Morgantown WV - SFO 1.31.2023.pdf

Date: January 31, 2023

RETS: ID# SO15378

Federal Aviation Administration Real Estate & Utilities Group

U.S. Department of Transportation Federal Aviation Administration

SOLICITATION FOR OFFERS

Part I – INSTRUCTIONS FOR SUBMITTAL OF OFFER

1.0 LOCATION - The Federal Aviation Administration (FAA) desires to lease within the boundaries listed below.

The preference is within five (5) minutes walking distance to the Morganville Airport Traffic Control Tower: 170 Hart Field Road, Morgantown, WV, Morgantown Municipal Airport, Morgantown, WV 26505.

1.1 The offer should comply with the requirements set forth in the Solicitation for Offer (SFO). At the time of submission of offers, the Offeror shall submit to the Contracting Officer a signed statement that the Offeror has read the SFO and all the attachments in their entirety. The following forms must be completed and submitted with the Offer:

Signed SFO with offer showing compliance to the requirements in the SFO Proposal to Lease Lessor’s Annual Cost Statement Evidence of Capability to Perform (Section 1.4) Architectural Barriers Act Accessibility Standard Compliance Report (See Section

1.9) Safety and Environmental Checklist (See Section 5.0.2)

1.2 ADDRESS FOR SUBMITTAL - All original offers, including all required documents, must be submitted to the authorized Real Estate Contacting Officer (RECO) at the e-mail below including a PDF document with signature.

Address for Submittal:

Chris Barnhill Real Estate Contacting Officer Chris.Barnhill@FAA.GOV 404.305.5806

1.3 OFFER DUE DATE - Offers are due by Noon on February 15, 2023 and shall remain open until lease award.

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1.4 EVIDENCE OF CAPABILITY TO PERFORM -

At the time of the SUBMISSION OF OFFER, the Offeror shall submit the following documentation to the Real Estate Contracting Officer:

Ownership or control of the property and evidence of signature authority of the party(ies) who will sign any lease documents.

Offeror must provide satisfactory evidence of at least a conditional commitment of funds in an amount necessary to prepare the space. Such commitments must be signed by an authorized bank officer, or other legally authorized financing official, and at a minimum must state: amount of loan, term in years, annual percentage rate, and length of loan commitment.

After Issuance of NOTICE TO PROCEED FOR TENANT IMPROVEMENTS:

Within ten (10) business days after the Real Estate Contracting Officer issues the Notice to Proceed for Tenant Improvements (TI) to the Lessor, the Lessor shall provide to the Contracting Officer evidence of:

Award of a construction contract for Tenant Improvements with a firm completion date. This date must be in accord with the construction schedule for tenant improvements set forth in the awarded Lease.

1.5 CONFLICTS OF INTEREST - If there is a potential for conflict of interest because of a single agent representing multiple owners, present evidence that the agent disclosed the multiple representation to each entity and has authorization from each ownership entity offering in response to this SFO. Owners and agents in conflicting interest situations are advised to exercise due diligence with regard to ethics, independent pricing, and Government procurement integrity requirements. In such cases, the Government reserves the right to negotiate with the owner directly.

1.6 OFFERS - There will be no public opening of offers, and all offers will be confidential until the lease has been awarded.

1.7 NEGOTIATIONS - Negotiations will be conducted on behalf of the Government by the

FAA Real Estate Contracting Officer (or the FAA Real Estate Contracting Officer's designated representative). The Contracting Officer is named on the cover of this SFO.

FAA will negotiate the rental price for the initial term, any renewal periods, and any other aspect of the offer as deemed necessary.

1.8 AWARD -

After the conclusion of negotiations/request for clarification, the Successful Offeror and the FAA Real Estate Contracting Officer will execute a lease prepared by FAA, which incorporates the agreement of the parties. The lease shall consist of the following:

Federal Aviation Administration Real Estate & Utilities Group o FAA Space Standard Lease or Small Lease o The pertinent provisions and/or attachments of the offer, and o Floor plans of the offered space.

