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The “build-to-lease” concept is being used successfully at a housing project under way at K-16 Air Base in Seoul, the first such project worked through U.S. Forces Korea.
It calls for contractors to front the money to build, operate and maintain the housing and U.S. officials to agree to lease it for 15 years.
Contractors must price construction competitively, establish and stick to a schedule, provide a letter of credit equal to 20 percent of the total development cost and follow U.S. law pertaining to the leases.
Program manager Richard Byron with the U.S. Army Corps of Engineers said contractors also must work with the Corps of Engineers, which will conduct technical reviews of bid proposals, provide construction oversight and certify any facilities before final acceptance.
Byron said all the buildings must meet standards — including Corps of Engineers’ safety standards — “before the customer starts paying rent.”
At Camp Humphreys, the customer is the Installation Management Agency-Korea Region Office (KORO).
— Stars and Stripes
EDITOR’S NOTE: This article has been changed since its original publication to correct an error. A correction notice was published Aug. 20, 2006.
SEOUL — About 250 construction industry representatives met Tuesday in Seoul to learn how to bid for “build-to-lease” housing projects needed as U.S. Forces Korea moves its forces south on the peninsula.
The “Korea BTL Industry Forum” focused on projects for family and unaccompanied housing on Camp Humphreys, where most U.S. forces on the peninsula are to move in coming years.
U.S. officials hope to have two three-tower family housing clusters and one four-tower cluster of senior-leader quarters contracted and completed by 2009.
They plan to release a request for proposal this fall; contractors will have 60 days to respond.
Five to eight potential contractors are to be qualified by next summer, and the top two bidders will earn the contracts and are to start construction by fall 2007.
Officials stressed the dates aren’t set in stone, but the contract will call for the family housing to be built within 24 months and the senior quarters within 20.
During the forum in a Sofitel Ambassador Hotel ballroom, U.S. officials gave what they called a “cookbook” on how to submit competitive business proposals to the mostly South Korean audience.
Briefing potential contractors such things as basic designs, timelines and maintenance agreements were officials from U.S. Forces Korea, U.S. Army Corps of Engineers, Installation Management Agency-Korea Region Office (KORO) and contracted program adviser Colliers/Knighthorse.
There was a “conscious effort … to develop a straightforward approach that can be easily understood by Korean companies,” said Darrin Kennedy of Colliers/Knighthorse.
His colleague, Joseph Faccone, said the original request for proposal will be released “when it’s appropriate” for the U.S.-South Korean alliance.
He suggested contractors not go into an “emotional tailspin” if the RFP isn’t released by Sept. 22.
The build-to-lease concept already is being used in Seoul. Under it, South Korean contractors are constructing a housing tower according to detailed U.S. standards. In return, USFK agreed to lease it for 15 years.
While only about 5 percent of U.S. troops here have their families living with them, the goal is to increase those percentages, officials said.
“It may go up to 20, 30, 50 (percent) or whoever wants to bring their families,” said Kevin Shanahan, housing engineer with KORO, which will determine the housing units’ size and design. The key to keeping the troops and their families happy, Shanahan said, is to let them feel like they’re still living in the States when they’re within the camp’s perimeter.
Potential contractors were advised to follow the guidelines available on the project Web site, www.koreabtl.com.
“We want to have fair, open competition and let the best proposal win,” Faccone said. “All we need from you is to follow the cookbook, fill in the numbers and give us a good deal.”
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