Loren Data's SAM Daily™

FBO DAILY ISSUE OF JULY 20, 2005 FBO #1332
SOURCES SOUGHT

Z -- Request for Information regarding the Privatization of Army Lodging. (RFQ: W912DR-04-R-0082)

Notice Date

7/18/2005
 

Notice Type

Sources Sought
 

NAICS

721110 — Hotels (except Casino Hotels) and Motels
 

Contracting Office

US Army Corps of Engineers, Baltimore, 10 South Howard Street, Baltimore, MD 21203
 

ZIP Code

21203
 

Solicitation Number

W912DR04R0082
 

Response Due

8/20/2005
 

Archive Date

10/19/2005
 

Small Business Set-Aside

N/A
 

Description

The Army plans to privatize its transient lodging at substantially all of its installations throughout the continental United States, Alaska and Hawaii. The Privatization of Army Lodging (PAL) office is responsible for accomplishing this goal. Base d on prior Army success at privatizing family housing under the Residential Communities Initiative (RCI) program, the PAL offices intent was to model this lodging privatization effort closely on the housing model. Specifically, the PAL office intended to utilize the Limited Liability Company (LLC) management structure. Under RCI, the privatized housing project is controlled by the private sector managing member of the LLC and the Army retains a limited interest in that LLC. Properly structured Army owne rship in the project entity can create significant tax advantages resulting in greater cash flow available for reinvestment into the project throughout the duration of the ground lease. The PAL office has reason to believe that the Office of Management and Budget (OMB) will soon release a policy addressing 'scoring' of projects under the military housing privatization initiative authorities. Scoring is an accounting convention that requi res the Government to quantify the present value of a financial obligation and then obligate funds to cover that liability. Under the scoring guidelines likely to be applied by OMB, the PAL office anticipates that the Army will not be able to utilize the LLC structure in any lodging project. Without the benefit of limited Army ownership, the PAL office is concerned that there will be tax consequences that would reduce the project's ability to substantially fund the capital improvement reserve account. Consequently, the PAL office is conducting market research to gather input regarding strategies that would maximize contributions to the capital improvement reserve account while still providing an acceptable lodging product with room rates for official tr avelers that meet the requirement of an average rate not to exceed 75% of the lodging portion of per diem across the portfolio. Although the Army will not be allowed to retain an ownership interest in lodging projects, the Army does still intend to engage in a comprehensive Portfolio and Asset Management program. Previously, the PAL office intended to combine facilities at several installations into a series of project groups, each of which would have been offered under separate solicitations. However, given the recent developments described above, the PAL Office is now seriously evaluating the benefits of conducting a single solicitation for the entire program. The PAL office is interested in receiving your feedback regarding strategies for maximizing contributions to the PAL reinvestment account while providing a quality lodging product within the rate limitations noted above, as well as comments regarding the p ossibility of offering the entire program as a single project. Responses received by the Army will be held in confidence. Responses may be provided via e-mail or by scheduling a meeting with Mark Piedmonte, Contract Specialist, from the PAL office through the following e-mail address mark.piedmonte@hqda.army.mil. In order to continue progress on this initiative, please submit your responses no later than August 20, 2005. Thank you for your continuing interest.
 

Place of Performance

Address: US Army Corps of Engineers, Baltimore 10 South Howard Street, Baltimore MD

Zip Code: 21203

Country: US
 

Record

SN00849387-W 20050720/050718212139 (fbodaily.com)
 

Source

FedBizOpps.gov Link to This Notice
(may not be valid after Archive Date)

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