Enhanced Use Leasing Industry Forum Saufley Field Pensacola FL by benbenzhou

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									Enhanced Use Leasing
Industry Forum
Saufley Field
Pensacola, FL
Mustin Beach Officer’s Club
190 Radford Blvd.
NAS Pensacola

March 11, 2008
Introduction

Mondez Hollomon
Manager
Alvarez & Marsal
Agenda
Timeframe      Topic                                    Speaker
0800 to 0900   Registration and Continental Breakfast   All

0900 to 0910   Introduction and Announcements           Mondez Hollomon, Alvarez & Marsal

0910 to 0930   Welcome to Saufley Field and NAVFAC      CAPT Peter Frano, CO NAS PNS
               SE                                       Bob McDowell, RECO NAVFAC
                                                        Southeast
0930 to 1000   Escambia County Welcome                  Charles Wood, VP Economic
                                                        Development Pensacola Bay Area
                                                        Chamber of Commerce
1000 to 1030   EUL Opportunity                          Dennis Stout, Alvarez & Marsal

1030 to 1230   Site Tour                                All

1230 to 1330   Lunch                                    All

1330 to 1400   EUL Program                              Larry Chernikoff, Asset Management,
                                                        NAVFAC HQ
                                                        Bob McDowell, RECO NAVFAC
                                                        Southeast
1400 to 1500   Panel Q&A                                All
1500           Adjourn                                  All
                                 3
Welcome to Saufley Field

CAPT Peter Frano
Commanding Officer
NAS Pensacola
US Naval Facilities
Engineering Command,
Southeast
Mr. Bob McDowell
Real Estate Contracting Officer
(RECO)
NAVFAC Southeast
Escambia County
Economic Development

Charles Wood, VP Economic
Development
Pensacola Bay Area Chamber of
Commerce
Overview
• Pensacola economy performing well, led by
  construction, transportation/utilities and finance
• Over 100 military commands in area
   – Pensacola benefits from steady military and homeland
     security spending
• Escambia County has targeted the West side for
  commercial development
• Chamber of Commerce looking to diversify the
  County’s economy by attracting
   – administrative & technical support service centers
   – diversified light manufacturing
   – design & assembly of electronic instruments


                     7
  Population
  • Mid-sized region with about 460,000 people
  • Population growth has been steady
     • 1.2%-1.9% per year
  • Fluctuations have been caused by hurricanes
     • Ivan (2004) and Dennis (2005)
  • Future population growth is predicted to exceed
    regional average
                                                        Population
                          2001       2002        2003      2004     2005   2006 E    2007 E    2008 E    2009 E    2010 E
                                                      (In Thousands)
Pensacola, FL (MSA)       418.3      424.1      429.3     437.1    443.5     450.5     458.5     465.6     473.8     482.9
% Change                            1.39%      1.23%    1.82%     1.46%     1.58%     1.78%     1.55%     1.76%     1.92%
South                  95,112.0   96,382.0   97,665.0 99,049.0 100,511.0 101,747.0 103,034.0 104,174.0 105,389.0 106,634.0
% Change                            1.34%      1.33%    1.42%     1.48%     1.23%     1.26%     1.11%     1.17%     1.18%
Source: Moody's Economy.com




                                             8
Wages and Salaries
• Florida and Pensacola have competitive wages
  and salaries
                             May 2005 Percentile Income Estimates by Industry
                                                                           Percentile
                                                                    25th       50th      75th
       US - All Occupations                                        $19,680    $29,430   $46,180
       Florida - All Occupations                                   $18,500    $26,520   $41,110
                                                   Pensacola
       All Occupations                                             $17,420    $25,250   $38,310
       Management occupations                                      $54,860    $72,990   $96,370
       Business and financial operations occupations               $32,400    $42,150   $56,570
       Computer and mathematical occupations                       $39,220    $54,940   $71,340
       Architecture and engineering occupations                    $36,170    $52,420   $69,490
       Life, physical, and social science occupations              $33,790    $44,550   $63,390
       Community and social services occupations                   $25,820    $31,500   $38,860
       Legal occupations                                           $30,520    $40,530   $57,250
       Education, training, and library occupations                $27,300    $35,230   $47,430
       Arts, design, entertainment, sports, and media occupations  $23,850    $33,600   $44,920
       Healthcare practitioners and technical occupations          $34,630    $42,600   $57,460
       Healthcare support occupations                              $18,350    $20,760   $23,760
       Protective service occupations                              $24,300    $30,650   $35,390
       Food preparation and serving related occupations            $13,600    $14,620   $17,760
       Building and grounds cleaning and maintenance occupations   $14,010    $16,620   $20,590
       Personal care and service occupations                       $13,990    $16,730   $22,860
       Sales and related occupations                               $14,420    $19,090   $30,540
       Office and administrative support occupations               $18,640    $23,040   $29,980
       Construction and extraction occupations                     $20,280    $25,950   $33,490
       Installation, maintenance, and repair occupations           $22,190    $31,200   $42,290
       Production occupations                                      $17,960    $23,920   $35,270
       Transportation and material moving occupations              $15,710    $20,730   $29,770
       Source: Bureau of Labor Statistics


