WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 1 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
Table of Contents
40.06 - ACRONYMS 3 41 - EVALUATING OFFERS 3 41.1 - Evaluation Panel...... 4 41.2 - Documents that Must be Submitted by Offeror...... 4 41.21 - Standard and Streamlined Lease Models...... 4 41.22 - Simplified Lease Model...... 5 41.23 - Succeeding/Superseding Lease Model...... 7 41.24 - Excluded Parties List in the System for Award Management...... 8 41.3 - ANSI/BOMA Measurement...... 8 41.4 - Price Evaluation...... 9 41.41 - Preparing the Abstract of Offers...... 9 41.41a - Present Value Analysis...... 11 41.5 - Capital Vs. Operating Lease Determination...... 13 41.6 - Award Factors Evaluation...... 13 42 - DETERMINING THE COMPETITIVE RANGE 13 43 - CONDUCTING NEGOTIATIONS 14 43.1 - Negotiation Objectives...... 14 43.2 - Appraisal Requirement...... 16 43.3 - Negotiation Session...... 16 43.4 - Price Negotiation Memorandum...... 19 43.5 - Source Selection Decision Document...... 24 43.6 - Reviewing Final Offers...... 24 43.6a - Historic Price Evaluation Preference...... 24 43.6b - HUBZone Price Evaluation Preference...... 25 43.7 - Pre-Award Debriefing...... 26 43.8 - Pre-Award Protest...... 26 44 - LEASE AWARD 26 44.1 - Pre-Notification Requirements...... 26 44.11 - Final Capital vs. Operating Lease Determination...... 26 44.12 - Contract Clearance Thresholds...... 26 44.13 - Funds Availability...... 29 44.14 - NEPA Analysis and Documentation...... 29 44.15 - Other Required Documentation...... 29 44.2 - Notifying the Successful Offeror...... 31 44.21- Required Attachments for Standard and Streamlined Leases...... 31 44.22 - Required Attachments for Simplified Leases...... 32 44.23 - Required Attachments for Succeeding/Superseding Leases...... 33 44.24 - Required Attachments for Long-term Land Leases...... 33 44.25 - Scheduling the Move-In...... 47 WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 2 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.3 - Notifying Unsuccessful Offerors...... 47 44.4 - Post-Award Debriefing...... 47 44.5 - Post-Award Protest...... 47 44.6 - Post-Award Publicizing in FedBizOpps...... 48 44.61 - Posting of Justifications for Other Than Full and Open Competition...... 48 44.7- Contracting Officer’s Representative Designation...... 48 45 - DESIGN INTENT AND CONSTRUCTION DRAWINGS 48 45.1 - Design Intent Drawings...... 49 45.11 - Interior Finishes...... 49 45.2 - Construction Drawings...... 49 46 - PRE-OCCUPANCY CONSTRUCTION 50 46.1 - Tenant Improvements...... 50 46.11 - Cost or Pricing Data...... 50 46.12 - Competitive Proposals...... 50 46.13 - Tenant Improvement Price Negotiation Memorandum...... 51 46.14 - Notice to Proceed...... 52 46.2 - Turnkey Build-Outs...... 54 47 - CONSTRUCTION COMMENCEMENT 54 47.1 - Pre-Construction Meeting...... 54 47.2 - Progress Inspections...... 54 47.21 - Payroll Review...... 54 47.3 - Change Orders...... 54 47.31 - Lessor Changes...... 54 47.32 - Forest Service Changes...... 55 47.4 - Pre-Occupancy Inspection...... 55 47.5 - Pre-Occupancy Tests...... 56 47.6 - Space Acceptance and Lease Commencement...... 57 48 - LEASE COMMENCEMENT 57 48.1 - Close-out of Existing Lease...... 57 48.2 - Lease Payments...... 58 48.21 - Lease Payment Worksheet...... 58 48.22 - Central Contractor Registration in the System for Award Management...... 59 48.23 - Vendor Code Set-Up...... 59 48.3 - Utility Payments...... 60 48.4 - Mistakes after Award...... 60 48.5 - Submitting Post-Award Lease Documents to GSA...... 60 48.51 - Lease Acquisitions above the SLAT...... 60 48.52 - Lease Acquisitions below the SLAT...... 61 48.6 - Post-Occupancy Deliverables...... 62 48.7 - Updating Lease Data...... 62 48.71 - User Access...... 63 48.72 - Infra...... 63 48.8 - Lease Acquisition Plan Module...... 63 WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 3 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
An electronic version of the applicable General Services Administration (GSA) Leasing Desk Guide chapter titled: “Chapter 2 - New or Replacing Lease”, can be accessed at: http://www.gsa.gov/graphics/pbs/LDG-Chapter2-NewLease-Final9-30-10_508comp.pdf.
40.06 - ACRONYMS
In addition to the acronyms listed in the zero code, the following acronyms pertain to this chapter only:
ABOA SF - ANSI/BOMA Office Square Feet
CD - Construction Drawing
COR - Contracting Officer’s Representative
DID - Design Intent Drawing
PVA - Present Value Analysis
PVC - Present Value Cost
TI - Tenant Improvement
TIA - Tenant Improvement Allowance
41 - EVALUATING OFFERS
The Real Property Leasing Officer (RPLO) shall evaluate each offer received with respect to price and other factors, as required by the request for lease proposals (RLP), to determine which offer is most acceptable to the Government.
