02_R9ContractSpecsAcquisition2021_051721.pdf

APPRAISAL SPECIFICATIONS

Task 1: Joseph Lutes Purchase, Appraisal Tracking #FS21-0912-0476

Pershing Township, Jackson County, Indiana

Task 2: TNC – Saalman Purchase, Appraisal Tracking #FS20-0912-0429 Oil Township, Perry County, Indiana

Task 3: TNC Gramelspacher Purchase, Appraisal Tracking #FS21-0912-0475 Ohio Township, Crawford County, Indiana

Task 4: Bye Real Estate Development Inc. Purchase, Appraisal Tracking #FS21-0912-0477 Oil Township, Perry County, Indiana

Basic Specifications For Real Property Appraisals General Specifications.

Scope of Service. The contract appraiser shall furnish all materials, supplies, tools, equipment, personnel, travel (except those to be furnished by the Government as listed in Section I) and shall complete all requirements of this contract, including performance of the professional services listed herein.

The project consists of separate appraisal reports per bid item for the 4 specified properties. A separate statement of work will be provided to the appraiser for each property. For the purposes of these specifications, any appraisal report will be considered as meeting the “Uniform Standards of Professional Appraisal Practice” (USPAP) requirements for an appraisal report if it has been prepared in accordance with the “Uniform Appraisal Standards for Federal Land Acquisitions” (UASFLA) and is also reviewed and approved for agency use by the government review appraiser. The report shall provide an opinion of market value for the estate to be appraised and shall conform to the edition of USPAP, published by The Appraisal Foundation, current as of the date of the report, as well as UASFLA.

The contract appraiser may be provided a pre-determined date of value for the entire project; in the statement of work (SOW); otherwise, the effective date of the value shall be the last date the contract appraiser inspected the appraised property. Under normal circumstances, no more than 30 days should elapse between the effective date of value and the date the report is submitted for review.

If clarification of these specifications is needed and/or to arrange for the site inspection and pre-work meeting, the contract appraiser shall contact the assigned staff review appraiser, who is also the Contracting Officer Representative (COR), at:

Angela M. Kwasny, MAI, AI-GRS 626 East Wisconsin Ave, Suite 600

Milwaukee, WI 53202 414-297-3621 angela.kwasny@usda.gov

The contract appraiser’s contact with Forest Service officials is limited to the Contracting Officer, the COR, and the Regional Appraiser. The contract appraiser shall notify the assigned COR of any requests for information by other Forest Service officials.

Should the appraiser determine that any of the information provided herein or in the case specific appraisal assignment letter is incorrect, or other Forest Service officials provide information that is contrary to the case specific appraisal assignment letter, the appraiser should contact the COR for clarification. Only instructions from the Contracting Officer and/or the COR are valid for this contract.

Appraisal Report. The contract appraiser selected for the assignment shall make a detailed field inspection of the subject property as identified in the appraisal assignment letter and conduct as many investigations and studies as necessary to derive sound conclusions to prepare the appraisal report. Upon approval of the reports for agency use by the assigned review appraiser, the appraiser shall deliver two (2) hard copies and one pdf copy of each of the three (3) appraisal reports as identified in Section F.

Pre-Work Conference. The contract appraiser will be required to attend a pre-work conference for discussion and understanding of these instructions. The pre-work conference may be held in conjunction with the property examination [C-2.1(d)]. However, it is initially planned to be via teleconference prior to issuance of notice to proceed. Participants will include the contracting officer (CO), contracting officer representative (COR), and may include other Government representatives.

Examination Notice. The contract appraiser shall provide the property owner and the Government 10 days advance notice of the examination date and shall give the owner, or the designated representative, and the Government an opportunity to accompany the contract appraiser during the inspection of the property. These notices shall be documented in the contract appraiser’s certification within the appraisal report.

Site Inspection. The contract appraiser shall certify that the contract appraiser has personally visited the appraised properties and all of the comparable transactions used in the comparative analyses.

Definition of Terms. Unless specifically defined in the appraisal assignment letter or in either USPAP or UASFLA, definitions of all terms are the same as those found in “The Dictionary of

Real Estate Appraisal” (Appraisal Institute), current edition. The UASFLA shall take precedence in any differences among definitions.

Technical Specifications.

