SIOP Lease Phase 2 SFO LI-14174_Amendment No 4.pdf

Amendment No. 4 to Phase Two

SOLICITATION FOR OFFERS (SFO) LI-14174

Administrative, Warehouse and Storage Space

Puget Sound Naval Shipyard & Intermediate Maintenance Facility, WASHINGTON Naval Sea Systems Command (NAVSEASYSCOM)

17 March 2025

Prepared by:

Naval Facilities Engineering Command, Pacific

180 Main St Honolulu, HI 96818

Brandy L. Tallaksen

Real Estate Contracting Officer (RECO)

All pre-proposal inquiries (PPI) in relation to this Solicitation for Offers (SFO) must be addressed via electronic mail to the Real Estate Contracting Officer’s (RECO) designated representatives at the emails listed herein, and the Subject line shall be marked “SFO LI- 14174”. Offerors are requested to utilize Attachment K – Pre-Proposal Inquiry (PPI) Form to submit questions, clarifications and other requests for general information to the following:

1. Zachary Schuhart at zachary.t.schuhart2.civ@us.navy.mil,

2. Barbara Buckhalter at barbara.buckhalter@salasobrien.com, and

3. Megan Schroeder at megan.e.schroeder2.ctr@us.navy.mil.

All PPIs submitted and answered by the Department of the Navy (DoN) will be made available for all interested parties to review as an Amendment to the SFO and posted on SAM.gov. Offeror name and contact information will not be included or shared in the Amendment. The deadline to submit PPIs is Friday, May 2, 2025 at 11:59 PM Hawaii Standard Time.

mailto:zachary.t.schuhart2.civ@us.navy.mil mailto:barbara.buckhalter@salasobrien.com mailto:megan.e.schroeder2.ctr@us.navy.mil

SFO LI-14174

This Amendment No. 4 to Phase 2 of SFO LI-14174 serves to incorporate the following:

Item 1: Requirement A has been removed from this Solicitation. A revised Attachment A Room Schedule is attached and will be uploaded to SAM.GOV as part of this Amendment.

Section 1.1 Executive Summary, Paragraphs A and D of SFO LI-14174 are hereby deleted in their entirety and updated as follows to reflect the removal of this requirement:

“1.1 EXECUTIVE SUMMARY:

A. The Department of the Navy, hereinafter referred as “Government” and/or “Tenant”, seeks to award a 10 year lease with no renewal options near Bremerton, Washington. This SFO is made available to address 16 space requirements consisting of approximately 748,235 square feet (SQFT) consisting of administrative, training, warehouse, industrial and laydown space to provide occupancy for 867 Government personnel. Attachment A, Room Schedule, details each space requirement described below:”

Function Approximate SQFT Personnel Requirement B Administrative, Classroom & Training 52,680 260 Requirement C Administrative & Training 45,010 92 Requirement D Administrative 10,759 128 Requirement E Administrative & Training 7,615 107 Requirement F Warehouse 111,695 120 Requirement G Warehouse 60,000 16 Requirement H Warehouse & Industrial 57,736 35 Requirement I Warehouse 15,000 12 Requirement J Warehouse 13,945 12 Requirement K Industrial 13,945 40 Requirement L Warehouse 7,000 3 Requirement M Laydown 121,425 12 Requirement N Laydown 101,425 12 Requirement O Laydown 60,000 6 Requirement P Laydown 50,000 6 Requirement Q Laydown 20,000 6

*The following requirements are preferred to be co-located but acceptable to be separate: (i) Requirements B and C; (ii) Requirements D and E; (iii) Requirements G, I and L; (iv) Requirements M, N, O, P and Q. A single Offeror may submit an offer to accommodate one or more of the 16 requirements described above and in Attachment A. The rentable space shall yield a net interior square footage in accordance with minimum room sizes as described in Attachment A, plus inside corridors available for use by Government for personnel, furnishings, and equipment. Unless otherwise noted, all references in this SFO to SQFT shall mean American National Standards Institute/Building Owners and Managers Association (ANSI/BOMA) SQFT.

The Navy reserves the right to award multiple leases using this Solicitation for Offers as required. The use of the space will be for Government purposes.”

