SFO LI-10547_Amend 3_final.docx

Commander, Naval Facilities Engineering Systems Command, Atlantic 6506 Hampton Boulevard Norfolk, Virginia 23508-1278

AMENDMENT 2 TO

SOLICITATION FOR OFFERS (SFO) LI-10547

DATED JANUARY 25, 2024

FURNISHED DWELLING UNITS

FOR

UNACCOMPANIED TRANSIENT MILITARY PERSONNEL

SEATTLE, WASHINGTON

Ryan A. Plessinger Real Estate Contracting Officer

1. The previous Exhibit “D” is deleted and the attached Questions and Answers are hereby incorporated into the SFO as the new Exhibit “D”.

2. Paragraph 2. B and 2.B. i are deleted and replaced with the following:

“B. Facility requirements. A unit is defined as a complete dwelling, consisting of one, two, or three bedrooms, at least one full bath (three bedroom units require two bathrooms), a living area, a kitchen, and a dining area.

i. Unit configuration must be one of the following: 1 Bed/1Bath, 1Bed/1+ Bath, 2Bed/1Bath; 2Bed/1.5Bath; 2Bed/2 Bath; 2Bed/2.5+Bath; 3Bed/2Bath; 3Bed/2.5Bath; 3Bed/3+Bath”

3. Exhibit “A”, General Clauses, has multiple instances where the term “Real Estate Real Estate Contracting Officer” is used. All of those instances are replaced with the term “Real Estate Contracting Officer.”

Exhibit “D” Questions / Answers Solicitation for Offers LI-10547

1. Page 2 of SFO Purpose states “30 two bedrooms units and 3 one-bedroom units” and Page 3 Section B i.”unit configuration must be one of the following: 2bed/1bath’ 2bed…3bed/2bath”. Please clarify is the government requesting pricing for one bedroom, two bedroom and three-bedroom units.

The present need as stated in the solicitation is for 30 two-bedroom units and 3 one-bedroom units. However, this solicitation may be used in the future to fulfill other requirements as they become known. In order for leases to be awarded for further requirements under this SFO, the units must be submitted and awarded under this SFO.

2. On Exhibit C, the bed type requirement states “double bed”, industry standard is queen, would the government substitute “double bed” for queen bed?

Yes.

3. For apartment units that allow key and digital code access:

a) Can the two (2) additional keys provided to the US government be in the form of two (2) additional digital codes?

Yes, many complexes now use digital locks or access to all apartments and facilities. If this is the case, those codes must be provided to the Government. However, if physical keys and/or RFID key cards or fobs are required then the lessor is required to provide two additional keys as stated in the SFO.

4. Based on the format of the Standard Form 2, Enclosure (3) document:

a) Please confirm and clarify. We expect to sign a total of 33 documents with the US government initially.

No, the lease is with the US Government, not the individuals residing in the apartments. The only person from the Government that will be signing the lease is the Real Estate Contracting Officer. The Navy personnel occupying the units will not be signing the lease, and may be moved/reassigned at the will of the Government. There will be one lease executed per lessor that is awarded from this solicitation. One lease may cover multiple units and have varying start dates.

b) Please confirm and clarify. Each Standard Form 2, Enclosure (3) document signed would have a lease # reference to a separate sublease document with unit, occupant(s). It also includes apartment rules and regulations for the occupant(s) to sign and approve.

No, the only person from the Government that will be signing the lease is the Real Estate Contracting Officer. The Navy personnel occupying the units will not be signing the lease, and may be moved/reassigned at the will of the Government. There will be an Exhibit “D” made to all leases which will list the units that are being rented. Additionally, names of the occupants will be provided to the lessor for notification to the building at initial occupancy as well as at any change of occupancy.

c) Please confirm section 2 value: (Date) to (Date). This will be Feb 26,2024 to July 26, 2024. Initially.

See Paragraph 7 of the SFO. Initial occupancy date is estimated to begin on February 26, 2024. Although the Government plans to lease for an initial period of six (6) months with an option for the Government to renew for three (3) additional periods of six (6) months or any portion thereof, the required time frame cannot be firmly established. The estimated dates are February 26, 2024 through August 26, 2024. The confirmed dates will be provided on the lease.

d) Please confirm section 3 value: Rent$___ . Depending on the Monthly Rate of this unit lease, this is the complete value of the lease for 6 months only.

