Scope_of_Work_GRP_FY13_AWMA_6-19-13.pdf

Area-Wide Market Analysis Scope of Work and Specifications Natural Resources Conservation Service

Grassland Reserve Program (GRP) June 2013

1. SCOPE

A qualified independent real estate professional will complete an area-wide market analysis on behalf of the Natural Resources Conservation Service (NRCS).

The real estate professional must be a State-certified general real property appraiser meeting the following qualifications:

All real property appraisers performing appraisals shall be a State Certified General Real Property Appraiser, or obtain a temporary practice permit, in conformance with Title XI of the Financial Institution’s Reform, Recovery and Enforcement Act of 1989 in the state(s) where the subject property is located and be in good standing with the licensing authority where the credential was issued. Appraiser must have demonstrated competency in compliance with USPAP in conducting appraisals of agricultural properties of the requested type. A copy of the appraiser’s state license or practice permit shall be provided to the Contracting Officer (CO) at the time of bid submission. Work will not be granted until such time as the CO has reviewed and approved the licensing credentials, and the experience requirements of the contractor and any subcontractors.

If the appraiser elects to subcontract the appraisal work, the subcontractor must also be a State Certified General Real Property Appraiser or obtain a temporary practice permit in the state(s) where the subject property is located, be in good standing with the licensing authority where the credential was issued. Proof of the subcontractor’s qualifications and experience requirements must be supplied within 10 days of contract award. Appraiser and any subcontractor must have demonstrated competency in compliance with USPAP in conducting appraisals of agriculture properties with and without conservation easements. In the event the contractor wishes to change personnel or subcontractors, the contractor shall submit the same proof of qualifications and licensing. Approval shall be obtained from the CO prior to the assignment of appraisal work to such individuals. Failure to obtain such approval may invalidate the award and cause termination of the contract in accordance with Federal Acquisition Regulation 52.249-8.

The real estate professional must have at least 5 years’ experience and be knowledgeable about the dynamics of land sales in the specific regions of the market area in order to make the required judgments based upon available data. The work consists of performing all computations and descriptions required by this specification.

2. INFORMATION PROVIDED BY NRCS TO THE REAL ESTATE PROFESSIONAL

A. Virginia map showing the market areas to be analyzed

1. Six regions in Virginia with similar land use categories

2. Regional boundaries of each market area

B. Land uses in each market area requiring opinion of typical market value

1. Evaluate the following land uses that could be enrolled into GRP on a per acre basis:

i. Privately owned grassland, which include Tribal lands. Grassland is defined as land that contains forbs or shrubs for which grazing is the predominant use.

ii. Incidental lands, such as a rock outcrop or pond, may be included in the GRP easement area to allow for the efficient administration of the project area. Land on which corrals, barns, pens, and water supply structures exist may be eligible as incidental land when they are necessary for the grazing operation. This should not exceed 10% of the offered acreage.

3. QUALITY OF WORK

The market analysis must be clear, accurate, and complete. It must meet NRCS’s intent to determine the fair market value of land typically enrolled in GRP. The GRP Area- Wide Market Analysis is designed to investigate and document factors that determine demand for grassland, the supply of competing grazing lands, and the geographic boundaries of the trade area. Demand and supply are examined at a geographic scale, location, and relevant time horizon, as determined by the appraiser or real estate professional.

The market analysis must be conducted and reported in compliance with USPAP 2012- 2013 Edition, Standards 4 and 5, Real Property Appraisal Consulting, Development and Reporting.

The real estate professional must select comparable properties, adjust value for property differences, and conduct a current analysis of the competitive market.

