AMS Policy   (Revised 7/2004)

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5 : Real Property    
5.1 : Applicability    
5.2 : Policy    
5.3 : Guiding Principles   (Revised 2/2004)
5.3.1 : Request    
5.3.2 : Requirements   (Revised 2/2004)
5.3.3 : Procurement Method   (Revised 2/2004)
5.3.4 : Market Survey/Advertisement   (Revised 2/2004)
5.3.5 : Evaluation of Offer(s)   (Revised 2/2004)
5.3.6 : Communication    
5.3.7 : Award    
5.3.8 : Alterations and Improvements    
5.3.9 : Inspection and Acceptance   (Revised 2/2004)
5.3.10 : Documentation   (Revised 2/2004)
5.3.11 : Conflict of Interest    
5.3.12 : Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (49 CFR Part 24)   (Revised 2/2004)
5.3.13 : Vehicle Parking    
5.3.13.1 : Policy   (Revised 2/2004)
5.3.13.2 : Accessible Parking    
5.3.13.3 : Satellite Parking   (Revised 2/2004)
5.3.13.4 : Union Agreements    
5.4 : Short Term Conference and Meeting Space   (Revised 2/2004)

5 : Real Property      

5.1 : Applicability      

This policy applies to the procurement of real property interests by lease, purchase, condemnation, and otherwise, as well as services related to their procurement, other related services, and utilities. This policy is the authority in real property procurements within this document.

5.2 : Policy      

The procurement process is to be conducted following the best commercial business practices, in a fair and equitable manner. Real property interests, related services, and utilities will be acquired by the competitive method whenever practical and reasonable.

5.3 : Guiding Principles (Revised 2/2004)    

The process of acquiring real property interests is unique from other types of procurements. The FAA's need for a specific site, location, or other special requirements further complicates the procurement process. The goal is to find the optimum solution to acquire necessary interests to meet FAA mission requirements while fulfilling all mandated requirements. The procurement process requires sound business judgment, and a competent and professional staff having the highest integrity, with authority delegated to the lowest responsible level. To assist, separate guidance is provided that adheres to both FAA and legally mandated requirements.

Acquiring real property interests and utilities is a time-consuming process; and involvement of the real estate office at the earliest opportunity will expedite the procurement. Such early involvement will allow for needed planning and coordination, and will ensure that all applicable regulations are met and requirements are satisfied in sufficient time to meet the FAA's needs.

5.3.1 : Request      

The procurement process may start with an informal request; however, prior to issuance of a SIR or contract, a signed request from the customer must be received. If costs are involved in the procurement, a certification of funding must be received prior to obligation of any funds for any purpose or award of a contract. One document may serve as both the request and the funding certification.

5.3.2 : Requirements (Revised 2/2004)    

The real estate CO and the customer, requesting office, should jointly review all the requirements to clarify needs; to ensure that special requirements, appropriate delineated area, and alternative solutions, where appropriate, are considered; and to ensure that FAA-mandated requirements are met. Alternatives that may fulfill the FAA's needs at a lower cost or in a more efficient manner will be considered. The real estate CO is authorized to use the option of firm-term leases within established restrictions.

The FAA real estate CO and the customer will use the guidelines for administrative space standards when developing administrative space requirements in FAA owned, leased or GSA-controlled facilities. The FAA must give first consideration to rural areas when locating new space, land, and other facilities (i.e. research and development facilities, warehouses, labs, clinics, etc.) unless mission or program requirements call for urban areas.

For any succeeding contract, the FAA real estate contracts office should assure that the space, land, or service still meets the requiring office's needs. Alterations, upgrading, and expansion/reductions should be considered and included, as appropriate, in the subsequent contract.

Modification to existing contracts for expansion of land, space, services, alterations, or utilities should result in the best value for the FAA.

The real estate CO makes the determination of the appropriate method of procurement to be used to satisfy the requirement--either competitive or single source. A preliminary assessment of potential available sources may be needed to assist in the determination of the procurement method.