Yes. Rent will be calculated on a monthly basis, and any portion less than a month will be prorated. The full rent amount for the full initial lease period along with total rent amount per month will be displayed on the lease.

e) Please confirm. We will repeat the same signing process of 33 documents after July 26 for next lease 6 month increment period

See Paragraph 7 of the SFO. Renewal options will be written into the initial lease agreement. If the Government wishes to exercise a renewal option, the lessor will be notified of the Government’s intent to do so 30 days prior to the end of the current lease term. There will not be a new lease executed for the renewal periods. If there are any changes necessary to the lease it will be made through a modification to the existing lease agreement.

5. Our understanding of "in arrears" is that the US Government will make payment 30 days after the start of the lease.

a) What is the expected process for invoicing the US Government?

See Exhibit “A”, Paragraph 3. The initial monthly rental payment under this lease shall become due on the first workday of the month following the month in which the occupancy of space is effective. As provided for by the lease, subsequent rent shall be paid in arrears, and will be due on the first workday of each successive month.

There is no invoicing requirement for the lessor to initiate payment. The Government will make payment as outlined in the lease agreement, Enclosure 3 and Paragraphs 3, 4, and 45 of Exhibit “A”.

b) Is there an invoice format required to be used? Ex. quickbooks invoice

There is no invoicing requirement for the lessor to initiate payment.

c) When must the invoice be sent to the US government?

There is no invoicing requirement for the lessor to initiate payment.

6. What is the expected timeframe to receive payment in our account after the invoice is sent?

See Paragraphs 3, 4, and 45 of Exhibit “A”. Payments are initiated by NAVFAC and sent to Defense Finance Accounting Service (DFAS) for processing. It can take up to 30 days for DFAS to process payments. Any late payments will receive interest in accordance with Paragraph 4 of Exhibit “A”.

a) Can this payment delivery be achieved through ACH/Wire by the US Government?

See SFO, Paragraph 8.I and Exhibit “A”, Paragraph 45. All payments by the Government under this contract shall be made by electronic funds transfer (EFT).

7. Please confirm. Any additional general cleaning prior to termination of lease that is requested by the US government/occupant will be an additional expense?

Any additional cleaning outside of the requirements stated in the SFO will be communicated to the lessor by the Real Estate Contracting Officer and agreed to in a bilateral modification to the lease agreement.

a) Can we charge for additional cleaning required to the US Government separately?

Any additional cleaning outside of the requirements stated in the SFO will be directly requested by the Government in a written lease modification from the Real Estate Contracting Officer at a price to be determined upon mutual agreement by the lessor and the Government.

8. If window/doors were reported to be damaged during post inspection due to the negligence of Government occupant(s):

a) Can we request the CO to inspect and repair?

b) Or, Do we need to make a claim for this?

c) Or, Can we charge the occupant(s) separately due to a violation of rules and regulation of the signed sublease.

See Exhibit “A”, Paragraph 13. The lessor shall submit any damage claims, at the fair/depreciated value along with proof of payment and pertinent supporting documentation (cleaning expenses, repairs, carpet replacement, and/or excessive removal of abandoned belongings), to the Real Estate Contracting Officer with copy to the Government’s authorized local representative within thirty (30) days of the joint inspection.

At the termination or expiration of this lease, the Government and Lessor shall execute a “Settlement and Special Release Agreement” reflecting the final resolution of all conditions under this lease.

The individual occupants will not be signing the leases.

9. Please confirm. The US Government can re-assign the current lease to a new occupant?

The only person from the Government that will be signing the lease is the Real Estate Contracting Officer. The Navy personnel occupying the units will not be signing the leases, and may be moved/reassigned at the will of the Government. The lessor will be notified of any change in occupancy in order to alert the building of the change in residence.

During the re-assignment of the new occupant(s) within an active lease, this would cause and trigger a new sublease agreement with a new occupant? Please confirm, that the US government will provide sufficient notice to execute this ahead of time.

The “sublease” as defined in Exhibit “A”, Paragraph 1.b. is the lease between the Government and the lessor if the lessor is not the owner of the premises they are leasing to the Government. The only person from the Government that will be signing the lease is the Real Estate Contracting Officer. The Navy personnel occupying the units will not be signing the lease, and made may be moved/ reassigned at the will of the Government. A change in occupancy will not trigger a new lease to be signed.

Does the US Government expect general cleaning, carpet cleaning and replacement of beddings, pillows for the new occupant? If so, this activity would be an additional expense that needs to be covered. Is it reasonable, in such an event, that the US government can help cover this expense?

