NBPL OTC Lease and Development Opportunity_Solicitation No. 0008 - 11.15.22.pdf

Solicitation No. N62473-23-RP-00008

NAVY OLD TOWN CAMPUS REVITALIZATION

DEPARTMENT OF THE NAVY

NAVAL BASE POINT LOMA, OLD TOWN CAMPUS

(NBPL OTC)

LEASE AND DEVELOPMENT OPPORTUNITY,

NAVAL BASE POINT LOMA, SAN DIEGO, CALIFORNIA

15 NOVEMBER 2022

LINDSEY E. GREEN

Real Estate Contracting Officer

U.S. DEPARTMENT OF THE NAVY

Naval Facilities Engineering Systems Command Southwest Division

San Diego, CA

When referring to this solicitation, please note that it is Solicitation No. N62473-23-RP-00008

TABLE OF CONTENTS

A. INTRODUCTION

1. ENABLING AUTHORITY

2. ACQUISITION PROCESS

B. BACKGROUND

C. PROJECT OVERVIEW

D. SITE INFORMATION

1. SITE LOCATION

2. REGIONAL PLANNING CONSIDERATIONS

3. MARKET OVERVIEW

4. MILITARY AND NAVWAR IMPACT IN SAN DIEGO

5. LETTER FROM THE CITY OF SAN DIEGO

E. REQUEST FOR QUALIFICATIONS (STEP 1 RFQ)

1. SUBMISSION REQUIREMENTS

2. EVALUATION FACTORS

3. STEP 1 RFQ SCHEDULE AND MILESTONES

4. INSTRUCTIONS AND ADDITIONAL INFORMATION

5. CLARIFYING COMMENTS AND QUESTIONS TO GOVERNMENT

6. PRE-PROPOSAL CONFERENCE

F. REQUEST FOR PROPOSALS (STEP 2 RFP)

1. INTRODUCTION

2. PROJECT INFORMATION

3. PROPOSAL SUBMISSION REQUIREMENTS AND EVALUATION FACTORS

4. PROPOSAL SUBMISSION INSTRUCTIONS AND ADDITIONAL INFORMATION

5. EVALUATION OF PROPOSALS

G. SPECIAL CONDITIONS AND LIMITATIONS

1. NO OBLIGATION

2. HOLD HARMLESS

3. WAIVER

4. RIGHTS RESERVED

5. GOVERNMENT-FURNISHED INFORMATION

6. DISPUTES

7. ACQUISITION REQUIREMENTS

8. PROTECTION AFFORDED TO PROPRIETARY OR CONFIDENTIAL INFORMATION

9. DAVIS-BACON ACT

H. POINTS OF CONTACT FOR INFORMATION AND CLARIFICATIONS

APPENDICES

1. Maps of NBPL OTC Available for Lease

2. Project Program and Unified Facility Criteria

3. Financial Proposal Templates

4. Proposer’s Cover Page

5. Letter from the City of San Diego

6. Data Pack (to be provided at Step 2 RFP and may include the following:)

- Sample Lease

- Known Third Party Real Estate Easements and Encumbrances

- Existing Facilities and Utilities Report

- Updated Draft Final Environmental Condition of Property Report

- Draft Environmental Impact Statement

- National Historic Preservation Act Information

- Requirements and Specifications

Solicitation No. N62473-23-RP-00008 1

A. INTRODUCTION

1. ENABLING AUTHORITY

The United States of America acting by and through the Department of the Navy (“Government”) is issuing this Request for Qualifications/Proposals (“RFQ/P”) to enter into a long-term outlease agreement (“Lease”) under the authority of Title 10 United States Code (“U.S.C.”) § 2667 for private development on the approximately

70.3 acre Naval Base Point Loma, Old Town Campus (“NBPL OTC”) in San Diego, California. NBPL OTC is occupied by Naval Information Warfare Systems Command (“NAVWAR”), its subordinate command Naval Information Warfare Center Pacific (“NIWC PAC”), and other tenant commands (collectively, “NAVWAR”). In exchange for a long-term Lease of the Government’s non-excess real property, the Government will select one (1) proposer that, in the Government’s opinion, is best able to meet the Government’s mission requirements and represents “Best Value” to the Government (“Selected Proposer”). The Selected Proposer would provide, as “in-kind” consideration (“IKC”), Government Facilities for NAVWAR (“Government Facilities”) on a portion of NBPL OTC and potentially other sites provided or approved by the Government. The Government may also consider responsive proposals that meet the mission requirements provided in this solicitation under the exchange authority of Title 10 U.S.C. § 2869, which allows for the transfer of property in fee to non-Government parties if the conditions of the statute are met.

2. ACQUISITION PROCESS

In this solicitation, the Government has instituted procedures designed to ensure the selection of a proposer who is best qualified to meet the Government’s mission requirements. To meet this objective while minimizing the amount of resources required to participate in this solicitation, the Government will conduct this competitive acquisition in two steps: (i) a Request for Qualifications (“RFQ”) from which a shortlist of qualified proposers will be identified, and (ii) a Request for Proposals (“RFP”) from the shortlist of qualified candidates, from which one proposer will be selected to enter into exclusive negotiations with the Government.

Proposers shall prepare their proposals in accordance with the instructions set forth in this RFQ/P. Subject to these instructions, proposers shall address each of the RFQ/P's proposal submission requirements in sufficient detail so as to permit a meaningful evaluation of their proposals. Proposals that fail to address one or more of the proposal submission requirements, or that provide only vague, imprecise, or incomplete responses to any or all of these requirements, may be eliminated from the competition and receive no further consideration for award. Such elimination from

Solicitation No. N62473-23-RP-00008 2 the competition may occur without a proposer first being given the opportunity to correct or revise their proposal.