Application of These Specifications: These technical specifications reflect the standards for the appraisal of property to be acquired or conveyed by the Forest Service. The specifications require the contract appraiser to analyze and determine the larger parcel. If it is determined that the estate to be appraised contains multiple larger parcels, the contract appraiser shall consult with the COR for possible additional direction.

Federal Law Controls: Federal law may differ from the laws of some states and supersedes State law when they conflict. Accordingly, it is incumbent upon the contract appraiser to understand the applicable Federal law as it affects the appraisal process in the estimation of market value. Federal law is reflected in UASFLA. The specifications in this appraisal contract follow UASFLA format, with emphasis on issues of special concern to the Forest Service. It should not be construed that the contract appraiser is to consider only the emphasized items. Appraisal reports shall be prepared in compliance with UASFLA standards and Statement of Work (SOW) provided by the assigned COR and/or the Contracting Officer.

One particular aspect of the UASFLA that the contract appraiser should be aware of is the “unit rule.” The unit rule requires valuing property as a whole rather than by the sum of the values of the various interests into which it may have been carved. A second aspect of the unit rule is that different elements or components of a tract of land are not to be separately valued and added together.

UASFLA and USPAP Conflicts: Conflicts between UASFLA and USPAP are minimal.

When there is conflict, UASFLA takes precedence. It may be necessary to invoke the Jurisdictional Exception Rule to USPAP to meet certain standards of the UASFLA. Invocation of the Jurisdictional Exception Rule should never be invoked lightly and must include citation of the over-riding Federal policy, rule, or regulation that requires it. Any jurisdictional exceptions not specifically cited in the UASFLA shall be discussed with the assigned COR and/or Contracting Officer.

Comprehensive Review: Federal law and UASFLA requires review of all appraisals by a qualified review appraiser to assure they meet applicable appraisal requirements, including those in UASFLA, USPAP, Forest Service policy, and these specifications. Findings of deficiency shall be discussed and corrections requested once the appraisal report has been delivered. The appraiser shall respond to request for corrections within the timeframe identified in Section F. A value opinion is acceptable for agency use only after the assigned staff review appraiser has approved the appraisal report.

Freedom of Information Act: Freedom of Information Act provisions may result in the release of all or part of the appraisal report to the public. Prepare the report so that:

a. Analytical methods and techniques are explained (in so far as possible) in a manner understandable to the public, as well as the reviewer.

b. If providers of information request confidentiality, this information is not included in the report. Confidential information shall be made available to the COR and/or Contracting Officer upon request, but shall not be incorporated in a Forest Service system of records.

Client and Client Confidentiality: The appraiser has an obligation of confidentiality to the client. Appraisers are to receive and discuss appraisal instructions from the Contracting Officer and COR ONLY. The appraiser is not to provide appraisal information, analyses, or opinions of value to anyone (owner, nongovernmental organization (NGO) representatives, or National Forest staff) unless specifically authorized in writing by the client. Release of the appraisal or appraisal related information prior to review and approval for agency use will invalidate the appraisal in support of an agency action. All communication shall be in accordance with communication protocol. Inappropriate discussions with third party facilitators, property owners, or the release of appraisal information to unauthorized parties will invalidate the appraisal in support of an agency action and will be considered a violation of this contract.

Format. The report shall be hard copy, sized at 8 1/2 by 11 inches, with all parts of the report legible. The face of the report shall be labeled to identify the appraised property and show the contract number, the appraisal tracking number, the appraiser's name and address, and the date of the appraisal. All pages of the report, including the exhibits, shall be numbered.

Contents. The suggested format outlined in items C-2.2(b)(1) through C-2.2(b)(4) is based on UASFLA. Although it is not required that the contract appraiser strictly adhere to it, all items must be addressed. It should be noted that in most instances, these specifications reference UASFLA without reprinting them here. Important items are noted below, but are not all-inclusive. It is incumbent upon the contract appraiser to read, understand, and comply with UASFLA and these specifications.

Part I - Introduction. Follow the UASFLA format.

1. Title Page.

2. Letter of Transmittal.

3. Table of Contents.

4. Appraiser’s Certification. Follow UASFLA (2.3.1.4) and USPAP Standard 2, also certify the following “I have conducted a physical inspection all of the properties used as comparable sales.”

