U.S. Army Engineer District, Chicago, Corps of Engineers, 111 North Canal Street, Chicago, Illinois 60606-7206

R -- REAL PROPERTY APPRAISALS SERVICES AT MCCOOK RESERVOIR PROJECT, MCCOOK/HODGKINS, ILLINOIS SOL DACW23-96-Q-0077 DUE 021396 POC Contact Cindy Pleasant 309/794/5474 or Donald Grskovich, 312/353-6400 ext 1700 This procurement consists of initial real estate cost estimates and a gross appraisal as defined by ER 405-1-12, Real Estate Handbook, Draft Chapters 4 & 12 of the Sub Surface Mineral deposits only located at Vulcan Materials Company's McCookLimestone Quarry, McCook/Hodgkins, Illinois and Metropolitan Water Reclamation District of Greater Chicago's Sludge Drying Beds located in Hodgkins, Illinois. The reports are to be prepared in compliance with Uniform Appraisal Standards for FederalLand acquisitions, 1992, Section B DATA DOCUMENTATION AND APPRAISAL REPORTING STANDARDS, pages 63 through 88; section c-13 Project Appraisal Reports, pages 100 through 110; Section 12-11 of Draft Chapter 12 of ER405-1-12, 31 May 1991 and UniformStandards of Professional Appraisal Practice (USPAP) subject to Jurisdictional Exception. USACE recognizes this procurement as a mining economy problem. As such, the appraisal of mineral property will utilize the Income Approach as well as the MarketData Approach. The income that may be capitalized using Discounted Cash Flow Analysis is the ''royalty income.'' Income or profit generated by the business of mining and selling of limestone may not be capitalized but will be used as part of theevaluation and determination of the durability of the cash flow analysis. The Chicago District intends to sole source contract will L.A. Gates Company. The SIC code for this solicitation is 6531. See Note 1(0008)

Loren Data Corp. http://www.ld.com (SYN# 0036 19960109\R-0001.SOL)