Performance Work Statement VA Fargo ND 2nd update 2023 05 15 .pdf

PERFORMANCE WORK STATEMENT (PWS)

FOR THE DEPARTMENT OF VETERANS AFFAIRS

A MARKET VALUE USPAP & UASFLA COMPLAINT APPRAISAL

29 +/- ACRES

NEAR FARGO, NORTH DAKOTA

MAY 2023

1. GENERAL

This is a non-personal services contract to provide appraisal services. The Government shall not exercise any supervision or control over the contract service providers performing the services herein. Such contract service providers shall be accountable solely to the Contractor, who in turn, is responsible to the Government.

2. PRIMARY POINTS OF CONTACT

2.1. Property Inspection

Contact : Richard Green, CFM Agency: Department of Veterans Affairs Address: Land Acquisition and Strategic Utilization 425 I Street N Washington DC 20001 (202)-683-5918 Richard.green1@va.gov

2.2. Appraisal Questions

Contact : Linda S. Clemens

Agency: General Services Administration

214.683.2561 (c) linda.clemens@gsa.gov

3. OVERVIEW AND INFORMATION

3.1. Place of Performance

Fargo, ND

3.2. Period of Performance

Draft appraisal report is due by 5 PM EST June 30, 2023. Estimated start date / Notice to Proceed is May 22, 2023. Final appraisal report is due within five (5) days of the contractor’s receipt of the reviewer’s comments.

3.3. Type of Contract

The government will award one (1) Firm Fixed Price Task Order.

3.4. Key Personnel

3.4.1. Contract Manager

A Contract Manager is responsible for the performance of all the work. The name of this person, and an alternate who shall act for the contractor when the manager is absent, shall be designated in writing to the Government. The contract manager, or alternate, shall have full authority to act for the contractor on all contract matters relating to daily operation of this contract.

The contract manager shall obtain the Contracting Officer’s written approval to substitute any key personnel should they become unavailable for performance of the contract for any continuous period more than 14 days. The contract manager shall consult with the contracting officer, if any of the key personnel, plan or anticipate a lessened effort to be contributed to the work than specified in the technical proposal submitted. If the VA determines that the reduction of effort would be so substantial as to impair the successful prosecution of work, it may request a change in personnel, termination of the effort, or other appropriate modifications to the contract.

The contract manager shall consult with the contracting officer if changes are to be made in key personnel previously committed to perform the work. No changes of key personnel shall be permitted without prior approval of the contracting officer. All requests for substitution must be in writing and must provide detailed explanation of the circumstances necessitating the proposed substitutions. Requests must contain a complete resume for the proposed substitution, and any other information requested by the contracting officer to approve or disapprove the substitution. The contracting officer will evaluate such requests and notify the contractor in writing.

3.4.2. Production Appraiser

The production appraiser (contractor) must be a licensed and certified General Real Estate Appraiser in the state of North Dakota. Additionally, the production appraiser shall be a geographically competent principal/senior appraiser with a MAI or ARA designation. All deliverables shall be internally reviewed by the production appraiser prior to submission to the VA.

3.4.3. Other Key Personnel

Other key personnel are skilled experienced professionals and/or technical personnel that are essential for a successful outcome. Persons conducting field work including inspections must also be licensed and have a General Real Estate Appraiser state certification. If requested, the resumes of all key personnel shall be available for evaluation in support of this contract.

Identification of Contractor Employees

All contract personnel attending meetings and working in other situations where their contractor status is not obvious to third parties are required to identify themselves as such to avoid creating an impression in the minds of members of the public that they are Government officials.

3.5. Government Holidays

The contractor is not required to perform services on holidays.

New Year’s Day Labor Day Martin Luther King Jr.’s Birthday Columbus Day President’s Day Veteran’s Day Memorial Day Independence Day Juneteenth Thanksgiving Day Christmas Day

3.6. Security

Contractors should contact Richard Green (see Points of Contact) regarding specific security requirements for touring the property. The VA and landowner entered into a property access agreement for 27.57 acres in January 2023 and the contract appraiser is required to comply with the terms of the agreement.

The contractor shall be responsible for safeguarding all Government equipment, information and property provided for contractor use.

3.7. Post Award Conferences/Periodic Program Meetings

3.7.1. Kick Off Meeting

A kick-off meeting shall be scheduled within seven (7) days of the award (Notice to Proceed) and conducted by a conference call or video with the VA Contracting Officer’s Representative and any other VA personnel identified, for discussion and interpretation of all instructions.

3.7.2. Biweekly progress updates

• Biweekly updates are required and may be conducted via email and/or phone or video conference.

3.8. Contractor Travel

All travel costs shall be based on the rules outlined within the Federal Travel Regulations.