5. Summary of Salient Facts and Conclusions.

6. Photographs of Subject. Provide original color photographs or high quality color copies of photographs of the appraised property. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property and comparable sales. Show the following information with each photograph:

a. Identify the photographed scene. Indicate direction of view, vantage point, and other pertinent information. A map may be used to show some of this information.

b. The name of the photographer.

c. The date the photograph was taken.

7. Statement of Assumptions and Limiting Conditions. All appraisal reports submitted to the Forest Service for review become the property of the United States and may be used for any legal and proper purpose. Therefore, a condition that limits distribution of the report is not permitted.

If the appraisal has been made subject to any encumbrances against the property, such as easements, that shall be stated. It is unacceptable to state that the property has been appraised as if free and clear of all encumbrances, except as stated in the body of the report; the encumbrances must be identified in this section of the report.

The use of an uninstructed assumption or hypothetical condition that results in other than “as is” market value will invalidate the appraisal. Include only factors relating to the appraisal problem.

Assumptions and limiting conditions that are speculative in nature are inappropriate. Do not include limiting conditions that significantly restrict the application of the appraisal.

In the Statement of Work (SOW) the contract appraiser shall be instructed as to necessary hypothetical conditions or extraordinary assumptions. For conveyances of Federal land, include a hypothetical condition stating that the Federal land is appraised as if it is in non-Federal ownership and zoned consistent with similar non-Federal property. Do not add additional hypothetical conditions or extraordinary assumptions without the approval of the COR and/or Contracting Officer.

A contract appraiser cannot make an assumption or accept an instruction that is unreasonable or misleading. Agency instructions and/or legal instructions shall have a sound foundation, be in writing, and included in the appraisal report.

8. Scope of the Work. A full understanding of the critical assignment elements is essential to a proper scope of work that will enable appraisers to solve the appraisal problem.

UASFLA requires the seven (7) critical elements, identified in Section 1.2, to be addressed and report in the description of the Scope of Work section of the report (Section 2.3.1.8).

1. Client (1.2.1) (Provided in the Statement of Work (SOW))

2. Intended users (1.2.2) (Provided in SOW)

3. Intended use (1.2.3) (Provided in SOW)

4. Type and definition of value (1.2.4) (Provided in SOW)

5. Effective date (1.2.5)

a. Typically is the last date of inspection

6. Relevant characteristics about the subject property (1.2.6) also referred to as property characteristics (2.3.1.8)

a. Property Interest(s) to be appraised (1.2.6.1) (Provided in SOW)

b. Legal description (1.2.6.2) (Provided in SOW)

i. Appraiser should still verify the legal description

1. On the ground during a physical inspection of the property

2. With the owner of the property (if possible)

3. Comparing it with aerial or other available maps

4. Comparing it with public records

ii. There is no reporting requirement of the actual legal description in this section of the report as it is required to be reported under the factual data section. However, it would be helpful to report the legal description was provided and verified to be accurate.

iii. Property Inspections (1.2.6.3)

1. The appraiser (the lead/contracted appraiser) must personally inspect the subject property

iv. Contacting landowners (1.2.6.4)

1. During the course of inspecting the subject property, the appraiser is expected to meet with property owner or representative, if possible (Contact information provided in SOW)

2. The owner or owner’s designated representative must be given an opportunity to accompany the appraiser on the property inspection

7. Assignment conditions (1.2.7)

a. Instructions, hypothetical conditions, extraordinary assumptions (1.2.7.1)

i. Includes any special instructions which are typically in writing and provided in the SOW

ii. Only hypothetical conditions and extraordinary assumptions provided in the SOW is to be included

1. The appraiser has the burden of clearly identifying and explaining the implications of any hypothetical condition or extraordinary assumption adopted. The required explanation and discussion of the implications of such hypothetical conditions or extraordinary assumptions must be included in this portion of the appraisal report. Each hypothetical condition and extraordinary assumption must be labeled as such and any legal instructions must be included in the addenda of the report. (2.3.1.8)

iii. Jurisdictional Exceptions (1.2.7.1.2) (Provided in SOW )

iv. See 1.2.7.3 through 1.2.7.6 for additional items considered part of the assignment conditions

8. Additional reporting requirements under scope of work:

a. Should describe:

i. The investigation and analysis in developing the appraisal

ii. The geographical area and time span searched for market data

iii. Include a description of the type of market data researched and the extent of market data confirmation

iv. State references and data sources relied upon in developing the appraisal

b. Shall discuss:

i. The applicability of all approaches

ii. The exclusion of any approach to value

Part II - Factual Data.

