurance,
safety, project schedule and cost control He was instrumental in the successful completion of
the ARE/Cambridge projects.

Paul DePenning — Project Manger
Paul brings over 10 years of related project experience to the team. Over the last four years,
much of his construction management experience has been primarily in the biotechnology
and pharmaceutical fields working with Eli Lilly and other major pharmaceutical companies.

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Lilly is a repeat client and his related project experience includes: Eli Lilly – preconstruction
services for the $450 million greenfield aseptic manufacture of insulin in Manassas, VA,
Diosynth – Project manager for the $27 million of various upgrades and fermentation refold
project and Purdue Pharmaceutical -project director for current expansion project for the $30
million state of the art medication formulation facility.

Mike Hughes — Preconstruction
Mike has been in preconstruction for over 10 years and with BE&K for over 5 years.
Preconstruction for the Forensics Lab will be very important given the budget considerations
and mechanical systems involved. Mike has extensive experience on complex
pharmaceutical projects and worked with Mark Hefferin and Paul De Penning on the $450
million Eli Lilly insulin project in Manassas, VA. This one and a half year preconstruction
effort involved the integration of numerous trades, design and construction.
Related Projects

BE&K Building Group’s reported company revenues have remained steady throughout the
years as outlined below. Preconstruction and construction totals $850,000,000 for 2005.
BE&K, Inc., on average, has put in place $1.2 billion worth of construction.

BE&K Bank References

AmSouth Bank, NA
Mr. John Kettig — Senior Vice President
P.O. Box 11007
Birmingham, AL 35288
Phone: 205. 326. 5240

Suntrust Bank
Mr. Frank Wrenn — Director
P.O. Box 4418
Atlanta, GA 30302-4418
Phone: 404. 658. 4219

Bonding

BE&K Building Group through BE&K, Inc. maintains a co-surety arrangement with Liberty
Bond Services and St. Paul/Travelers c/o Marsh USA Inc.

Liberty Bond Services and St. Paul Travelers (co-sureties), c/o Marsh USA Inc.
Mr. Drew Brach
171 Monroe Avenue NW, Suite 800
Grand Rapids, MI 49503-2683

BE&K Building Group’s senior management, with an average of more than 22 years of
experience representing more than $4 billion of successfully completed projects, is focused
upon a geographic area made up of a triangle extending from the Metropolitan Washington,

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DC area, west through Texas, and from there southeast to southern Florida. Each office has
strong local and regional relationships with subcontractors and vendors as well as design
professionals and local regulatory authorities. The firm is also focused on a limited number
of market sectors where highly trained and experienced people have compiled records of
outstanding success with specialized project delivery. This combined construction
experience represents completed work at some of the most prominent healthcare providers,
higher education institutions and commercial clients throughout the country. In general,
these projects range in size from $5 million to $150 million and the officers of the BE&K
Building Group have functioned as project executives, operations managers, operations
directors, preconstruction directors, group presidents, etc. with respect to these projects.

The BE&K Building Group is a subsidiary of BE&K, Inc. BE&K, Inc. is one of the largest
privately held companies in the United States and as an employee owned and privately held
company, does not typically disclose its financial condition. However, as a result of
profitable operations for 32 years and conservative investment of cash balances, BE&K, Inc.
has a net worth in excess of $100 million as of the close of the company’s latest fiscal year
(March 31, 2004). Conservative operation and continuing profitability has created
outstanding liquidity which can be verified by Mr. Clyde Smith, CFO of BE&K, Inc. at 205.
972. 6469 or by various bank references.

5. Provide a current or most recently audited financial statement of the firm or firms and
   each partner with an equity interest of twenty percent or greater

Cambridge is the development project manager for the Alexandria / Cambridge Team, and
Alexandria is the equity partner. Alexandria is a publicly traded real estate investment trust
(REIT) traded on the New York Stock Exchange, symbol ARE. Alexandria’s most recent
financial statement is included in the attached Confidential Appendix. Cambridge’s financial
statement has been provided under a separate Confidential Appendix. Under Scenarios 1 and
2, the 501(c)3 will be a single purpose entity.

6. Identify any persons known to the proposer who would be obligated to disqualify
   themselves from participation in any transaction arising from or in connection to the
   project pursuant to The Virginia State and Local Government Conflict of Interest Act,
   Chapter 31 (§ 2.2-3100 et seq.) of Title 2.2.

No persons or proposed entities will be obligated to disqualify themselves due to conflict of
interest.

