SOUTHWESTNAVFACENGCOM, 1220 Pacific Highway, San Diego, CA 92132-5187

Y -- FAMILY HOUSING PRIVATIZATION INITIATIVE, SAN DIEGO, CA SOL N68711-99-R-P09P23 DUE 100499 POC Karen Mason, Contract Specialist, Code 02R4.KM, FAX: (619) 532-3042 Section 2801 of the National Defense Authorization Act for Fiscal Year 1996, Public Law 104-106, 110 Stat. 186 (10 U.S.C. 2871-2885), provides a series of powerful authorities that allow the Department of Defense (DOD) to work with the private sector to build and renovate housing. The Department of Navy (DON) intends to utilize the unique powers and authorities provided under the legislation to ensure that safe, good quality, energy efficient, well-managed, affordable housing will be available to military families stationed at Naval Complex San Diego, CA. Accordingly, the DON intends to become a partner in a public-private partnership, or similar business entity, established by a private company or team of private investors/developers, property managers/operators, building contractors, architects and engineers, and/or others for housing for Naval Complex San Diego military families. The DON intends to contribute up to $20.9 million, 2,660 existing units of DON-owned and DON-occupied family housing, including related improvements, and land for the construction of up to 588 new units and the demolition and replacement of 812 units. The private partner (managing member) will secure debt and/or contribute equity, as needed, over the long term to carry out the program and, acting on behalf of the partnership: 1) own, operate, manage and maintain some of the existing inventory of DON-owned family housing which is privatized (2,660 units) and any additional units constructed, including site infrastructure, for a minimum term of 50 years: 2) design, finance and construct needed renovations to existing inventory (at a total estimated cost of approximately $7.11 million): 3) design, finance, demolish and replace 812 units of the existing inventory on DON-provided land (Cabrillo site -- pending completion of NEPA documentation): and 4) design, finance and construct 588 new units on DON-provided land (500 units at the NTC and 88 units at the Cabrillo site). All units would be available to military families on a preferential basis, at prescribed rents for the term of the agreement. The privatized units will be conveyed to the Entity by transfer of title for nominal consideration. At the end of the term, the Entity will be required to transfer title of all infrastructure and improvements then existing to the DoN. The DoN will provide the underlying land via a nominal consideration long-term lease (50-year minimum). Differential Lease Payments (DLP), while not anticipated by the DON, may be considered in an offer if it will result in a financially beneficial proposal or ensure the availability of units with shelter costs not exceeding individual members' Basic Allowance for Housing (BAH). This acquisition will be conducted by the Commanding Officer, Southwest Division, Naval Facilities Engineering Command, San Diego, CA. Please note that this is not a FAR Procurement. In Step 1 Request for Qualifications (RFQ) interested investors/developers/joint venturers will submit a Statement of Qualifications describing their concept for development and approach to operation and management of the project; past performance with regard to developments of a similar nature, scope and scale; and financial capabilities and capacities. Based on its evaluation of the RFQ submittals, the DON will invite not more than four private companies or investors/developers/ joint venturers judged best qualified, to proceed to Step 2, Request for Proposals (RFP). THE STATEMENT OF QUALIFICATIONS WILL BE DUE ON OCTOBER 4, 1999, AT 1:00 PM (PT). Offerors are encouraged to attend a pre-proposal conference scheduled for August 31, 1999 at the Holiday Inn On the Bay, 1355 North Harbor Drive, San Diego CA, 92101. Pacific Ballroom, 8:00 AM (PT). An official site visit to the housing will not be conducted during the RFQ, Step 1. However, the vast majority of existing DON-owned inventory is located off-base and may be toured freely by automobile. Please do not disturb tenants. An official site visit will be scheduled for those Offerors invited to participate in Step2. This solicitation will be conducted in accordance with the terms and conditions contained in Section 2801 of the National Defense Authorization Act for Fiscal Year 1996, Public Law 104-106, 110 Stat. 186 (10 U.S.C. 2871-2885). It is anticipated that the RFQ/RFP will be available on approximately August 3, 1999 as Solicitation No. N68711-99-R-P09P23 on the internet at http://www.efdsw.navfac.navy.mil. The Plan Holders List, a list of all parties who have requested a copy of the RFQ/RFP, will also be available at the above referenced web site. If you are unable to access the above referenced web site, or have problems downloading the Solicitation package, you may call Susan Sanz, Computer Specialist, at (619) 532-2221. Questions about this Solicitation MUST be submitted in writing. The questions may be faxed (619) 532-3042, Attn: Karen Mason Posted 07/09/99 (W-SN352534). (0190)

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