Real Estate Appraisals

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Third Party Procurement

Frequently Asked Questions

Q = Question; A = Answer

Q. Is there specific FTA language that must be incorporated into contracts for independent appraisal services? If so, where can this language be found?

A.  FTA regards the procurement of real estate appraisal services as one that is subject to the requirements of FTA Circular 4220.1F, being for the acquisition of professional services and not the acquisition of real estate. Real estate acquisitions are not subject to 4220.1F but to FTA Circular 5010.1D. The contract clauses in the FTA BPPM, appendix A.1, would thus apply as appropriate (see instructions for clause applicability in appendix A.1). Beyond these clause requirements, FTA would have no specific contract language requirements. The Best Practices Procurement Manual is also available online. (Revised: August 17, 2009)

Q. Are third party contract provisions required to be included in a purchase agreement when acquiring freight railroad property when using FTA funds as the source?

A. FTA Circular 4220.1F, Chapter II, Paragraph 2.b. (1)(d) exempts real property acquisitions from the Circular requirements.

Real property acquisition is addressed in 49 CFR Part 24, and additional guidance may be found in FTA Circular 5010.1D, "Grant Management Guidelines."

The third party contracting provisions of 4220.1F do apply to contracts for construction of buildings, structures, or appurtenances that were not on land to be used for the project when that land was acquired. The third party contracting provisions of the circular also apply to any alterations or repairs to buildings or structures existing on that land when that land was acquired or made available for the FTA assisted project. (Posted: January, 2015)

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