                                    9
  Income Growth
  • Income growth has been higher in Pensacola
    than in the South overall

                                                Personal Income Growth
                     2001       2002       2003      2004      2005     2006 E   2007 E     2008 E       2009 E    2010 E
Pensacola, FL        4.8%       2.9%      4.0%      7.4%       7.3%       4.6%    4.7%        4.3%         4.7%      4.8%
South                4.6%       2.2%      3.5%      6.3%       6.6%       6.3%    4.8%        5.0%         5.2%      5.1%
Note: Personal Income Growth is based on income received by households from employment (including self), investments, and
transfer payments.
Source: Moody's Economy.com




                                            10
Employment
• Employment growth for Pensacola is expected to
  be higher than for the South as a whole, but not
  as high as some nearby areas, such as Mobile,
  AL
• Unemployment rate below national average
                                                      Total Employment
                        2001       2002       2003          2004     2005    2006 E     2007 E     2008 E     2009 E     2010 E
                                                        (In Thousands)
Pensacola, FL (MSA)     154.8      154.7      158.5        162.9    167.3      172.9      175.8      178.0      181.2      184.5
% Change                         -0.06%      2.46%       2.78%    2.70%       3.35%      1.68%      1.25%      1.80%      1.82%
Unemployment Rate      4.70%      5.30%      4.90%        4.70%    4.00%      3.40%      3.50%      3.40%      3.30%      3.30%
South                42,710.0   42,323.0   42,246.0    42,980.0 43,928.0    44,903.0   45,643.0   46,264.0   47,075.0   47,871.0
% Change                         -0.91%     -0.18%       1.74%    2.21%       2.22%      1.65%      1.36%      1.75%      1.69%
Unemployment Rate      4.70%      5.70%      5.80%        5.30%    5.00%      5.00%      5.00%      4.90%      4.70%      4.50%
Source: Moody's Economy.com




                                            11
Work Force
• Retirees and former military personnel are
  excellent job candidates
   – 67% of area’s veterans in their 30’s or 40’s
   – Many have valuable management, technical, computer
     and sales skills
• Education levels generally comparable to
  national averages
                       Education Level 2005
                                     Pensacola   U.S.
        Below High School                13.6%    15.8%
        High School Graduate             30.4%    29.6%
        Some College, No Degree          23.1%    20.1%
        Associate Degree                  9.1%     7.4%
        Bachelor Degree                  16.3%    17.2%
        Graduate/Professional Degree      7.5%    10.0%
        Source: US Census data.


                         12
Employment Distribution
• Pensacola primarily service economy with strong
  military emphasis
                         Employment by Sector
            Total Civilian Non-Agricultural Employment
                     Escambia County (MSA) 2005
         Services                                  37.8%
         Retail Trade                              16.3%
         State & Local Government                  10.1%
         Federal Military Government                7.6%
         Finance/Insurance/Real Estate              6.9%
         Construction                               6.7%
         Transportation/Comm./Public Utilities      4.3%
         Manufacturing                              3.9%
         Wholesale Trade                            3.3%
         Federal Civilian Government                3.0%
         Other                                      0.2%
         Source: Pensacola Bay Area Chamber of Commerce.



