3rd Amendment_Solicitation for Offers to Lease w_ the US Navy (SFO LI-14193).pdf

Amendment No. 3

SOLICITATION FOR OFFERS (SFO) LI-14193

Climate Controlled Warehouse, Laydown and Parking Space in

Subic Bay Metropolitan Authority Freeport Area or Clark Economic Freeport Zone, Republic of the Philippines.

5 Jun 2025

Prepared by:

Naval Facilities Engineering Command, Pacific

180 Main St Honolulu, HI 96818

Zachary T. Schuhart

Real Estate Contracting Officer (RECO)

Offers for SFO LI-14193 are due by June 17th, 2025 at 11:59 PM Hawaii Standard Time.

Please refer to Section 2.0 ‘Offer Preparations and Submission’ for formatting of proposals and submittal instructions.

Offers must be received no later than 11:59 PM Hawaii Standard Time on Tuesday, June 17th, 2025, and must remain open until award. Be advised that award may be made based on initial offers without discussion. Discussions may be held with Offerors in the competitive range, should one be established. Offers shall be submitted electronically via email to DoD Secure Access File Exchange (SAFE) website https://safe.apps.mil/. In order to submit a proposal through the DoD SAFE website, Offerors must request the RECO’s designated representatives identified in this SFO LI-14193 to initiate a ‘Request a Drop- Off’. Offerors must initiate this request via email to Zach Schuhart at zachary.t.schuhart2.civ@us.navy.mil and Barbara Buckhalter at barbara.buckhalter@salasobrien.com. Offerors will then receive an automated email from DoD SAFE containing the instructions for uploading the file(s). Instructions on how to use DoD SAFE can be found here: https://safe.apps.mil/. Submissions must be received by the due date and time listed above.

SFO LI-14174

This Amendment No. 3 of SFO LI-14193 contains the full set of PPIs to SFO LI-14193 that were received and answered as shown. Offeror name and contact information have not been included or shared. If the same question was asked by multiple potential offerors, these were consolidated as much as possible. Since the deadline to submit PPIs has passed, this is the last Amendment that will include PPIs.

All other terms and conditions of SFO LI-14193 remain unchanged.

Question # Offeror Question (If question is specific to a certain requirement, please indicate requirement…A, B, C, etc.).

DoN Response

1 Since this is a build-to-suit endeavor, we anticipate that the developers will require a guaranteed lease of at least 10 years. It would be difficult to justify an investment wherein the lease may be terminated without security deposits or guarantees after year 1. Could we confirm that the entire cost of the build, provided the developer/lessor has documentation/detailed itemization of the cost, is considered as Tenant Improvement, and the developer/lessor is entitled to its amount as the sole termination fee, in case the lease is terminated not through the lessor's default?

The US Navy has an approved requirement for a 10-year lease. As such, the lease solicited for is for a 10-year, firm term with no renewal options.

As a matter of policy, the Secretary of the Navy requires all leases executed by the US Navy to include the right to terminate early. This solicitation informs Offerors that after the first calendar year of the lease commencing, the US Navy shall have the right to terminate early with 120 days’ notice and as per Item 23 of Attachment E ‘Proposal to Lease Space’ as copied below:

“After the first year of the lease, the government may terminate this lease without cost and in the best interests of the government, in whole or in part, upon provided one hundred and twenty (120) days’ written notice to the Offeror. Termination shall be at no cost to the government unless the lessor has incurred documented, reasonable, and necessary tenant improvement (TI) costs prior to the termination date that have not been reimbursed or amortized through rental payments. In such a case, the government shall compensate the lessor for the unpaid portion of such TI costs as the sole termination fee. The lessor much submit a detailed itemization of these costs, along with supporting documentation, within sixty (60) days of the government’s termination notice. Any disputed amounts shall be subject to resolution in accordance with the disputes clause of this lease.”

With respect to the US Navy’s requirements in the solicitation, offers may vary with how to address this stipulation of the lease and how it could impact a landlord’s costs for performing associated renovations or construction. As the US Navy cannot anticipate what each Offeror will propose and the level of TI or construction involved with such Offeror’s proposal, the US Navy encourages Offerors to review the solicitation in detail and with their financial institution. Offerors may indicate in their proposal a pre-determined schedule of early termination fees associated with their offered property and TI. Utilizing Attachment E Proposal to Lease Space and the Table 1 Excel included in the solicitation, Offerors may propose for TI to be paid for either through an amortized amount through the lease agreement or as a one-time, lump sum payment to be paid upon the completion of agreed-to TI, or a combination of both.

Progress payments for completion of phased TI are not preferred but may be considered if the Offeror’s proposal is supported with a high-level schedule that details delivery of a standalone complete and useable facility which is ready for occupancy. Progress payments for incremental percentage of completion of work associated with a standalone facility cannot be accepted for this solicitation.

2 Regarding point D. Part B. 7. Any other information. One of the potential lessors intends to offer amenities as part of the their overall package. Such amenities includes residential accommodation and sports facilities. They aim to package is as part of the leased properties and offer about 69 residential units, based on the 69 occupancy from the Occupancy table from Factor 4. of 2.9 Evaluation Factors.

Could they package this under the same SFO or is there a separate SFO specific to residential requirements?