The lessor is responsible for the cleaning requirements listed in Exhibit “A”, General Clauses, Paragraph 12.

The Lessor hereby agrees to perform, upon request by the Government and at no additional cost to the Government, a general cleaning including appliances, furnishings, and professional steam cleaning of all carpeted areas upon termination of a leased unit and/or at a change in assigned occupancy resulting in unit vacancy. Said general cleaning shall occur no more frequently than once per year. Repainting and/or general cleaning shall not be performed upon request of occupants nor without the approval of the Real Estate Contracting Officer.

10. Please confirm, For the US Government, to make spot inspections, there is an Area General Manager (AGM) that will be responsible for hosting entry for US Government personnel to enter the building on behalf of the occupant. Advance notice and approval must be provided by Occupant and CO to the lessor to coordinate the spot inspection with our AGM. This will allow the AGM to provide access to the building apartment.

See Exhibit “A”, Paragraph 18 and Exhibit “B”, Paragraph 8. The lease agreement is with the Government, not with the individual occupants. The Government personnel making the inspections will have keys provided at move-in. The Real Estate Contracting Officer and his/her designated representatives will provide reasonable and proper notice to the lessor for inspections. It is not anticipated that this will be a common occurrence.

11. Fobs and key cards are very expensive to replace. These items cost $150-250 to replace and re-configure. In the event, an occupant loses a fob and/or key card, the US Government may not be responsible for replacement cost, however, the occupant(s) will be directly responsible for paying a replacement fee as part of signing the sublease agreement directly.

See Exhibit “B”, Paragraph 8. The Government does not guarantee that every key will be returned and will not be liable for a failure to return all the keys, cards, fobs, and parking passes. The lease agreement is with the Government, not with the individual occupants. The individual occupants will not be signing sublease agreements.

12. Can you clarify these 2 terms further?

a) Prime lease - Is this the Standard Form 2, Enclosure (3) document for lessor to sign with the US Government?

That is incorrect. The prime lease is the lease that the lessor has with the owner of the complex/apartments. If the lessor enters into a lease agreement with another entity in order to lease those units to the Government, that agreement between the lessor and the other entity is the Prime Lease.

b) Subleases - Is this the separate Sub-lease/Authorized Unit Rules and Regulation document (Lessor Documents) that is signed by the occupant and referenced in the Standard 2 form, Enclosure(3) with "lease #:" field?

If the lessor has entered into a Prime lease with another entity as described above, then the lease between the lessor and the Government will be referred to as a sublease. The sublease is a lease between the lessor and the Government, and will be conducted using Standard Form 2, Enclosure 3.

13. Can you clarify, if an alternative to a pricing schedule can be provided?

No. See Paragraph 4 of the SFO.

During the first few days of moving in, the US Navy engineer damaged the sink handle? It requires repair and the incident is reported. In most cases, repair would be estimated by the operator at the time and an invoice would be generated? Can we not submit this to the CO officer and request reimbursement?

See Exhibit “A”, Paragraph 13.

Submit any damage claims, at the fair/depreciated value along with proof of payment and pertinent supporting documentation (cleaning expenses, repairs, carpet replacement, and/or excessive removal of abandoned belongings), to the Real Estate Contracting Officer with copy to the Government’s authorized local representative within thirty (30) days of the joint inspection.

14. If unit damages are reported from the act or negligence of a US Government occupant(s):

a) What is the process to request reimbursement from the US Government for repair or material replacement?

See Exhibit “A”, Paragraph 13.

Submit any damage claims, at the fair/depreciated value along with proof of payment and pertinent supporting documentation (cleaning expenses, repairs, carpet replacement, and/or excessive removal of abandoned belongings), to the Real Estate Contracting Officer with copy to the Government’s authorized local representative within thirty (30) days of the joint inspection.

b) Can we charge repair/replacement expenses to the occupant directly in violation of Sub-lease Rules and Regulation?

No. The lease agreement is with the Government, not with the individual occupants. The occupants will not be signing a sublease agreement.

15. If award is provided to the lessor and within 7 days following the award, one of the unit(s) is the SFO+LI 10547+(Encl+1)+Offer+Form_final_for_release.xls in form is not available due to unforeseeable causes beyond the control of the Lessor and/or his contractors, subcontractors, suppliers, or another Government contractor:

a)is there a process to work with the US Government to fill that missing unit(s) with a similar or upgraded unit that meets the same solicitation criteria followed by a similar or competitive LPTA?

