SATPC0038793 Tab 10 SOW rev_Redacted.pdf

Statement of Work Appraisal Assignment Support Services

Real Estate Valuation to be used for LC-39A & Landing Zone Potential Enhanced Use Leases NASA/KSC Kennedy Space Center, FL

General Information

The purpose of the appraisal is to determine fair market value of land on the Kennedy Space Center. This appraisal value will be used to establish a fair market value baseline to be used to calculate land lease values to support negotiation and execution of a potential out-grant Enhanced Use Lease for the use of LC-39A and adjacent acreage for a potential Landing Zone at Kennedy Space Center, FL.

Project Description

The real property to be appraised:

Real Estate Appraisal Report to be completed as a baseline valuation for potential out-grant Enhanced Use Leases for LC-39A (approximately 173.25 acres), an additional (5.74) acre parcel with building, and an adjacent parcel of land (approximately 36.5 acres) which may be leased to operate as a rocket landing zone at Kennedy Space Center, FL. Report should contain values on a per acre basis and be specific to the property identified. Appraisal analysis should consider revenue generating capability based on KSC infrastructure and permitting that is already in place. Report should contain quantifiable metrics which would allow calculations dependent upon exact square footage or facilities to be conveyed.

Appraisal Instructions Develop an appraisal report as defined by Uniform Standards of Professional Appraisal Practice (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) that complies with any additional state or federal requirements.

Provide an appraisal report for that can be used to establish fair market value for the purpose of executing Enhanced Use Leases at or directly adjacent to the Kennedy Space Center, FL. The report will be used to determine the current fair market sales value and subsequent fair market rent value of the property. Appraisal should consider highest and best use of property and use that as the basis for the appraisal when applicable. All documents related to GIS mapping, legal description, habitat survey, boundary location etc. will be provided upon acceptance.

The intended user of this appraisal request is the NASA-KSC CFO, RPAO, and HQ Facilities and Real Estate Division.

1) Appraisals based on Highest & Best Use – Not limited by proposed usage, planning or land use maps

2) Fair Market Value (FMV) – Sales Price

3) Property Fair Market Value – Including an explanation of current fee value on a per acre basis for land as well as contain a per square foot value for any occupying NASA constructed facilities which could be used to provide insight as NASA negotiates succeeding instruments. Appraisal should focus on land at or directly adjacent to Launch Complex 39A and adjacent land at KSC. In addition, report should provide analysis on fair market annual lease rate, escalation rate, and sub-lease rates.

4) Applicable Methodology

a) Sales Comparison

b) Income Approach

c) Replacement Cost (improvements)

5) Clear explanation of any/all Assumptions and any significant impact to fair market value.

6) Sales/Lease comparables should be prioritized as follows:

1) Similar properties within 50 miles

2) Similar properties with similar use characteristics & capabilities

3) Similar properties outside of 50 miles and those without similar use characteristics & Capabilities

7) Clear explanation of any/all Price Adjustments

a) Due to existing conditions

b) Due to differences vs. Comparables

c) Due to date of Comparable Sales

d) Wetlands/Uplands valuation adjustment for total price of encumbered property (if applicable)

8) Executive Summary of all results, including but not limited to:

a) Location & acreage of subject

b) Fair Market Value (FMV)

c) Fair Market Annual Lease Rate – plus escalation, market capitalization rate, and market sub-lease rates

Additional Appraisal Report Requirements

1. The contracted appraiser must be a signatory of the completed appraisal document and must be a Certified General Appraiser with the State of Florida. If any assisting or associate appraisers are utilized, they must be identified in the report along with any pertinent qualifications.

2. The appraiser must be certified or approved by the U.S. Army Corps of Engineers (USACE) for complex federal property valuation and have demonstrated experience appraising aerospace-related real property, such as launch complexes or similar facilities. The appraiser must have a proven record of submitting UASFLA-compliant appraisal reports accepted by USACE without material findings during Technical Review. The appraiser must demonstrate geographic and technical competency in appraising properties within the KSC market or similar aerospace facility markets.

3. The appraiser must make a personal inspection of the subject property of the report.

4. The appraisal report and all information furnished to the appraiser are internal documents and are to be considered confidential by the appraiser. The general public is not an intended user of the appraisal report, and this report is exempt from the Freedom of Information Act

(FOIA) requirements under federal regulations.

5. The appraisal report will be reviewed for compliance. Any findings of inadequacy will require clarification and/or revisions to the report. The NASA-HQ Reviewer for this project is included below in the Contacts section. The completed appraisal report should be sent to the NASA-HQ Reviewer in digital formats. Following formal acceptance of the report, additional hard copies, fully executed, may be required.

6. If the appraiser believes that any extraordinary assumptions or hypothetical conditions are necessary for the completion of the appraisal, the appraiser must contact the NASA-HQ Reviewer for prior written approval.

7. The appraiser must be geographically and technologically technically competent in appraisal of the property types considered for this assignment including appraisals of similar properties within the same market as the subject property.

8. The Engagement Contract and Statement of Work must be included within the Addenda of the appraisal report.

9. The presentation format of the appraisal report should generally conform to the sequence and content in Uniform Standards of Professional Appraisal Practice and the Yellow Book. The appraisal report is to be documented in a full narrative report that provides the logical reasoning along with adequate support for conclusions.

10. The appraiser must make a personal inspection of the subject property. A verification source is required along with Uniform Standards of Professional Appraisal Practice and the Yellow Book requirements for verification of comparable sale properties and any sales of the subject property.

11. Documentation of the comparable sales used in direct comparison must comply with reporting requirements of Uniform Standards of Professional Appraisal Practice and the Yellow Book. The report should include a description of all relevant physical, legal, and economic factors, such as parties to the transaction, document numbers, seller financing or concessions, and verification by a party be included in the report. If sales to government entities, or non-profit entities with the intention of transferring to a government entity are included, they are subject to extraordinary verification and treatment, as specified in Uniform Standards of Professional Appraisal Practice and the Yellow Book.

12. The preferred method of adjusting comparable sales is through supported Quantitative

Adjustments (percentage, $/acre, etc.); Qualitative Adjustments (similar, inferior, or superior) are to be used only when the market variables cannot be qualified. Quantitative adjustments without support are unacceptable. When the Appraiser must resort to qualitative analyses, support that is more extensive and discussion of the appraiser’s reasoning why a comparable sale is similar, inferior, or superior to the subject property is required. All adjustments must be supported by appropriate, and credible analysis based on documented market research.

Mere references to undisclosed “trends,” or reliance on the appraiser’s “opinion” or “judgment” without market support is an unacceptable practice. Market support includes discussions with buyers/sellers, potential investors, brokers, etc. The appraiser must also recognize that variances in sale prices may be caused by multiple factors and should not over adjust a comparable by double-counting overlapping items.

13. It should be noted that appraisal valuation methodologies should recognize local market customs and industry best practices.

14. Contacting Landowners:

During the course of inspecting the subject property, the appraiser is expected to meet with the property owner or, in the owner’s absence, the owner’s agent or representative. A statement to such is to be included in the appraisal report.

NASA is the intended user of any report. The Appraiser(s) are authorized and given express permission to communicate with NASA including analysis and conclusions. NASA is to be provided with a draft report(s) and a true original copy of the final report(s).

A copy of this Statement of Work must appear in the Addenda section of the Appraisers’ report.

15. Security and Access: The appraiser must comply with Kennedy Space Center security requirements for site access, including any necessary clearances or protocols.

Period of Performance

Sixty (60) days, or as advised by the appraisers, from the effective date of the order.