To do this, the RPLO shall:
1. Review the RLP to become reacquainted with the full requirements.
2. Read each offer carefully and compare to the requirements of the RLP.
3. Verify that each offer is signed by an authorized party. This could include: the owner, an agent with written authority to represent the owner, a general partner of a partnership, an attorney, or the appropriate official of a company/organization.
4. Confirm that the Offeror submitted the required documents. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 4 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
5. Confirm that the space offered yields space within the stated ANSI/BOMA office square feet (ABOA SF) range.
6. Prepare an Abstract of Offers to reduce all costs to a square foot rate in order to evaluate each offer equally. This may include using present value analysis to compare unequal rent streams among offers.
7. Evaluate each offer based on the Award Factors listed in the RLP.
41.1 - Evaluation Panel
For large or complex lease acquisitions, the RPLO may designate an evaluation panel to assist in evaluating offers. The members of the evaluation panel should represent the technical and functional disciplines needed to evaluate offers in accordance with the RPLO’s source selection plan (see ch. 20, sec. 27.21).
41.2 - Documents that Must be Submitted by Offeror
41.21 - Standard and Streamlined Lease Models
The RPLO shall confirm that the Offeror has submitted the following documents (if required by the RLP):
1. Completed GSA Form 1364C (Standard) or 1364B (Streamlined), Proposal to Lease Space. The following attachments must be included because they are needed to determine whether the Offeror meets the minimum requirements for eligibility of award:
a. Evidence of ownership or control of site,
b. Seismic Safety Certification or commitment to comply within required timeframe,
c. Documentation that property is eligible for historic preference (if applicable),
d. Asbestos Management Plan (if applicable),
e. Proof of the Energy Star® Label from EPA or a written statement explaining otherwise. For new construction, a Statement of Energy Performance;
2. Completed GSA Form 1217, Lessor’s Annual Cost Statement;
3. Building Security Unit Price List (if applicable);
4. Completed GSA Form 3518, Representations and Certifications; WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 5 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
5. Completed GSA Form 12000, Pre-Lease Fire Protection and Life Safety Survey Evaluation (only applicable to space ≥ 10,000 rentable sf that is above the 1st floor) and other required Fire Protection and Life Safety submittal information including a Certificate of Occupancy;
6. Conditional commitment of funds;
7. Evidence of compliance with local zoning laws;
8. Active registration in the Central Contractor Registration (CCR) System, now part of the System for Award Management (SAM);
9. Tax information;
10. Explanation of how Offeror will meet parking requirements (if applicable);
11. Architectural plans for modernization (if applicable);
12. Asbestos-related management plan (if applicable);
13. Floor plans for space offered;
14. Explanation of the existence of vending facilities;
15. Evidence that specified amenities exist;
16. Leadership in Energy and Environmental Design (LEED) Scorecard (if applicable);
17. Name of proposed LEED accredited professional team members (if applicable);
18. Building Operating Plan (if applicable);
Additional Suggestions:
19. Site plan showing buildings, landscaping, and parking;
20. Estimate of appraised value of building and land (once construction/remodel is completed if applicable);
21. Renovation Plan and Workspace Plan (if remodel is required during occupancy); and
22. Acknowledgement of receipt of any amendments issued to RLP during advertisement. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 6 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
41.22 - Simplified Lease Model
1. Signed and initialed GSA Form L201-A, Simplified Lease;
2. Completed GSA Form 1364A, Proposal to Lease Space;
3. Completed GSA Form 1364A-1, Proposal to Lease Space Data. The following attachments must be included because they are needed to determine whether the Offeror meets the minimum requirements for eligibility of award:
a. Evidence of ownership or control of site,
b. Seismic Safety Certification or commitment to comply within required timeframe,
c. Documentation that property is eligible for historic preference (if applicable),
d. Asbestos Management Plan (if applicable),
e. Proof of the Energy Star® Label from EPA or a written statement explaining otherwise. For new construction, a Statement of Energy Performance;
4. Security Requirements, initialed by Offeror;
5. Building Security Unit Price List (if applicable);
6. Completed GSA Form 3518, Representations and Certifications;
7. Active registration in the Central Contractor Registration (CCR) System, now part of the System for Award Management (SAM);
8. Agency-specific Requirements Package, initialed by Offeror;
9. Floor plans for space offered;
10. Completed GSA Form 12000, Pre-Lease Fire Protection and Life Safety Survey Evaluation (only applicable to space ≥ 10,000 rentable sf that is above the 1st floor) and other required Fire Protection and Life Safety submittal information including a Certificate of Occupancy;
11. Building Operating Plan (if applicable).
Additional Suggestions:
12. Site plan showing buildings, landscaping, and parking; WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 7 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