Solicitation SFO LI-14193 is for the warehouse and there are currently no residential requirements. If there is ever a need for residential requirements, that will be released as a separate solicitation.

3 Does the Department of Defense intend to lease or utilize a 2-hectare parcel of land for the construction of a single warehouse facility, to be completed by the aforementioned date?

Please review the Department of Navy’s active solicitation information at the below link, including the solicitation itself and its attachments to determine whether your property meets the requirements listed. If your property meets or can meet the listed requirements, please submit a proposal following the directions provided in Section 2.0 “Offer Preparation and Submission”.

The solicitation and all associated attachments are located at SAM.gov at the following link for review and download:

https://sam.gov/opp/c2b009aa74fd4f64961982d6f0fe6a26/view

4 In the event of such interest, would the Department undertake the construction independently, or would it require the landowner to develop the facility in advance?

Amendment No. 3

5 Alternatively, would the Department prefer or require the development of two smaller warehouse structures on separate parcels, even if their combined area does not total 2 hectares?

6 Are there operational, logistical, or strategic preferences that would necessitate multiple warehouse units rather than a single consolidated facility?

7 Is there any flexibility in the required land area, facility configuration, or construction timeline?

8 Should the Department be open to further discussion, what would be the appropriate procedure to formally initiate consideration of this opportunity?

9 Climate Control Specifications What portion (in square meters or percentage) of the warehouse will require climate control features?

Could you please specify the exact climate control parameters needed (e.g., temperature range, humidity levels, filtration standards)?

Are there particular sections that require specialized zones (e.g., cold storage, anti-corrosion, electronic equipment standards)?

The Climate Control specifications can be found in the Attachment on SAM.GOV called “LI-14193_ATTACH_A_MINIMUM FACILITY REQUIREMENTS” (Attachment A). Please refer to page 1 which contains the climate control requirements for each area within the facility and page 3, the sections titled “HVAC System Requirements” and “Air Conditioning and Ventilation Requirements”, which contain additional requirements.

10 Security and Compliance Standards Are there any required security clearances or specific access control features (e.g., biometric systems, CCTVs, perimeter fencing standards)?

Does the facility need to comply with specific U.S. military or federal storage codes (e.g., NAVFAC standards)?

Please refer to SFO Section 1.3 “Compliance Requirements for Space”.

11 Utilities and Infrastructure What level of power infrastructure is expected (e.g., voltage, backup generators, uninterrupted power supply)?

Are there preferred telecommunications or data network provisions?

Please refer to SFO Section 1.1.C. “Utilities, Maintenance and Services” and Section 4.0 “Utilities, Maintenance & Services”. Attachment A lists additional utility requirements for specific facility areas on pages 1, 2, and 4-7.

12 Lease Terms and Duration What is the intended duration of the lease, and are there any specific renewal terms?

Will the U.S. government be handling modifications or should these be built into the leasing agreement?

Please refer to SFO Section 1.4 “Lease Term”. Additionally, please review the solicitation in its entirety and all attachments. The solicitation clearly outlines that the facility requirements and specifications described in Attachment A must be considered with the Offeror’s proposal to lease.

13 Permitting and Jurisdiction Will the lease be executed under the terms of the Philippine government, SBMA, or any bilateral agreement framework?

The lease will be executed directly with the US Navy in accordance with the terms of the solicitation. Offerors must review all terms and requirements of the solicitation and include in their proposal the appropriate documentation necessary to support having the right to offer property to the US Navy for lease. Offerors are required to perform their due diligence with respect to any local terms or requirements by the Philippine Government and SBMA to ensure their offer is legally sufficient prior to submitting an offer to lease to the US Navy. This opportunity to lease with the US Navy does not exclude Offerors from any applicable local permitting, jurisdiction or other requirements as is customary and applicable for the offered property.

Amendment No. 3

14 Should the Offerors assume the full cost of utilities when providing a full service rental value?

Utilities (e.g. power, water) and Maintenance Cost may fluctuate depending on use, and if the lease rates are supposed to be fixed, Offerors may assume a larger value to ensure the rental can cover the costs.

As stated in SFO Section 1.1.C. Utilities, Maintenance and Services "The Navy is seeking a full service lease inclusive of all utilities, maintenance and janitorial services associated with the proposed property. Utilities should be inclusive of electricity, gas, water, sewage disposal, and internet connectivity. Maintenance should be inclusive of HVAC, interior maintenance, fence repair and maintenance, parking lot maintenance, exterior site and landscaping services, and commercial waste and disposal services. Janitorial services should be inclusive of all associated cleaning services to maintain the leased space in a clean and acceptable condition including carpet cleaning, light bulb replacement, trash removal, window cleaning, supply of janitorial products for cleaning, and supply of bathroom paper products.

Services, utilities, and maintenance are to be provided twenty-four (24) hours a day, seven (7) days per week, including U.S. Federal and Host Nation holidays. Janitorial services shall be performed during the Navy’s working hours as described in section 4.2 of this SFO."

Further in SFO Section 2.1.C.7. it states "Total annual rent for each year of the ten (10) year initial term must be a fixed level amount and must include all applicable taxes, value added tax (VAT) and items listed in 1.1 C “Utilities, Maintenance & Services” and Section 4."