“D. PARKING:

The Offeror should include parking that meets local government code requirements and/or provides a minimum of one parking space for every 1,000 SF of rentable space. Space must be able to receive daily business mail and packages during the business week. An offer will be considered stronger if it can accommodate the Government’s minimum preferred parking spaces as described in Attachment A and below:

Minimum Preferred Parking Spaces

Space for 40 foot Semi- Truck w/ Trailer

Requirement B 300 Requirement C 100 Requirement D 128 Requirement E 107 Requirement F 80 2 Requirement G 6 Requirement H 50 1 Requirement I 6 1 Requirement J 12 Requirement K 40 1 Requirement L 6 1 Requirement M 12 1 Requirement N 12 1 Requirement O 6 1 Requirement P 6 1 Requirement Q 6 1

If an Offeror is unable to provide minimum parking spaces as required by local Government code or a minimum of one parking space for every 1,000 SF of rentable space, they must detail so in their proposal citing how many spaces will be provided.”

Item 2: The following Questions and Answers to SFO LI-14174 were received and answered. The below is inclusive of Questions and Answers that were received and answered during and after the virtual Industry Day event held on 12 Mar 25.

Question Offeror Question DON Response 1 The below language is saying anybody even people who did not submit anything for phase 1 can submit a proposal for phase 2, correct? "Phase 2 of SFO LI- 14174 allows offerors (those who submitted for Phase 1 and any new offerors)"

You are correct, participation in Phase 1 was not required for participation in Phase

2. We welcome any and all who are interested in this opportunity to lease with the Navy and submit a formal proposal in accordance with the instructions in the SFO.

2 The SFO (attachment A) notes that the requirement is for a 10-year firm term that can be terminated at any point with a 120 days’ notice. Attachment F says that the lease is only firm for a year before termination rights kick in.

Please refer to the language in Attachment F. An amendment to the SFO will completed shortly to clarify the language in Section 1.4 of the SFO.

3 With this being the second phase of the SFO, is there an additional document that we fill out for questions or just use the one that was in Phase 1?

Yes, we have a form available within the solicitation on sam.gov:

https://sam.gov/opp/f7ed37964d504888876 55a67b97289ea/view

Attachment K to the SFO is the Pre- Proposal Inquiry (PPI) Form for review and use. You can email questions to us as well but if there a lot of questions, the PPI Form will help us track and ensure we respond to each question.

4 What is the target occupancy date? Is it October 1? I ask as it relates it existing facilities versus new construction. Unless someone is well under way on construction as of today, if the navy requires occupancy by October 1, you'll be limited to existing buildings only.

To answer your question, please review Sections 1.6 Occupancy Date and 2.10 Evaluation Factors. Section 1.6 will be amended to refer to Section 2.10 Evaluation Factors due to a typo. Please also review Section 2.11 Award.

https://sam.gov/opp/f7ed37964d504888876 55a67b97289ea/view

5 Can D & E co-locate and if so, what is the parking requirement?

Please refer to Sections 1.1 EXECUTIVE SUMMARY and 2.10 EVALUATION FACTORS to review co-location in the

SFO. Additionally, please refer to Attachment A to the SFO, page 12-13.

6 I have 2 locations very close together. Can D & E be split into the two separate, but close, locations?

Please review please Sections 1.1

EXECUTIVE SUMMARY, 2.6

MULTIPLE OFFERS and 2.10 EVALUATION FACTORS of the SFO.

Please refer to Attachment A to the SFO, page 12-13.

7 Is there any adjustment to the 120 day cancellation clause?

Please refer to Section 1.4 Lease Term in the SFO and Attachment F, Section IV to the SFO. If an offeror is seeking an alternative to the cancellation clause described in the SFO and attachments, please submit a formal request to the POCs identified at the top of this Amendment No.

3.

8 Does the Laydown yard have any other requirement other than the fence? Lighting? I can accommodate 3 of the 5 at one location. Can those be separated out?

Please review the SFO for and Attachment A to the SFO, pages 25-29. Additionally, please Sections 1.1 EXECUTIVE SUMMARY, 2.6 MULTIPLE OFFERS and

2.10 EVALUATION FACTORS of the

SFO. An Offeror may submit an offer or multiple offers for spaces that can meet the requirements of the SFO and attachments.

9 Does requirement E have the 10' ceiling minimum?

Please refer to Attachment A to the SFO, page 13.

10 Is it possible to submit a question a head of time to be answered/addressed at the Teams Meeting next Wednesday?

Yes, you can submit questions ahead of the Teams Meeting. There will also be the opportunity during the meeting to ask questions if you prefer.

11 Are these spaces for relocated employees or to house new additions to PSNS operations?

The subject SFO is a new leasing requirement and an opportunity for interested parties to submit offers to lease with the US Navy.

12 In the event the lease is terminated early, what about costs/charges for early termination?

Please refer to Section 1.4 Lease Term in the SFO and Attachment F, Section IV to the SFO.