5.3.3 : Procurement Method (Revised 2/2004)    

Competition is the preferred method of procurement and should be used whenever practical and reasonable. Competition is obtained by providing two or more sources an opportunity to express an interest in satisfying the requirements. Competition is appropriate when the requirement is not site- or location-specific, and reasonable possibility exists that there is more than one provider that can meet the FAA's needs. Advertising is not required. Interest may be expressed either orally or in writing.

The single-source method of procurement is appropriate when technical requirements, business practices, or programmatic needs have determined that a specific location, site, or unique need is required to meet the FAA's mission, or when it has been determined that only one source is reasonably available that can meet the requirement.

5.3.4 : Market Survey/Advertisement (Revised 2/2004)    

When utilizing the competitive method of procurement, the FAA should conduct a survey to obtain market information and identify potential sources within the delineated area or market. When appropriate, the survey should include on-site visits with the customer to determine if suitable properties are available, or if properties offered in response to an advertisement meet the customer's needs.

Prior to conducting the market survey, the FAA may have developed a draft SIR, lease, or contract defining the specific requirements. The draft SIR, lease, or contract can be reviewed with the owner(s) or provider(s) to provide a full understanding of FAA's requirements.

The requirement need not be publicly advertised when the FAA determines that it is not warranted, or reasonable competitive access has been achieved without advertising. Data from a market survey may be used to determine the need for advertising, and to pre-qualify the suitability of real property. If the FAA determines that advertising is required, the publicizing method most likely to result in receipt of offers appropriate to satisfying the specific requirement should be used.

It is not required to solicit offers from all sources within the delineated area. It is only necessary that offers be solicited from a sufficient number of sources to promote reasonable competitive access to the extent practical and reasonable. Data obtained during the market survey or advertisement can also be used to determine a competitive range. A competitive range consists of offers that are likely to qualify for an award and grouped together by common attributes or specified criteria.

For a single-source procurement, a market survey should be conducted to determine or verify the reasonableness of the offer. A sufficient number of data sources should be queried to ensure the validity of the data.

5.3.5 : Evaluation of Offer(s) (Revised 2/2004)    

The offer(s) should be reviewed to determine which offer(s) best meets the requirements as indicated in the SIR, proposed lease, proposed contract, and/or identified as selection factors. Any valid new offer received up to the point of award may be accepted and considered at the discretion of the real estate CO.

For those procurements involving costs, price need not be the primary consideration used for final selection; however, it should be addressed in the evaluation process. As appropriate, the evaluation should include a full analysis of the total cost to the FAA and the total cost of any alternatives considered. The reasonableness of specific costs should be evaluated against data from sources such as market surveys, appraisals, or estimated by the Government. The cost to the FAA should be based on the fair market value of the procurement, and not include any value created by the FAA's enhancements or intended use. The final selection should result in the best value to the FAA.

5.3.6 : Communication      

All items may be communicated and discussed with offerors with the goal of clarifying the FAA's needs and providing a basis for the final contract to assure that all costs involved are fair and reasonable. Communications may continue up to the point of award and may be terminated at any time by the FAA.

During final communications, an offeror can be asked to lower the proposed price/rental to a stated rate.

At any time during the real property procurement process, if a competitive range has been determined, any offer falling within this range may be selected at the discretion of the real estate CO for direct communication and/or award without further consideration of the evaluation criteria and without having to consider any other offer(s).

5.3.7 : Award      

Any necessary changes or additions should be made to the proposed contract based upon the communication and offer. Legal review of lease contracts is recommended where deviation from standard clauses is made. Legal review is required on purchases. The Department of Justice rules on condemnation and title requirements must be followed. An appropriate number of proposed contracts should be sent to the property owner or provider for signature and returned for final execution by the FAA.