The acceptance of the offer and award of the lease by the Government occurs upon execution of the lease by the Real Estate Contracting Officer and the mailing or otherwise furnishing written notification of the executed lease to the successful Offeror.

Unsuccessful Offerors will be notified in writing by the Real Estate Contracting Officer.

PART II – DESCRIPTION OF REQUIREMENTS

1.0 AMOUNT AND TYPE OF SPACE -

The Government is seeking a minimum of 140 to a maximum of 200 of American National Standards Institute/Building Owners and Managers Association (ANSI/BOMA) Office Area (ABOA) square feet (SF) of contiguous space within a building as described below:

o Office Space: Approximately 140 – 200 SF The offer shall meet the following space requirements:

o Must be located in a quality building of substantial construction o Have a potential for efficient layout o Be within the occupiable square footage range to be considered o In compliance with all of the Government’s minimum requirements set forth herein.

The design of the space offered shall be conducive to efficient layout and good utilization as determined by the Government. To demonstrate potential for efficient layout, the Offeror may be requested to provide a test fit layout at the Offeror’s expense when the space offered contains certain features like:

o Narrow column spacing;

o Atriums, light wells, or other areas interrupting contiguous spaces;

o Extremely long, narrow runs of space;

o Irregular space configurations; or o Other unusual building features.

The Government will advise the Offeror if the test fit layout demonstrates that the Government's requirement cannot be accommodated within the space offered. If the Offeror is already providing the maximum Office Area square footage and cannot house the Government's space requirements efficiently, then the Government will advise the Offeror that the offer is unacceptable.

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1.1 LEASE TERM - The Lease term must be for five (5) Years, with the FAA having the option to renew year-to-year, with Government termination rights, in whole or in part, by providing not less than 30 days’ prior written notice to the Lessor.

1.2 LEASE RATE - The FAA is seeking a fully serviced Lease with rent that covers all Lessor costs, including all shell upgrades, Tenant Improvements (TIs), operating costs, real estate taxes, and security upgrades. Rent must be based upon a proposed rental rate per Rentable Square Foot (RSF), limited by the offered rate and the maximum ABOA SF solicited under this SFO.

1.3 TENANT IMPROVEMENT - When applicable, the Offeror shall provide the dollar amount of the Tenant Improvement1 Allowance per occupiable square foot.

The Tenant Improvement Allowance shall cover the estimated cost of the build out of the Government-demised area in accordance with the Government-approved design intent drawings. All Tenant Improvements required by the Government for occupancy shall be constructed and paid for by the Offeror as part of the rental consideration, and all improvements shall meet the quality standards and requirements of this solicitation and its attachments.

The Offeror may be requested to provide a listing of Offeror’s administrative costs, Offeror's profit and overhead, A/E design costs, and other associated project fees necessary to prepare construction documents to complete the Tenant Improvements.

State the basis for determining each component, (e.g. flat fee, cost per occupiable square foot, etc.). State any assumptions used to compute the dollar costs for each fee component.

1.4 OCCUPANCY - Estimated occupancy is the date that personnel will be moved into the space.

Occupancy is required within 180 calendar days after the Real Estate Contracting

Officer issues the Tenant Improvement Notice to Proceed.

1.5 ACCESS AND APPURTENANT AREAS - The right to use appurtenant areas and facilities is included. The Government reserves the right to post Government rules and regulations where the Government leases space.

1 Tenant improvements are the components, finishes, and fixtures that typically take space from the “shell” condition to a finished, usable condition.

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1.6 DEVIATIONS - If an offer includes any “material” deviations, i.e. those affecting price, occupancy date, performance requirements, the Offeror shall submit them with their offer in a separate document entitled, “Deviations.” By submitting such deviations, the Offeror acknowledges and accepts the risk that any of the deviations may result in the offer being determined unacceptable.

PART III – AWARD FACTORS AND PRICE EVALUATION

1.7 Evaluation Criteria (Not All-Inclusive)

Lowest Price Technically Acceptable The Lease will be awarded to the responsible Offeror whose proposal (i) conforms to the requirements of this SFO and the proposed Lease documents and (ii) offers the lowest price. Responsibility will be determined in accordance with AMS T3.2.2.7(A)(1). Price will be determined in accordance with the "Present Value Price Evaluation" paragraph of this SFO.