Offerors should determine the best rate to charge for utilities and maintenance based on fluctuation estimates. If it comes to pass during lease execution that utility and maintenance costs change significantly affecting the rental rate, the lessor would be required to submit a formal request to the RECO for consideration.

15 "Total annual rent for each year of the ten (10) year initial term must be a fixed level amount and must include all applicable taxes, value added tax (VAT) and items listed in 1.1 C “Utilities, Maintenance & Services” and Section 4. Rent shall be paid at a quarterly frequency and in advance."

Is this interpreted as the annual lease values are determined and specified in the agreement and not based on an external report? (e.g. Year 2 rental is subject to the reported % growth of the CPI as reported by the government).

Or is this interpreted as fixed level amount and does not escalate for the rest of the term?

We fully encourage you to propose rental rates accounting for all of the requirements listed in SFO Section 1.1.C. Utilities, Maintenance and Services. If you project that there will be different rental rates annually based on an escalation, please account for that as well.

16 Can Offerors front load the rental payments to cover the cost of the build? Especially if they are investing on a greenfield site?

Cost of the build would be considered Tenant Improvements. Tenant Improvements capture alterations or modifications to a space or construction of space by an Offeror that are necessary to meeting the Government’s minimum requirements for the space as described in the SFO. Per SFO Attachment E "Proposal to Lease Space Table 1 Item 11, Table 1 Space Offered and Rates", Offerors can determine the estimated cost for tenant improvements necessary for their space offered to meet the Government’s requirements, provided that supporting documentation as described in the SFO is provided to justify such cost. Offerors can further choose to submit proposed costs for tenant improvements as one-time, lump payment upon completion of the work, for the cost to be amortized over a period of the lease term, or for both options to be considered in their proposal.

17 Is there a probability of moving the deadline of responses to this SFO to a later date?

Or will the SFO recognize submissions after the deadline?

There will be no changes to the due date and proposals must be received by the deadline to be considered.

18 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO Section 1.3 Compliance Requirements:

Section 1.3.E, page 5 – “Offers must receive an acceptable security risk rating from the Navy in order to be eligible for award… The security survey may take up to forty-five (45) days…”

For facilities that are not yet constructed, how will the Navy conduct or verify the security survey to determine eligibility for award?

As stated in Section 1.3E "Facilities must meet security standards (Facilities Security Level II) as required by UFC 4-010-01, Change 1, 1 October 2013 which states the security standards established by the Department of Homeland Security’s Interagency Security Committee (ISC) in The Risk Management Process for Federal Facilities shall apply to all off-installation leased space managed by the DoD."

In addition, UFC 4-010-01, Change 1, 1 October 2013 section 1-8 "Applicability" indicates these security standards are also applicable to new construction. Therefore, Offerors must review these standards and indicate in their proposal how their newly constructed facility will meet the appropriate requirements. This is what the Navy will assess to determine eligibility for award.

Amendment No. 3

19 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO Section 1.3 Compliance Requirements Section 1.3.E, page 5 – “Offers must receive an acceptable security risk rating from the Navy in order to be eligible for award… The security survey may take up to forty-five (45) days…”

Will the Navy require installation of CCTV or other video surveillance systems as part of the facility’s physical security posture, and if so, are there minimum coverage or retention standards that must be met?

This is not a requirement of the solicitation. If such features are offered, the Navy may consider them.

20 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO Section 1.4 Lease Term Section 1.4, page 5 – “…the Navy shall compensate the Lessor for the unpaid portion of such TI costs… The Lessor must submit a detailed itemization of these costs, along with supporting documentation…”

In the event of early termination, how will the Navy determine the reasonableness and validity of the Lessor’s claimed unamortized tenant improvement (TI) costs, and will a standard valuation process or third-party audit apply?

As further specified in Section 1.4 of the SFO, "The Lessor must submit a detailed itemization of these costs, along with supporting documentation, within sixty (60) days of the Navy’s termination notice." Please further review item 23 of Attachment E Proposal to Lease Space.

21 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO Section 2.9 Section 2.9, para A4 - The chart has 2 "Climate Controlled Warehouse Spaces." Each space has a different size and occupancy requirement.

What is the difference between these 2 spaces and what is the intended use for each space?

Please refer to Attachment A Minimum Facility Requirements that contains details about each space in this solicitation including their occupancy, description of use, and other notes.

22 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO Section 3.6 Construction Inspections Section 3.6.A, page 16 – “Construction inspections may be made periodically by the RECO and/or designated technical representatives…”

Will a specific NAVFAC or USACE engineer be assigned to support us with reviews and inspections during construction?

Engineer support will be allocated to the RECO and his/her designated representatives to support design review, inspections and final acceptance of the space.

23 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO para 4.2 Summary of Minimum Requirements Section 1.1.C, page 4 - Services, utilities, and maintenance are to be provided twenty-four (24) hours a day, seven (7) days per week, including U.S. Federal and Host Nation holidays.

For services and maintenance, is there an expectation that contracted personnel will be on site whenever there is a Navy presence, or can those positions be in an on-call status for emergency situations after normal duty hours (7 a.m. to 6 p.m.)?

The onsite Building superintendent is to be onsite Monday through Friday 7am to 6pm, and must be available on call outside of those hours based on the type of service call. Please refer to SFO Section 4.7.A.1,ii. "The Offeror shall provide an onsite Building superintendent or a locally designated representative available to promptly respond to deficiencies and immediately address all emergency situations. Offeror shall respond within one (l1 hour and resolve emergency work within 24 hours, seven (7) days per week. Any remaining work that is non-emergency shall be responded to within the timelines outlined based on category".