13 Is there willingness to remove the 120 days' termination clause completely?

As a matter of policy, the Navy is required to include a right to cancel clause in lease agreements, as mandated by the Secretary of the Navy. We strongly encourage you to review the solicitation, particularly Attachment F: Proposal to Lease Space, Item 25, which addresses potential costs associated with the early termination of a lease.

The Navy has an approved lease requirement for a 10-year period. Should an interested party wish to request the omission of the right to cancel clause, such a request must be included in their lease proposal with a clear and compelling justification.

Please note that it is highly unlikely that any request to omit the Navy's right to cancel the lease will be approved.

14 It is our understanding that this would be a temporary real estate solution before the Navy relocates operations back to base post-renovation, is that correct?

That is correct.

15 How will participants be able to view the recording in the future?

Many interested parties who are unable to be here today, would like to see the transcription and discussion from today.

We will confirm with Legal and distribute the video, if possible.

16 Where are the build out requirements for B and C (tenant Improvement requirement); B- CD and E?

Please review all sections and attachments of the SFO. The solicitation outlines type of space, size and use the Navy is looking for as a tenant. The solicitation also speaks to the condition requirements of the space. It is up to you as the participant to assess your property and put together a proposal that meets the minimum requirements. Detailed requirements for each space are captured in Attachment A Room Schedule.

17 If we submit a proposal for one of our properties that is available, but we lease it afterwards prior to the May proposal submission deadline, do we just have to notify you?

Please refer to Section 2.1, C. Part A, Cover Letter with Rental Offer, Item No. 6.

Proposals should provide confirmation the space will meet all minimum specifications, provisions, clauses, terms and conditions of the SFO and lease, and that the offer remains valid through award unless earlier withdrawn.

Include acknowledgement that all pages of the SFO including Attachments were received by the Offeror.

Understanding the nature of commercial real estate, if you do continue to market the property and it becomes unavailable, please notify the DON as soon as possible to update your offer or remove your offer from consideration.

18 Is the intent to be able to terminate the lease with a 120 day notice any time after year 1 of the lease?

The US government and the Navy must include termination rights in our leases.

This is a matter of policy by the Secretary of the Navy.

Please review Attachment F Proposal to Lease Space form, as it touches on termination rights in item number 25. If you submit a proposal, be sure to thoroughly consider and account for termination costs as well. Regarding financing, talk to your financial institution, as they can help assess your situation and help you generate a proposal that would take into account this termination clause requirement.

19 If Landlord's spend X dollars on improvements and the Navy reimburses landlord with a balloon payment at improvements completion, then the Navy terminates prior to their lease expiration in 10 years.

Is Navy looking to be reimbursed for a portion of their balloon payment (amortized on what term they won't occupy)?

Please refer to Attachment F Proposal to Lease Space, Section IV, Item 25 of the

SFO.

This can vary by situation, but here are some general guidelines. If the Navy pays a lump sum for improvements upon occupying the space and then terminates later, the Navy will most likely not seek reimbursement for this payment. In the case where improvement reimbursement is amortized through the term of the lease, the lessor will have to provide documented evidence of real costs associated with the termination, including the accrued costs of improvements, for the Navy's consideration of what will be paid as part of the lease termination.

20 The administrative spaces range in size from 77 to over 500 sqft per person. Is there a reason for such a wide variation of space requirements in the administrative areas?

The differences are due to the usage of those spaces. Some of the administrative areas are training spaces that are not sized as traditional classrooms, resulting in a larger square foot allocation per person.

The space allocations are based on the intended use of the spaces and the room schedules in the SFO account for the requirements for each area. We want to encourage creativity in proposals and alternative suggestions as to how space requirements could be met.

21 Given the nature of tenant improvements, after award is made, it is possible that it could take a year before a space is available. Are you considering that?

Please refer to Section 1.6 Occupancy Date of the SFO.

The Navy understands that it could take a year for a space to be made available, depending on the amount of work needing to be done in a space. That is why the solicitation does not have a specific date that we are seeking beneficial occupancy.

We strongly encourage everyone to review the Evaluation Factors listed in the SFO and have that guide your proposal strategy.

22 What is the Navy's current timeline to move back? Is it 10 years or could it be earlier?

We are not able to answer that question.

We have been tasked to solicit for a lease(s) inclusive of the term cited in the SFO.

23 Some of the warehouse requirements do not list a restroom requirement. Is it safe to assume that you will want to group those requirements with other buildings that have a restroom requirement?

Requirement I is what I'm looking at.