If the Offeror requests deviations from any term or condition of the Lease, each must be documented on the Proposal to Lease Space in block labeled “Additional Remarks or Conditions with Respect to this Offer.” At its sole discretion, the FAA will decide whether to accept the deviation. By submitting deviations, the Offeror acknowledges and accepts the risk that the offer may be determined unacceptable, and the FAA’s award determination rescinded.

Present Value Price Evaluation A. The Offeror must submit plans and any other information to demonstrate that the

Rentable Space yields ABOA space within the required ABOA range. The Government will verify the amount of ABOA SF and will convert the rentable prices offered to ABOA prices, which will subsequently be used in the price evaluation.

B. Evaluation of offered prices will be based on the annual price per ABOA SF, including all required option periods. The Government will perform present value price evaluation by reducing the prices per ABOA SF to a composite annual ABOA SF price, as follows: Parking and wareyard areas will be excluded from the total square footage but not from the price. For different types of space, the gross annual per ABOA SF price will be determined by dividing the total annual rental by the total ABOA square footage excluding these areas.

C. Free rent will be evaluated in the year in which it is offered. The gross annual price is adjusted to reflect free rent.

D. Acceptable rent structures are:

(1) Fixed Rent (where the rent amount and the time at which it is required to be paid are fixed and determinable under the terms of the lease agreement as of the lease date);

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E. To the gross present value cost (PVC) will be added:

(1) For Lease acquisitions where the Government is considering less than fully-serviced offers, the cost of Government-provided services (e.g., utilities, janitorial) not included in the rental escalated at 2.5 percent compounded annually and discounted annually at 5 percent.

(2) The annualized (over the full term) cost of any items, which are to be reimbursed in a lump sum payment. (The cost of these items is present value;

therefore, it will not be discounted.)

(3) The annual price for parking to accommodate the minimum number of spaces required for government vehicles, if not included in the shell rent and charged separately. The price will be discounted annually at 5 percent.

(4) The cost of relocation of furniture, telecommunications, replications costs, and other move-related costs, if applicable.

(5) The fees for architectural and engineering design (A/E) services and the Offeror’s project management fees associated with Tenant Improvements. The Offeror is required as part of their offer to identify on the Proposal to Lease Form any and all fees to complete the tenant improvements, broken down into two components:

i. Fees for architectural and engineering design services (A/E fees), which may be offered as a rate per ABOA SF, percentage rate, or flat fee, and

ii. Lessor’s overhead, administrative costs, profit, and fees associated with Tenant Improvements (Lessor’s PM fees), which may be only offered as a percentage rate.

These fees will be evaluated in a multi-step process, as follows.

The A/E fees are assumed to consume a portion of the total tenant improvement allowance (TIA) if applicable, thus reducing the amount available for actual construction. The percentage is not a percentage of the TIA, but a percentage of the underlying costs, which together with the A/E fee equals the TIA. The following example is used to illustrate the calculations, and assumes the following:

An allowance of $30 per square foot for 10,000 ABOA square feet, which is $300,000, and A/E fees of 5%.

The underlying costs equals the TIA divided by (1 + A/E fee percentage) $300,000 / 1.05 = $285,714.29 A/E fees at 5% of the underlying costs are .05 x $285,714.29 = $14,285.71 Underlying costs of $285,714.29 plus 5% A/E fees of $14,285.71 = TIA of $300,000

The Lessor’s PM fees are presumed to be in addition to the TIA and calculated as a percentage of the full TIA.

Using the same example, if Lessor’s PM fees are offered at 5%, the fees are calculated as $300,000 x .05 =$15,000.

The sum of these fees is then computed as a percentage of the total TIA.

Following the example, A/E fees of $14,285.71 plus Lessor’s PM fees of $15,000 (total fees of $29,285.71) ÷ $300,000 TIA =9.762%.

The amortized rental rate for the tenant improvement allowance is increased by this percentage for purposes of price evaluation.