24 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO Section 4.3 Utilities Section 4.3.1, page 18 – “The Offeror shall provide all systems and infrastructure required to deliver internet service and connectivity…”

Are there any minimum performance requirements for the internet connection (speed, bandwidth, reliability) that need to be met?

Section 4.3 will be updated to state the Navy requires a fiber terminated internet connection to a local carrier. Connection shall terminate in a secure climate-controlled space within the facility with room for network switching and ancillary equipment. The Navy will contract separately with a service provider after construction is complete.

Amendment No. 3

25 SOLICITATION FOR OFFERS; N40084-25-RP-00014, SFO LI-14193

SFO Section 4.3 Utilities Section 4.3.1, page 18 – “The Offeror shall provide all systems and infrastructure required to deliver internet service and connectivity…”

Is this requirement to make sure all the necessary infrastructure is in place to provide for internet connectivity, or is internet service to be included as well?

Section 4.3.1 will be updated to specify infrastructure for fiber terminated internet.

26 LI-14193_ATTACH A - MINIMUM FACILITY REQUIREMENTS Attachment A - Dedicated Exhaust and Monitoring Systems in Maintenance Bays Page 3 - “The exhaust system shall limit and monitor contaminant concentration for carbon monoxide (CO) and nitrogen dioxide (NO2) in accordance with OSHA and ACGIH... Provide overhead vehicle exhaust removal at each bay…”

For maintenance bays with vehicle engine operation, does the Navy require real-time contaminant monitoring equipment (e.g., CO/NO2 sensors) to be installed, or is system design compliance sufficient?

The Navy requires real-time contaminant monitoring equipment that activates the exhaust system to limit and monitor contaminant concentration for carbon monoxide (CO) and nitrogen dioxide (NO2) in accordance with OSHA and ACGIH.

27 LI-14193_ATTACH A - MINIMUM FACILITY REQUIREMENTS

Attachment A - Battery Room and Hydrogen Gas Monitoring Page 3 – “Battery charging rooms shall be provided with a dedicated exhaust system... and a system to limit and monitor hydrogen gas build-up from battery charging…”

Will the Navy provide specific acceptable sensor and ventilation equipment specs for hydrogen gas build-up mitigation in battery charging areas, or is that left to the Offeror’s discretion so long as UFC compliance is met?

That is correct. Please propose a hydrogen gas monitoring and limitation system in accordance with UFC- 3-410-04.

28 LI-14193_ATTACH C - U.S.NAVY LEASE

Attachment C, Para 21 - Restoration Page 7 – “The value of alterations or improvements that cannot be separated from the Premises without causing damage shall offset the cost of restoration… Upon arriving at a mutually acceptable agreement, the parties shall enter into a Lease Modification effecting a settlement.”

Can the Navy clarify how the value of non-removable improvements will be determined for the purpose of offsetting restoration costs, and whether there is a formal valuation method or Navy-designated authority involved in that assessment?

It is subject to mutual agreement.

29 LI-14193_ATTACH C - U.S.NAVY LEASE

Attachment C, Para 24 - Loss and Damage to Leased Premises Page 7 – “Each policy of insurance so carried by Lessor shall contain an endorsement providing that there shall be no subrogation against the Tenant, Tenant’s officers, employees, families and dependents, agents or others occupying said Leased Premises or acting on Tenant’s behalf.”

Will the Navy require the Lessor to submit copies of insurance policies or endorsements confirming the required waiver of subrogation against the U.S. Government, and will this be a pre-award or post-award requirement?

Offerors agree to this requirement and will provide such documentation upon request in submitting an offer. If certain provisions of this requirement are subject to post-award actions such as construction related efforts, Offeror(s) must detail such in their proposal.

Amendment No. 3

30 LI-14193_ATTACH D - U.S.NAVY GENERAL CLAUSES

Attachment D, Clause 12 - Default by Lessor Clause 12(a)(2), page 9 – “…the Government may reduce the rent by an amount reasonably calculated to approximate the cost or value of the service not performed…”

Will the Government use a standard valuation method or cost model to calculate rent reductions resulting from service failures, or is this determined at the discretion of the Real Estate Contracting Officer on a case-by-case basis?

It is as specified in Clause 12(a)(2).

31 LI-14193_ATTACH D - U.S.NAVY GENERAL CLAUSES

Attachment D, Clause 12 - Default by Lessor Clause 12(a)(1), page 8 – “Subject to provision of notice of default to the Lessor, and provision of a reasonable opportunity for the Lessor to cure its default…”

Will the Government prescribe a specific format, delivery method, or point of contact for issuing a formal notice of default, or is the method of notification at the discretion of the Real Estate Contracting Officer?

Such communication would be transmitted through a formal notification from the RECO, by and through his/her designated representatives, to the Lessor's designated point of contact per Clause 12.a.i. of Attachment C U.S. Navy Lease. Such correspondence would be transmitted via electronic mail, accompanied with an attached formal letter issued out by the RECO.