13. Estimate of appraised value of building and land; and
14. Acknowledgement of receipt of any amendments issued to RLP during advertisement.
41.23 - Succeeding/Superseding Lease Model
1. Completed GSA Form 1364S, Proposal to Lease Space. The following attachments must be included because they are needed to determine whether the Offeror meets the minimum requirements for eligibility of award:
a. Evidence of ownership or control of site,
b. Seismic Safety Certification or commitment to comply within required timeframe,
c. Documentation that property is eligible for historic preference (if applicable),
d. Asbestos Management Plan (if applicable),
e. Proof of the Energy Star® Label from EPA or a written statement explaining otherwise. For new construction, a Statement of Energy Performance;
2. Completed GSA Form 1217, Lessor’s Annual Cost Statement (if applicable);
3. Building Security Unit Price List (if applicable);
4. Completed GSA Form 3518, Representations and Certifications;
5. Active registration in the Central Contractor Registration (CCR) System, now part of the System for Award Management (SAM);
6. Tax information;
7. Completed GSA Form 12000, Pre-Lease Fire Protection and Life Safety Survey Evaluation (only applicable to space ≥ 10,000 rentable sf that is above the 1st floor) and other required Fire Protection and Life Safety submittal information including a Certificate of Occupancy;
8. Floor plans for space offered;
9. Explanation of the existence of vending facilities;
10. Building Operating Plan (if applicable); WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 8 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
Additional Suggestions:
11. Site plan showing buildings, landscaping, and parking;
12. Estimate of appraised value of building and land (once construction/remodel is completed if applicable);
13. Renovation Plan and Workspace Plan (if remodel is required during occupancy); and
14. Acknowledgement of receipt of any amendments issued to RLP during advertisement.
41.24 - Excluded Parties List in the System for Award Management
The System for Award Management (SAM) is a consolidated system that contains the primary database for determining an Offeror’s eligibility to participate in Federal contracts, also known as the Excluded Parties List System (EPLS). The EPLS was established to verify that agencies do business only with responsible contractors and do not allow a party to participate if any executive department or agency has debarred, suspended, or otherwise excluded that party from participation.
The RPLO shall review the EPLS via SAM to confirm that the Offeror has not been disqualified or excluded from participation in Federal contracts. This must be done twice; once after receiving offers and once before award.
The SAM can be accessed electronically at: http://www.sam.gov.
41.3 - ANSI/BOMA Measurement
The RPLO shall evaluate each offer to determine whether the space offered in rentable square feet SF) yields space within the stated ABOA SF range. The Rentable SF is the space for which the (Forest Service will be charged rent. The ABOA SF is the space where the Forest Service will house personnel and furniture.
Typically, the Rentable SF number will be larger than the ABOA SF. This is due to the common area factor found in the building. The common area factor (also known as the U/R ratio) is the conversion factor determined by the Lessor to determine the Rentable SF for the offered space.
If the offer meets the minimum space requirements of the RLP (sometimes referred to as the “go/no go” requirements), the RPLO shall review the floor plan to ensure that it shows the proposed corridor pattern. The RPLO shall determine if the corridor pattern provides an acceptable level of safety and provides access to all essential building elements. If the corridor WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 9 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
pattern is acceptable, the RPLO shall measure the floor plans to verify that the ABOA SF submitted by the Offeror is correct. If the offer contains less than the minimum space requirements, the RPLO cannot accept the offer unless the Offeror amends the offer by adjusting the square footage to fall within the RLP range.
If the offer is greater than the maximum space requirements stated in the RLP, the RPLO cannot accept the offer unless the Offeror amends the offer by adjusting the square footage to fall within the RLP range or include the additional space in the lease at no charge to the Government.
41.4 - Price Evaluation
The RPLO shall prepare an Abstract of Offers for each offer received. The Abstract of Offers will allow the RPLO to reduce all costs to an annual ABOA square foot rate for each offer. The resulting annual ABOA square foot rate will represent the total cost to the Government and enable the RPLO to evaluate one offer to another and to Government estimates.
The RPLO should use the following documents to prepare the Abstract of Offers:
1. All correspondence.
2. The offer.
3. GSA Form 1217, Lessor’s Annual Cost Statement.
4. GSA Form 1364x, Proposal to Lease Space.
5. GSA Form 3518, Representations and Certifications.
6. GSA Form 2991, Lease Market Survey.
7. Floor plans.
41.41 - Preparing the Abstract of Offers
The RPLO should document the following items in the Abstract of Offers:
1. Termination rights.
2. Annual rent.
3. Square footage offered. See section 41.3. The RPLO shall confirm that the ABOA SF offered is within the required ABOA SF range.
4. Initial term. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 10 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
5. Cost per composite square foot. The RPLO shall document the composite square foot rate and verify that it is correct.
6. Operating cost escalator. If one offer is fully serviced and one offer is partially serviced, the cost of the Government provided services must be escalated as well.
7. Base cost of services. The base cost of services is the estimated annual costs of operating expenses, utilities, and services listed on the GSA Form 1217, Lessor's Annual Cost Statement. The RPLO shall document these costs per square foot in the Abstract of Offers.
The RPLO should compare the Offeror’s projected cost to other similar buildings and make direct inquiries to the local utility company as to their past usage and projected cost of utilities. If possible, the RPLO should obtain copies of past utility bills and/or cleaning contracts or invoices. Once the costs are verified, the RPLO should negotiate each cost.
8. Ownership Costs. The ownership costs are the estimated annual costs of real estate taxes, insurance, building maintenance, and management costs listed on GSA Form 1217, Lessor’s Annual Cost Statement. The RPLO shall document these costs per square foot in the Abstract of Offers.
The RPLO should compare the Offeror’s annual real estate tax estimate to the previous year's real estate tax bills for the property, including all documentation of tax abatements, credits, or refunds, and all notices which could affect the future assessed valuation of the property. For new construction, the RPLO shall compare the Offeror’s real estate tax estimate to a public tax record of a comparable building.