The Government does not warrant the accuracy of any site-related information provided. Site-related information furnished by the Government and/or its representatives in support of this solicitation shall be considered as informational only. Such information may include technical reports and studies, building conditions reports, or other technical information intended to support the proposers’ development applications. Proposers are expected to verify (and not simply rely upon) all site-related information provided by the Government to avoid unforeseen costs.

Step 1: Request for Qualifications (“RFQ”). Detailed information, including Submission Requirements and Evaluation Factors, can be found in Section E of this RFQ/P. Government officials will review all “Statements of Qualifications” (“SOQ”) received in response to the Step 1 RFQ, may meet with any or all of the respondents, and may request additional information on particular aspects of the information submitted. Based on evaluation of the SOQs received, the Government will invite approximately three (3) proposers, who are determined to be “Best Qualified,” to respond to the Step 2 Request for Proposals. The Government reserves the right to invite more, or less than three (3) proposers to participate in Step 2, in its sole discretion based on the SOQs received.

Step 2: Request for Proposals (“RFP”). Detailed information on the Step 2, RFP Phase, including Submission Requirements and Evaluation Factors, can be found in Section F of this RFQ/P. The Government will only consider proposals from shortlisted entities who are invited to participate following the RFQ Phase. The Government will require written technical and financial proposals, potentially followed by oral presentations as needed. Government officials will review proposals submitted in the Step 2, RFP Phase, may meet with any or all proposers, and may request additional information on particular aspects of the material submitted. The Government reserves the right to amend all of, or portions of, the RFP by one or more formal amendment documents. The Government may enter into discussions with the proposers upon completion of the initial RFP evaluation and/or oral presentations.

Upon completion of discussions with proposer(s), the Government will select one (1) proposer that, in the Government’s opinion, is best able to meet the Government’s mission requirements and represents the Best Value to the Government. The Government will enter into a period of exclusive negotiations for that Selected Proposer.

Exclusive Negotiations. During this period of exclusive negotiations, the Selected Proposer would: (i) negotiate with the Government on the Lease agreement; (ii) pursue local approval, permitting, and develop plans, as applicable, (iii) pursue

Solicitation No. N62473-23-RP-00008 3 additional, required project or environmental documentation, as needed; and, (iv) secure financing and other instruments (bonding, insurance, etc.) to ensure construction of the Government Facilities in accordance with this RFP. The result of these exclusive negotiations is intended to be a long-term Lease, together with appropriate subordinate documents.

The Government reserves certain rights in connection with this period of exclusive negotiations, which are set forth in Section G, Special Conditions and Limitations.

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B. BACKGROUND

NBPL OTC in San Diego, California consists of approximately 70.3 acres and supports NAVWAR as the major tenant. NBPL OTC consists of the approximately

46.6 acre Old Town Campus 1 (“OTC 1”) parcel to the east of Pacific Highway and the approximately 23.6 acre Old Town Campus 2 (“OTC 2”) parcel to the west of Pacific Highway (collectively, the “NBPL OTC Parcels” or the “Parcels”). See Figure 1 below:

Figure 1: Area Map

The primary functions performed at OTC include administration, logistics, assembly warehousing, supply and storage. OTC 1 consists of eight (8) major buildings and four (4) minor structures. The major buildings consist of World War II-era aircraft manufacturing factories and associated administrative office buildings. OTC 1 was utilized during World War II to manufacture aircraft, and has been partially modernized to provide training facilities, administrative office space, and industrial (laboratories, shops and warehouse) space to support the current tenants. The existing space is currently underutilized and is functionally obsolete given the 1940’s era facilities’ design. OTC 2 consists of one (1) large warehouse building flanked by parking lots. See more details in Section C and Appendix 1, Maps of NBPL OTC Available for Lease.

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C. PROJECT OVERVIEW

NAVWAR requires Government Facilities to support its mission. The Government is considering plans to maximize the value of approximately 70.3 acres of Government-owned, non-excess and underutilized property at NBPL OTC to support NAVWAR needs. NAVWAR is the Navy’s cyber warfare command and contributes $3.5 billion annually to the San Diego region’s economy. The potential private redevelopment at NBPL OTC would bring additional economic benefits to the region by consolidating Navy activities in modern facilities on a smaller footprint, allowing the remainder of NBPL OTC to be developed for other productive uses.

The Government plans to enter into a Lease for up to 99 years of up to approximately

70.3 acres of NBPL OTC in San Diego, California while meeting the Government’s space requirement for NAVWAR. The leased property would be exclusive of land retained for the construction of new Government Facilities.

The Government’s preferred objective is to enter into a long-term Lease of its fee-owned real property on a portion of NBPL OTC in exchange for which the Selected Proposer would provide IKC, in lieu of cash, to the Government in the form of new Government Facilities. The Government would retain a portion of the approximately

70.3 acre Parcels for the new Government Facilities. The Selected Proposer would potentially be granted a leasehold interest in the remainder of the Parcels (“Leased Premises”), which would be available for lease and private development for the Selected Proposer to renovate, redevelop, and/or otherwise utilize. This IKC must be valued at not less than the fair market value of the leasehold interest.