1. Area, City, and Neighborhood Data. The use of boilerplate demographic and economic data is unnecessary and undesirable. Report only data that directly impacts the market analysis.

a. Area Map. Include a small-scale map showing the general location of the appraised property. It can be placed here or in the addenda.

b. Neighborhood Map. Show the appraised property and its immediate neighborhood. The map may be placed here or in the addenda.

2. Property Data. Include the following:

a. Site Description: Dimensions, size, shape, vegetative cover, soil types, topography, elevations, wetlands, flood plains, view, timber, water rights, effect of encumbrances, livestock forage, access, road frontage, utilities, location, or other characteristics that may affect value.

• A statement must be made concerning the existence or absence of mineral deposits having a commercial value. Evidence, if any, of hazardous substances shall be described by the contract appraiser.

b. Location: Location descriptions shall be sufficient to enable a reviewer to locate the property with a road map during a field inspection. The location description shall be with reference to roads

(ex. South side of Route XYZ, approximately 2 miles east of County Road 321, in Boondoggle County, Wisconsin. A clear location description is required for all parcels including those with remote locations).

c. Access: Separate discussions for legal access and physical access to the property.

• Legal access shall be clearly identified. Legal access is typically via direct frontage on a public road or recorded easement for ingress/egress. Other types of legal access should be clearly described. The appraisal should include a clear statement as to whether the property has legal access or whether it does not have legal access. If legal access is via a recorded easement, recording information shall be provided. If a property does not have legal access, this shall be clearly stated.

• Physical access shall be clearly described. (ex. “Paved public two lane road”, or “one lane dirt logging road accessible by 4X4 but not cleared during the winter”).

d. Improvements. A listing of significant improvements will be provided by the Forest Service. The impact of these features should be considered in the analysis. If during the course of property inspections, other significant improvements are observed by the appraiser, these shall be brought to the attention of the assigned review appraiser.

e. Fixtures.

f. Use History. A 10-year history is required.

g. Sales History. Include a 10-year record of all sales of the appraised property and, if the information is available, offers to buy or sell. If no sale has occurred in the past 10 years, the appraiser shall report the last sale of the property, irrespective of date.

h. Rental History. A 3-year rental history is required. An unsupported statement that the rent does not represent market or economic rent is unacceptable.

i. Assessed Value and Annual Tax Load.

j. Zoning and Other Land-use Restrictions. Federal lands must be appraised under the hypothetical condition that they are already in non-Federal ownership and zoned consistent with similar non-Federal properties in the market area. The contract appraiser shall identify, in addition to zoning, all other land-use and environmental regulations, outstanding rights, and reservations that have an impact on the highest and best use and value of the property.

• Zoning/Land Use/Regulations should include factual information regarding zoning and regulations which impact the legal uses of the subject property, and should include an analysis of these requirements as applied to the subject. The uses permitted by zoning must often be evaluated with reference to land development regulations for access, septic percolation requirements, etc. The appraisal should include a conclusion as to the legally permitted uses, type of units, and legally permitted number of units (or density/intensity) which could conceivably be developed on the property.

k. Appraised Property Map or Plat. Show the dimensions and topography of the appraised property in detail on a large-scale topographic map, at least 2 inches to the mile. The map may be placed here or in the addenda.

Part III - Data Analysis And Conclusions.

1. Analysis of Highest and Best Use. For acquisition appraisals, UASFLA defines highest and best use as “The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future.”

Highest and Best Use requires a conclusion as if vacant and as improved. The highest and best use as if vacant and as improved are different analyses, and both should include a complete discussion of the legally permissible uses, physically possible uses, financially feasible uses and that use (or those uses) which produce the greatest return to the land. An opinion of highest and best use of development requires support from the market. The appraiser must also identify the most likely purchaser and timing of use.

The UASFLA requires the contract appraiser to make a larger parcel determination in all appraisals. Apply the tests provided in UASFLA to determine the larger parcel(s).

The highest and best use conclusion must be clearly supported by market evidence. Sale or exchange to the United States or other public entity is not an acceptable highest and best use.