9. Services to be provided by the Government. It is the USDA’s policy to solicit fully serviced space. However, if services or utilities are not included in the rent and must be provided by the Government, the RPLO shall estimate the costs of providing these services or utilities. The RPLO shall document these costs per square foot (identical to the process described in item “h” above).
10. Escalated rental increases per square foot.
11. Renewal options.
12. Overtime: HVAC/Zoned (Heating Ventilation, and Air Conditioning). The RPLO shall document the cost per square foot for use of heating, ventilation and air conditioning systems, and utilities specifically required by the Government beyond the normal working hours. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 11 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
The RPLO shall verify which floors and space are zoned. The RPLO shall indicate the rate, which is stated in hourly terms, per floor/zone/area/entire leased space.
Like paragraph “8” above, the RPLO should compare the Offeror’s projected costs to other similar buildings and make direct inquiries to the local utility company as to their past usage and projected cost of utilities. If possible, the RPLO should obtain copies of past utility bills and/or janitorial contracts or invoices. Once the costs are verified, the RPLO should negotiate each cost.
13. Janitorial services. The RPLO shall document the cost per square foot for janitorial services specifically required by the Government beyond the normal working hours.
Like paragraph “8” above, the RPLO shall compare the Offeror’s projected costs to other similar buildings and make direct inquiries to the janitorial company as to their past projected cost of services. If possible, the RPLO should obtain copies of past janitorial contracts or invoices. Once the cost is verified, the RPLO should negotiate the cost.
14. Unit prices. The RPLO shall document the cost per unit for the installation of ceiling height partitions (linear foot rate), floor electrical outlets, wall electrical outlets, telephone outlets, and so forth.
15. Cost of alterations. If the RLP requires the cost of initial space alterations or special requirements to be itemized separately from the rent, either as a lump sum or by a square foot rate amortized over the term of the lease, the RPLO shall document the annual cost per square foot for alterations. For example:
$6,500 lump sum/5 years = $1,300 cost per year
$1,300 cost per year/5,000 SF = $0.26/SF per year
16. Other factors (moving costs). The RPLO shall document the moving cost per square foot for moving expenses as stated in the RLP. Moving cost estimates should include the cost of the physical move, supplies needed for the move, relocation/purchase of telecommunication equipment, and loss of employee productivity. The RPLO shall add this cost to the cost per square foot of those offers to relocate to determine overall cost to the Government.
41.41a - Present Value Analysis
The purpose of present value analysis (PVA) is to compare the true price of all offers in today’s (present value) dollars. The present value amount provides a single cost representation of various rent streams, variations in square footage, and variations in operating costs, lump sum payments, and amortizations. Accordingly, in order to evaluate each offer by price, the RPLO shall conduct a PVA of each offer for the final award determination. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 12 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
To conduct a PVA, the RPLO may use the PVA Excel model provided by GSA. An electronic version of the PVA Excel model and instructions for using it can be accessed via GSA Real Property Exchange system (G-REX) (see ch.20, sec. 25.1).
In accordance with the requirements of the RLP, GSA’s PVA Excel model calculates the PVA as described below:
1. The RPLO shall exclude parking and wareyard areas from the total ABOA SF, but not from the price. To determine the annual ABOA SF rate, the RPLO shall divide the total annual rent by the total ABOA SF, excluding parking and wareyard areas.
2. The RPLO shall evaluate free rent in the year in which it is offered.
3. If annual adjustments to operating expenses will not be made, the RPLO shall discount the annual ABOA SF rate at 5 percent to yield a present value cost (PVC).
4. If annual adjustments to operating expenses will be made, the RPLO shall discount the annual ABOA SF rate minus the base cost of operating expenses at 5 percent to yield net PVC. The RPLO shall escalate the operating expenses at 2.5 percent compounded annually and discounted annually at 5 percent, then add the net PVC to yield the gross PVC.
5. The RPLO shall add the following to the gross PVC:
a. The cost of Government-provided services not included in the annual rent escalated at 2.5 percent compounded annually and discounted annually at 5 percent.
b. The cost of any items (over the full term of the lease), which are to be reimbursed in a lump sum payment.
c. The cost of relocation of furniture, telecommunications, replications costs, and other move-related costs if applicable.
d. The fees for architectural and engineering design (A/E) services and the Offeror’s project development fees associated with tenant improvements (if applicable).
e. The annual cost of overtime HVAC based on the offered hourly overtime rate and an estimated usage of hours of overtime HVAC per year for the space. This cost will be discounted annually at 5 percent. *Note: Only include this paragraph if an accurate estimate of the number of overtime hours that the Forest Service will use annually can be obtained.* WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 13 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
f. Other award factors
The sum of either paragraphs 3 and 5 or paragraphs 4 and 5, divided by the ABOA SF will represent the annual ABOA SF rate for each offer for price evaluation purposes.
41.5 - Capital Vs. Operating Lease Determination
As discussed in chapter 20, section 24.1 of this Handbook, the RPLO shall determine whether a proposed lease is an operating lease or a capital lease using the Forest Service Capital vs. Operating Lease Spreadsheet. If the spreadsheet analysis indicates that a proposed lease is a capital lease, and the offer falls within the competitive range (see sec. 42), during negotiations, the RPLO shall review the RLP to determine which items are creating the cost overrun and continue negotiating with the Offeror so that the proposed lease qualifies as an operating lease or cancel the RLP (see ch. 30, sec. 35 for information on changing or cancelling the RLP).