The Government desires as much of the Government Facilities requirement as possible, as identified in Section F.2.c (Consideration) and in Appendix 2. The IKC proposed would be reliant on each proposer’s independent market valuation of the Leased Premises; therefore, the solicitation allows for flexibility with the possibility to award based on the proposer’s ability to provide the Government IKC pursuant to 10 U.S.C § 2667. The Government has prepared a scope ladder of options (“Scope Ladder”) comprised of desired additional scope for facilities both onsite at NBPL OTC and at offsite locations provided by the Government (or on a site provided by the proposer acceptable to the Government pursuant to 10 U.S.C § 2667 or 10 U.S.C § 2869), in Section F.2.c (Consideration) and Appendix 2. The Scope Ladder shall assist proposers in maximizing their IKC proposed.

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D. SITE INFORMATION

1. SITE LOCATION

NBPL OTC is comprised of two large Parcels: the approximately 46.6 acre OTC 1 and the approximately 23.6 acre OTC 2 for a total of approximately 70.3 acres. The two Parcels are separated by Pacific Highway. The Old Town Transit Center is immediately to the northeast of OTC 1 with existing pedestrian gate access.

OTC 1 is the larger of the Parcels at 46.6 acres. It contains nearly every major facility and the majority of tenant commands and personnel at OTC. It is bounded by Pacific Highway to the west, Burlington Northern Santa Fe (“BNSF”) Railroad right of way and Interstate 5 to the east, state of California site to the north and Witherby Street to the south. Vehicle entrance is via a gate off Pacific Highway at Enterprise Street.

Pedestrian access is via a pedestrian bridge over Pacific Highway to Enterprise Street, Sports Arena Boulevard, and the parking lots at OTC 2 or via a pedestrian gate at the northeast end of the Parcel that allows access to the Old Town Transit Center.

OTC 2 is the smaller of the Parcels at approximately 23.6 acres. It is bounded by Midway Drive to the southwest, Sports Arena Boulevard to the northeast, Enterprise Street to the southeast and commercial sites to the northwest on Rosecrans Street.

A description of the location of NBPL OTC in relation to neighboring community amenities, facilities, and attractions is provided in Table 1 below:

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Table 1: Neighboring Community Amenities, Facilities, and Attractions

Description

Airports

Approximately 0.5 mile in a direct line or 3.6 miles via streets to San Diego International Airport’s Terminal 2. NBPL OTC is also located within a 30-mile radius of three executive level airports: McClellan-Palomar Airport located in Carlsbad, CA (30 miles), Montgomery-Gibbs Executive Airport, located in San Diego, CA (8 miles) and Gillespie Field, located in El Cajon, CA (20 miles).

Transportation

Adjacent to Interstate 5, near the intersection of with Interstate

8. OTC 1 has direct access to, at the north end of the Parcel, the Old Town Transit Center. This multi-modal station is served by heavy rail (AMTRAK and North County Transit District COASTER), light rail (MTS Sycuan Green Line Trolley serving Mission Valley to the west and downtown San Diego to the south; MTS UC San Diego Blue Line Trolley serving UCSD and University City to the north and Naval Base San Diego, National City, Chula Vista and the US-Mexico International Border to the South) and MTS bus lines.

Navy/Marine Corps Installations

Close proximity to San Diego’s Marine Corps and Naval Base Installations which include: Marine Corps Recruit Depot, Naval Base San Diego, Marine Corps Base Camp Pendleton, Naval Base Coronado, Marine Corps Air Station Miramar

Downtown San Diego/Little Italy Approximately 2 miles to Little Italy on the edge of Downtown

Major Attractions

Close proximity to world renown beaches, the San Diego Zoo, Legoland, Sea World, Disneyland (95 miles north of Parcels), shopping, museums, Balboa Park, Historic Old Town, stadiums and various golf courses

Significant Development Projects

- Port of San Diego: San Diego Symphony Bayside Performance Park Enhanced Project and Central Embarcadero Development Pier Project (see Port of San Diego website)

- Historic Liberty Station Development

- Midway District Sports Arena Redevelopment (see City of San Diego website)

Colleges/Universities

Located within a 10-mile radius of several universities, including: University San Diego (2.1 miles), University California San Diego (10.5 miles), San Diego State University (10 miles), Point Loma Nazarene University (5 miles).

Additional information on the location of the Parcels is located in Figure 2 below.

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Figure 2: Location Map

2. REGIONAL PLANNING CONSIDERATIONS

NBPL OTC is located on U.S. Government-owned land. Therefore, development on NBPL OTC, both on the portion of NBPL OTC retained by the Government and the remainder to be the Leased Premises, is not subject to City of San Diego or other state and local zoning and planning requirements, nor are they subject to the 30’ Coastal Height Limit, as defined in Section D.2.b below. However, proposers are encouraged to review the Midway Pacific Highway Community Plan for information on the city’s objectives for the surrounding area and develop a plan for the site that is compatible

Solicitation No. N62473-23-RP-00008 9 with surrounding uses to the extent practicable. The Government envisions future coordination between it, the proposer selected for exclusive negotiations, and the city.

This coordination could result in an agreement between the Selected Proposer and the city, and potentially the Government. While development at the site would not require discretionary permits through the city’s public processes, the Government anticipates private development on the Leased Premises will be consistent with city building codes and construction requirements, and that the city and/or other local agencies will ultimately issue construction permits, certificates of occupancy and other ministerial, non-discretionary permits and clearances for the non-Government portions of the development. In the event NBPL OTC were ever to transfer out of Federal ownership, such as through an exchange of property, state and local zoning and regulations would apply to development from that point forward. See below for additional information.

a. MIDWAY-PACIFIC HIGHWAY COMMINITY PLANNING AREA

Although NBPL OTC occupies U.S. Government-owned land, it is located within the City of San Diego’s Midway-Pacific Highway Community Planning Area.

