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The Navy’s Process for Disposing Surplus 
Property for Public Reuse
The Base Realignment and Redevelopment Manual (BRRM), dated 1 March 2006, provides the Department of Defense (DoD) with guidance to laws and regulations for closing installations. Chapter 5 of the BRRM discusses the base disposal and redevelopment process as a series of concurrent activities that can be subdivided into the following three principles:

PHASE 1: Base Redevelopment and Disposal Planning
Disposal and redevelopment planning requires the completion of numerous activities, most of which are specified by law. Generally, this phase begins at the approval date for the closure or realignment of the installation. First, other federal agencies have the opportunity to apply for some or all of the military property. Once this has been completed, the remaining property is declared ‘surplus’ and enters disposal decision making process.

PHASE 2: Surplus Property Disposal Decision Making
This phase includes the specific military department’s (i.e. Navy, Army or Air Force) disposal decisions and the Local Reuse Authority’s (LRA) redevelopment planning. After redevelopment planning is completed, the LRA submits its redevelopment plan to the military department. The LRA also submits an application to the Department of Housing and Urban Development (HUD), in accordance with the BRAC law. HUD will review the LRA’s plan and the homeless accommodation submission; will decide if the application is complete, and whether the plan satisfies the review criteria. If it does not, HUD will provide the LRA comments on deficiencies

PHASE 3: Parcel-By-Parcel Disposal
After applications have been submitted, reviewed and accepted, and the military department has issued its final disposal decisions, the redevelopment process enters the decision implementation phase. This phase includes the military department’s conveyance of installation property (or property “disposal”).
Two statutes govern the disposal of base closure property: the Federal Property and Administrative Services Act of 1949, and the BRAC statute which added the option of an Economic Development Conveyance under the Pryor Amendments of 1993. These statutes provide a way to transfer excess federal property to another Department of Defense component or other federal agency, and ways to dispose  of surplus federal property to non-federal recipients.

In disposing of property, the military department follows its documented disposal decisions, using conveyance authorities established by federal law. Some of the more common types of conveyances are:

  • Public Benefit Conveyances (PBC): A PBC typically involves using conveyed property for airports, education, health, historic monuments, ports, parks and recreation, and wildlife conservation areas. Generally, a Federal agency with specific expertise in a conveyance category (such as the National Park Service for parkland and recreation conveyances) is authorized to serve as a sponsoring or approving agency.
  • Homeless Assistance Conveyances: This type of conveyance entails no cost consideration for the property, either to the LRA or to the representatives of the homeless. Personal property may be transferred to the LRA for use by the homeless assistance provider. Homeless conveyances require that the use of the property be limited to authorized programs that support the homeless, as determined by HUD. The LRA is responsible for monitoring implementation of the homeless assistance provisions of its redevelopment plan.
  • Negotiated sale: A negotiated sale to public bodies or other entities requires payment of not less than the fair market value for the property. Negotiated sales to public bodies can only be conducted if a benefit, which would not be realized from competitive sale or authorized public benefit conveyance, will result from the negotiated sale. Terms of negotiated sales are subject to review by Congress.
  • Advertised Public Sale: Under an advertised public sale, the party that submits the highest bid, provided it is not less than the fair market value, may purchase the property.
  • Environmental Responsibilities Conveyance : Under This type of conveyance is made to a party that enters into an agreement to perform all environmental responsibilities, including remediation, for the property
  • Economic Development Conveyance (EDC): An EDC is made to an LRA for purposes of generating jobs. A military department may approve an EDC, but it must seek to obtain fair market value for the property. The BRAC statute directs military departments to seek fair market value for property at installations closed or realigned after January 1, 2005. There is also authority for no-cost EDCs. Under limited circumstances, the military department Secretary may grant an EDC without consideration in accordance with the provisions of 32 CFR section 174.9.
  • Depository Institution Facility: This type of conveyance involves the sale of a facility at fair market value to the operating depository institution that constructed or substantially improved the facility.
  • Conservation: A military department can convey property that is suitable and desirable for conservation purposes to states, political subdivisions of states, or nonprofit organizations that exist for the primary purpose of conservation of natural resources.
  • Early Transfers: For the Department of the Navy, BRAC PMO is responsible for ensuring that prospective purchasers have the technical expertise and financial capability to complete the cleanup for early transfers. BRAC PMO will evaluate responses to any offers, determine qualification requirements, and notify bidders of its decision. BRAC PMO is responsible for negotiating the early transfer cleanup terms, documenting regulator approval of the cleanup proposal, developing and finalizing a binding purchase agreement, and tendering a deed that includes the appropriate institutional controls.

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