41.6 - Award Factors Evaluation
If the lease the will be awarded in accordance with the best value trade-off procurement method, the RPLO shall use the evaluation criteria listed in the RLP to determine which offer is most advantageous to the Government with regard to factors other than price and document this evaluation in the lease file.
42 - DETERMINING THE COMPETITIVE RANGE
The RPLO is responsible for determining which offers meet, or are capable of meeting, the minimum requirements of the RLP. The RPLO should establish the competitive range based on the requirements of the RLP and market pricing. Understandably, there will be rural areas where obtaining market pricing is difficult, but the RPLO should make every effort to secure market pricing instead of using offers to establish the competitive range. If the lease will be awarded in accordance with the best value trade-off procurement method, the RPLO should include all of the most highly rated offers in the competitive range, unless the range is further reduced for purposes of efficiency (if there are more than a reasonable amount of offers submitted).
If the RPLO determines that additional information is needed to enhance the Forest Service’s understanding of an offer, the RPLO shall follow the procedures outlined in Federal Acquisition Regulation (FAR) 15.306 to communicate with the Offeror.
If the RPLO determines that an offer does not fall within the competitive range, the RPLO can eliminate the offer from consideration for award. The RPLO shall document this decision in the lease file and provide prompt, written notice to the unsuccessful Offeror. The written notice must state the basis for the determination and state that a revision will not be considered (FAR 15.503). WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 14 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
See section 43.6 for details on providing a pre-award debriefing to an unsuccessful Offeror who has been excluded from the competitive range.
43 - CONDUCTING NEGOTIATIONS
The purpose of negotiations is to provide an opportunity for each Offeror to revise their offer. If the lease will be awarded in accordance with the best value trade-off procurement method, the RPLO shall conduct negotiations with all Offerors that fall within the competitive range (FAR 15.306 - 307). Negotiations are encouraged, but not required for leases that will be awarded in accordance with lowest price technically acceptable procurement method. If the RPLO does not conduct negotiations, the RPLO shall be certain that the offer is acceptable and meets all of the requirements of the RLP.
43.1 - Negotiation Objectives
One of the most critical aspects of leasing space is negotiating the best price for the Government. To achieve this goal, the RPLO shall establish pre-negotiation objectives.
The RPLO shall establish pre-negotiation objectives in accordance with the Abstract of Offers, technical analysis, fact-finding results, Government cost estimates, and price histories.
Each pre-negotiation objective must provide a maximum, target, and minimum position.
1. A maximum position is the most advantageous price the Government can obtain.
2. A minimum position is the least advantageous price the Government will accept.
3. A target position is the price the Government can reasonably accept.
A sample list of pre-negotiation objectives is included in exhibit 01. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 15 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43- Exhibit 01
Sample List of Pre-negotiation Objectives WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 16 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43.2 - Appraisal Requirement
GSA used to require that an appraisal be performed by the RPLO, staff appraiser, or independent contractor to support negotiated rents for leases. Because acquiring an appraisal is a time- consuming and expensive process, GSA has eliminated this requirement.
Notwithstanding the above, under certain circumstances the Truth in Negotiations Act (TINA), 41 U.S.C. 254b, may still require the RPLO to acquire an appraisal. In accordance with TINA, Offerors shall submit cost or pricing data when adequate price competition does not exist for proposed leases having a total lease value greater than $650,000.
If TINA is triggered and there is evidence that the Offeror’s price is based on an established market price for similar space leased to the general public, the RPLO may use the market survey data and/or an appraisal as evidence to establish the market price.
If TINA is triggered and no market price information is available, the RPLO shall obtain an appraisal and retain a copy in the lease file.
Although appraisals are only required when triggered by TINA, this does not preclude the RPLO from obtaining an appraisal if the RPLO determines that an appraisal is needed. Oftentimes an RPLO will request an appraisal to help determine whether a proposed lease will be a capital or operating lease (see sec. 41.6).
43.3 - Negotiation Session
The RPLO shall meet with each Offeror in person, confer by telephone, or communicate via correspondence to conduct negotiations. The RPLO shall conduct each negotiation separately.
During negotiations, the RPLO shall observe the following rules:
1. Any concession of requirements or clarification of information given to one Offeror, must be given to all others.
2. Offers must be kept confidential prior to award.
3. Time extensions and any other modifications to the SFO must be provided in writing to all Offerors.
4. Verbal agreements must not be used.
The RPLO should use a basic lease checklist to discuss all of the issues the Offeror may face as a Lessor. A sample checklist is included in exhibit 01. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 17 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
The RPLO should conduct as many negotiations as necessary to obtain a rental rate that is the most favorable to the Government. The RPLO shall insert a written record of all exchanges in the lease file (see sec.43.4 for details on creating a price negotiation memorandum).
If the RPLO determines that an offer which was originally in the competitive range no longer qualifies, the RPLO can remove the offerer from the competitive range and decline to accept or consider further revisions to the offer (see sec. 42 for more details).
Once the RPLO is convinced that all items have been thoroughly discussed and negotiated, the RPLO shall close negotiations and send a written request to all Offerors within the competitive range requesting a final proposal revision by a specific due date.