7. Worker hiring plan




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BE&K Building Group

Procurement and Subcontracting:

The subcontracting, purchasing, negotiating effort is led by the BE&K Project Manager and
is supported by the Purchasing and Bond/Risk Management Departments. The Project
Manager serves as the subcontract administrator. The most important elements of the
BE&K’s philosophy regarding procurement of major subcontracts rely on competitive
pricing, qualification of the subcontractors, and clear communication of expectations.

BE&K’s Purchasing Department, in conjunction with their Bond/Risk Management
Department, performs thorough underwriting on all major subcontracts. BE&K maintains
underwriting files on over 2,000 vendors throughout the United States. Vendors are evaluated
based on financial strength, management expertise, and industry reputation.

Methodology:
A procurement schedule developed by the project team of BE&K, Cambridge and Gaudreau
provides a tool to manage the purchasing process. The procurement schedule provides the
link between design and construction enabling all parties to focus effort and resources where
they are most beneficial, when they are most needed.

BE&K’s Purchasing Requisition System assists the project team in thorough scope-of-work
definition to ensure that all necessary elements of the work are communicated to the
subcontractor. These elements will include commercial as well as technical terms. The
Requisition System is tailored to each project’s specific requirements. We will coordinate a
clear understanding as a team of everyone’s expectations. The Requisition System will
ensure that Cambridge’s requirements are integrated into the project.

BE&K typically obtains a minimum of three competitive prices for all major elements of the
work. Pricing is sought from pre-screened bidders. The project team will develop a bidder
list, with input from BE&K’s Purchasing, Estimating, and Bond/Risk Management
Departments. Only firms meeting their underwriting requirements will make the final list.

As project requirements dictate, BE&K will conduct a pre-bid conference. This conference
will be structured to further communicate the project requirements to the selected bidders. It
is at this meeting that the team can “bring the project to life,” describing form, function,
schedule, trade interface, and limits. This meeting is a chance for Cambridge to communicate
its enthusiasm, concerns, and expectations for the project. This is also the time when
subcontractors can ask questions. The conference continues the mission of aligning the focus
of all parties on the project.

The BE&K Building Group team will assemble bid packages to communicate schedule,
scope, commercial terms, and delivery requirements to prospective subcontractors. The bid
packages will be coordinated so that no “gaps” or “overlaps” occur. Again, the key is to

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balance design and construction to the maximum benefit of all parties. Any Cambridge
documents such as confidentiality agreements, work schedules, and safety standards will be
incorporated in the bid documents up front.

The Purchasing Department, in conjunction with the BE&K project team, will analyze the
proposals for accuracy, completeness, constructability, and value engineering. A bid analysis
sheet will be prepared for review by the project team of BE&K, Cambridge, and Gaudreau.

As part of the bidder’s work package, the Building group will provide every contractor with
required milestone dates. Each subcontractor will be required to submit a preliminary
schedule based on the project milestones, showing all major activities and total projected
manpower by area. In addition, they will be required to show all work contracted to third
parties.

BE&K will ask for manpower requirements by area as part of our scheduling effort. The
detailed estimate for each area will also be requested as backup so that total required
resources (i.e., both material and labor) will be broken down for each work area.
Once recommendations are agreed upon and received, the director of purchasing may
conduct pre-award meetings with the project team and the potential subcontractors to review
the scope and execution of work. At this time the logistics, schedule, manpower, inter-trade
coordination, and commercial terms of the project are finalized. Any modifications to the
proposal form or qualifications included in the subcontractor’s proposal will be resolved in
this meeting. The above approaches ensure we obtain the “most qualified subcontractor.”
The Purchasing Department will track the subcontract execution process to ensure all
contract documents and insurance certificates are in hand prior to the subcontractor going to
work.

Subcontractors may be required to develop and submit a material and equipment-receiving
plan. The procurement schedule can be expanded to include expediting and receiving as
subcontracts are issued. All commitments issued will include expected delivery dates. This
schedule will enable the project team to be proactive in ensuring that subcontractor-furnished
materials and equipment will be on site when needed. In general, subcontractors will be
responsible for receiving materials and equipment within their scope of work.

8. Provide information on any training programs, including but not limited to
   apprenticeship programs registered with the U.S. Department of Labor or a State
   Apprenticeship Council, in place for employees of the firm and employees of any member
   of a consortium of firms.

BE&K’s Continuous Improvement Program is formal recognition of the company’s belief
that quality can be planned into every process through the involvement of all employees in
the flow of information and decision making and involves: client satisfaction, people
effectiveness, project controls and safety.


