Frequently Asked Questions
| Q: | How does the Government determine Fair Market Value (FMV)? In the ground lease, can the agreed upon value be adjusted as rental or additional market information is obtained? |
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| A: | The Government determines FMV in the same ways that the private sector would; it depends on the particular site. Negotiations to determine final consideration will begin once a Highest Ranking Offeror (HRO) is selected. The Air Force understands that there are some variables and unknowns and that these could impact proposed consideration. |
| Q: | Has the Air Force determined the FMV, and will the assessment be made available? |
| A: | Yes and No. |
| Q: | Will the Air Force do a market survey and set a value on the land for the entire 50 year term? |
| A: | The Air Force develops a range of property values and may use that information to evaluate the proposals. While much work is being done to educate the Air Force on the value of the property to be leased, that information is not made available to the public. |
| Q: | Why is compliance with Davis Bacon required from the Air Force? |
| A: | The Air Force has determined the requirements of the Davis Bacon Act apply to construction projects on Air Force property. |
| Q: | What building codes will be in place? This relates to service by the base fire department and whether the parcels are severed. |
| A: | All development activities involved in the project shall be in accordance with state and local building codes, standards, regulations and the federal laws, as they may be amended, that would apply to similar development activities outside the Base and within the local County(s), to include 15 USC § 2227. Designs must comply with the Department of Defense Antiterrorism Standards for Buildings (UFC 4-010-01 as amended), as applicable (See Question #9). For all severed parcels, concurrent jurisdiction is preferable. |
| Q: | Does the Government expect the site to be built out in one continuous period? |
| A: | The development period will be proposed by the Offeror. Section 3.2.2.3 (Construction Management Plan) in the RFQ states: “The plan shall establish procedures for coordinating, updating, and implementing design and construction schedules”. Section 3.2.2.3.2 (Schedules) states: “Design and construction schedules shall identify all phases of design, design review, demolition, construction, and relocation of existing tenants, if any”. |
| Q: | What entity will do inspections for compliance with construction standards? |
| A: | The RFQ identifies that the developer is required to hire an independent third party to perform such inspections. Refer to section 3.2.2.3.4. |
| Q: | Since the project is on Government-owned land, will a development order from the County(s) be required? Will building permits from the County(s) be required? |
| A: | Please reference the RFQ Section 3.2.2.5 Certification, Zoning, and Permit Requirements, and more specifically Sections 3.2.2.5.2 and 3.2.2.5.3 which read as follows: Section 3.2.2.5.2 (Codes, Standards, and Regulations) “All development activities involved in the project shall be in accordance with the County(s) building codes, standards, regulations and the federal laws, as they may be amended, that would apply to similar development activities outside the Base and within the County(s) in which the Base is situated, to include 15 USCS § 2227. Designs must comply with the Department of Defense Antiterrorism Standards for Buildings (Unified Facilities Criteria 4-010-D1). Section 3.2.2.5.3 (Permits) “The Lessee shall acquire all permits and pay all required fees”. |
| Q: | Will severed properties be required to have access other than through the gate (i.e. public roads)? |
| A: | Yes, all severed properties will be required to have their own access point(s). |
| Q: | Can we move the fence for development and then move it back when development is complete? |
| A: | If the Business and Development Plans call for severing the parcel from the installation, the site may be severed and the security fence moved permanently at the outset of construction. If there is no plan to sever the site during the term of the lease, and assuming the location of the parcel permits, the security fence may be moved temporarily during the construction phase of the project subject to replacement at its original location. |
| Q: | Residential property other than senior housing is considered a non-compatible use in EULs. Why? |
| A: | The EUL program will not compete with the Military Family Housing Privatization Initiative, thus will not entertain any such use of the property. |
| Q: | Can other Government agencies propose on this EUL? |
| A: | Yes. |
| Q: | Will the Air Force, as Lessor, provide property clean of environmental issues, and ensure or be responsible for any future contamination issues caused by base operations? |
| A: | The EUL parcels will be conveyed to the Lessee “as is, where is” with all necessary remedial action complete. If further remediation is required to accommodate a Lessee’s use, the Lessee will be responsible for undertaking the addition remediation at its sole cost and expense. If during the Lessee’s tenure on a site the Lessee discovers previously unknown contamination caused by the Air Force, the Air Force will assume responsibility for the contamination. If the Lessee exacerbates existing contamination or causes contamination on the site, the Lessee will be responsible for remediation of this contamination and the cost thereof. |