OTC 1 anchors the Kurtz District. The Community Plan envisions the Kurtz District as an employment area with office, research and development, and complementary residential uses which support and complement NBPL OTC.

The Dutch Flats Urban Village surrounds OTC 2. The Community Plan envisions Dutch Flats as an employment and residential-focused urban village. According to the Community Plan, office uses and flex and innovation space will support and complement NBPL OTC and provide opportunities for defense related research and development, and other base sector industries to establish business locations in proximity to transit, Downtown and San Diego International Airport.

While the NBPL OTC Parcels are not subject to zoning or adherence to the Community Plan, the redevelopment of NBPL OTC has the opportunity to serve as an anchor for other development in the area and proposers are encouraged to review the Community Plan for information on the city’s objectives for the surrounding area. For more information, see:

https://www.sandiego.gov/planning/community-plans/midway-pacific-highway https://www.sandiego.gov/planning/community-plans/midway-pacific-highway

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b. CITY OF SAN DIEGO COASTAL HEIGHT LIMIT

The City of San Diego set a voter-mandated height limit (Proposition D, 1972) that limits the height of buildings west of Interstate 5, north of downtown to 30 feet (“Coastal Height Limit”). NBPL OTC is located within the Coastal Height Limit Overlay Zone. As Federal property, NBPL OTC is not governed by this municipal ordinance and the Coastal Height Limit does not apply. Facilities 1, 2, 3, 4, 7 and 8 within NBPL OTC pre-date the Coastal Height Limit and exceed the limit. In the event NBPL OTC were ever to transfer out of Federal ownership, such as through an exchange of property, applicable state and local zoning and regulations, including any height limit, would apply to development from that point forward.

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On November 3, 2020, the voters of the City of San Diego approved Measure E, which would amend the San Diego Municipal Code to exclude the Midway- Pacific Highway Community Plan area from the 1972 PROP D 30-foot building height restriction. Measure E would not approve any specific development, and any proposed future development on non-federal land would have to comply with all governing laws at the time a development project application is submitted to the city, including any applicable height restrictions that exist independent from the existing 30-foot limitation. In December of 2021, a court blocked the Measure pending an environmental analysis after a citizen’s group sued the city for failure to analyze the impact of Measure E under the California Environmental Quality Act (CEQA). The city has since announced its plan to update its CEQA analysis to account for Measure E, while simultaneously appealing the court ruling. On July 25, 2022, the San Diego City Council voted to place the Coastal Height Limit back on the November 2022 ballot as Measure C.

c. SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY, SAN

DIEGO INTERNATIONAL AIRPORT LAND USE COMPATIBILITY

PLAN

The Airport Land Use Compatibility Plan (“ALUCP”) for San Diego International Airport is the fundamental tool used by the San Diego County Airport Land Use Commission to promote airport land use compatibility in the Airport environs. The ALUCP provides airport land use compatibility and standards related to four airport-related factors: noise, safety, airspace protection and overflight. Although the Federal Government is exempt from regulations proposed in the San Diego International ALUCP, the Government attempts to be a good neighbor and abide by regional regulations. In addition, any new buildings constructed would have to undergo FAA review under 14 CFR Part 77, Imaginary Surfaces and Hazard Assessment.

NBPL OTC is within Airport Influence Areas 1 and 2 (see Appendix 1 for map of Airport Influence Area; Proposers are expected to verify (and not simply rely upon) all site-related information provided by the Government to avoid unforeseen costs). An overflight notification agreement must be recorded with the Office of the San Diego County Recorder for any new dwelling units within the overflight area. Development at NBPL OTC may require additional sound attenuation as the area may reach 60-65 decibels community noise exposure levels.

d. CALIFORNIA COASTAL ZONE

NBPL OTC is not within the California coastal zone, but the southern edge of the property is adjacent to the coastal zone boundary. As described in the Environmental Impact Statement (“EIS”), while development would not occur in

Solicitation No. N62473-23-RP-00008 12 the coastal zone, the Government has acknowledged that there may be effects from the development within the coastal zone.

Through the Coastal Zone Management Act of 1972 (“CZMA”), as amended, coastal states are provided the authority to evaluate projects conducted, funded, or permitted by the Federal Government. In compliance with the CZMA, any Federal project or activity affecting the coastal zone must be consistent, to the maximum extent practicable, with the provisions of Federally approved state coastal plans. The California Coastal Commission developed the California Coastal Management Program pursuant to the requirements of the CZMA. The California Coastal Commission is responsible for reviewing proposed Federal and Federally-authorized activities affecting the state’s coastal resources to assess the activities’ consistency with the Federally approved California Coastal Management Program.

This project is located on property that is under the exclusive control of the Government, is not currently open to the public, and situated outside of the coastal zone boundary. Due to the potential for NBPL OTC development to affect coastal uses or resources, the Government conducted an effects analysis as part of its determination of the Proposed Action Alternatives for purposes of Federal consistency review in compliance with the CZMA. This was done to determine whether the Proposed Action Alternatives (even if conducted entirely within a Federal enclave) would affect any coastal resource or use within the coastal zone.