The use to which the Government will put the property after it has been acquired is, as a general rule, an improper highest and best use. A non-economic highest and best use, such as “conservation,” “natural lands,” “preservation,” or any use that requires the property to be withheld from economic production in perpetuity, is not a valid use upon which to base an estimate of market value.

If the highest and best use is for assemblage, describe and explain the relationship of the appraised property to the property to which it would be joined.

If speculation or investment is the highest and best use of the property, describe and explain its interim and most probable ultimate use.

When there is a claim that the highest and best use of a property is something other than the property’s existing use, the burden of proof is on the contract appraiser.

Market value cannot be predicated upon potential uses that are speculative and conjectural.

The contract appraiser's opinion of a reasonable probability of a zoning change must have a factual foundation. The appraisal report shall include a description of the investigation undertaken to determine the probability of rezoning. The investigation shall include thorough research of the use(s) and zoning of properties situated similarly to the subject property within the area covered by the zoning authority. The stated rezoning conclusion shall be supported by facts surfaced in the research. A property cannot be valued as if it were already rezoned for a different use. The property must be valued only in light of the probability of obtaining a zoning change.

2. Value Estimate by the Cost Approach. Estimate the value of the land as though vacant and available for its highest and best use. Estimating land value by the use of confirmed sales of comparable, or nearly comparable, lands having like optimum uses is the preferred method.

If the contract appraiser will place considerable weight on the cost approach to value in reaching a final opinion of value, consideration should be given to retaining the services of a contractor or professional cost estimator to assist in developing the reproduction or replacement cost estimate.

Estimating depreciation by the use of published tables or age-life computation shall be avoided.

The contract appraiser must substantiate that it is not possible to abstract depreciation rates from the market if tables or age-life methodologies are used to compute depreciation. If this is the only method used, the weakness resulting from the lack of market support is to be addressed and considered in the reconciliation.

3. Value Estimate by the Sales Comparison Approach. Nearby arm’s length transactions, comparable to the land under appraisement, and reasonably current, are the best evidence of market value. The Federal courts recognize the sales comparison approach as being normally the best evidence of market value.

Analyze the last sale of the subject property if relevant. If not used, explain why. An unsupported claim that a sale of the subject property was a forced sale, or is not indicative of its current value, is unacceptable.

When supportable by market evidence, the use of quantified adjustments is preferred.

Percentage and dollar adjustments may, and often should, be combined. Resort to qualitative adjustments only when there is inadequate market data to support quantitative adjustments.

Factors that cannot be quantified are dealt with in qualitative analysis. When quantitative and qualitative adjustments are both used in the adjustment process, all quantitative adjustments should be made first.

Include a sales adjustment chart summarizing the adjustments and showing the final adjusted sale prices and how the sales compare with the subject property.

The documentation of each comparable sale shall include:

a. Recording Information and Instrument

b. Parties to the transaction.

c. Date of transaction.

d. Confirmation of the transaction: Confirm the transaction with the buyer, seller, broker, or other person having knowledge of the price, terms, and conditions of sale.

Reporting of confirmation shall include the name of the person, their relationship to the transaction, date of verification, and the name of the appraiser who confirmed transaction.

e. Buyer motivation.

f. Location: Provide location with reference to street/road and closes cross street similar to that provided for the subject property.

g. Access: Describe legal and physical access similar to that provided for the subject property.

h. Size.

i. Legal description.

j. Property rights conveyed.

k. Consideration.

l. Financing terms.

m. Sale conditions. Verify if the sale was an arm’s length or distressed sale.

n. Improvements.

o. Physical description. Describe topography, vegetative cover, water influence, and other characteristics. Describe legal and physical access.

p. Non-realty items.

q. Economic characteristics.

r. Zoning and/or land use regulations.

s. Current use.

t. Highest and best use.

u. Topographic map.

v. Aerial map.

w. Photographs. Include a picture of the road frontage/access, typical attributes, and a picture of any improvements if possible as applicable. Include a brief description, the date taken and by whom.

x. Exhibits (Plat, aerial map, topo map, etc.).

In order to make meaningful comparisons between the sales and the appraised property, the Forest Service requires inspection of all sales directly compared with the appraised property.

Unusual circumstances that preclude on-the-ground inspection or make inspection unreasonably difficult shall be discussed with the assigned COR and/or Contracting Officer prior to completion of the appraisal report. Waiver of the comparable sale inspection requirement must be made in writing by the assigned COR and/or Contracting Officer in the form of a supplemental appraisal instruction. There shall be no waiver of the requirement for inspection of the appraised property.

