Enhanced use lease for commercial data centers

The Department of the Army (“DA”) is issuing this Request for Proposals (“RFP” or “Solicitation”) to solicit competitive proposals from private, public and/or not-for-profit entities interested in leasing non-excess DA land (“Properties”) for development of commercial data centers under a long-term lease agreement(s) (“Enhanced Use Lease” or “EUL”) at Fort Hood, Fort Bragg, Fort Bliss, and/or Dugway Proving Ground (“Installations”). The EUL(s) that would result from this RFP would be for the purpose of the selected Offeror(s) designing, financing, permitting, developing, constructing, installing, owning, maintaining, operating, and decommissioning a commercial data center(s) (“Project”). DA may elect to award one or more EULs pursuant to this RFP. Prior to expiration of the EUL(s), Lessee(s) will be required to restore the Property to the condition it was in prior to execution of the EUL(s).

Pursuant to its leasing authority codified at 10 U.S.C. § 2667 and provided as Attachment A, DA intends to execute an EUL(s) with a selected Offeror(s) (“Lessee”) for a term of fifty (50) years. DA may consider an option to renew the EUL for an additional period of time following expiration of the initial fifty (50) year term if proposed by the Offeror in its Proposal and as further described in Section 6.1.a. Consideration to be paid by the Lessee for the EUL will be in-kind, cash, or a combination thereof in an amount not less than the fair market value of the lease interest as determined by an appraisal to be completed by DA.

The Lessee(s) under the EUL(s) will, in part (subject to the terms and conditions of the EUL), be authorized and responsible for financing, designing, developing, operating, and maintaining the Project and shall be responsible for complying with all applicable federal, state and local laws, codes, ordinances and regulations, including building codes, as they may be amended from time to time. The Project(s) shall be viable without any commitment or contribution, monetary or otherwise, from DA. DA envisions that development of the Project(s) will entail a well-planned and coordinated endeavor to utilize the Properties in a manner that will not conflict with adjacent Installation ongoing mission-related activities or the surrounding community.

Offerors may propose a Project(s) on all or a portion of the Properties at any one or more of the Installations. DA may elect to select more than one Offeror for award and may consider multiple Projects. Offerors may submit proposals to develop a single tract or multiple tracts. Proposals must clearly identify the portion(s) and associated acreage(s) of the Properties proposed for lease by the Offeror.

By submitting a proposal, each Offeror accepts all terms and conditions set forth in this RFP and its Attachments, including but not limited to, the Business Terms Agreement (BTA) and the EUL, samples of which are provided as Attachments B and C. Offerors are advised that substantive lease terms and clauses are not subject to further negotiation. Any conflict (whether actual or perceived) between the terms of the BTA, the EUL (collectively, the “Transaction Documents”), this RFP or any provision therein, shall be resolved at and in accordance with DA’s sole and absolute discretion, notwithstanding any provisions of the “Disclaimer” indicating otherwise, which is included and made part of this RFP, or any other document.

This RFP may be amended or supplemented and all such amendments and supplements shall be considered part of this RFP (and references to the RFP shall include all amendments and supplements, unless otherwise specified). To receive any amendments or supplements to this RFP, Offerors will be required to refer to the RFP posting on sam.gov.

 DA reserves the right, at any time, without notice, at its sole and absolute discretion, to (a) modify, update, supplement, revise, suspend, or waive any terms and conditions of this RFP; (b) independently waive any deficiency or irregularity in any proposal submitted where it is in the Government’s best interest to do so; (c) reject any or all proposals at any time prior to award; (d) extend any deadline set forth in this RFP; (e) cancel the RFP process, in whole or in part; (f) make an award or awards as a result of initial proposals submitted; (g) discuss any submission with the Offeror that submitted it and require the submission of additional information regarding any aspect of the Offeror’s proposal; (h) make award to an Offeror who submits a proposal that is not the proposal that would provide DA with the highest value in terms of consideration to be paid under the EUL; (i) make an award to more than one Offeror if the Properties proposed for lease by said Offerors do not conflict; and (j) initiate further discussions or negotiations directly with the Offeror(s) (after DA selects it for award), if DA believes that the amount of consideration offered for the EUL in the Offeror’s proposal warrants further refinement or enhancement.

DA’s objective for this RFP and the Project(s) is to maximize the financial return to DA through the lease of non-excess available land on the Installations. In leasing the Properties, DA will capitalize their value.