| Q: | If hazardous waste is found by the HRO, who is responsible? |
| A: | The sites will be delivered to the Lessee “as is, where is” with all necessary remedial action complete. If further remediation is required to accommodate a Lessee’s project, the Lessee will be responsible for undertaking the addition remediation at its sole cost and expense. If during the Lessee’s tenure on a site the Lessee discovers previously unknown contamination caused by the Air Force, the Air Force will assume responsibility for the contamination. If the Lessee exacerbates existing contamination or causes contamination on the site, the Lessee will be responsible for remediation of this contamination and the cost thereof. |
| Q: | How important is community relations to the base and AFRPA? Should it be emphasized in a submission? |
| A: | Community relations are very important to both the base and AFRPA. Experience in the County(s) and working with local firms will be viewed favorably. |
| Q: | How specific does the initial proposal need to be with respect the proposer's initial vision, the expected phasing, the intended uses, the FMV and the lease payments? (It is recognized that the successful Offeror will also be selected based on their overall qualifications.) |
| A: | The Air Force expects the initial vision, phasing, uses, FMV and lease payments to be realistic and reasonable. Proposals will be evaluated according to the standards set forth in the RFQ considering the associated feasibility and risk of the proposal. Proposals should be as specific as possible in identifying all key underlying assumptions that drive the proposed square footage, lease payments and phasing. |
| Q: | If the Air Force requires oral presentations, is it required that the presenter use PowerPoint software, or may different presentation software also be acceptable? |
| A: | Alternate software is acceptable; however, if using software other than PowerPoint please plan on bringing your own technology to the oral presentation to ensure the alternate software functions appropriately. |
| Q: | Does the Air Force encourage LEED certification for the structures that will be built on these parcels? |
| A: | LEED certification would be favorably looked upon and encouraged. |
| Q: | Who will make the final decision in selecting the Highest Ranked Offeror (HRO)? |
| A: | Section 5.1 of the RFQ states that “The Government will determine the most advantageous Proposal and thereby identify the HRO using an integrated assessment of the factors/subfactors.” These factors/subfactors are described and defined in Section 5.0 of the RFQ. The members of the deal team will make a recommendation to senior leadership in the Air Force, also known as the Source Selection Authority. |
| Q: | What are the criteria for making the decision? |
| A: | Refer to RFQ Section 5.0 and the Industry Forum presentations for additional details on the selection process and criteria. |
| Q: | Why is the maximum lease term 50 years? Is a 99-year term possible, for example? |
| A: | The lease term is determined by the Assistant Secretary of the Air Force and may exceed 5 years if the longer period will promote national defense or be in the public interest. A decision has been made to limit these terms to a maximum of 50 years. However, the agreements will provide for extensions of leases by mutual agreement. |
| Q: | Can lease payments be laddered upward as phases are put into place? |
| A: | Yes. Such terms may be proposed and negotiated prior to signing the ground lease. |
| Q: | Are there any special limits on subleasing to a federal agency tenant? |
| A: | Yes. Refer to OMB Circular A-11 Appendix B which describes the requirements and identifies the difference between capital leases and operating leases. |
| Q: | Is the Air Force planning to be a partner in this transaction? |
| A: | No. However, with a caveat that the Air Force is open to partnering, in a sense, through profit sharing as a percentage of the Effective Gross Income (EGI) of a project to go towards the In-kind consideration. |
| Q: | Is there a party that will administer the contract for in-kind repair, improvement, etc? |
| A: | The Air Force. |
| Q: | What constitutes a valid base entry credential and who will provide it? |
| A: | Specific procedures and credentials will be posted on the PRESS Contractor website. |
| Q: | Will the Air Force sponsor or escort contractors (tenants) on base? |
| A: | No, the Air Force will not sponsor or escort contractors on base. |
| Q: | How does the EUL program differ from housing privatization? |
| A: | The EUL program is authorized under the Military Leasing Act, 10 U.S.C. 2667. The Air Force Military Housing Privatization initiative is authorized under 10 U.S.C. 2871. Please consult the alternate authorities for a description of the programs. |
These questions and answers are for reference purposes only. Nothing contained herein shall be construed to limit the rights of the Air Force, all of which are expressly reserved. Further, the Air Force reserves the right to modify any of the answers at any time according to periodical review.