Please review all sections and attachments of the SFO, including Section 2.1 How to Offer, A. Part B, Technical Data.

All spaces offered should be in compliance with all required and applicable codes, laws, and ordinances and as described in the SFO.

This includes restroom space for any space offered. If a space offered does not currently comply with applicable codes, laws and ordinances, proposal shall further detail how such space offered will be made to comply with applicable criteria in accordance with the SFO.

Attachment A Room Schedule is included in the SFO to cite the space requirements of the Navy (occupancy size and type) but does not dictate what can or cannot be included with respect to the facility requirements for any space, including restrooms.

24 Regarding the 45 day window to be under contract and moving forward with permits, Kitsap County is under a permit backlog. Can you confirm is the 45 days starts from the contractual date?

Section 3.10 Evidence of Capability to Perform – After Award outlines describes this area of the SFO.

Please review Sections 1.6 Occupancy Date and 2.1 How to Offer, D. Part B. Technical Data, Item 3 which instructs Offerors to review and provide a high level schedule that outlines key milestones describing how and when a complete and useable facility that aligns with the space requirements offered for shall be available for occupancy.

We are planning to make notice of award by 30 August and have lease agreements in place by 30 September. The SFO is not a contract and does not require Offerors to complete permits as part of their proposal and any costs in doing so are solely at the discretion of the Offeror.

With respect to the requirements of the SFO, the Government understands that certain offers may vary in size and scope to accommodate such things as built-to-suit proposals or proposals that offer co-location of one or more space requirements.

In all situations, Offerors are required to comply with 2.1 How to Offer, D. Part B.

Technical Data, Item 3 of the SFO that details a high level schedule that details delivery of a complete and useable space ready for Government occupancy subject to award of lease.

25 How will leases be paid?

Annually? Monthly?

Please refer to Section 3.8 After Award, Item B Rent Commencement of the SFO.

Upon notice of award and lease commencement, rent shall be at a monthly frequency and in arrears.

26 Regarding the price per square foot that we submit in our offer, will PSNS come back to us and negotiate?

As we receive proposals, we will evaluate for them for factors including price and move those along that fall in the competitive range. We may follow up and have some discussions to seek clarification and we might go back and ask for a best and final offer with respect to any clarifications.

There is also the possibility that we award the lease without any discussion. When the lease is awarded and signed, the rent is confirmed as stated.

The tenants themselves will not have the authority to request changes for rent or price or anything to the facility. NAVFAC real estate, our office, as the contracting officers, would talk with the landlord if there ever needed to be changes or alterations or anything with consideration to the terms of the lease.

What you put in your proposal for the 10 year lease term, if awarded, that would be the rent for the lease.

27 Since this is a 10 year lease, can I make the assumption that rent is adjusted for as time goes by?

Please refer to Attachment F Proposal to Lease Space, Section III, Item 18 including Table 1 of the SFO. Offerors are requested to submit a rent proposal for a 10-year lease which should be inclusive of anticipated costs, such as escalation, in the annual rent proposal.

28 Will the Navy tenant participate in the TI design to ensure their interests are satisfied?

There will be a high level of participation from all the necessary stakeholders on the Navy side and our users to make sure that if anything is awarded, it aligns with user requirements, which are detailed in the SFO and Attachments.

29 Are you going to look at HUD Zone, Women Owned, Veteran Owned businesses, etc. as a priority?

This solicitation does not prioritize HUD Zone, Women or Veteran Owned businesses.

30 Requirements O, P and Q. It appears this request is for private property only. Can you confirm?

I am the General Manager of a public water system. We own some undeveloped land that may work for lay down space. I understand if this is not meant for public land, but I wanted to confirm officially.

Please review section 2.4 WHO MAY SUBMIT AN OFFER of the SFO. If an entity is able to meet all of the requirements of the SFO, has the legal right of the property to lease or sublease the property to the Navy, and the ability to perform the requirements of the lease if awarded, they are encouraged to submit a proposal. Please ensure you review all requirements of the SFO to make a determination if your organization is an appropriate entity to participate and submit a proposal in this

SFO.

31 On the attachment F, page 2, Section III- Some leases are NNN and some are Gross. Are you wanting all of your leases at a Gross amount for each year?

Please refer to Section 1.1.C. UTILITIES, MAINTENANCE & SERVICES and 5

UTILITIES, MAINTENANCE &

SERVICES of the SFO. Please ensure the requirements of the SFO are reviewed prior to completion of Attachment F along with its Table 1 per Item 18.

All other terms and conditions of Phase 1 SFO LI-14174 remain unchanged.