he Successful Offeror will finance, plan, design and construct improvements, as well as own and operate the rental housing development for military families for 50 years. The Government will lease land for a period of 50 years.

Even though the housing privatization solicitation at Hanscom Air Force Base outside Boston, MA, has NOT officially been approved for release, the Air Force wanted to provide an "early developer notification" that this exciting opportunity will likely be introduced for your consideration in 2003, and wanted to alert you to a special project requirement further described below.

The overall goal of DoD housing privatization initiatives is to provide military families access to safe, quality, affordable housing in a community where they will choose to live. The objective of Hanscom AFB, which is located about twenty miles NW of Boston, is to improve our existing housing inventory by renovation or replacement which would cause construction of privatized housing units on-base and perhaps at an off-base location. The reason an off-base location will "perhaps" be necessary is the special project requirement and it is further explained below.

Hanscom AFB has 850 housing units built in four housing areas, all located on the installation: Flintlock Ridge (395 units); Battle Road Glen (100 units); Musket Meadows (192 units); and Patriot Village (163 units). Units in Patriot Village were constructed under previous "801" housing legislation and are privately owned. These units are being operated for the benefit of the military member until the Governments lease of these units expires on 31 October 2007. The units are also subject to a ground lease that does not terminate until September 2017.

This unique lease structure leaves a ten-year gap where the Government is not guaranteed the availability of an adequate number of housing units to meet its needs. The land reverts back to Government control in 2017 but the units remain the property of the present owner, Hanscom Limited Partnership (HLP). HLP may choose to remove or abandon the units at the expiration of the ground lease. For additional information, contact: Old Bayside Corporation, Stuart B. Goldman, Chairman. Address: 45 Rockefeller Plaza, Suite 2615 New York, NY 10111. Phone: (212) 956-3838 Fax: (212) 977-3849.

To this end, we wish to notify prospective offerors at this early stage in this solicitation process that a primary requirement to participate in Step 1 of this solicitation process will perhaps be for an Offeror to provide land within a 60-minute or 20-mile commute (whichever is greater) during peak-driving conditions of the main gate of the base to construct as many as 97new units. The Air Force desires that all new units be confined to one location; however, if off-base, the Successful Offeror may divide the new units among no more than two (2) off-base sites. Proposals with a suitable site(s) on or closer to the base will be rated more favorably. Hence, in order for a Step 1 response to be evaluated, a proposer must evidence control of an appropriate housing site(s) which meets these Air Force expectations. The Government and its contractors will not be liable for any cost incurred by acting upon this notification.

he success of this project is based on the long-term commitment between the Government and the Successful Offeror.

Hanscom AFB brings:

687 unit revenue producing housing requirement.
Long-term land lease (50 years).

The Successful Offeror brings:

97 units in 2007.
A feasible plan for the completion of the project scope of 784 units and supporting facilities.
A complete and feasible business and financing package.
Well-developed community plans and quality designs.
Quality property management for 50 years.

REAL ESTATE TRANSACTIONS:

Real estate transactions for government-owned land, facilities, and improvements include a 50-year ground lease. The real estate agreements will allow the private developer to acquire appropriate financing and collect revenues from the housing to help finance the project.
The project site is currently being used for housing purposes. There are pre-existing roads and utility lines throughout the housing area. The housing area has recently benefited from the completion of the removal of all above ground utilities in favor of buried lines.
The Government has available funding for this project if required. Once operational, the housing allowances given to military personnel provide cash flow for the operation of the project but do not count against the available funds for financing construction and/or development.
Offerors should carefully consider the best possible means of minimizing long-term costs to the Government.

RENT STRUCTURE:

Military receive their basic allowance for housing (BAH).
Referred military families will be offered units designated for their rank at a cost equal to BAH (with dependents) minus 110% of expected utility charges.
Military tenants pay rent to the private developer by allotment, in arrears.
Tenants pay all unit utility, telephone and cable TV charges to respective providers.
Rent includes refuse collection, water & sewer as well as renter's insurance.
All tenants other than referred military families will pay market rent and sign a lease of up to 12-months.

The rental rates for the housing units will be fixed by the type of unit, or the rank of the military member for which the unit has been designated. The rent will be based on that member’s Basic Allowance for Housing (BAH), minus a "utility allowance".

PRIORITY PLACEMENT PLAN:

The Government will not guarantee occupancy, but will provide priority referrals of potential occupants.
Military personnel will not be mandated to occupy housing.
Priority placement for all units is required as follows:
· Referred Military Families
· Other Active Duty Military Members/Families, including Unaccompanied Military Members
· Federal Civil Service Employees
· Retired Military Members/Families
· Guard & Reserve Military Members/Families
· Retired Federal Civil Service
· DoD Contractor/Permanent Employees (US Citizen)
· General Public (annual lease only)
Units will be solely for referred military families. Only if occupancy levels fall below 95 percent for three consecutive months will the remaining list of individuals (in priority order) be permitted to rent the units.

The Air Force intends to select the proposal that best meets the Hanscom AFB housing goals and demonstrates the Offeror’s commitment to a long-term relationship with Hanscom AFB. A streamlined, non-FAR (not governed by Federal Acquisition Regulations) developer selection process will be used to encourage maximum flexibility in proposal development.
Hanscom’s source selection objective is to select the proposal that provides the "best value" to military families and Hanscom AFB. The Government will determine the "best value" based on an integrated assessment of financial/business and technical factors, proposal risk, and performance risk. "Best Value" is defined not necessarily as the proposal with the least cost, but as the proposal offering military families affordable housing with outstanding quality designs, construction, and real estate reivestment/management services, in a secure and well-planned community and yielding the highest return on the Government’s investment.
See the RFP Information section for more details.

STEP 1: Qualification submittal and selection of most qualified parties to proceed to Step 2.
STEP 2: Technical submittal and best value selection.

Direct any inquiries you may have regarding Hanscom AFB’s privatization project to the Air Force’s consultant:

Ralph J. Basile, Principal
Brenda Feete, Associate
Andrew Wirth, Associate
Basile Baumann Prost & Assoc., Inc.
Nichols Center • 177 Defense Highway, Suite 10 • Annapolis, Maryland 21401
www.bbpa.com

Telephone: (410) 266-7800 • Fax: (410) 266-7866
E-mail:awirth@bbpa.com

For more information on Hanscom AFB, please go to www.Hanscom.af.mil.