For all activities affecting coastal uses or resources, preparation of a Coastal Consistency Determination or Coastal Consistency Negative Determination is required. A Coastal Consistency Determination is being prepared and will be provided as Appendix 6 in the Final EIS. The Government has held several meetings with representatives of the Coastal Commission based on the preferred alternative presented in the Draft EIS. When a proposed developer is selected for exclusive negotiations, the Selected Proposer and the Government shall work together for continued close engagement with the Commission, to complete the Consistency Determination process. All communications with the Coastal Commission will be handled by the Government through the federal consistency process.

3. MARKET OVERVIEW

San Diego is home to cutting-edge businesses in life sciences, genomics, biotechnology, telecommunications, Smart City technology, software, electronics and other major innovative industries. Figure 3 below provides a San Diego Market Overview at the time of the solicitation and according to the City of San Diego Economic Development office.

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Figure 3: Market Overview

4. MILITARY AND NAVWAR IMPACT IN SAN DIEGO

The Military is the largest economic driver in San Diego. According to the San Diego Military Advisory Council (SDMAC) 2021 Military Economic Impact Report:

Table 2: Military Impact in San Diego Budget & Spending Personnel & Jobs

• $35.3 Billion in direct spending (more than twice the size of tourism)

• 25% of San Diego County’s Gross Regional Product ($55.2B In GRP)

• 23% of jobs created by military sector (349,112 Jobs)

• Largest concentration of military in the world:

153,000 personnel (17% all Navy active duty, 25% of all Marines)

• 24% of all Navy ships (72 and growing, including 2 aircraft carriers)

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NAVWAR is the 15th largest employer in San Diego. Figure 4 below provides additional details according to NAVWAR and the 2019 SDMAC NAVWAR Economic Impact Study.

Figure 4: NAVWAR Impact in San Diego

5. LETTER FROM THE CITY OF SAN DIEGO

The City of San Diego supports the revitalization of NBPL OTC and the “once-in-a-generation” opportunity to deliver state of the art facilities to support NAVWAR’s mission. The city recognizes the potential benefits to the San Diego region, including expanding housing opportunities, promoting economic development, and increasing employment near mass transit. The city is committed to working collaboratively with the selected potential developer to integrate the project into the long-term planning efforts in the surrounding neighborhoods.

The full letter from Mayor Todd Gloria, dated November 10, 2022, expressing the City of San Diego’s support for the project is attached as Appendix 5 (Letter from the City of San Diego).

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E. REQUEST FOR QUALIFICATIONS (STEP 1 RFQ)

1. SUBMISSION REQUIREMENTS

Interested parties responding to the Step 1 RFQ must provide a SOQ structured in conformance with the outline shown below. The submission should be concise, only provide relevant material, and include tables, graphs, or other visual aids where appropriate.

a. CONCEPT AND APPROACH

(10 page limit, single-sided - Government will not review information submitted in excess of the first 10 pages)

i. Vision Statement - Government Facilities: Provide a statement articulating the overall concept and approach for development of the Government Facilities.

The narrative shall demonstrate compliance with Government objectives (see Section F.1.b) and shall also include at least the following:

1. Construction of all components (Onsite and Offsite Requirements as described in Section F.2.c);

2. Maximizing provision of IKC in the form of Government Facilities;

3. Parking;

4. Ensuring continuity of mission (see Section F.2.d);

5. Proposed approach to financing;

6. Phasing and transition plan

ii. Vision Statement: Non-Federal private development: Provide a statement articulating the overall concept and approach for development, operations, and management of the Leased Premises, in sufficient detail to demonstrate the extent, character, tenant mix, and quality of the development envisioned, including, but not limited to, the following:

1. Constraints and capabilities that affect opportunities at OTC;

2. Proposed approach for financing;

3. Discuss market opportunities to include mix of asset class, market absorption rates, product values, etc.;

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4. Potential incentives (state and Federal, etc.);

5. Phasing;

6. Examples of real-world projects that demonstrate proposed development concepts will be viable

b. DEVELOPMENT, OPERATIONS, AND MAINTENANCE

QUALIFICATIONS, EXPERIENCE, AND PAST PERFORMANCE

Describe participating firms/companies/organizations (including all lenders) in terms of the roles, responsibilities, and legal relationships of each to the proposer and to each other. For each such organization, identify the size of the staff and length of operation as a company, and provide a brief historical profile.

Provide a statement describing the company’s or team’s qualifications and previous relevant development experience and past performance with projects of a similar nature, scope and scale. Include specific experience related to:

i. Development, especially any development, operations and management experience involving public-private initiatives and similar commercial real estate projects. Highlight any large scale redevelopment projects located in major cities, in particular those that are comparable to the size of the potential project at OTC, in terms of number of acres, intensity of development, and/or potential value. In addition, highlight those projects that involved coordination with local municipalities, transportation agencies and other stakeholders;

ii. Development with Department of Defense (“DoD”), the Navy, other Federal agencies, state or local governmental agencies. Highlight any experience with designing Government Facilities including familiarity with the Navy and Marine Corps Design Procedures (FC 1-300-09N) and Unified Facilities Criteria (“UFC”) requirements, and experience with respect to construction of Government Facilities including but not limited to OSS/ICD705 construction standards;

iii. Experience related to obtaining environmental clearances, including working with stakeholders to resolve challenging high visibility issues, community outreach and working with issues related to National Historic Preservation Act (“NHPA”) and California Coastal Commission;

iv. Experience with hazardous substances and Comprehensive Environmental

Response, Compensation, and Liability Act (“CERCLA”) sites;

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v. Innovative approaches to maximize value;

vi. Compliance/surveillance (e.g. QA/QC) processes to ensure adherence to all specifications and requirements