32 LI-14193_ATTACH D - U.S.NAVY GENERAL CLAUSES Attachment D, Clause 40 - Proposals for Adjustment Clause 40(b), page 28 – “…the proposal… will contain at least the following detail—(1) Material quantities and unit costs; (2) Labor costs… (7) Employment taxes under FICA and

FUTA.”

Is there a preferred format or template that the Government requires for cost proposals related to Real Estate Contracting Officer–directed changes exceeding $100,000?

Subject to the change in scope, the RECO may supply a template for the cost proposal to be reviewed by the lessor and submitted.

33 SFO LI-14193_US NAVY LEASING OPPORTUNITY_SIGNED

Section 3.3 - After Award Section 3.3, Subsection A, Page 13 - “Substantially completed space may be accepted by the Navy subject to the completion of minor punch list items…”

Can the Navy provide a formal definition of “substantially complete” for determining if space is acceptable for occupancy, or reference an existing DoD or industry standard used for this assessment?

It is as described in the solicitation, "Substantially completed space may be accepted by the Navy subject to completion of minor punch list items." Such decision shall be made at the discretion of the RECO.

34 SFO LI-14193_US NAVY LEASING OPPORTUNITY_SIGNED

Section 3.3 - After Award Section 3.3, Subsection B, Page 14 - “The Navy shall pay shell rent… until the TI is certified as acceptable by the RECO and his/her designated representatives…”

Will the Navy designate a specific individual or office responsible for certifying tenant improvement completion prior to rent commencement, and what is the expected timeline for certification review?

Please reference SFO Section 3.4.D "Construction of Tenant Improvements: The Offeror shall construct all TI in accordance with 1) the Navy reviewed Final Layout Drawings and 2) all terms and conditions of the SFO. The Navy reserves the right to access any space within the building during the conduct of interior construction for the purposes of performing inspections or for installing Navy-furnished equipment. The Navy shall coordinate with the Offeror the activity of Navy contractors in order to minimize conflicts with, and disruption to, other contractors on site.

Access shall not be denied to authorized Navy officials including, but not limited to, Navy contractors, subcontractors, or consultants acting on behalf of the Navy with regard to this project."

Timelines will be dependent on the type of tenant improvements made and where they fall in the overall schedule.

Amendment No. 3

35 SFO LI-14193_US NAVY LEASING OPPORTUNITY_SIGNED

Section 4.3 - Utilities Section 4.3, Page 18 - “The Offeror shall provide all systems and infrastructure required to deliver internet service and connectivity…”

Does the Offeror’s obligation to provide internet service infrastructure include both physical infrastructure and actual service activation, or will the Navy contract separately with a service provider after construction is complete?

Section 4.3 will be updated to state the Navy requires a fiber terminated internet connection to a local carrier. Connection shall terminate in a secure climate-controlled space within the facility with room for network switching and ancillary equipment. The Navy will contract separately with a service provider after construction is complete.

36 On the space requirement, will the US Navy consider if the space provided is separated in between non-adjacent rooms? (e.g. 8,000 sqm climate controlled = 4,000 sqm + 4,000 sqm or 2,000 sqm + 6,000 sqm)?

Navy is willing to consider non-adjacent climate and humidity-controlled rooms provided they are within walking distance in the same compound

- all room entrances must meet minimum previous stated 16' height/ 14' width and allow vehicles to drive through and maneuver to allow parking/storage. Floors in each room shall be level with each other or have ramps capable of supporting up to 68,000 lbs (24 short tons).

37 As we are brokering for this requirement, could we look for a non-exclusive appointment letter from the US Navy to establish our position with a specific potential lessor responding to the SFO?

The Navy will not provide such a letter for this solicitation. Offerors must follow the instructions of the solicitation, particularly section 2.1. How to Offers, Parts A through D, and the requirements of Attachment E Proposal to Lease Space which stipulate what is required from Offerors to validate ownership or the right to lease to the US Navy.

38 Can we directly tender our bid to you? Please review the following sections in the Solicitation:

-Sec on 2.4 “Who May Submit an Offer: An Offeror may be an individual, partnership, corpora on, or associa on. The forming of a Joint Venture

(JV), an association of two or more persons, corporations, partnerships, and/or associations, to carry out a single business enterprise for profit, for which purposes the parties combine their property, money, efforts, skill and knowledge, is considered an acceptable business entity under this SFO. However, if the Offeror is a JV, it must (1) be established prior to the submission of an initial offer(s), and (2) the initial offer(s) submitted must contain the Agreement for JV or similar documentation signed by a designated representative for the JV and a legal representative of each member company.”

-Sec on 2.1.C.4. “Provide appropriate evidence of ownership of the property. If the Offeror is not the owner, provide evidence of the Offeror’s authority to act for the property owner. Offer signed by an agent shall be accompanied by an original signed document evidencing the agent’s authority to offer the leased space.”

If you can comply with these sections and have property that meets the requirements described in the solicitation, we look forward to receiving your offer.

39 Just want to inquire about this if you are still actively looking for a lease in Clark Economical Freeport Zone, or in Subic Bay Metropolitan Authority Freeport Zone. Notice ID: LI-14193

The solicitation for LI-14193 will remain open until 17 Jun 2025 at 11:59pmHT. Please review the solicitation and its attachments and amendments in their entirety to understand the requirements for the lease. If you determine that you have property that can meet the Navy’s needs, please follow the directions in Section 2.0 of the Solicitation, titled “Offer Preparation and Submission” to submit a proposal.