3.9. Data Rights

The Government has unlimited rights to all documents/material produced under this contract. All documents and materials, to include the source codes of any software produced under this contract, shall be Government owned and are the property of the Government with all rights and privileges of ownership/copyright belonging exclusively to the Government. These documents and materials may not be used or sold by the contractor without written permission from the Government. All materials supplied to the Government shall be the sole property of the Government and may not be used for any other purpose. This right does not abrogate any other Government rights.

Additionally, the subject property may not be appraised for another party without prior written permission from the VA.

The contractor shall sign a confidentiality agreement and agrees to not engage in a transaction in which the company, principles, or persons who are working directly with the transaction, have a financial interest in the real estate contemplated herein. The contractor shall immediately notify the VA of any potential conflicts that may arise.

Unless instructed otherwise, the value estimates and appraisal analyses are confidential and may not be disclosed to anyone other than the GSA’s Review Appraiser, Linda Clemens and Richard Green, CFM. A copy of the appraisal report may not be released to the landowner. The VA through their own due diligence process reserves the rights for any dissemination of the appraisal report.

4. OBJECTIVE

4.1. Value of Real Property

The objective of this Performance Work Statement is to obtain appraisal services related to the acquisition of real property interests by the U.S. Department of Veterans Affairs.

5. GENERAL SCOPE OF SERVICES

5.1. General Description of Services

The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform an appraisal of the real property as defined in this Performance Work Statement (PWS). The contractor shall perform to the standards in this contract.

5.2. Errors and Omissions Insurance

The contractor will provide either evidence of liability insurance coverage for errors and omissions in the minimal amount of $1,000,000 or an indemnification agreement that is satisfactory to the VA. An indemnification agreement must provide reimbursement to VA for any loss caused by fraud, dishonesty, or failure by the contractor to comply with this PWS.

6. REPORT AND DELIVERABLES

6.1. Specific Scope of Work Requirements and Report Format

▪ The appraisal assignment shall be developed and presented in compliance with the most recent version of the Uniform Standards of Professional Appraisal Practice

(USPAP) and guidance and the Uniform Appraisal Standards for Federal Land Acquisition (UASFLA)1.

▪ The appraisal shall be a comprehensive study presenting adequate factual data in sufficient detail to permit a comprehensive review. The appraisal shall relate conclusions to facts and be complete in that the appraiser collects, confirms, and analyzes all information necessary for credible assignment results.

▪ The contractor must avoid the use of restrictive language that limits the VA’s ability to comply with the Freedom of Information Act (FOIA), in the limiting conditions of the appraisal report.

▪ All three (3) approaches to value must be considered and all applicable approaches developed and presented in the report. If an approach is not applicable, then a justification must be provided as to why. Detailed descriptions and photos of the comparables must be included in the report, and individual data sheets are required. The appraiser must report and analyze any sales of the subject occurring within ten years of the appraisal’s effective date. Additionally, the analysis shall include a discussion of any rental income from the property along with the historic uses of the property up to three years prior to the effective date of the valuation. The appraiser must also comment on the current use of the property and discuss whether it is a conforming use and why.

▪ It is preferable that comparative analyses employ quantitative techniques, i.e., market data adjustment grid. Qualitative adjustments should only be used when there is inadequate market data to support quantitative adjustments. Qualitative adjustments must be supported and explained narratively. They often require a more extensive discussion of the appraiser’s reasoning than quantitative adjustments. Other techniques may also be used in conjunction with this technique.

▪ The appraiser must make and report a larger parcel determination. A discussion of the analysis leading to the determination should immediately follow the Highest and Best Use Analysis. The analysis should employee the three tests.

▪ The appraiser will review any provided title information pertaining to ownership and restate encumbrances in the report’s property description. A discussion must be provided as to whether the encumbrances are typically considered in the value or, if non-typical, how they impact the subject’s use and value.

▪ Mandatory assignment elements for the appraisal includes the following.

Client The Department of Veterans Affairs

Intended Users

1 The appraiser must personally inspect the subject of the appraisal and is expected to meet with the property owner or the owner’s agent/representative to conduct an interview on the property. If the property owner is represented by legal counsel, all owner contact and property inspections must be arranged through the owner’s attorney, unless the attorney specifically authorizes the appraiser to make direct contact with the owner. The appraiser shall document who accompanies them on the property inspection in the certification of the appraisal report. The comparable sales and rentals should also be inspected.

The Department of Veterans Affairs duly authorized or delegated representatives, and/or Office of General Counsel attorneys, are the only intended users.

Intended Use It is intended that the appraisal analysis and report will provide a basis for the decision making by the VA regarding the acquisition of the subject.

Effective Date The effective date of value shall be the last date that the appraiser(s) inspected the appraised property.

Type and Definition of Value The appraiser is to develop an opinion of Market Value of the fee simple interest in the subject 29 +/- acres as defined by UASFLA in section 1.2.4.