Include project descriptions, identifying roles and responsibilities of participants and current status of projects, including length and type of ownership, occupancy, asset management responsibilities, and accomplishments. Provide photographs, locations, development concepts, land uses, scope and scale, construction costs, and other relevant information including a summary of development projects underway. Identify appropriate references (names, titles, address, email address, and telephone numbers).

c. QUALIFICATIONS, EXPERIENCE, AND PAST PERFORMANCE OF

KEY PROJECT PARTICIPANTS

List the individuals who would play a significant role in the proposed project, including the individuals responsible for negotiating and executing the Lease with the Government. Describe roles and responsibilities of each. Include key characteristics of their background, experiences, and past performance that qualify them to participate in this effort. Identify consultant(s) who would participate. Any special qualifications should be highlighted or otherwise noted.

d. FINANCIAL INFORMATION

Provide sufficient financial information to establish the net worth and/or liquid assets available to the company or team for development, operation and maintenance of the Government Facilities and the Leased Premises, as appropriate. This information shall be in the form of independently certified financial statements showing assets and liabilities, including contingent liabilities, itemized in accordance with generally accepted accounting principles, together with applicable notes.

Companies or teams must demonstrate sufficient financial strength to enable them to develop the Government Facilities and develop, operate, and maintain the Leased Premises. Include preliminary lender commitment letter(s), if applicable.

Financial information must be submitted for the company or team and for any parent or holding company or any other affiliated entity identified by the company in response to this solicitation. Identify appropriate financial references (names, titles, addresses, and telephone numbers).

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Please mark financial information “Business Sensitive,” as needed.

2. EVALUATION FACTORS

The factors shown below, approximately equal in importance, would be used to evaluate the SOQs. The SOQs submitted by those judged “Best Qualified” would propose a concept and approach for development of the Government Facilities and development, operation and management of the Leased Premises that is responsive to the goals set by the Government; possess qualifications, experience and past performance which demonstrate many major strengths, and few major weaknesses and risks; and establish financial capability and capacity to carry out development of the Government Facilities and development, operations and maintenance of the Leased Premises. Based on evaluation of the SOQs received, the Government would invite approximately three (3) proposers, who are determined to be “Best Qualified,” to respond to the Step 2 Request for Proposals.

a. CONCEPT AND APPROACH

The degree to which the concept and approach to development of the Government Facilities is responsive to the objectives of the Government with regards to the provision of Government Facilities and ensuring the continuity of mission.

The degree to which the concept and approach to development, operation, and management of the Government Facilities and Leased Premises, as appropriate, is responsive to the objectives of the Government and compatible with protecting and sustaining the asset value of the Government property over the proposed Lease term of up to 99 years, as well as complements the surrounding area and addresses the Regional Planning Considerations (see Section D.2).

b. DEVELOPMENT, OPERATIONS, AND MAINTENANCE

QUALIFICATIONS

The nature and extent of the qualifications, experience, and past performance of the company or team with respect to development, ongoing management (including asset management) and operation of projects and properties of a similar nature, scope, and scale. Proposers with development experience and past performance on projects involving DoD, the Navy, other Federal agencies, state or local governmental agencies, and commercial real estate projects of a similar nature may be considered more favorably.

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c. QUALIFICATIONS OF KEY PROJECT PARTICIPANTS

The nature and extent of the qualifications, experience, and past performance of the individual key participants and specific personnel proposed for major involvement in development, operations, and maintenance of the Government Facilities and Leased Premises, as appropriate.

d. FINANCIAL CAPABILITY/CAPACITY

The degree of financial strength and evidence that the company or team possesses the financial capability and capacity to carry out the development, operations and maintenance of the Government Facilities and the Leased Premises, as appropriate. Proposers with experience financing large Government or commercial real estate projects of a similar nature may be considered more favorably.

3. STEP 1 RFQ SCHEDULE AND MILESTONES

Table 3 below summarizes the key milestones associated with Step 1 RFQ phase of this solicitation. Please monitor SAM.gov for any amendments that might impact the dates listed below.

Table 3: RFQ Schedule and Milestones

DATE MILESTONE

November 15, 2022 Solicitation Posted to SAM.gov

November 30, 2022 Last Day to Submit Questions for Government Review Prior to Pre-Proposal Conference

December 7, 2022 Pre-Proposal Conference and Site Tour

January 24, 2023 Last day to submit Clarifying Questions

February 7, 2023 STEP 1 RFQ STATEMENT OF QUALIFICATIONS

DUE

April 10, 2023 Notify Shortlisted Entities and Release “Step 2 RFP” Data Pack

Solicitation No. N62473-23-RP-00008 20

4. INSTRUCTIONS AND ADDITIONAL INFORMATION

a. One signed (1) original, six (6) copies, and one (1) copy via USB drive of the SOQ prepared in response to this RFQ must be received at the following address no later than:

DATE: Tuesday, February 7, 2023 TIME: 4:00 p.m. Pacific Daylight Time

ANY SUMBISSION RECEIVED AFTER THE TIME AND DATE SPECIFIED

ABOVE WILL BE REJECTED

If submitted via a Parcel Delivery Service (e.g., UPS, FedEx, DHL, etc.):

Attn: Erin Grandgirard, Real Estate Department Department of the Navy Naval Facilities Engineering Systems Command, Southwest 750 Pacific Highway, 9th Floor San Diego, CA 92132-5190

Send delivery confirmation and tracking numbers to Erin Grandgirard at erin.l.grandgirard.civ@us.navy.mil, and include a soft copy of the SOQ in the email.

