A14_MR_-_Sources_Sought_Notice_BIA_1.pdf

SOURCES SOUGHT NOTICE

Title: TRECO Substations Business Lease

Issue Date: May 31, 2024

Response Due Date: June 05, 2024 @ 5:00 PM, Eastern Standard Time (EST)

THIS IS A SOURCES SOUGHT NOTICE ONLY. THIS IS NOT A REQUEST FOR

QUOTE (RFQ) OR A REQUEST FOR PROPOSAL (RFP). THIS DOES NOT

CONSTITUTE A SOLICITATION AND SHALL NOT BE CONSTRUED AS A

COMMITMENT BY THE GOVERNMENT.

Issued by: This Sources Sought Notice is being issued by the Department of the Interior (DOI), Acquisition Services Directorate (AQD), Interior Business Center (IBC), on behalf of the Appraisal and Valuations Services Office (AVSO).

Introduction: The Government is seeking Indian-owned Small Business Economic Enterprises (ISBEE) and Indian-owned Economic Enterprises (IEE) that are interested in supporting this project.

Requirement: The objective of this requirement is to procure appraisal and valuation services.

The AVSO has determined there is a need to form an independent opinion of the market value of the fee simple estate of the defined property.

See attachment 1, Draft Statement of Work (SOW), for details.

North American Industry Classification System (NAICS): 531320 “Offices of Real Estate Appraisers”

Product Service Code (PSC): R411 “Support-Professional: Real Property Appraisals”

Response Requirements: Responses should be limited to four (4) pages. Respondents shall include the following information in their submissions:

a) Name of Company

b) Company Address

c) Unique Entity Identifier (UEI)

d) Commercial and Government Entity (CAGE) Code

e) Point of Contact (include telephone number and email address)

f) Identification of business size and category, i.e. ISBEE, IEE

g) Capability statement of the company. The Statement should address the following:

i. Vendor’s capability as it relates to the requirement referenced herein;

ii. Description of recent and RELEVANT experience to the NAICS code identified within this notice;

iii. Additional, applicable information as it pertains to this announcement that could assist the Government in determining the contractor’s capabilities as it relates to the requirement referenced herein.

Response Due Date: RESPONSES ARE DUE NO LATER THAN June 05, 2024, at 5:00 PM EST. Responses to this source sought shall be sent directly to the Contracting Officer (CO), Mr. Morgan Schickler, at morgan_schickler@ibc.doi.gov, and Contract Specialist (CS), Ms.

Irma Nanatovich, at irma_nanatovich @ibc.doi.gov. Responses submitted by any other method will not be accepted or answered. Please ensure that your e-mail response has “Sources Sought Notice – TRECO Substations Business Lease” in the subject line.

Disclaimer: The purpose of this market research is to survey prospective vendors in order to collect data, comments, and other information pertaining to this industry. The information submitted in response to this announcement will assist IBC in determining the appropriate procurement strategy in the future.

The Government is under no obligation to award a contract as a result of this announcement. No funds are available to pay for any information received from potential sources. All information submitted in response to this announcement is strictly voluntary.

Only electronic mail will be acceptable for vendors’ submissions. The Government does not intend to provide feedback or evaluate submissions.

[End of Sources Sought Notice] mailto:morgan_schickler@ibc.doi.gov mailto:robert_staats@ibc.doi.gov

Agency - Northern Cheyenne Agency Allotments #207- TO 5, 207-150

TRECO Substations Business Lease

AVIS Case# – 00217441 May, 2024

STATEMENT OF WORK

Appraisal and Valuation Services Office

The purpose of this Statement of Work (SOW) is to provide instruction and minimum appraisal standards to appraisers for the valuation assignment detailed below. This SOW outlines certain criteria that must be followed as required content in an appraisal report prepared for Appraisal and Valuations Service Office (AVSO).

The Appraiser must read and fully understand the contents of this SOW before continuing the assignment as many aspects of the appraisal report have been detailed throughout. This Statement of Work is to be an attachment to the Appraisal Request and must be included, along with the request in the final appraisal report. Failure to abide by the terms and conditions of Appraisal Request and this Statement of Work may result in an omission of required substance and therefore the return or rejection of the Appraisal Report for non-compliance reasons.