Relevant Characteristics about the Property The subject of the appraisal is vacant farmland. Reportedly, the farm is operated by a tenant. Specific information regarding the property is included in the addenda.

Assignment Conditions None. If hypothetical conditions or extraordinary assumptions are deemed necessary for credible assignment results, written approval must be obtained from the VA’s Chief Appraiser.

6.2. Deliverables

6.2.1. Draft Market Analysis, Draft H&BU & Determination of Larger Parcel

The contractor shall provide a draft Market Analysis, Highest and Best Use Analysis, & Larger Parcel Determination to the Government using email to linda.clemens@gsa.gov and Richard.green1@va.gov during the second progress update on June 9, 2023 or approximately 15 days after the Notice to Proceed, whichever occurs first.

6.2.2. Draft Report

The contract appraiser shall deliver a high-resolution electronic PDF copy of the draft appraisal report to linda.clemens@gsa.gov and Richard.green1@va.gov by 5 PM EST June 30, 2023. If any file is larger than 20 MB, it cannot be delivered to VA by means of email and the contractor will be required to either submit a CD containing the file or provide an FTP site that is accessible by the VA. The VA is unable to accept paper or hard-copy documents. Any delays in delivery must be approved by VA prior to the deadline.

6.2.3. Final Report

The contract appraiser shall deliver a high-resolution electronic PDF copy of the final appraisal report, preferably in a pdf format, via email to linda.clemens@gsa.gov and Richard.green1@va.gov no later than five (5) days from the appraiser’s receipt of the reviewer’s comments on the draft. If any file is larger than 20 MB, it cannot be delivered to VA by means of email and the contractor will be required to either submit a CD containing the file or provide an FTP site that is accessible by the VA. The VA is unable to accept paper or hard-copy documents. Any delays in delivery must be approved prior to the deadline.

6.3. Report Acceptance

Deviations from these specifications may result in non-acceptance of the report. All appraisal reports are thoroughly reviewed by the Government prior to acceptance.

7. PROCEDURES FOR INVOICING AND PAYMENT

After the final appraisal report is approved by the Government, submit an electronic version of the invoice to linda.clemens@gsa.gov.

mailto:linda.clemens@gsa.gov

EXHIBIT A

Performance Requirements Summary

The contractor service requirements are summarized into performance objectives that relate directly to mission essential items. The performance threshold briefly describes the minimum acceptable levels of service required for each requirement. These thresholds are critical to mission success.

Performance Objective

Standard Performance Threshold (This is the maximum error rate)

Method of Surveillance

PRS # 1

The contractor shall provide a draft Market Analysis, Highest and Best Use Analysis, & Larger Parcel Determination approximately 15 days after the Notice to Proceed or June 9, 2023, whichever occurs first.

The contractor-provided draft analyses and determination are delivered on-time after being prepared in accordance with the VA specifications herein.

5%

Inspection and Agency Review

PRS # 2

a draft appraisal report on or before 5 PM EST June 30, 2023

The contractor-provided draft appraisal report is delivered on-time after it is first subjected to the contractor’s internal QA/QC process and prepared in accordance with the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA, aka Yellow Book), Uniform Standards of Professional Practice (USPAP) and the VA specifications contained herein.

5%

PRS # 3

the final appraisal on or before 5 days from receipt of the reviewer’s comments.

The contractor provides the corrected final appraisal report on-time and prepared in accordance with the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA, aka Yellow Book), Uniform Standards of Professional Practice (USPAP) and the VA specifications contained herein.

Zero instances of material failure

EXHIBIT B

Deliverables Schedule

Deliverable Frequency # of

Copies Medium/Format Submit To

Kick Off Meeting and

Progress Reports

Within 7 days from Notice to Proceed and bi-weekly thereafter

N/A Email/telephone

Linda Clemens

214.683.2561(c)

Linda.clemens@gsa.gov

Draft of Market Analysis, Highest and Best Use Analysis, & Determination of Larger Parcel

Approx.. 15 days after the Notice to Proceed or June 9, (whichever occurs first).

- second progress update call

1 Email / telephone

Linda Clemens

214.683.2561(c)

Linda.clemens@gsa.gov

Draft Report On or before

5 PM EST

June 30, 1 PDF/Electronic

Please note, the VA will not accept paper or hard-copy documents unless stated as an additional requirement.

Linda.clemens@gsa.gov

Final Appraisal Report

No more than 5 days from receipt of reviewer’s comments

1 PDF/Electronic

Please note, the VA will not accept paper or hard-copy documents unless stated as an additional requirement.