                       13
Employers
• Most major private employers are regional or
  local
• Three of the top six major private employers are
  health care related
        Major Public Employers                      Major Private Employers
                             Employees                                        Employees
  Local Government              15,790   Sacred Heart Health System                3,500
  Federal Government             7,403   Baptist Health Care                       3,470
                                         Solutia, Inc.                             1,800
  State Government               5,970
                                         Lakeview                                  1,500
  University of West Florida     2,267
                                         Gulf Power Company                        1,400
  Pensacola Junior College         770
                                         West Florida Hospital                     1,200
  Source: Pensacola Bay Area             Navy Federal Credit Union                 1,100
  Chamber of Commerce                    Pensacola Christian College               1,078
                                         International Paper                         900
                                         West Corporation                            750
                                         Medical Center Clinic                       725
                                         Network Telephone                           582
                                         ECUA                                        510
                                         Source: Pensacola Bay Area Chamber of Commerce


                                14
Transportation Links
Pensacola Regional Airport (PNS)
• 9 miles from Saufley Field
• Six carriers with daily flights to Atlanta, Dallas, Chicago,
  Houston and Charlotte

Port of Pensacola
• 50-acre facility with over 400,000 sf of covered space,
  Foreign Trade Zone and Enterprise Zone
• 11 miles from Saufley Field

Alabama State Port Authority (Port of Mobile)
• Deep water port with over 4,000 acres of land and 4 million
   square feet of handling space adjacent to major airfield
• 53 miles from Saufley Field


                        15
Economic Incentives
Local
• Ad Valorem Tax Exemption (real and personal
  property) based on financial impact on County
  (i.e. number of employees, capital expenditure)

State
• Qualified Target Industry (QTI) Tax Refund
  Program (tax refund)
• Quick Response Training (QRT) (grant)
• High Impact Performance Incentive (grant)




                  16
Target Industries
2006 report identified target industries for
  Escambia County
• Information technology (software and product
  development)
• Health care/life sciences (medical products
  design)
• Building systems (construction research and
  design)
• Aerospace (maintenance, repair and overhaul)
• Business services (Internet services, data
  processing)
• Logistics (planning services, warehousing)


                 17
The EUL Opportunity

Dennis Stout, Senior Director,
Alvarez & Marsal
EUL Opportunity

• Competitively select a private developer to
  lease two parcels of land at Saufley Field
  for Commercial/Light Industrial
  Development




                 19
Development Objectives
• Complement and be consistent with on-
  going operations
• Blend into remaining activities and
  architecture
• Work with and accommodate existing
  tenants’ current and anticipated future
  needs – all but prison expect to vacate in
  near term
• Maintain positive relations with the
  communities surrounding the property
• Employ the best commercial practices to
  the benefit of US Navy and Developer
                 20
Saufley Field
• Outlying Landing Field (OLF)
  administered by NAS Pensacola
• 9 miles Northwest from downtown
  Pensacola
• 12 miles North from NAS Pensacola
• An area of approximately 866 acres
• Over 60 buildings totaling 742,000 square
  feet of space, and two 4,000 foot runways
   – Federal Prison uses 120,000 sf of
     space


                21
Base Operations
• Naval Education and Training Professional
  Development and Technology Center
  (“NETPDTC”) supports educational software for
  the Navy
• Defense Financial Accounting Systems Activity
  (“DFAS”) supports the DoD Pay System and the
  Defense Travel Pay System
• Defense Activity for Non-traditional Education
  Support (“DANTES”)
• NAVAIR Training System Office and Naval
  Reserve Center (NRC)
• Federal Bureau of Prisons operates Level One
  minimum security prison for 660 prisoners

                  22
 Two EUL Zones: 104.5 acres
EUL Site
  Identification
• Accessed by
  Saufley Field
  Road from east
• Site 1 (85.8 ac) is
  administrative
  buildings (exclude
  Prison)
• Site 2 (18.7 ac) is
  Saufley Field golf
  course

Surrounding Areas
• East is landfill and
   residential
• North is runways
   and rest of OLF
• West and South is
   residential,
   unimproved land
   and Perdido Bay
                         23
Site Improvements
• About 60 buildings with 622,000 sf (excludes
  Prison)
• Average age about 50 years
• Steel and brick construction
• Campus-like appearance
• Renovated/adaptively re-used
• Office, hangar/storage, former visitors’ quarters,
  auditorium, fire station, gym, server farm
• Immediately usable space
• Deferred maintenance
• Ample car parking, roadways and staging areas
                    24
Site Improvements
Offices
• Bldg 801 (42,566 sf) has
  nicest office space --
  divided into small offices
  for 2-4 people
• Bldg 853 (3,047 sf) is
  former chapel currently
  used as office space              Building 801 Front door view.
• Bldg 2435 is former
  visitor’s quarters now
  used as office space
  (239,639 sf), divided into
  small offices and largest
  building on site