Assignment Elements

AVSO Project # C57-207-2024-00027 AVIS Case #: 00217441 Client: U.S. Department of Interior’s, Appraisal and Valuations Services Office

(AVSO)

Intended Users: AVSO, Northern Cheyenne BIA, and any other users identified by the appraisal request.

Intended Use: The appraisal report will be used by the client and intended users to fulfil their trust responsibilities regarding the lease of real property rights per federal regulations including 25 CFR 162 Lease and Permit Over Indian Land. This appraisal is not intended for any other use.

Definition of Fair Market Rental:

Federal regulations prescribe the definition of market rent for use in negotiating a lease of Indian trust land as:

Terms (25 CFR 162.2)

Fair market rental means the amount of rental income that a leased tract of Indian land would most probably command in an open and competitive market, or as determined by competitive bidding.

Property Rights to be Appraised:

The purpose of the appraisal is to form an independent opinion of the market rent of the fee simple estate of the defined property.

Effective Date: Assignment conclusions should be effective as of the date of inspection unless otherwise noted by the client or the Appraisal Request.

Subject Property: The LEASE to be granted by the Bureau of Indian Affairs (BIA) is on allotted lands owned by individual Indian landowners and Northern Cheyenne Tribe and managed in trust by the United States of America as part of BIA’s delegated trust responsibilities. The property being encumbered by the LEASE and described in the attachments consist of approximately 0.50 acres for each substation. The subject area is located within Rosebud & Big Horn Counties, Montana. Legal description is as follows: See final page of SOW for both legal descriptions of the Substations

Property Exhibits: AVSO & BIA will provide relevant property information, including but not limited to: Legal Description, Aerial photography, Appraisal Request, and Title Status Report.

Assignment Conditions Appraiser Qualifications:

This appraisal assignment prescribes a State Certified General Appraiser in good standing in the state in which the subject property is located. The engaged appraiser must sign the report.

Applicable Regulation:

This appraisal assignment shall be performed in accordance with guidelines established by the current edition of the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisal shall be an Appraisal Report, as identified by USPAP SR-2(a). See USPAP AO-28 for clarification.

Confidentiality: The appraisal report and all information furnished by the BIA or AVSO to the Appraiser are to be considered confidential.

Extraordinary Assumptions:

None. If the appraiser determines that extraordinary assumptions are necessary for the completion of the assignment, he/she must contact the AVSO Review Appraiser for prior written approval.

Hypothetical Conditions:

“The valuation of the subject property in fee simple title is a hypothetical condition use of which may affect the assignment results.” The Appraiser must invoke the above hypothetical condition.

If the appraiser determines that any additional hypothetical conditions are necessary, he/she must contact the AVSO Review Appraiser for prior written approval.

Inspection: The engaged appraiser will physically inspect the subject property unless such inspection is waived, in writing by AVSO. Extent of inspection should be sufficient to adequately identify those characteristics which impact the estimate of fair market rent. Access to the property shall be coordinated with the BIA and or Landowner.

Personal Property, Fixtures, and Improvements:

There are no Improvements on the subject property to be included in the Appraisal. If improvements are present on inspection, they should be noted and described in the report but not valued. Improvements may have an impact on the Highest and Best Use of the Subject.

Market Rental Analysis:

The extent of market analysis should be sufficient to accurately characterize the market for such properties including those characteristics that impact values. Recent transactions of relevant utility leases should be researched, confirmed, and analyzed, including private treaty, arms-length leases, and trust or restricted land leases.

Inspection of comparable data detailed in the analysis is required, unless waived in writing by (AVSO) prior to report completion.

Appraisal Methodology

The Sales Comparison Approach is the only relevant valuation methodology anticipated in this assignment. The Cost, nor the Income Approach to Value is not applicable nor necessary and is not a violation of USPAP.

Appraisal Problem

Lease means a written contract between Indian landowners and a lessee, whereby the lessee is granted a right to possess Indian land, for a specified purpose and duration. The lessee's right to possess will limit the Indian landowners' right to possess the leased premises only to the extent provided in the lease. The LEASE is for a term of 25 years. Appraisal value is for a 5-year period with 5-year rental adjustments.

TRESPASS/Holdover Period: Both sub-stations have expired right of way grants that expired 02/16/2006. This assignment may also be used to determine the fees associated with the trespass/holdover use of this ROW that began on 02/16/2006 through the reauthorization of this

ROW.