40 Whichever location is good for you? Subic and Clark. Please refer to Section 1.1.2 of the Solicitation which states “Space offered must be located within the Subic Bay Metropolitan Authority (SBMA) Freeport area or the Clark Economic Freeport Zone (SBMA-Clark Corridor) and be located within 96.56 kilometers (60 miles) of the NSD Compound Entrance Gate located at Argonaut Hwy, Subic Bay Freeport Zone, Olongapo, Zambales, Philippines as described in Attachment B, Area of Consideration”.

41 Is it a requirement to already own the proposed property? When you submit your offer, you must either own the property or be able to provide evidence that you can act for the property owner. This is stated in SFO Section 2.1.C.4. “Provide appropriate evidence of ownership of the property. If the Offeror is not the owner, provide evidence of the Offeror’s authority to act for the property owner. Offer signed by an agent shall be accompanied by an original signed document evidencing the agent’s authority to offer the leased space.”

42 Climate-Controlled Spaces:

The requirements for Climate-Controlled Vehicle Storage and Climate-Controlled Warehouse Space call for large, contiguous areas. In our proposal, we may utilize multiple adjacent buildings to meet the total required space. Would this configuration be acceptable to the Government?

Navy is willing to consider non-adjacent climate and humidity-controlled rooms provided they are within walking distance in the same compound

- all room entrances must meet minimum previous stated 16' height/ 14' width and allow vehicles to drive through and maneuver to allow parking/storage. Floors in each room shall be level with each other or have ramps capable of supporting up to 68,000 lbs (24 short tons).

Amendment No. 3

43 Fixed Area Facilities:

Some spaces such as the Battery Shop Area, Hazardous/Flammable Storage, and Administrative Areas for Personnel are specified with fixed square meter requirements. If our proposal includes larger-than-required facilities for these areas, would that be permissible? Additionally, can the Government provide acceptable size ranges for these facility types?

Please refer to SFO Section 2.9.A.4. "Factor 4 – Amount of Space Offered: The Navy requires a minimum of approximately 19,979 SQM for all space as described in Attachment A. The Navy prefers space up to, but not to exceed, approximately 33,022 SQM as further described in Attachment A. Offerors that can offer additional space beyond the minimum space requirement of 19,979 SQM and up to, but not more than, 33,022 SQM may be evaluated more favorably. Further to Attachment A, the spaces highlighted below reflect the preferred additional SQM the Navy is seeking to meet its maximum space requirement of 33,022 SQM:"

Please view the table in the SFO at the end of this paragraph showing the spaces for which there is an allowable range.

Should you offer space that is greater than the maximum space requirement of 33,022 SQM, the Navy will consider and evaluate such proposal provided that it still complies with the requirements of the solicitation and attachments.

44 Advance Payment for Improvements:

Will the Government provide any form of advance or early payment to support property improvement costs at any stage after award?

Please refer to Attachment E Proposal to Lease Space Table 1, Notes 2 and 3 regarding payment of Tenant Improvements:

"2. Tenant Improvements Lump Sum: A one-time, lump sum payment to be made upon completion of tenant improvements.

3. Tenant Improvements Amortized: Rent per net square meter of tenant improvements amortized over a period of the lease term until completion. "

Should an Offeror choose to have tenant improvements payments included in the rent and amortized over the period of the lease term, please note that per SFO section 2.1.C.7. "Rent shall be paid at a quarterly frequency and in advance. The Navy prefers for rent to be paid semi-annually but this is not a requirement."

45 Does the minimum requirement have an ideal layout between the spaces enumerated, that the Offerors can target to replicate? e.g. which room should be next to which room?

Please refer to the table on page 1 of Attachment A "Minimum Facility Requirements" of the SFO. Within the Maintenance Shop (Item 3 on the table), the appropriate administrative space should be next to the appropriate shop area, i.e. the Shared Shop Space Admin area should be next to the Share Shop Space. Items 4 and 5 (Climate Controlled Warehouse Space and Administrative Space for Personnel) should be next to each other. Spaces listed under Item 9 (Warehouse Storage and Support spaces) should be next to each other.

46 Will the SFO consider land under the jurisdiction of Bases Conversion and Development Authority, provided also that it is within the drive time requirement from Argonaut Hi-way, as an equivalent of being within Clark Economic Freeport Zone?

Land under the jurisdiction of Bases Conversion and Development Authority requires US Embassy, US DOD, and Philippine DFA, DND approvals; if the offeror can arrange those prior to submission, then yes, this can be considered.

47 What is the minimum ceiling height for all the enumerated rooms/ space requirements? The minimum room height should be 6.1M (20)’, with a preference for 7.3M (24’) to support lowboy trailer with container to support offload w/ forklift/container handling equipment

48 Is there a specific type of walls that is required for this SFO?

Any particular wall requirements depending on the rooms (e.g. between climate controlled and administrative space, between maintenance shop and battery shop area

Walls should be insulated to help control temperature and humidity and must be sturdy and secure. Concrete or metal pre-engineered building walls with insulation are acceptable. The floor for the battery shop should have some type of sealant to keep battery acid from deteriorating the floor from batteries stored on pallets.