                               Building 801 – Large conference room.
                       25
Site Improvements




     Bldg 853 – Former Chapel            Bldg 853 – Former Chapel - Interior




Bldg 2435 – former Visitor’s Quarters      Bldg 2435 – exterior walkways
                                    26
Site Improvements
Hangars
• Three former hangars
  available
   • 30-foot ceilings
   • Large doors on
     opposite sides
   • No columns in          Bldg 808 – Hangar with large doors
     interior space
   • Attached office
     space
   • 30,000 sf
   • Paved area adjacent
     to buildings for
     staging materials or
     parking
   • Accessible to
     runways                  Bldg 807 – Hangar interior view

                     27
Site Improvements
Miscellany
• Bldg 802 currently
  convenience store
• Bldg 845 has 250 +/-
  seat auditorium
• Bldgs 830 and 847A are
  fitness centers
                                 Bldg 845 – Training and Auditorium




      Bldg 802 – Exchange         Bldg 845 – Training Support and
                                    Auditorium – Interior Hallway
                            28
Site Improvements




  Bldg 830 – Exterior         Bldg 830 – Basketball Court




  Bldg 847A – Exterior        Bldg 847A – Fitness Center

                         29
Site Improvements
Outside areas
• Many of the paved areas on
  the site may need to be
  repaved in the near future
• Site 2, Saufley Field Golf
  Course, is mostly
  unimproved grassy areas                  Apron area outside the hangars




      Site 2 – Saufley Field Golf Course
                                              Pavement near Bldg 839
                                 30
Zoning
EUL Sites
• Sites 1 and 2 zoned Public District for educational,
  correctional, and other public institutional uses.
• Conversion of public lands for business or
  industrial park development is allowed.

Surrounding areas
• Most land immediately surrounding site zoned
  Rural-Residential.
• East of Site 2 zoned Light Industrial Park with
  permitted uses including research-oriented
  activities, light manufacturing, and processing.

                   31
Historic Considerations
• Many buildings date to the 1940s
• Average age 50 years
• Florida State Historic Preservation Office may
  consider some buildings of historic interest




                   32
Security Considerations
• Federal Bureau of Prison minimum security
  facility intends to remain at Saufley Field
• Currently, prisoners roam freely throughout
  Saufley Field
• Prison officials’ concern is with access to cell
  phones and alcohol
• Developer who wants to fence in the prison area
  must do so at own expense




                   33
Environmental
Considerations
• 14 former underground and two above ground
  storage tanks have been removed
• Six former 25,000 gallon and one 15,000 gallon
  underground storage tanks have been removed.
  Connected by over two miles of 10” and 8”
  diameter steel fuel lines to 52 refueling pits. Pits
  have been removed but probably not fuel lines.
• Nearby county landfill reportedly has no
  hazardous waste but could be potential threat to
  potable water wells on Saufley



                    34
Jurisdictional
Considerations
• Saufley OLF currently under exclusive
  jurisdiction of the US Military
• EUL Sites expected to be put under concurrent
  jurisdiction with local government




                  35
Infrastructure
Considerations
• Limited access to two 4,000-foot runways
• 10 T-1 lines
• 2.25 miles to Mobile Highway along two-lane
  road
• Public water, sewer, electricity on site




                    36
Prohibited Uses
• Fixed base operator (FBO)
• Production or distribution of alcoholic beverages
• Manufacture or distribution of cellular telephones
  or similar wireless communication devices
• Gambling activities
• Commercial trucking terminal or transfer
  operations
• Smokestack industries, such as steel
  manufacturers, chemical manufacturers, paper
  production or electrical power production


                   37
Development Opportunity
• Saufley Field offers existing supply of
  administrative and warehouse space for
  immediate occupancy.
• Builds upon education, training, aircraft storage
  and maintenance facilities already in place
• Most commercial development in Pensacola is
  build-to-suit, leaving a gap in market for this type
  of asset
• Enhanced infrastructure – limited access to
  runways, T-1 telecommunications lines,
  LambdaRail
                    38
Market Data

An overview of market trends
General Real Estate Market
•   Land prices soared in recent years but have stabilized
•   Development below levels in South and Central Florida
•   Area attractive to national big box retailers
•   Quality of office space -- outside of downtown CBD – is
    lower than in most major metropolitan areas
•   Still recovering from Hurricanes Ivan and Dennis – created
    a shortage of office and industrial space
•   Speculative development low
•   Industrial tenants who want large amount of space
    immediately look outside Pensacola
•   Local tenants typically need small spaces




