SFO LI-14193_US Navy Leasing Opportunity_Amendment No. 1.pdf

Amendment No. 1

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.

30 April 2025

Prepared by:

Naval Facilities Engineering Command, Pacific

180 Main St Honolulu, HI 96818

Zachary T. Schuhart

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-14193”.

Offerors are requested to utilize Attachment I – 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

3. Jesse Allen at jesse.r.allen6.civ@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 Tuesday, June 3rd, 2025 at 11:59 PM Hawaii Standard Time.

mailto:zachary.t.schuhart2.civ@us.navy.mil mailto:barbara.buckhalter@salasobrien.com mailto:jesse.r.allen6.civ@us.navy.mil

SFO LI-14174

This Amendment No. 1 of SFO LI-14193 serves to incorporate the following:

Item 1: Section 2.1.C.7. of SFO LI-14174 is hereby deleted in its entirety and updated as follows to reflect the correct referenced section for the evaluation factors:

“7. Completed Attachment E, Proposal to Lease Space. Provide the rental offer and breakdown using Table 1 “Space Offered and Rates” in Attachment E, Proposal to Lease Space. 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. The Navy prefers for rent to be paid semi-annually but this is not a requirement.”

Item 2: Section 2.1.D.6. of SFO LI-14174 is hereby deleted in its entirety and updated as follows to reflect the correct referenced section for the evaluation factors:

“6. A completed Attachment G, Form 12000 Prelease Fire Protection and Life Safety Evaluation.”

Item 3: Section 2.1.D.8. of SFO LI-14174 is hereby deleted in its entirety and updated as follows to reflect the correct referenced section for the evaluation factors:

“8. Attachment H, Certificate of Seismic Compliance..”

Item 4: The following Questions to SFO LI-14193 were received and answered as shown.

Question

Offeror Question 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

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:

developer/lessor is entitled to its amount as the sole termination fee, in case the lease is terminated not through the lessor's default?

“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 Defence 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:

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?

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?

https://sam.gov/opp/c2b009aa74fd4f649619 82d6f0fe6a26/view

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

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

https://url.us.m.mimecastprotect.com/s/hD8sCDk094h6A6vOtAiYcjf0lS?domain=sam.gov https://url.us.m.mimecastprotect.com/s/hD8sCDk094h6A6vOtAiYcjf0lS?domain=sam.gov federal storage codes (e.g., NAVFAC standards)?

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.

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