The RPLO may not conduct negotiations after the final proposal revision due date unless the RPLO reopens negotiations with all Offerors in the competitive range. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 18 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43.3 Exhibit 01
Basic Lease Checklist Sample
Items to Discuss with Offeror Item Verified Addendums Ownership or Control of Proposed Site AD 1217 and AD 1364 Cost HVAC System (conference room, separate controls, zone controls, secured thermostats, telephone room, computer room, ventilation) Flammable Storage Special Venting for Equipment Electrical and Lighting Energy Conservation Trash Receptacle and Collection Landscaping and Snow Removal Parking Restroom Facilities Acoustical Treatments Radio Communication/Antenna/Base Utilities-Government or Lessor Furnished Janitorial Recycling Evaluation Criteria (strengths and weaknesses) Operating and Tax Escalators Disability Requirements Fire and Life Safety Items Windows/Blinds/Draperies Code Requirements/Permits/etc. ADA Requirements Floodplain/Wetlands/Prime Farmlands Conditional Commitment of Funds WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 19 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43.4 - Price Negotiation Memorandum
A price negotiation memorandum (PNM) is a record of all negotiations with each Offeror. It is required for all lease actions and should be finalized once negotiations are complete. The PNM should contain the following data elements:
1. The purpose of the negotiation.
2. A description of the acquisition, including appropriate identifying numbers.
3. A summary of the contractor’s offer, any field pricing assistance recommendations, including the reasons for any pertinent variances from them, the Forest Service’s negotiation objective, and the negotiated position. When determination of price reasonableness is based on price analysis, the summary should include the source and type of data used to support the determination. Where the determination of price reasonableness is based on cost analysis, the summary should address each major cost element, the major deficiencies with the original offer, and how they were addressed. Additionally, the RPLO should include rate changes and critical changes for every iteration of the offer.
4. A discussion of all modifications made in accordance with RLP amendments.
5. The most significant facts or considerations controlling the establishment of the pre- negotiation objectives and the negotiated agreement including an explanation of any significant differences between the two positions.
6. Documentation of fair and reasonable pricing.
Anyone reading the PNM should be able to understand the issues of the negotiation and the outcomes, whether the offer was fair and reasonable, and the basis for that determination.
A sample PNM is included in exhibit 01. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 20 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43.4 – Exhibit 01
Sample GSA Price Negotiation Memorandum Template
INSERT CITY, STATE
REQUIREMENT/PURPOSE OF NEGOTIATION: The Forest Service requires a minimum of 00,000 ANSI/BOMA square feet of office, warehouse, parking, etc space for personnel, furnishings and equipment in INSERT CITY, STATE. The term is for INSERT YEARS (00) years, INSERT FIRM YEARS (00) years firm. The offered space must meet Government requirements for fire and life safety and accessibility requirements, and must have INSERT UNIQUE REQUIREMENTS. A minimum of 00 parking spaces must be available for Government use.
BACKGROUND:
An advertisement was posted in Federal Business Opportunities on INSERT MONTH DAY YEAR and INSERT NUMBER Expressions of Interest were received. In addition to the FBO ad posted, the local market expert surveyed the market for all viable alternatives within the delineated area.
A market survey was conducted on INSERT MONTH DAY YEAR. INSERT NUMBER buildings were identified that could potentially meet the requirements of the task order:
1. LIST BUILDINGS BY ADDRESS 2.
The market survey report and market survey forms are located in the Lease file.
METHOD:
Full and open competition
NEGOTIATION OBJECTIVES:
Preliminary negotiation objectives were developed at project inception, updated in response to discussions with the Government during the Project Orientation meetings and subsequently finalized. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 21 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43.4 – Exhibit 01--Continued
ITEM OBJECTIVE RANGE Shell Rental Rate $ Tenant Improvement $ Amortization Rate $ Base Cost of Service $ Base Year Taxes $ Hourly Overtime Rate $ Adjustment for Vacant Premises $ Parking $ Other $
DESCRIPTION OF ACQUISITION:
The Request for Lease Proposals (RLP) Number ____ was issued on INSERT MONTH DAY YEAR and initial offers were due INSERT MONTH DAY YEAR. INSERT # OF OFFERS offers were received. Initial offers are located in the Lease File.
RECORD OF NEGOTIATIONS/ SUMMARY OF NEGOTIATIONS: Initial offers were received on INSERT MONTH DAY YEAR, reviewed and abstracted, and deficiency letters were sent in response to these offers on INSERT MONTH DAY YEAR.
INSERT NUMBER second offers were received on INSERT MONTH DAY YEAR. Updated negotiation objectives were prepared for each offer and negotiation sessions were held with Offerors as follows:
1. INSERT MONTH DAY YEAR and OFFEROR NAME (Identify the name, position, and organization of each person representing the contractor and the Government in the negotiations): Summarize financial negotiations and discussions with Offerors which resulted in material changes to the rate proposal or lease documents. INCLUDE items such as rental rate changes or changes to agency special requirements or General Clauses. Do NOT include administrative or compliance detail such as initialing pages on government forms, correction of calculation errors, CCR registrations, or other detail unrelated to price or business terms.
2. INSERT MONTH DAY YEAR and OFFEROR NAME (Identify the name, position, and organization of each person representing the contractor and the Government in the negotiations): Summarize financial negotiations and discussions with Offerors which resulted in material changes to the rate proposal or lease documents. INCLUDE items such as rental rate changes or changes to agency special requirements or General Clauses. Do NOT include administrative or compliance detail such as initialing pages on government forms, correction of calculation errors, CCR registrations, or other detail unrelated to price or business terms.
