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Leasing Delegation Program

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Public Buildings Service. Leasing Delegation Program. Cary Feld Office of Real Estate Acquisition All data compiled May 2009. USDA. DHS. IRS. NOAA. VA. Interior. Other. FY 2008 Delegation Approvals (238). 6. 12. 2. 14. 10. 7. 79\%. 187.

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Presentation Transcript
slide1
Public Buildings Service

Leasing Delegation Program

Cary Feld

Office of Real Estate Acquisition

All data compiled May 2009

slide2
USDA

DHS

IRS

NOAA

VA

Interior

Other

FY 2008 Delegation Approvals (238)

6

12

2

14

10

7

79%

187

new agency requirements
New Agency Requirements
  • Demonstrate organizational structure to support delegation
      • Trained, experienced, and warranted contracting personnel
      • Real estate legal support
      • Post-occupancy lease administration
      • Technical support (A/E)
  • Meet or exceed GSA’s published performance measure for cost of lease space relative to market benchmarks
  • Whether the requesting agency has complied with all applicable laws, Executive orders, regulations, OMB Circulars, and reporting requirements under previously authorized delegations
  • Demonstrate cost-effectiveness for the Government
  • Best interests of Government
additional agency requirements
Additional Agency Requirements
  • Acquisition plan
  • Justification for the delineated area
  • Floodplain check
  • Total amount of space required, any special requirements, and any associated parking requirements
  • Market surveys and supporting documents
  • National Environmental Policy Act (“NEPA”) compliance
  • National Historic Preservation Act (“NHPA”) compliance
  • Lease scoring in accordance with OMB Circular A-11
  • Prospectus threshold compliance
commerce special purpose
Commerce Special Purpose

§102-73.175—What types of special purpose space may the Department of Commerce lease?

  • The Department of Commerce is delegated authority to lease the following types of special purpose space:
  • (a) Space required by the Census Bureau in connection with conducting the decennial census (lease terms, including all options, limited to 5 years).
  • (b) Laboratories for testing materials, classified or ordnance devices, calibration of instruments, and atmospheric and oceanic research (lease terms, including all options, limited to 5 years).
  • (c) Maritime training stations.
  • (d) Radio stations.
  • (e) Land (if unimproved, may be leased only on a fiscal year basis).
  • (f) National Weather Service meteorological facilities.
follow up post approval
Follow-Up/Post Approval
  • Within 30 days after award, submit additional lease file documents
  • There are different requirements based upon cost of lease that include the following:
    • If the awarded lease average annual rental is in excess of $100,000, excluding the cost of operational services
    • If the awarded lease is for an average annual rental of $100,000 or less, excluding the cost of operational services
post award reviews
Post Award Reviews

Lease –

  • who signed? same CO as authorized?
  • If not, GSA needs proof of training and warrant of CO who signed.
  • If not provided, agency will be required to undergo Ratification process in accordance with FAR 1.602-3 and submit copies to GSA
  • Made timely? In accordance with Acquisition Plan and Delegation Request?
file review lease
File Review - Lease
  • Does the lease clearly state?
    • Rent commencement date
    • Lease term (in accordance with delegation)
    • Square Feet (must match delegation)
    • Real estate tax adjustment clause
    • define RSF and ANSI/BOMA office area SF
    • only CO authorized to make changes to lease
    • Reps and Certs GSA Form 3518– Small Business Subcontracting plan [only if rent is $500,000 over term and lessor is large business]
    • GSA General Clauses Form 3517 current version
additional lease language
Additional Lease Language
  • Termination rights
  • Renewals
  • ABBAS (new accessibility language)
  • Green Lease language
  • Alterations clearly spelled out
  • Liquidated damages language
  • Occupancy Date specified? Construction schedule
  • If new construction Davis-Bacon language and wage rates
solicitation for offer sfo
Solicitation For Offer (SFO)
  • Delineated Area must match delegation
  • SF range must match delegation
  • Award – price or price and other factors
  • GSA Form 3516 Solicitation Provisions
  • Current Green Lease provisions
  • ABBAS
  • Current version of SFO
  • All actions (even sole source require preparation of an SFO stating Govt requirements
procurement
Procurement
  • Was requirement advertised?
  • Sole source – Justification for other than full and open competition
  • Market surveys – how many buildings seen, accepted, rejected, rationale
    • Markets surveys cannot just be search on LoopNet or other internet search
procurement con t
Procurement (con’t.)
  • Price Negotiation Memorandum (under SLAT can use GSA Form 3628)
    • Should be a history of procurement
  • Fire and Life Safety reviews of building information and floorplans
    • GSA sees a lot of leases without floorplans attached
  • Measurement of space
    • Govt must independently verify space amount
  • Debarred bidders list checks
  • Post Award Synopsis on FedBizOpps
post award submission issues
Post Award submission issues
  • FMR Bulletin requires agencies demonstrate organizational structure to support delegation
      • Trained, experienced, and warranted contracting personnel
      • Real estate legal support
      • Post-occupancy lease administration
      • Technical support (A/E)
  • Post Awards do not show technical staff determining if building meets fire and life safety requirements – egress issues, measurement of space, accessibility issues
  • GSA has seen no legal reviews of documents
  • GSA had emergency delegation requests due to horrible space conditions indicated in pictures from 3 years ago but no letters to landlords demanding action or threatening constructive eviction (mold, rats, water leaks etc.) – where are periodic inspections referenced in question 6 on application?
additional issues
Additional Issues
  • Accessibility – GSA Administrator Austin gave Commerce a delegation of authority to waive accessibility in August 1991. That delegation specifically stated the waiving of UFAS. Counsel Jim Raggio of the US Access Board has determined that the delegation granted by Austin cannot be used to waive ABAAS compliance. FMR 102-76.90 states only the GSA Administrator can waive accessibility.
  • Payment of rent in arrears – one CO deleted language about payment of rent in arrears. Title 31 USC section 3324 states only Congress has this authority.
post award review issues
Post Award Review Issues
  • Holdover status – unless agency has independent authority to acquire leasehold interests in property at the expiration of the delegated lease term the agency must either vacate or have requested and received additional authority from GSA to extend the term of the lease; lease extensions are specifically covered by FMR Bulletin 2008-B1
  • Capital lease scoring – some contracting officers have asked the lessor what the fair market value of the asset is.
additional post award
Additional Post Award
  • Posting of Justifications for Other Than Full and Open Competition on FedBizOpps
    • section 844 of the National Defense Authorization Act for Fiscal Year 2008 required the posting of all justifications for other than full and open competition on FedBizOpps. GSA issued Realty Services Letter 2009-01 requiring this for all sole source lease transactions.
  • Realty Services Letter 2008-07 on succeeding leases – GSA issued an RSL with sample cost benefit analysis, sample justification for other than full and open competition and sample advertisement and required that the potential sole source succeeding lease be advertised on FedBizOpps.
delegation issues
Delegation Issues
  • Submissions to [email protected]
  • Under old system delegation letters said comply with laws, Exec Orders, regulations
  • Now delegation letters will also require compliance with
    • General Services Administration Acquisition Manual (GSAM)
    • Realty Services Letters
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