If submitted in-person:

The Government will be available only on the due date to accept hand delivered submittals. All hand delivered packages must be time stamped prior to the RFQ deadline. The Government is not responsible for providing parking or reimbursing costs for parking for in-person deliveries. Upon arrival at the Government building, address provided below, the person responsible for delivering the SOQ package must check in with security personnel at the front desk and ask them to contact Ms. Erin Grandgirard or Ms. Tanya Spenst to retrieve the submittal package and time stamp it appropriately.

Department of the Navy Naval Facilities Engineering Systems Command, Southwest 750 Pacific Highway, 9th Floor San Diego, CA 92132-5190

Electronic or facsimile proposals or modifications will not be considered.

Solicitation No. N62473-23-RP-00008 21

b. Submissions should be sent in an envelope clearly marked

“STATEMENT OF QUALIFICATIONS – NAVY OTC REVITALIZATION

PROJECT, NAVAL BASE POINT LOMA, CALIFORNIA

(SOLICITATION N62473-23-RP-00008)”

5. CLARIFYING COMMENTS AND QUESTIONS TO

GOVERNMENT

Interested proposers are encouraged to submit written comments and questions regarding RFQ/P to the Government prior to the Pre-Proposal Conference but no later than fourteen (14) calendar days prior to the SOQ due date. Inquiries and requests for information received within seven (7) calendar days of the Pre-Proposal Conference may be responded to at the Pre-Proposal Conference. Written comments and questions shall be submitted in writing to info@navwar-revitalization.com. All comments and questions will be reviewed for appropriate action. Individual responses may not be provided. The Government retains the right to respond to all, a portion of or provide no response to interested proposer’s questions. The Government will post any prepared response(s) to written questions via SAM.gov.

6. PRE-PROPOSAL CONFERENCE

Individuals are encouraged to attend the Pre-Proposal Conference on Wednesday, December 7, 2022, 9:30 A.M. – 12:30 P.M. PST at NBPL Old Town Campus San Diego, California. The Pre-Proposal Conference will provide an opportunity for the Government and industry to meet for a presentation and site tour. The site tour will consist of several stops, allowing interested proposers to view and walk portions of the NBPL OTC Parcels. Further details on the Pre-Proposal Conference to be provided separately and posted to SAM.gov and to https://navwar-revitalization.com/.

All costs associated with the responder’s travel to the Pre-Proposal Conference and/or site tour shall be at the responder’s sole expense and shall not be reimbursed by the Government.

mailto:info@navwar-revitalization.com https://navwar-revitalization.com/

Solicitation No. N62473-23-RP-00008 22

F. REQUEST FOR PROPOSALS (STEP 2 RFP)

1. INTRODUCTION

Proposers determined to be “Best Qualified” in the Step 1, RFQ Phase, will be invited to participate in the Step 2, RFP Phase, and may submit a proposal in the form of technical and financial proposals which reflect the availability and amount of consideration and the manner in which Government requirements, objectives, and priorities will be met. Proposals shall be concise and provide all required information including but not limited to: details on how the Government’s requirements will be achieved including site and design drawings for the new Government Facilities;

demonstration of the concept for private development; details on the manner in which the Project would be financed; and the schedule proposed for achieving key milestones in the delivery of the Government Facilities as IKC. Include tables, graphs, or other visual aids where appropriate.

Appendices 1 – 4 are provided to assist proposers in preparing responses to this solicitation. Appendix 6, (“Data Pack”) (issued at the Step 2, RFP Phase, only), contains details relating to the NBPL OTC Parcels, and would be provided to those proposers determined to be “Best Qualified” who are invited to participate in the Step 2, RFP Phase, and sign a non-disclosure agreement. The Data Pack may include, but not necessarily be limited to, items such as, Detailed Requirement and Specifications for Government Facilities, a sample Government Lease, an Updated Draft Final Environmental Condition of Property (“ECP”), and a Draft EIS.

a. VISION

The overall goal for this solicitation is to meet Government’s mission requirements by requesting Government Facilities in exchange for a long-term Lease opportunity for private development at the NBPL OTC Parcels.

The vision of this opportunity is a collaboration between the Government and the private sector to finance and construct new Government Facilities at NBPL OTC.

The Selected Proposer would pay for construction of Government Facilities in exchange for the opportunity to construct mixed-use development on the remaining NBPL OTC Parcels. Development would include new Government Facilities for NAVWAR and may include a range of private mixed-use development (e.g., residential, office, retail, hotel) and potentially a transit center.

Solicitation No. N62473-23-RP-00008 23

b. OBJECTIVES

• Entering into a long-term Lease, as applicable, with a Selected Proposer;

• Receive IKC in the form of the Selected Proposer building new, secure, safe, modern, state-of-the-art, Government Facilities, while maximizing the Government’s underutilized real property;

• Private redevelopment on the majority of the Leased Premises with a potential transit station;

• Proposed IKC that meets the Government’s space, security, and Anti- Terrorism/Force Protection (“AT/FP”) requirements for NAVWAR and ensures continuity of mission;

• Accommodating the ongoing site cleanup pursuant to both CERCLA and compliance with related requirements;

• Complying with all National Environmental Policy Act (“NEPA”), Coastal Zone Management Act (“CZMA”), National Historic Preservation Act (“NHPA”), and ECP Report requirements;

• Maintaining the safety and security of the Leased Premises;

• Maintaining positive relations with the communities surrounding the property;

and

• Employing best commercial practices to the benefit of both the Government and the Selected Proposer

2. PROJECT INFORMATION

a. EXISTING FACILITIES AND UTILITIES

Site History Summary NBPL OTC was built as an assembly plant for aircraft during World War II.