3. INSERT MONTH DAY YEAR and OFFEROR NAME (Identify the name, position, and organization of each person representing the contractor and the Government in the negotiations): Summarize financial negotiations and discussions with Offerors which resulted in material changes to the rate WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 22 of 65 DURATION: This amendment is effective until superseded or removed.
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proposal or lease documents. INCLUDE items such as rental rate changes or changes to agency special requirements or General Clauses. Do NOT include 43.4 – Exhibit 01-- Continued
administrative or compliance detail such as initialing pages on government forms, correction of calculation errors, CCR registrations, or other detail unrelated to price or business terms. A follow-up letter was sent to each Offeror and additional clarifications were received INSERT MONTH DAY YEAR. Copies of these letters can be found in the lease file.
FINAL REVISED PROPOSALS:
Indicate any Offerors who withdrew prior to the final proposal revision, or offers deemed non- responsive to RPLO requirements. These offers were: LIST WITHDRAWN or NON RESPONSIVE OFFERS
Accordingly, Final Revised Proposal letters were issued to the remaining INSERT NUMBER Offerors on INSERT MONTH DAY YEAR with a response date of INSERT MONTH DAY YEAR.
Please refer to the lease file for offer abstracts, correspondence and negotiation notes for each offer.
OFFER COMPARISON : By the close of final proposal revisions, INSERT NUMBER offers were received for this procurement. A present value price evaluation of these offers was conducted by INSERT NAME and submitted to INSERT NAME for review and approval. The results of the evaluation, ranked from lowest to highest responsive offer, are summarized below.
1. PVof $XX.XX per ANSI/BOMA Office Area Foot: INSERT ADDRESS
Summarize additional relevant considerations here such as “Includes one year’s free rent” or “Deemed non-responsive due to…”.
2. PVof $XX.XX per ANSI/BOMA Office Area Foot: INSERT ADDRESS
Summarize additional relevant considerations here such as “Includes one year’s free rent” or “Deemed non-responsive due to…”. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 23 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
3. PVof $XX.XX per ANSI/BOMA Office Area Foot: INSERT ADDRESS
Summarize additional relevant considerations here such as “Includes one year’s free rent” or “Deemed non-responsive due to…”. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 24 of 65 DURATION: This amendment is effective until superseded or removed.
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43.4 – Exhibit 01--Continued
AWARD DETERMINATION (INCLUDING FAIR AND REASONABLE DETERMINATION):
With a net present value of $00.00 per USF, the offer from INSERT OFFEROR NAME at INSERT ADDRESS is the lowest-priced, technically-responsive offer to the RLP, and as such, is the successful Offeror. INSERT SUCCESSFUL BUILDING NAME /ADDRESS offered the shell rate of $XX.XX per RSF / $XX.XX per ABO SF. The objective rental rate stated in the Negotiation Objectives ranged from $XX.XX to $XX.XX per RSF. This rate compares favorably with current market conditions, as supported by the Negotiation Objectives prepared for this procurement. Insert other detail, mitigating circumstances, special requirements which are not customary in the market place, premium for Build-to-Suit, etc. Insert percentage difference between objective and negotiated rates. The Government has determined that the successful Offeror’s offer is fair and reasonable and that it is in the best interest of the Government to award this lease to the successful Offeror, to meet the requirements identified in RLP Number ____.
Prepared By:
------Date: ------Name
Approved By:
------Date: ------Contracting Officer WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 25 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43.5 - Source Selection Decision Document
When the best-value trade off procurement method will be used, the RPLO shall use information provided by the evaluation team, if applicable (see sec. 41.1) and the source selection plan (see ch. 20, sec.27) to evaluate offers that fall within the competitive range.
The RPLO shall document the source selection decision, including a rationale for the decision, in writing.
43.6 - Reviewing Final Offers
The RPLO shall update the abstract of offers to reflect the final offers submitted by all Offerors within the competitive range (see sec. 41.41).
43.6a - Historic Price Evaluation Preference
The RPLO shall give a price evaluation preference to historic properties based on the total annual ABOA SF cost to the Government. To qualify for a price evaluation preference, Offerors shall provide documentation in their offer confirming that the property is:
1. A historic property within a historic district.
2. A non-historic developed or undeveloped site within a historic district.
3. A historic property outside a historic district.
4. A property that is eligible for inclusion in the National Register of historic Places.
Once the RPLO confirms any historic properties, the RPLO shall calculate the price evaluation preference as a reduction to the PVA as follows:
1. First, to suitable historic properties within historic districts, a 10 percent price evaluation preference.
2. If no suitable historic property within a historic district is offered, or the 10 percent price evaluation preference does not result in such property being the lowest price technically acceptable offer, the RPLO shall give a 2.5 percent price evaluation preference to suitable non-historic developed or undeveloped sites within historic districts.
3. If no suitable non-historic developed or undeveloped site within a historic district is offered, or the 2.5 percent price evaluation preference does not result in such property being the lowest price technically acceptable offer, the RPLO shall give a 10 percent price evaluation preference to suitable historic properties outside historic districts. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 26 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
4. Finally, if no suitable historic property outside historic districts is offered, the RPLO shall not give a historic price evaluation preference to any property offered.
The RPLO shall use the price evaluation preference for evaluation purposes only. The actual award must reflect the price proposed by the successful Offeror.