                        40
 General Real Estate Market
• The Pensacola Bay Area Chamber of Commerce is
  targeting the west side of Escambia County for commercial
  development and supports commercial development on this
  site
                           Chamber of Commerce Potential Tenants
                      Industry                           Space Requirement
       Technology Manufacturing (Silicon)   80,000 sf Temporary; 150,000 sf permanent
       Life Sciences                        100,000 sf (including lab, clean room, office)
       Information Technology (Regional HQ) 100,000 sf to 200,000 sf

       Technology Manufacturing               20,000 sf office/manufacturing
       (Aerospace)
       Software Development (Financial        50,000 sf office
       Services)
       Software Development                   40,000 sf to 60,000 sf
       Technology R&D/Manufacturing           100,000 sf
       Warehousing and logistics              20,000 sf
       Building Materials warehouse           20,000 sf
       Software Development                   10,000 sf to 15,000 sf
       Software Development                   5,000 sf
       Ethanol Plant                          40 to 60 acres
       Speculative Developer                  100+ acres


                                   41
Market Segment: Office
•   Pensacola office market lags the national market
•   Strongest in downtown CBD
•   Driven by small high-tech firms
•   Prime suburban office space in Pensacola rents
    for $18.00-$20.00/sf and secondary office space
    for $17.00-$18.00/sf




                    42
Market Segment: Light
Industry
• Includes warehouse and light industrial uses
• Local brokers anticipate steady demand for
  industrial space
• Rents vary from $5.00-$7.50/sf
• County has 8 industrial office parks
   – Only Central Commerce Park and Century Industrial
     Park have significant undeveloped space




                     43
 Market Segment: R&D
● National LambdaRail
  (NLR) -- major initiative
  of U.S. research
  universities, regional
  networking organizations,
  and private sector
  technology companies
    – Provides state-of-the-art
      national scale
      networking
      infrastructure
    – 11,000 mile nationwide
      infrastructure already
      fully operational
    – Enables simultaneous
      deployment of multiple
      networks for
      experimental and
      production purposes



                             44
Market Segment: R&D
• Pensacola hooked
  into NLR network
  at UWF
• Available for
  extension to:
  •   NAS Pensacola
  •   Saufley Field
  •   Corry Station
  •   Naval Hospital
  •   NTTC
  •   UWF
  •   IHMC
  •   VA


                       45
 Market Segment: R&D/Health
• Institute for Human and Machine Cognition
   – Not-for-profit research institute of the Florida
     University System
   – Pioneer technologies in cognitive or perceptual
     prostheses
   – Research partners include: DARPA, NSF, NASA,
     Army, Navy, Air Force, NIMA, NIH, DOT, IDEO, Nokia,
     Sun Microsystems, Fujitsu, Procter & Gamble, Boeing,
     Lockheed, SAIC, IBM

• Andrews Institute
  – World class institute for orthopedics and sports medicine
  – Created by Baptist Health Care of Pensacola


                       46
Market Segment: Military
• Escambia County home to NAS Pensacola, Saufley
  Field, Corry Station, NTTC, Naval Hospital
• In 2005, DOD spent $1.9 B in Escambia County
   – $776 M (42%) for contracts, construction,
     maintenance, operations, R&D
   – VA recently constructed new $45 M ambulatory clinic

           Military Expenditures, Escambia County 2005 (M)



                  $484
                                                          $776




                         $608                                         Haas Center.
                                                                      Florida
                                                                      Defense
                                                                      Industry. Jan.
            Goods/Services      Salaries/Wages   Pensions/Transfers   2008.


                                47
Recess

Bus Tour of Saufley Field
Lunch to follow
Navy Enhanced Use Lease
Program Overview

Larry Chernikoff
Asset Management
NAVFAC HQ
CONUS Navy Regions

          NAVFAC
         Northwest        NAVFAC Midwest

                                            NAVFAC
                                           Washington




                                            NAVFAC
                                           Mid-Atlantic


  NAVFAC                             NAVFAC
 Southwest                           Southeast


                     50
EUL Authority

Enhanced Use Leasing (EUL) allows installations to leverage the private
 sector’s expertise and financial resources to build and/or redevelop
 existing, non-excess land, buildings, and other real estate assets. EUL
 Authorities under 10 USC 2667 are summarized as follows:
• Consideration may be in-kind services equal to no less than the Fair Market
  Value (FMV) of the property, or cash.
• Leasing of property must promote the national defense or be in the public
  interest.
• Leases limited to 5 years, unless Secretary determines otherwise.
• In-kind consideration can be applied to any installation within the Service, not
  just the installation where the property is leased.
• Cash payments must be deposited in a special Treasury account and may be
  divided 50/50 between the installation and the Service.