Following the war, the facility continued to manufacture other aircraft and arms.

In 1996, the site was transferred to the Government. NAVWAR is the main tenant now occupying the facilities.

Summary of NBPL OTC Parcels’ Facilities and Utilities Since the NBPL OTC Parcels’ facilities were not initially constructed for office and research space, they have been subject to many years of conversion, renovation and adaptation. While this RFQ/P includes general descriptions, photos, floorplans and other documents, complete “as-built” drawings are not available. The Government makes no guarantees as to the accuracy or completeness of any information in this solicitation; all information is to be verified by proposers.

Table 4 (Existing OTC Facilities) below summarizes the major facilities at the NBPL OTC Parcels. There are also a number of smaller structures (less than

5,000 SF).

Solicitation No. N62473-23-RP-00008 24

Table 4: Existing OTC Facilities Facility Number Facility Name Area

(GSF)

1 South Administration/Warehouse Facility 444,490 2 Administration/Research Lab Facility 414,802 3 Former Lockheed Martin Facility 463,671 4 NAVWAR Command Facility 78,304 6 Former Visitor Reception Center 2,235 7 Staging Warehouse 45,870 8 Warehouse 71,361 27 Storage Facility 23,366 28 Administration Structure 20,194 30 Storage Facility 1,398 32 Lunch Room Facility 1,468 34 Yard Office 625 40 OTC Production Facility 5,000

2555 Operational Supply Facility 110,600 Total GSF 1,683,384

The only major Facility at OTC 2 is the Operational Supply Facility, 2555. The remainder of OTC 2 consists of parking lots for personnel working at OTC 1, minor Facilities, and a laydown area.

Appendix 6, (Data Pack) contains the Existing Facilities and Utilities Report, which includes:

• Photos of the major buildings and facilities;

• Diagrammatic floorplans of the major buildings and facilities;

• Detailed maps illustrating each of the major utility types, locations, and sizes (due to the age of the existing utilities and amount of adaptation to the various systems, exact locations, sizes and conditions are not always known and the Government makes no guarantee of accuracy)

b. LEASE AND TERM

Government-owned land, including existing improvements, currently known and referred to as NPBL OTC, would be transferred to the Selected Proposer by means of a long-term Lease. The Lease would be drafted to protect the Government’s interest in its land.

Appendix 6 (Data Pack) includes Record of Survey maps to indicate site boundaries for both OTC Parcels. The Selected Proposer would be responsible for preparing a legal description of the premises to be included as part of an executed Lease. Selected Proposer shall protect the Government’s interest in the Leased Premises and in any Government-retained land at NBPL OTC and facilities constructed thereon until such time as the facilities are accepted by the

Solicitation No. N62473-23-RP-00008 25

Government. A sample Government Lease that addresses the Government’s interest in its land and associated infrastructure will be provided in Appendix 6, (Data Pack to be issued at the Step 2, RFP Phase).

The term of the Lease shall be up to 99 years. In order to enter into Leases with over 5 years’ duration, the Secretary of the Navy must determine that a Lease for a longer period will promote the national defense or be in the public interest.

Thus, a Lease with a term of more than 5 years is subject to the approval of the Secretary of the Navy. To support the project, the Government anticipates issuing a Lease for a term of up to 99 years.

c. CONSIDERATION

A specific price/consideration proposal in the form of IKC shall be submitted for evaluation by the Government. Under 10 U.S.C § 2667, the consideration provided to the Government must be in an amount not less than the fair market value of the leasehold interest, as determined by the Government. The Government requires IKC in the form of Government Facilities, pursuant to 10 U.S.C. § 2667. The Government will evaluate the price/consideration proposals on the basis of maximizing the value of the proposed IKC received by the Government within the constraints and constrictions of the solicitation.

i. Government’s Requirements: The Government has identified requirements for the replacement of existing facilities at NBPL OTC with new, modern facilities. The Government has broken down these requirements into two broad categories: (1) those that must be onsite at NBPL OTC on a portion of the property that would be retained by the Government (“Onsite Requirements”), and (2) those that could be provided offsite at other military property furnished by the Government or property identified by a proposer and approved by Government (“Offsite Requirements”). While not required, moving the Offsite Requirements from OTC and building those requirements elsewhere would make more of NBPL OTC available to be leased for private development. The Government is finalizing locations available for the construction or conversion of existing facilities to accommodate the Offsite Requirements.

To assist in structuring price/consideration proposals and demonstrating project feasibility, the Government has identified the base requirements and the full requirements for both Onsite and Offsite Requirements (illustrated in Table 5). The Government has also provided an indication of priority among components of the Requirements (see Appendix 2 for more detail).

The Project Program represents net usable square feet, measured from the inside finished surface of the space’s surrounding walls, and includes the minimum square footage the Government needs for that space to be functionally capable (see Appendix 2 for more detail).

Solicitation No. N62473-23-RP-00008 26

Table 5: Onsite and Offsite Requirements

(Admin, Lab, Auditorium, Warehouse, Outdoor Laydown) Requirements Base Full Onsite 614,218 SF 887,568 SF Offsite 470,010 SF 541,068 SF Total 1,084,228 SF 1,428,636 SF Parking 1,964 Spaces…