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Additionally, their safety training includes:

   •   Formalized training matrix for directors, managers, supervisors and craft employees
   •   Formalized project safety orientations
   •   Weekly project safety meetings
   •   Daily project pre-work safety briefings
   •   OSHA training requirements
   •   10-hour OSHA class for directors, managers and supervisors
   •   Formalized competency training every quarter for directors, managers and
       supervisors in areas required by OSHA
   •   Hazard awareness training for directors, managers and supervisors
   •   Loss control and safety management training

9. Provide information on the level of commitment by the firm or consortium of firms to use
   Department of Minority Business Enterprise firms in developing and implementing the
   project

Alexandria and Cambridge have sought to utilize local firms in close proximity to the site.
When selecting Team Members on complex projects such as this proposed Forensics
Laboratory, we are cautious to select design and construction team members who we have
previous working experiences with. However, during the construction phase of the Project,
we have the opportunity to seek out additional local firms, including Minority Business
enterprise firms through the selected general contractor.

BE&K has a long standing commitment to equality of opportunity for all employees without
regard to race, color, sex, religion, national origin, age disability, or status as a Vietnam era
or special disabled veteran or any other category protected by local, state or federal law. The
continued growth and development of BE&K will be a result of recognizing and utilizing the
abilities of all our employees with respect to recruitment, hiring, training, promotion transfer
and all other terms and conditions of employment.

To further show Leadership’s commitment to equal employment opportunity and affirmative
action, the following steps have been taken:

   •   BE&K Affirmative Action Administrator will monitor conformance of our
       affirmative action plan in regard to all personnel decisions.
   •   All supervisory personnel have been instructed to make special efforts to insure
       implementation of the policy. Annual evaluations of management/supervisory
       employees will reflect the adherence to and results of efforts related to this policy.

BE&K uses the following organizations to find firms for our team:
  a. Association of Builders and Contractors (ABC), Virginia Chapter
  b. Department of Minority Business Enterprises

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   c.   Virginia Minority Suppliers Development Council
   d.   Virginia Minority Business Register
   e.   National Association of Women Owned Businesses
   f.   Virginia Women-Owned Business register
   g.   Small Business Administration

10. Legal status.

None of the proposing firms are currently debarred or suspended by any federal, state or local
government entity.

11. Worker safety programs

The Alexandria / Cambridge Team is committed to maintaining the highest standards of
safety in the workplace. Our policy is to comply with all applicable federal, state and local
health and safety regulations, and to provide a work environment free from recognized
hazards. All employees are expected to comply with all safety and health requirements,
whether established by management or by federal, state or local law.

Safety is of paramount concern to the entire Alexandria / Cambridge Team and all associates
are required to wear construction hardhats, proper safety shoes and safety glasses. BE&K
will require all subcontractors to adhere to the same safety policy. In addition, BE&K has a
mandatory drug testing program. Anyone found to be in noncompliance with mandatory drug
testing will be required to leave the project.

BE&K firmly believes that safety starts with the senior management of the company and
permeates down to the lower ranks. Without senior management’s active participation and
involvement, we would not be able to succeed with our safety program.

Features of BE&K’s safety program include:

   •    Safety Incentive Program – We recently introduced a program in which awards (gift
        items) can be obtained by our field forces and construction managers by earning
        safety points associated with safe man hours worked. To date, this program has been
        enthusiastically received and is currently implemented throughout our entire
        company.
   •    Drug Abuse and Safety Programs – The Building Group requires drug testing and
        safety programs for subcontractors. Documentation on these programs is mailed to
        all subcontractors and must be signed and returned to us before any contract is
        finalized.
   •    Weekly Safety Gang Box Meetings – Every Monday morning we conduct weekly
        safety meetings in which the construction manager discusses a pre-selected safety
        topic and any problems that were found to exist on the job. At the end of this
        meeting, all associates sign a form indicating that they attended the meeting.

            Division of Forensic Sciences, Northern Virginia Laboratory
            Page 48
•   Subcontractors Safety Meeting – We strongly encourage our subcontractors to hold
    weekly safety meetings as well. Normally BE&K construction manager will rotate
    and sit in on the various subcontractor safety meetings. Suggestions are made at
    these meetings about how subcontractors can improve their safety performance.
•   Corporate Safety Program – BE&K has a full-time regional safety director who
    makes unannounced visits to all construction sites throughout the company’s
    geographic regions. This normally equates to a minimum of one visit per month.
    The safety director issues safety bulletins listing potentially hazardous situations on
    the jobsite. Project directors and construction managers have four days to correct
    shortfalls.
•   HAZCOM – The Building Group indoctrinates all associates and subcontractors in
    its HAZCOM program, which complies with OSHA standards. (HAZCOM is an
    acronym for Hazardous Communication). We maintain complete HAZCOM manuals
    at each job, as well as a VCR with a HAZCOM tape, which every employee must
    view prior to employment.




        Division of Forensic Sciences, Northern Virginia Laboratory
        Page 49

				
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