Linda.clemens@gsa.gov mailto:Mark.Sonderby@VA.GOV

EXHIBIT C

Technical Scope of Work

Property to be Appraised

The U.S. Department of Veterans Affairs (VA) intends to acquire 29+/- acres of land in Fargo, North Dakota to increase the capacity of the existing 4.82-acre Fargo VA Rural Cemetery.

Initially, the proposed acquisition included 27.57 acres of vacant farmland; however, subsequent negotiations resulted in a final proposed acquisition of 29.06 acres. The acquisition acreage is presently owned by the Gust Olive Family and abuts the existing cemetery to the east.

The original cemetery and the acquisition tract(s) are all part of the same larger parcel (Cass County Tax Property ID - 59000010863080 and 59000010863070) and under the same ownership of the Gust Olive Family. In total, the Gust Olive Family owns approximately 320 acres.

The VA and landowner entered into a property access agreement for 27.57 acres in January 2023 and the appraiser is required to comply with the terms of the agreement.

Emphasis on Analysis of Highest and Best Use; Market Analysis

It is important that a thorough market analysis and highest and best use analysis be developed to realistically assess reuse/ development potential, including consideration of timing, to adequately support the value estimate concluded for the subject. Included in the report should be a thorough discussion of the real estate market, incorporating relevant economic indicators (population and employment trends, etc.); supply and demand factors (existing inventories, vacancies, competitive projects, absorption rates and projected inventories); area master plans under consideration, etc.

The appraiser’s estimate of highest and best use must be an economic use. As a general rule, the use to which the government will put the property after it has been acquired is an improper conclusion for the analysis. If the highest and best use is something other than the current use, the contractor shall support this conclusion mathematically using relevant market data to demonstrate the value under the current use is something less than under the opined highest and best use.

Regardless of the conclusion, the Highest and Best Use Analysis must demonstrate quantifiable evidence of economic financial feasibility as well as maximal productivity.

Immediately following the Highest and Best Use Analysis, the appraiser is required to make a larger parcel determination. The analysis leading to the determination as well as the determination itself must be included in the report. The discussion and analysis should employee the three tests.

Valuation Analysis

The appraisal assignment shall be developed and presented in compliance with the most recent version of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisition (UASFLA)2.

2The appraiser must personally inspect the subject of the appraisal along with the comparable sales and rental properties.

Additionally, the appraiser is expected to meet with the property owner or their agent/representative to conduct an interview on the property. The appraiser must report and analyze any sales of the subject occurring within ten years of the appraisal’s effective date.

If the property owner is represented by legal counsel, all owner contact and property inspections must be arranged through the

All three (3) approaches to value must be considered and all applicable approaches developed and presented in the report. The appraisal shall be a comprehensive study; presenting adequate factual data to support each rate, percentage and amount used in sufficient detail to permit a comprehensive review. The appraisal shall relate conclusions to facts and be complete in that the appraiser collects, verified, and analyzes all information necessary for credible assignment results.

If an approach is not applicable, then a justification must be provided as to why. Detailed descriptions of the comparables must be included in the report, and individual data sheets and photos are required. All comparable sales and rental data shall be confirmed by the appraiser.

If applicable, the analysis shall include a discussion of any rental income from the property along with the historic uses of the property for three years prior to the effective date of the valuation. The appraiser must also comment on the current use of the property and discuss whether it is a conforming use and why.

The appraiser will review any provided title information pertaining to ownership and restate encumbrances in the report’s property description. A discussion must be provided as to whether the encumbrances are typically considered in the value or, if non-typical, how they impact the subject’s use and value.

It is preferable that comparative analyses employ quantitative techniques, i.e., market data adjustment grid. Qualitative adjustments should only be used when there is inadequate market data to support quantitative adjustments. Qualitative adjustments must be supported and explained narratively and often require a more extensive discussion of the appraiser’s reasoning than quantitative adjustments. Other techniques may also be used in conjunction with this technique.

Definitions

a. Market Value – the amount in cash, or terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property.

The definition makes no linkage between the estimated market value and a specified exposure time. Rather, the federal definition of market value already presumes the property was exposed on the open market for a reasonable length of time, given the character of the property and its market. Therefore, a specific exposure time shall not be cited in an appraisal report prepared under UASFLA. The Jurisdictional Exception Rule may be invoked to avoid a USPAP violation.

b. Fee Simple Estate (Interest)

Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.*

* Dictionary of Real Estate Appraisal, 6th Edition owner’s attorney, unless the attorney specifically authorizes the appraiser to make direct contact with the owner. The appraisal report’s certification must specifically denote who accompanied the appraiser during the property inspection.

ADDENDA

• Property Access Agreement

• Exhibit of Proposed Plat (27.57 Acres)

• Exhibit of Proposed Expansion (29.06 Acres)

• Subject Property Characteristics

• Aerial of Gust Olive Family LLC Ownership

• Trustee’s Vesting Deed