                              51
Goal: In-Kind Consideration
Alternative To Cash Revenue
• Services include:
  – Maintenance, protection, alteration, repair,
  improvement, or restoration of property or
  facilities.
  – Construction or acquisition of new facilities.
  – Lease of facilities.
  – Utilities services.




                   52
 Navy Programmatic
 Approach
• CNO, Navy Shore Investment Strategic Guidance
   – “Aggressively utilize alternative investments such
     as Public Private Ventures and Enhanced Use
     Leasing to leverage Navy resources and
     underutilized infrastructure.”

• Commander, Navy Installations Command (CNIC) FY 08
  Business Plan Guidance
   – “CNIC, Regions, and Installations will leverage
     excess capacity and underutilized land to resource
     the operation, sustainment and modernization of
     installation facilities and will consider real estate
     outleases where possible.”


                      53
EUL TEAM
Roles and Responsibilities
•   CNIC/NAVFAC HQ Asset Management
    – Oversees development of IPL and Phase I
      market feasibility studies
•   Navy Region
    – Regions nominate EUL candidate projects
•   Facilities Engineering Command (FEC)
    – Manages Phase I Market and Feasibility
      Studies
    – Real Estate Contracting Officer (RECO)
      oversees Phase II activities including: IF,
      marketing, proposal evaluation, business
      and lease plan negotiation, and transaction
      closing
•   Alvarez & Marsal (consultant)
                   54
     EUL Process
     Phase I
    Identify
   Available
                                                Finalize & Close
  Non-Excess
                                                With Developer
     Assets




   Perform                                         Develop
Phase I Market/                                   Business &
  Feasibility                                    Leasing Plan
    Study
               Phase II
                                    Evaluate
                 Develop            Proposals
                Solicitation


                               55
 Current Phase II EULs
• Saufley OLF, Pensacola, FL
   – Industry forum March 11
• NSY Portsmouth, ME
   – Industry forum April 16
• SUBASE New London, CT, Groton Utility
   – Industry forum May/June 08
• SDA Norfolk, VA
   – TBA




                  56
Current Phase I Studies
• Naval Station Hawaii, PH, Hawaii (3 sites)
• NAS Patuxent River, MD
  – Solomon’s Island Annex
• NAS Oceana, Virginia Beach, VA
• NAB, Little Creek, VA
• NS Newport, RI
• NSA, Mechanicsburg, PA




                  57
Navy EUL POC
• Website
   – www.navyeul.com
   (Has inquiry area)
• Points of Contact
   – NAVFAC HQ Program Management and supporting
     CNIC
      o Alan Zusman, AICP, 202-685-9181
      o Larry Chernikoff, Program Manager, 202-685-9186
      o Steve Matteo, Realty Specialist 202-685-9426
   – Projects in solicitation: See Website’s program
     inquiry area.
   – All Phase 2 actions are under the supervision of the
     NAVFAC Facilities Engineering Commands Real
     Estate Contracting Officers
                     58
Navy Enhanced Use Lease
Solicitation Process

Bob McDowell
RECO
NAVFAC, Southeast
Overview of Solicitation
Process
• Description of Solicitation Plan

• Overview of Evaluation Criteria

• Evaluation Process Overview




                 60
Description of Solicitation
Plan
1. Prepare draft RFQ and              6. Partnering session with
  issue pre-solicitation              Government and Developer
       document


    2. Solicit industry interest             7. Developer creates
   and conduct Industry Forum              Business & Leasing Plan
                                            for Government review

      3. Finalize RFQ and issue to
                 Offerors
                                               8. Government reviews
                                                and edits Business &
                                                    Leasing Plan
            4. Receive and evaluate
                  proposals
                                                      9. Developer and
                5. Determine competitive            Government sign lease
                 range/select Successful
                         Offeror