Yes. Due to the lag time between submission of offers and award of offers, we understand that some of the units offered may no longer be available, or more units may become available. Prior to executing a lease agreement, the Government will request an updated availability to confirm which units are still available. The lessor may substitute a unit as long as it meets the same solicitation criteria and cost as the unit selected in response to the solicitation.

b) Please describe that process and expectations, to allow seamless execution of complete delivery of all leases by Feb 26, 2024?

The Government intends to notify all lessors of award status within 2 weeks of the close of the solicitation. This should allow for approximately 10 days after lease signing for units to be made ready for occupancy. Government representatives will be on-site the week of 26 February 2024, to conduct pre move-in inspections and ensure all requirements are met.

16. For Group 1 columns, we may not be able to furnish all the details prior to Jan 31, 2024. How critical is this information to evaluate as a factor to the overall basis award criteria?

See Paragraphs 3 and 4 of the SFO. All information must be submitted by the specified deadline in order for the offer to be considered for award. It is critical that this information is provided, as it provides the Government detailed information with respect to security requirements of the solicitation.

Note: For Group 2 column, we will add an additional web link in a separate column so the floor plan and other details of the unit are available to review. Feel free to comment if not acceptable.

Yes, this is acceptable.

17. Instead of providing supporting documents, could we recommend the same strategy in the facility requirement section to have the government physically inspect the property to make its own determination?

No. See Paragraph 4 of the SFO. The Government needs information upfront to make its determination and award without physical inspection. The Government will physically inspect the property prior to move-in.

Note: All properties offered, have scheduled ground maintenance, proper lighting in garages for security, and occupant maintenance response process based on issue type. Would the apartment website or link gallery suffice as supporting documents?

Yes, this is acceptable.

18. The Statement of Work, Item #7 entitled Description of Lease and Execution Requirement states “Although the Government plans to lease for an initial period of six (6) months with an option for the Government to renew for three (3) additional periods of six (6) months or any portion thereof, the required time frame cannot be firmly established. The Government shall retain the right to terminate each lease in whole or in part at any time, without cause, by giving at least thirty (30) days written notice to the lessor”, however the pricing document is requesting rental rates based on a one year. The rental rate is more for leases of 6 months, and it is easier to secure a 1-year leases than 6-month leases. Consequently, if we are required to only seek 6-month leases there is no guarantee the rate will be the same if after 6-month an extension is requested. Additionally, how can we honestly provide a 1-year rate on the pricing document with the knowledge that you are actually requesting the rental for 6 months only? Shouldn’t the pricing document be changed to reflect a 6-month rental rate formula?

Enclosure 1 asks for rental rates per year based on the year in which the lease/renewal is executed. If a lease is awarded on February 24, 2024, the 2024 rate will be used for the initial lease as well as the first 6 month renewal which would take place in August 2024. If the second renewal option is exercised for that lease it will take place in calendar year 2025, and therefore will utilize the 2025 rental rate that was submitted. Renewal periods are not guaranteed and the Government retains the right to terminate for any reason with 30 days’ written notice to the lessor. Pricing should be valid for a six-month term at any given point within the calendar year that the instrument is executed.

19. The pricing document requires rates for 2 additional years, which is difficult to calculate when apartments owners do not project rates beyond a year, although we can build in a percentage increase based on an estimate, will we be allowed to adjust our rate if the contract continues beyond the initial 6 months and the original estimate does not cover the increase?

No. See Paragraph 4 of the SFO. Future rate adjustments will not be permitted. The offeror must submit rental rates for all future years in order to be considered for award.

20. Would be willing to accept 63 1 bedroom units in lieu of the 2 beds?

The current need as stated in the SFO is for 30 two-bedroom units and 3 one-bedroom units. However, this SFO may be used to fulfill additional units in the future as well. As future needs arise, Requests for Availability will be sent out to awardees of this SFO in order to fulfill additional requirements. To be considered for future award you must submit units for award under this SFO. This SFO may result in multiple awards. If not enough two-bedroom units are submitted in order to fulfill the requirement, one-bedroom or three-bedroom units may be used in order to complete the 63 bed requirement.

21. Will the existing incumbents or past contracts be available to the solicitation as well; or there are none at this point to share?

Below is the award summary from the previous Seattle SFO from June 2021.

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