5.3.8 : Alterations and Improvements      

All alterations and/or improvements should be based upon technical requirements, business practices, or programmatic needs as determined by FAA mission. Initial alterations, improvements, related items, and services associated with real property will be considered to have been competitive when included within the scope of the original procurement.

Alterations and improvements to an existing facility can be considered within the scope of the lease and may be communicated with the lessor. In a leased facility, to minimize potential liabilities and restoration costs as well as other claims, the lessor should be considered as the first choice for the accomplishment of alterations. If the FAA accomplishes the alterations, the lessor should be requested to waive any claims for restoration. An FAA estimate may be needed to determine the reasonableness of the owner's offer for accomplishment of alterations and improvements.

5.3.9 : Inspection and Acceptance (Revised 2/2004)    

The real estate CO, or designated representative, should arrange to inspect the real property or service sufficiently in advance of the date needed to ensure it is acceptable and ready for use. Deficiencies should be corrected before acceptance of the real property, related service, or utility service.

The real estate CO may apply late payment interest to payments made within the scope of Section 3.12, Real Property.

5.3.10 : Documentation (Revised 2/2004)    

Sufficient documentation should be developed to explain and justify the procurement action taken and business decisions made.  These documents should be retained in the applicable procurement file.

Accountability - Real Estate Managers and/or their designees are to ensure that adequate records are maintained for all FAA owned, leased, and utilized real property.

5.3.11 : Conflict of Interest      

For information on Conflict of Interest, see Section 3.1.5, Conflict of Interest.

5.3.12 : Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (49 CFR Part 24) (Revised 2/2004)    

(http://www.fhwa.dot.gov/realestate/49cfr.htm and http://www.fhwa.dot.gov/realestate/UAfnl99.htm)

FAA Real Estate Contracting Officers shall comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (promulgated in 49 CFR Part 24).  Provisions of the Uniform Act are mandatory and are applicable to each Federal agency that administers programs or provides financial assistance for projects, which involve land acquisition or relocation assistance.

5.3.13 : Vehicle Parking      

5.3.13.1 : Policy (Revised 2/2004)    

To the extent that parking space is available and affordable, it is the policy of the FAA to provide adequate parking for official Government vehicles and adequate free parking for employee vehicles at all FAA-owned and leased facilities. In order to promote fuel conservation, reduce traffic congestion, reduce demand for parking spaces and reduce air pollution, the FAA will make available as many parking spaces as possible for the use of vanpools/carpools.

5.3.13.2 : Accessible Parking      

The FAA must provide accessible parking [in accordance with the Uniform Federal Accessibility Standards (UFAS) and the Americans With Disabilities Act (ADA)] for FAA personnel with disabilities. However, accessible parking is not required to be provided free of charge to employees with disabilities if other FAA employees are being charged for parking. When visitor parking is provided at FAA facilities, it must include accessible parking. The FAA has determined that both UFAS and the ADA shall apply to all FAA facilities; where there is an overlap in parking requirements, the FAA shall implement the more stringent requirement.

5.3.13.3 : Satellite Parking (Revised 2/2004)    

If adequate parking is not available to employees at a facility and commercial parking in the vicinity is exceedingly expensive, the FAA shall make every reasonable effort to negotiate for free employee parking that is at least equivalent to the parking accommodations provided to non-Government employees working in the nearby area. In order to keep FAA expenses as low as possible, the cost the FAA negotiates for these parking spaces should be at or below market value (e.g. if the airport has negotiated a lower than market rate for its employees, the FAA should attempt to negotiate an equivalent below market rate).

5.3.13.4 : Union Agreements      

This FAA policy shall not be construed to supersede, waive, or otherwise impact the requirements of any contractual agreement between FAA and any employee bargaining unit.

5.4 : Short Term Conference and Meeting Space (Revised 2/2004)    

Where appropriate,  the CO should consider existing Government owned or controlled space when contracting for privately owned meeting rooms.