                             61
Overview of Evaluation
Criteria
Factor                                    Description
1. Relevant Experience/Past Performance   ● Experience with Comparable Projects
                                          ● Objective Assessment of Prior Performance

2. Financial                              ●Financial Capabilities
                                          ●Return Expectations
3. Development Plan                       ●Understanding of Requirements
                                          ●Proposed Concept and Vision
4. Marketing Plan                         ●Potential Tenants
                                          ●Analysis of market rents and lease terms
                                          ●Confirmation of project feasibility
5. Property Management/Maintenance        ●Relevant Experience Managing similar Projects
                                          ●Envisioned Management Plan for Saufley Field
6. Capabilities/Qualifications            ●Staffing Plan
                                          ●Key Personnel
                                          ●Organizational Approach
7. Achievement of Navy Goals              ●Understanding of Navy’s Objectives for Project


8. Experience with Community Relations    ●Experience with Community Partners
                                          ●Envisioned Community Approach



                                     62
Overview of Evaluation
Criteria
Each Factor Receives Factor Rating…
Factor Rating         Description
Exceptional (E)       The Offeror exceeds specified minimum performance or capability
                      requirements in a way beneficial to the government; proposal must
                      have one or more strengths and no deficiencies.
Very Good (VG)        The Offeror has addressed a majority of the elements in this
                      subfactor in a manner that demonstrates a added value above a
                      satisfactory response and has addressed all of the remaining
                      elements in this subfactor in a manner that demonstrates a
                      satisfactory response .
Satisfactory (S)      The Offeror meets the specified minimum performance elements of
                      this subfactor in a manner that demonstrates a satisfactory
                      response.


Marginal (M)          The Offeror does not clearly meet some specified minimum
                      performance or capability requirements, but any such uncertainty is
                      correctable.
Unsatisfactory (U)    The Offeror has failed to address all of the elements of this
                      subfactor in a satisfactory manner or has simply failed to address
                      all of the elements in this subfactor.



                     63
Overview of Evaluation
Criteria
… And Factor Risk Rating

Factor Risk Rating         Description

Low Risk                   Any weaknesses identified by the evaluators in the
                           experience, approach, capabilities, and/or past performance
                           record of the Developer have little potential to cause
                           disruption to the planning and implementation phases.
                           Normal contractor/government effort and monitoring will
                           probably minimize any difficulties.

Moderate Risk              These are weaknesses identified by the evaluators in the
                           experience, approach, capabilities, and/or past performance
                           record of the Developer that can potentially cause disruption
                           to the planning and implementation phases. Special
                           contractor/government emphasis and close monitoring will
                           probably minimize any difficulties.


High Risk                  These are weaknesses identified by the evaluators in the
                           experience, approach, capabilities, and/or past performance
                           record of the Developer that have the potential to cause
                           significant disruption to the planning and implementation
                           phases even with special contractor/government emphasis
                           and close monitoring.


                     64
Evaluation Process Overview

• Meet Due Date and Page Limitation Compliance
• Check Financial and Project References
     – Dun & Bradstreet (include number or current report in
       submission)
     – Current name and contact points for references
• Source Selection Executive Board (SSEB)
• Oral Presentations
     – Prepare now – advance schedule notice may be less than a
       week
• Award Notification
     – Memorandum of Agreement with selected developer
     – Debriefs to all submitting groups



                       65
Expected Timeline

•   Solicitation: January – May ‘08
•   Selection: June ‘08
•   Lease Negotiation: July ‘08 – March ‘09
•   Signing: April ‘09




                   66
Lessons Learned
• Include all required information and requested data
  asked for in the solicitation.
• Review submittal for compliance with all
  requirements. Page limits are a goal, not an absolute
  requirement.
• Be specific when describing past performance and
  experiences (i.e. clear descriptions of projects
  completed).
• Acceptable to include company brochures and
  websites as background, however no guarantee they
  will be evaluated.
• RFQ draft and final version downloadable from web at
  http://www.navyeul.com/projects/saufley/docs.php

                        67
Saufley Field
EUL Contacts
NAS Pensacola – Chuck Brevik (soon to retire)
              PH: (850) 452-3131 ext 3012
              Email: chuck.brevik@navy.mil

NAVFAC Southeast – Donald L. Maconi
              PH: (904) 542-3358 ext 4701
              Email: donald.l.maconi@navy.mil

Project website: http://www.navyeul.com/projects/saufley




                     68
Questions & Answers

Please come up to the
microphone

								
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