4. SELECT COMPARABLE PROPERTIES

In selecting comparable properties, the real estate professional must—

a. Choose comparable sales from the entire area being analyzed that include land uses typically enrolled in GRP.

b. Not include sales far above or far below the average, as any divergence likely has valid reasons.

c. Use comparable sales that are reasonably current, based on sales activity in the market area being analyzed. Use sales no older than 18 months unless the market activity is limited and a longer time period is required. Concurrence by the contracting officer is required before using sales older than 24 months.

d. Use similar property types as much as possible.

e. Ensure comparable sales are in fact arm’s length transactions.

f. Provide sufficient data on the comparable sales to support the conclusions of value.

5. ADJUST VALUE FOR PROPERTY DIFFERENCES

When comparing similar properties, there are always differences. To adjust comparable properties for differences the real estate professional will—

a. Add or subtract value for differences in size.

b. Add or subtract value for feature differences, such as fences, barns, water supply, etc.

c. Add or subtract value for location differences, including access.

d. Review financing differences that could have influenced sale price. Seller financing can sometimes result in a higher price paid for a property than its true value.

6. CONDUCT A CURRENT ANALYSIS OF THE COMPETITIVE MARKET

The real estate professional will use the following guidance when analyzing the competitive market:

a. Sold Listings.—Sold listings represent actual comparable sales. Sales data should be within the last 18 months.

b. Active Listings.—Active listings are properties currently for sale. These listings matter only to the extent that they indicate the competition for buyers. They are not indicative of market value. Sellers can ask any price they want for their property, it does not mean the prices are realistic.

7. MARKET AREA

The six regional market area map is attached and hereby specified by NRCS and provided to the qualified, independent real estate professional.

8. OTHER CONSIDERATIONS

a. Land Use, Land Quality, Soils and Topography.—The land uses and soil types to be considered must be comparable to land typically enrolled in the Grassland Reserve Program.

b. Improvements - Do not include the value of improvements, such as homes, sheds, fences, barns, etc.

c. Existing Easements - Do not use sales data from lands under existing easements as comparable sales.

d. Development Pressure

e. Highest and Best Use

9. PRESENTATION OF ANALYSIS

The report must be presented in a neat, easy-to-read format, free of grammatical and clerical mistakes. The supporting documentation must be presented with sufficient narrative so that the analysis can be reviewed and critiqued.

Provide a description of the social, physical, and economic characteristics of the specified market areas. Provide a thorough description of each category that a representative value is provided. Describe the land uses included in the category.

The report must comply with USPAP Standard 5.

All market analysis reports submitted to NRCS become the property of the United States and may be used for any legal and proper purpose. Therefore, a condition that limits the distribution of the report is not permitted.

10. DELIVERABLES

The final report and supporting documentation are the deliverables for this assignment.

The final report will include a hardcopy and a digital copy.

The report must be broken down by the six regions of Virginia as shown on the attached map.

GRP values in dollars should be broken down into the categories as shown in the table below:

Six Regional Market Areas: Northern, Valley, Central, Coastal, Mountain and Piedmont:

Legend Virginia Regions Grazing Land Value Northern $0,000 Valley $0,000 Central $0,000 Coastal $0,000 Mountain $0,000 Piedmont $0,000

11. CONFLICT OF INTEREST

An independent, qualified professional will not analyze a property for a spouse, child, partner, or business associate or have a financial interest in the property to be covered by the proposed easement.

12. NONDISCLOSURE

Work performance required by this scope of work will involve access to potentially sensitive information about governmental and landowner issues. All contractor personnel must comply with the terms of AGAR 452.224-70, “Confidentiality of Information,” as well as provisions of the Privacy Act of 1974 (5 U.S.C Section 552a). Additionally, the contractor’s employees must comply with privacy of personal information relating to Natural Resources Conservation Service programs in accordance with section 1244, title II of the Farm Security and Rural Investment Act of 2002 (Public Law 1078-171).

13. CIVIL RIGHTS AND PROGRAM DELIVERY

The contractor must ensure that its personnel prohibit discrimination in all aspects of programs and activities related to the contract on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status.

Attachments:

1) Map of Virginia Regional Market Areas

2) GRP Deed of Easement (shows land restrictions)