Include a list of the sales considered, but not actually used, in the addenda. Cite pertinent facts such as date, size, buyer and seller, price, terms, location, and explain why each sale was not used.

The contract appraiser shall adhere to UASFLA direction pertaining to comparable sales requiring extraordinary verification and weighting considerations. These include sales to governmental agencies, sales to environmental organizations, sales to parties desiring to exchange the land to the government, distressed sales, and other atypical or non-arm’s length sales.

4. The Income Capitalization Approach. All data shall be market supported. Discount rates/cap rates require support. Surveys, built up method, etc. are permitted as support for selected rates. Primary support for selected rates should be from an analysis of market data.

5. The Development Approach. The development approach should not be relied upon as the primary indicator of value when comparable sales are available with which to accurately estimate the property’s market value. The contract appraiser shall adhere to UASFLA direction pertaining to this highly sensitive and complex method of valuation.

6. Correlation and Final Conclusion of Market Value. The contract appraiser must avoid making a summation appraisal.

Appraisers are responsible for the final opinion of value even if it relies upon estimates developed by others (such as, timber cruisers, mineral appraisers, or cost estimators).

Part IV - Exhibits and Addenda.

Include the following items as applicable to the appraisal problem if not included in the body of the report:

1. Maps. Maps shall clearly identify the properties and be of sufficient quality to enable the staff review appraiser to locate the properties on the ground. Maps shall be dated, include a legend, scale, and north arrow. The original copy of the report shall contain original maps or vivid color copies.

a. Area Map. This is a small-scale map showing the general location of the subject market area.

b. Neighborhood Map. This map shows the appraised property and its immediate neighborhood.

c. Tract Map or Plat. This map is a large-scale (1:24000) United States Geological Survey (USGS) or similar quality map that shows the appraised property and pertinent physical features such as roads, streams, and improvements. If portions of the appraised property are assigned separate values, such as in an assembled exchange, these areas shall be delineated on this map, or a separate map.

d. Comparable Sales Location Map. This map shall show the location of the appraised property and the sales. Delineate the boundaries of the appraised properties and comparable sales when the map is of sufficient scale to be meaningful. If all pertinent comparable sales cannot be shown on the same map as the appraised property, a smaller-scale map (such as a state road map) may be included in addition to the larger scale map.

2. Sale Reporting. Include a sale data sheet showing all information for each comparable transaction used in the appraisal. Include a plat (if available), a USGS topographic map (if appropriate), and color photo(s) of each sale.

3. Legal Description. Include a full legal description of the property appraised if not shown in the narrative section of the report.

4. Title Information. Include a copy of the preliminary title report for the non-Federal land and a statement of interest (status report) for the Federal land, as applicable.

5. Photographs. Provide quality color photographs of the appraised property and all comparables in the original and all copies of the final report. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property and comparable sales. Show the following information with each photograph:

a. Identify the photographed scene. Indicate direction of view, vantage point, and other pertinent information. A map may be used to show some of this information.

b. The name of the photographer.

c. The date the photograph was taken.

6. Other Pertinent Exhibits. Present additional data such as documents and charts pertinent to the valuation and referred to in the body of the appraisal. It may include:

a. A copy of an easement or other deed.

b. A copy of technical reports from specialists. This may include a timber cruise summary signed by a timber cruiser, a road plan signed by an engineer, or a mineral report signed by a geologist. In using these reports the appraiser cannot merely accept such consultant reports as accurate, but rather must analyze such reports and adopt them only if reasonable and adequately documented and supported. (UASFLA 1.1.3)

c. Property owner permission to appraise.

7. References. List sources of data, including documents and individuals.

8. Qualifications of the Appraiser. Include the qualifications of all contract appraisers or technicians who made significant contributions to the completion of the appraisal assignment.

The individual appraiser with whom the contract is made shall actually prepare or be principally responsible for developing the appraisal and the appraisal report. The contract appraiser(s) must provide evidence of compliance with the certification requirements of the state(s) where the properties are located and completion of formal training in the current version of UASFLA.

INSPECTION AND ACCEPTANCE

All appraisal reports under UASFLA are required to be reviewed and approved for use by a government review appraiser.