An example acceptable method to value this trespass would be to use a Hypothetical Condition to estimate a value using the date of June 30th, 1947, land values and applying an interest rate to the land value and bring it to the present date.

Example: 1947, Range land value of $100/acre @ 3% per year (safe rate) for 73 years = $865.00 present values.

Other such methods should be explored and incorporated, and values correlated into the final opinion of value.

Minimum Appraisal Report Content:

The appraisal report must meet or exceed those requirements set forth in USPAP SR 2-2(a). Additionally, the appraisal must include the following:

• Cover Page must prominently identify the USPAP Reporting Option (Appraisal Report), as well as the Client, Property Identification, Appraisal Request Number and BIA AVIS case and project number, Effective and Report Dates.

• Subject and comparable property descriptions should contain enough information to allow the intended users of the appraisal to adequately visualize the relevant characteristics. (e.g., legal description, land uses, type, and quality of access. All comparable leases used should be confirmed, analyzed, and reported in similar detail and consistent fashion to the subject property.

• The report must contain at a minimum an aerial photograph with the estimated property boundary for the subject and each of the comparable lease and a photograph from the property inspection, unless waived by (AVSO). Additional maps, surveys and plats may be included if germane to the appraisal problem.

A comparable lease location map is required. The Aerial photographs must not be so dated that they do not accurately represent the property as it physically existed on the date of inspection. Any unusual property features must be photographed from ground level and included in the report.

• Ownership and History of Property (summarize analysis of the most current Title Status Report (TSR) on the property.

Reconcile any significant differences in current lease and Market Lease value conclusion.

• Sales/Lease Comparison Approach: The analysis must include a summary of the relevant market data in grid or tabular form;

lease comparable data should be transacted in similar market conditions, and in areas appropriate for the effective date.

• The preferred method of adjusting comparable data includes adequately supported, quantitative adjustments (%, $/acre, etc.).

Qualitative adjustments (similar, inferior, or superior) are acceptable when there is insufficient data to support more specific adjustments. All comparative adjustments must be narratively supported by clear, appropriate, and credible analysis based on documented market research. The level of detail should be commensurate with the complexity of the property type and the transaction, but at a minimum, the analysis must include a discussion of relevant characteristics and how the unit price from each of the comparable leases relates to the subject. The data must be narratively reconciled into a point estimate of value.

Report Exhibits: The Appraisal Request, this Statement of Work, and any documents provided with the request must be attached as an addendum to the appraisal report.

Deliveries: The completed appraisal report shall be formatted to 8.5” x 11” page size and delivered to AVSO in electronic (.pdf) format, unless otherwise instructed in writing by AVSO. AVSO will review for compliance and acceptance.

Review: The Appraisal report will be reviewed in its entirety for compliance with USPAP, Appraisal Request and this SOW. Deficiencies will require correction. Appraiser agrees to promptly correct (within 10 business days), all errors, omissions, and deficiencies and agrees to revise, expand upon, or clarify report (, by providing additional data or analysis as required by the reviewer, including, if requested, the appraiser’s work file.

Documentation of all comparable LEASEs and other comparable market data utilized in the appraisal should be reported in detail. All comparable market data should be verified by the appraiser with a party with specific knowledge of the transaction such as buyer, seller, broker, LEASE agent, Landman, etc. A detailed summary of each comparable LEASE should include comments about the verification, details about the property, and the terms. Interviews with market participants in the local area can also assist in clarifying market forces affecting the competitive market for the subject.

Deliverable/Task Schedule

REQUIRED DELIVERABLES DELIVERY DATE

Pre-Work Meeting Via conference call within 5 days of engagement Subject Property Inspection 30 days or less, prior to initial report delivery Initial Appraisal Report 60 days Approximately August 1st, 2024

Review Period & Comments Provided to Contract Appraiser

21 business days

Response Period by Contract Appraiser 10 business days

Final Printed Appraisal Reports 5 business days

Invoice Submission and Payment 60 days after the final appraisal report is submitted by AVSO.

Closeout 60 days after the final payment is made.

Payment

Please note: Any adjustments to the above Deliverable/Task Schedule shall be submitted to the Contracting Officer. The Contracting Officer will approve or reject the request by email.

The final invoice/request for payment is not to be submitted until the AVSO Review Appraiser is in receipt of the final/approved electronic copy of the appraisal report and has notified the Appraiser that the assignment is completed.