49 Can the SFO estimate the monthly consumption for electricity and water, and other utilities to guide Offerors in assuming the monthly full-serviced lease rate?

We request the offeror to calculate these values based on 20 mechanics with hand/power/air powered tools/vehicles lifts, industrial air compressor, air-conditioners/dehumidifiers for the climate-controlled offices/areas; 70 other employees with laptop computers w/ 2 monitors, 100 cell phones charging, 4 coffee makers, 4 microwaves, 4 refrigerators, LED lights in all buildings, industrial welder, etc. There will also be instances of operation of tactical HVAC and 10/20 foot shelters for quarterly/annual maintenance testing using shore power.

50 Does New Clark City, part of the Clark districts under the jurisdiction of BCDA, already has the additional approvals, at least from the mentioned US Departments, for this US Navy requirement?

This is not for the U.S. Navy to confirm. Upon review of the SFO, Offerors must perform their own due diligence prior to submitting a property for lease and ensure it meets all requirements of the SFO.

Amendment No. 3

51 Subject Line - SFO LI-14193 Page 3 Executive Summary 1.1.A. 3. What does NAVFAC’s Term – “Offered space for beneficial occupancy no later than May 15, 2026” mean?

Does the term beneficial occupancy refer to a minimum of X square meters available by May 15 or something else? Please explain.

Beneficial occupancy' refers to the point at which the U.S. Navy can occupy facilities awarded under lease. With respect to any tenant improvements that must be offered and agreed to by the U.S. Navy, facilities must meet the minimum requirements of the SFO in order for the U.S. Navy to have beneficial occupancy.

Please see SFO Section 1.6 Occupancy Date "The Navy prefers a beneficial occupancy date for the minimum facility requirements described in Attachment A no later than May 15th, 2026."

In addition, please note the circumstances under which the Navy will accept beneficial occupancy, as stated in SFO Section 3.3.A.1 and 2.

"1. Substantially completed space may be accepted by the Navy subject to the completion of minor punch list items. Space which is not substantially complete will not be accepted by the Navy. Should the Navy reject the Offeror’s space as not substantially complete as defined herein, the Offeror shall immediately undertake remedial action and when ready shall issue a subsequent notice to inspect to the Navy.

2. The Offeror shall provide a valid certificate of occupancy, issued by the local jurisdiction, for the intended use of the Navy and shall maintain and operate the building in conformance with current local codes and ordinances. If the local jurisdiction does not issue certificates of occupancy, the Offeror shall obtain the services of a U.S. Qualified Fire Protection Engineer (USQFPE) to verify the offered space meets all applicable life and safety codes and ordnances in the Philippines and for the U.S. Department of Defense UFC 3-600-01 to ensure an acceptable level of safety is provided.

52 Page 3 Executive Summary 1.1.A.3 The paragraph states that “Offers that can support providing a complete and useable facility after May 15 2026 will be considered.”

What does this mean?

What is the cutoff or required date for providing a complete and useable facility after May 15, 2026?

The Navy prefers to occupy a space prior to 15 May 2026, but will consider offers providing space after that date.

Please note that the timeline for space delivery is an Evaluation Factor for determining which offers to award. Please refer to SFO section 2.9.A.3 "Factor 3 – Delivery Time of Complete & Useable Space: The Navy prefers a beneficial occupancy date for the minimum facility requirements described in Attachment A no later than May 15th, 2026. Offers that can support providing a complete and useable facility after May 15th, 2026 will be considered at the Navy’s discretion. Offerors that can clearly articulate in their proposal a timely delivery of a complete and useable space meeting the requirements of this SFO for the Navy to occupy may be rated more favorably. To support review of this evaluation factor, Offerors should provide a detailed, high-level schedule outlining their proposed delivery schedule of a complete and useable space for the Navy to occupy upon lease award."

53 Page 5 1.3. E Compliance Requirements for Space Security Standards How will the Navy conduct a security survey of the proposed facility to determine a risk rating as to whether the property is acceptable or unacceptable to be eligible for award if the Offeror is proposing a new warehouse facility?

As stated in Section 1.3E "Facilities must meet security standards (Facilities Security Level II) as required by UFC 4-010-01, Change 1, 1 October 2013.

In addition, UFC 4-010-01, Change 1, 1 October 2013 section 1-8 "Applicability" indicates these security standards are also applicable to new construction. Therefore, Offerors must review these standards and indicate in their proposal how their newly constructed facility will meet the appropriate requirements. This is what the Navy will assess to determine eligibility for award.

54 Page 5 1.4 Lease Term The paragraph states that the Navy may terminate the lease after the first year of the lease by providing 120 days of written notice at no cost to the Navy, except for supported tenant improvements. The Solicitation contains Attachment F Proposal to Lease which requires the Offeror to fill in various rental rates for Years 1 – 10. The Solicitation Section 2.9 Evaluation Factors states that the Price is defined as the total cost across the total term of the lease. In light of the Navy’s right to terminate the lease after the first year, can the Offeror front load in whole or part its new or modified warehouse construction costs in Year 1 or Years 1 - 2 of the of the 10 Year Lease in order to protect itself and recover said costs if the Navy was to terminate after the first year?

Please confirm that such pricing would not be deemed by the Navy to be unbalanced pricing.