DELIVERIES OR PERFORMANCE

The Contractor shall submit to the assigned COR and Contracting Officer, one original PDF appraisal report for the first property (Lutes) uploaded to government cloud (link to be provided after award) for approval within 60 days of contract award. The Government will then review the appraisal report for acceptance or recommend revisions. If revisions are necessary, the revised report shall be submitted (via government cloud) within 15 days of notification. Once the appraisal report for the first property has been approved, the original PDF appraisal report for the second, third, and fourth properties shall be submitted (via government cloud) within 15 days notification. The Government will then review the appraisal reports for acceptance or recommend revisions. If revisions are necessary, the revised report shall be submitted (via government cloud) within 15 days of notification. Upon approval, the appraiser shall furnish for each of the three properties one electronic copy in PDF format (via government cloud), and two paper copies with color photographs and maps of the revised appraisal reports to the address below.

USDA Forest Service Angela M. Kwasny, MAI, AI-GRS 600 East Wisconsin Ave, Suite 600

Milwaukee, WI 53202

Contract time will proceed according to the following phases. Upon the completion of one phase remaining contract time shall not be carried forward.

PHASE 1 – 60 Calendar days - The Contractor shall submit to the Government the first of four original appraisal reports (Task 1 Lutes). The appraisal report shall be submitted to the COR and the Contracting Officer within 30 calendar days after the date of value, unless otherwise specified in writing by the Contracting Officer and/or Contracting Officer's Representative (COR).

PHASE 2 - 30 Calendar days - The Government shall review the first appraisal report for acceptance.

PHASE 3 - 15 Calendar days - The Contractor shall correct any deficiencies, if any, and submit revised appraisal report to the Government.

PHASE 4 - 15 Calendar days - The Government shall review the revised appraisal report for acceptance.

PHASE 5 – 15 Calendar days - Upon notification of acceptance of the first appraisal report, the Contractor shall submit to the Government the original appraisal reports for the second, third, and fourth properties TNC Saalman, TNC Gramelspacher, and Bye Real Estate Development, Inc. (incorporating any suggested corrections that applied to the first property as applicable).

PHASE 6 - 30 Calendar days - The Government shall review the appraisal report for the second, third, and fourth properties for acceptance.

PHASE 7 - 15 Calendar days - The Contractor shall correct any deficiencies, if any, and submit revised appraisal reports to the Government.

PHASE 8 - 15 Calendar days - The Government shall review the revised appraisal report for acceptance.

Failure to Deliver in Timely Manner. If the contract is not completed by the due date, a disincentive of $250/working day will be applied and a deduction will be made from the total amount of each item that is submitted late. If the report is submitted by the due date, but the review appraiser finds it not to be acceptable, the deductions discussed herein shall not apply if acceptable work is submitted within the contractual time identified above. The deductions discussed herein shall not apply if the delay is due to an excusable delay.

Basis of Payment. The accepted quantities shall be paid for at the contract unit price for the items shown in the Schedule of Items.

All submitted appraisal reports become the property of the United States and may be used for any legal and proper purpose.

SECTION M - EVALUATION FACTORS FOR AWARD

M-2 - Award of Contract. Award shall be made to that offeror (1) whose proposal is technically acceptable and (2) whose technical/cost relationship is the most advantageous to the Government. While cost is secondary to technical, it may be a factor in the award decision. The critical factor in making any cost/technical trade-off is not the spread between the technical scores, but rather what is the significance of that difference. The significance of the spread in scores shall be determined on the basis of what that difference might mean in terms of performance and what it would cost the Government to take advantage of it. Award may not necessarily be made to that offeror submitting the lowest offer. Also, award may not necessarily be made for technical capabilities that would appear to exceed those needed for the successful performance of the work. The Government reserves the right to make cost/technical trade-offs that are in the best interest and to the advantage of the Government.

Award may be made without further negotiations. Proposals should be submitted initially on the most favorable terms, from a price and technical standpoint, which the offeror can submit to the Government. However, the Government may, after evaluation of proposals, conduct further oral or written discussion as appropriate, with all offerors whose proposals are within a competitive range.

Progress Payments Not Included. A progress payments clause is not included in this solicitation and shall not be added to the resulting contract at the time of award. Bids conditioned upon inclusion of a progress payment clause in the resulting contract shall be rejected as non-responsive.