PART IV – GENERAL BUILDING REQUIREMENTS AND

SPECIFICATIONS

1.8 BUILDING SHELL REQUIREMENTS - When applicable, the Offeror shall provide a building shell which shall consist of the following:

Base structure and building enclosure components shall be complete. All common areas accessible by the Government, such as lobbies, fire egress corridors and stairwells, elevators, garages, and services areas, shall be complete. Restrooms shall be completely accessible in accordance with the requirements of paragraph 4.1 below and fully operational.

All newly installed building shell components, including but not limited to, heating, ventilation, and air conditioning (HVAC), electrical, ceilings, sprinklers, etc., shall be furnished, installed, and coordinated with Tenant Improvements. Circulation corridors are provided as part of the base building only on multi-tenanted floors where the corridor is common to more than one tenant. On single tenant floors, only the fire egress corridor necessary to meet applicable life safety code(s) is provided as part of the shell.

Unless an item is specifically labeled as Tenant Improvement, it shall be considered a building shell item.

All items identified in this solicitation as “building shell” are to be provided, installed, maintained, repaired, and/or replaced as part of the Offeror’s base rent.

1.9 ACCESSIBILITY - All space offered in response to this SFO shall be accessible to persons with disabilities, including the common areas accessible to Government tenants, in accordance with the Architectural Barriers Act Accessibility Standard (ABAAS). The Offeror shall submit the ABAAS Compliance Report.

1.10 LABOR STANDARDS - If an Offeror proposes to satisfy the requirements of this SFO through the construction of a new building or the complete rehabilitation or reconstruction of an existing building, and the Government will be the sole or predominant tenant such that any other use of the building will be functionally or quantitatively incidental to the Government’s use and occupancy. The following will apply:

Labor Standards clause (6/09)*

* Full text version of this clause is available upon request from the Real Estate Contracting Officer.

PART V – GENERAL SAFETY AND ENVIRONMENTAL

REQUIREMENTS

1.11 GENERAL SAFETY REQUIREMENTS - Buildings in which space is offered for lease shall be evaluated by the FAA to determine whether or not an acceptable level of safety is provided. This evaluation will consider the potential for loss of life, loss of federal property, and business interruption. Potential for fire growth and spread, as well as the building's capability to resist the effect of fire, shall be evaluated. In addition, the building's environmental quality will be considered, including, for example, indoor air quality, the presence, location, and condition of asbestos in the space, and levels of radon in the air. Offerors shall assist the Government in its assessments and detailed studies by making available information on building operations and providing access to space for assessment and testing.

1.11a BUILDING CODES - All buildings must comply with Federal, State, and Local building, fire, safety, and seismic safety codes. FAA reserves the right to inspect the premises to verify compliance with these codes.

1.11b SAFETY AND ENVIRONMENTAL CHECKLIST - All offerors shall submit a completed FAA’s Safety and Environmental Checklist form. Failure to submit this form may eliminate an Offeror’s proposal from further consideration. FAA reserves the right to verify the space’s compliance with the checklist.

1.11c SEISMIC SAFETY – The successful offer received in response to this SFO will be evaluated to determine whether the offer fully meet National Institute of Standards and Technology (NIST) NISTIR 5382, Interagency Committee on Seismic Safety in Construction (ICSSC) RP 8, Standards of Seismic Safety for Existing Federally Owned or Leased Buildings. If any offer received does not fully meet seismic safety requirements, then other offers will be considered. The Offeror shall be required to submit a completed Certificate of Seismic Compliance form prior to lease award and will be attached to the executed lease contract.

ATTACHMENTS:

Number Title No of Pages

1 Draft FAA Standard Space Lease 54

OFFER FORMS:

Number Title No. of Pages

A2 Offer Form – Proposal to Lease 2

A3 Lessors Annual Cost Statement 5

A4 Architectural Barriers Act Accessibility Standard Compliance Report 1

A5 Safety and Environmental Certification 3

The Offeror acknowledges reading the Solicitation for Offers and all the attachments in their entirety. This offer is in full compliance with and acceptance of the aforementioned Solicitation, with attachments.

Offeror Signature Title Date