Respectfully, the U.S. Navy cannot confirm this. Pricing is a discretionary matter for Offerors to determine internally. The U.S. Navy is required to have the unilateral right to cancel leases per policy.

With respect to the US Navy’s requirements in the solicitation, offers may vary with how to address this stipulation of the lease and how it could impact a landlord’s costs for performing associated renovations or construction. As the US Navy cannot anticipate what each Offeror will propose and the level of TI or construction involved with such Offeror’s proposal, the US Navy encourages Offerors to review the solicitation in detail and with their financial institution.

Offerors may indicate in their proposal a pre-determined schedule of early termination fees associated with their offered property and TI.

Utilizing Attachment E Proposal to Lease Space and the Table 1 Excel included in the solicitation, Offerors may propose for TI to be paid for either through an amortized amount through the lease agreement or as a one-time, lump sum payment to be paid upon the completion of agreed-to TI, or a combination of both.

Progress payments for completion of phased TI are not preferred but may be considered if the Offeror’s proposal is supported with a high-level schedule that details delivery of a standalone complete and useable facility which is ready for occupancy. Progress payments for incremental percentage of completion of work associated with a standalone facility cannot be accepted for this solicitation.

Amendment No. 3

55 Page 6 1.6 Occupancy Date Third sentence states that the Navy seeks to occupy space meeting the minimum requirements of this SFO as soon as possible. What are the minimum requirements and what is the cutoff or required date for this event?

Please see SFO section 1.1 Summary of Minimum Requirements, including the referenced Attachment A for the minimum requirements. The Navy seeks to occupy spaces by 15 May 2026, but will consider spaces ready after this date. As the intent is to occupy space as close as possible to 15 May 2026, spaces available earlier will be considered more favorable than those available later, per SFO section 2.9.A.3.

56 Page 9 D. Part B Technical Data 4.

The paragraph requires interior and exterior photos of the existing facilities. How can this apply to warehouse facility Offeror will construct?

Please reference SFO section 1.1.B. which states that, "Offerors may propose spaces that require restoration and rehabilitation or spaces that would be new construction or build-to-suit (BTS), but this must be outlined in the Offeror’s proposal and detail how the space will meet the Navy’s requirements."

In addition, SFO Section 2.1.D.7. further states to include in a proposal, "Any other information (such as a fact sheet, color photograph, site plan, location map, and tax parcel map) in cases of multiple tax parcels for an offered building, etc., in order for the Navy to perform a complete and adequate analysis of the offered property.

Such information may also be requested by the Navy, and in such circumstances, shall be submitted by the Offeror within five (5) working days of the request."

57 Page 10 2.3 Alternative Offers What is the level of alternative offers. Does this refer to square meters, facility outfitting or something else? Please explain.

Respectfully, the U.S. Navy cannot advise.

58 Page 10 2.5 Explanation to Prospective Offerors This paragraph states requests for explanations must be submitted five (5) business days prior to the June 17, 2025 due date for offers. Page 1 of the Solicitation states the deadline for PPIs is June 3, 2025. Which is correct?

These items are not the same. Pre-proposal inquiries are specific clarifications about the solicitation and its requirements. Request for Explanation to Prospective Offerors is a more simple overview of the solicitation to interested parties. The discussion is not meant to address technical clarifications or hold negotiations of any kind.

59 Clarification on Physical Security Guard Requirement Under FSL II Compliance (SFO LI- 14193) As part of the solicitation, section 4.1, Utilities, Maintenance & Services, it states "The Offeror shall provide the labor, material, and supervision to adequately maintain a leased premises in its entirety." Additionally, the solicitation and supporting security guidance outline compliance with UFC 4-010-01 and ISC standards for Facility Security Level II.

Is the contractor responsible for a proposing a physical security guard force? If so, is the guard force armed?

Thank you for your questions. Respectfully, the answer to both of your questions is no.

60 Request for Operational Workflow Between Functional Spaces Subject: SFO LI-14193 – Clarification on Operational Flow and Sequencing of Interior Space Functions

We are requesting clarification on the operational relationships between the functional space categories listed in Attachment A of the solicitation. Specifically, is there a preferred or required sequence of activity or adjacency (e.g., vehicle intake → maintenance → storage → dispatch) between the following interior-use areas: Warehouse Spaces, Admin Areas, Battery Shop, Hazardous/Flammable Storehouse. This information is necessary to optimize internal layout for efficient flow and mission-aligned operations.

This is a storage and maintenance program. Operational flow is not the offeror’s concern and can be refined if the offeror’s response meets the minimum space requirements. Further, the Navy does not know the offeror’s number of buildings or configuration and is unable to understand or forecast what might work best for only one offeror. Navy is applying principle of flexibility to fit the operations within the spaces offered provided they meet minimum requirements.

Amendment No. 3

61 Request for Vehicle Specifications and Movement Requirements Subject: SFO LI-14193 – Clarification on Vehicle Types, Movement Patterns, and Handling Requirements

To properly design site access, turning radii, staging, and internal traffic flow, we are requesting detailed information on vehicle types and operational movements expected within and around the facility. Specifically: What types and sizes of vehicles are expected (e.g., light utility, tactical, cargo transport)? Will there be loading/unloading operations (and if so, frequency and method)? Are there requirements for drive-through bays, turnarounds, or staging areas for queuing?