The RPLO shall evaluate the total cost of one offer to another, and to Government estimates, and document this evaluation in the lease file.
43.6b - HUBZone Price Evaluation Preference
The RPLO shall give a 10 percent price evaluation preference to Offerors that qualify as a HUBZone small business concern (SBC) based on the total annual ABOA SF cost to the Government. For example, if the RPLO proposes to award the lease to a non-small business, and there is a technically acceptable HUBZone SBC offer that has not waived the price evaluation preference, the RPLO shall calculate the price evaluation preference as a 10 percent increase to the PVA of the non-small business. Then, the RPLO shall consider the proposal of the non-small business Offeror and the HUBZone SBC Offeror in light of the applied price evaluation preference and make an award made to the lower priced offer.
If space is offered for lease in a historic property, the RPLO shall apply the historic price evaluation preference first before applying a HUBZone price evaluation preference (see sec. 41.41b).
If a HUBZone SBC Offeror elects to waive the price evaluation preference, the RPLO shall not make any adjustments to the evaluated price of the non-small business offer.
The RPLO shall use the price evaluation preference for evaluation purposes only. The actual award must reflect the price proposed by the successful Offeror.
The Lessor shall provide documentation within 10 days after lease award that it was an eligible HUBZone SBC on the date of award. If the RPLO determines within 20 days of lease award that the Lessor was not an eligible HUBZone SBC at the time of award, and the Lessor fails to provide the RPLO with information regarding a change to its HUBZone eligibility prior to award, then the lease shall be subject to termination and the Government will be relieved of all obligations to the Lessor and not be liable to the Lessor for any costs, claims, or damages.
An electronic version of the applicable GSA LAC (LAC-2012-01) can be accessed at: http://www.gsa.gov/graphics/pbs/LAC-2012-01-HUBZone_price_preference- Att_1and2_v3_29_12.pdf. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 27 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
43.7 - Pre-Award Debriefing
Offerors excluded from the competitive range or otherwise excluded from the competition before award may request a debriefing before award.
If a pre-award debriefing is requested, the RPLO shall follow the pre-award debriefing procedures outlined in FAR 15.505.
43.8 - Pre-Award Protest
If the Forest Service receives an agency protest before contract award, the RPLO shall not make award unless the Head of the Contracting Activity (HCA) makes a written determination to proceed for urgent and compelling reasons.
If a pre-award protest is received, the RPLO shall follow the pre-award protest procedures outlined in FAR 33.1.
44 - LEASE AWARD
44.1 - Pre-Notification Requirements
44.11 - Final Capital vs. Operating Lease Determination
See section 41.5 for more details.
Prior to award, the RPLO shall verify that the lease is an operating lease. The RPLO shall verify this by updating the Capital vs. Operating Lease Spreadsheet to reflect any changes made during negotiations.
44.12 - Contract Clearance Thresholds
Prior to award, the RPLO shall obtain written approval for proposed lease acquisitions with a net annual rent1 greater than $50,000 for the initial lease term.
The following chart depicts the dollar value thresholds and approving official levels:
1 See Zero Code, Section 5. Net annual rent does not include the cost of operations and maintenance of the building such as janitorial services, utilities, and maintenance. It does include the cost of taxes and insurance. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 28 of 65 DURATION: This amendment is effective until superseded or removed.
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Thresholds (net annual rent for the Approving Official initial term) ≥ $50,000 and < $500,000 One level above the RPLO
≥ $500,000 and < Annual Prospectus Washington Office, Director of Acquisition Threshold Management (AQM)) > Annual Prospectus Threshold House and Senate Committees on Public Works
The annual prospectus thresholds can be found at: http://www.gsa.gov/portal/content/101522.
The RPLO shall obtain a written approval by the appropriate approving official before the lease can be awarded. A sample request for approval is included in exhibit 01.
To request approval for a proposed lease acquisition that will exceed the current year prospectus threshold, the RPLO shall:
1. Submit prospectus information (as required by GSA) to the Washington Office, Director of AQM
2. The Washington Office, Director of AQM will review and submit via cover letter to USDA OPPM
3. USDA OPPM will review and submit via cover letter to GSA
4. GSA will review and submit to Congress WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 29 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.12 – Exhibit 01
File Code: 6440-3-1 Date: October 27, 2012 Route To:
Subject: Lease Acquisition Approval Request
To: George Sears Washington Office, Director of Acquisition Management
The Forest Service Leasing Handbook requires written contract clearance and approval for proposed lease acquisitions over $500,000.00 net annual rent during the initial lease term, excluding services the Government pays for, from the Head of the Contracting Activity (HCA).
Real Property Leasing Officer, Jane King of Region 13, requests approval to make award to John Smith for 19,620 usable/24,525 rentable square feet of office space and 8,690 usable square feet of warehouse space in Anywhere, USA. The lease is for 15 years firm term with a 5-year renewal option period. The net annual rent is $557,431.00, and the gross annual rent is $741,531.00.
Approval Granted:
WO Head of the Contracting Activity DATE
/s/ Jane King JANE KING Realty Specialist - Acquisition Management WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 30 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.13 - Funds Availability
Prior to award, the RPLO should notify the authorized officer at the Unit of the proposed lease award and obtain written approval confirming the availability of funds.
44.14 - NEPA Analysis and Documentation
Prior to award, the RPLO shall work with the Environmental Coordinator to determine the need for additional surveys to be completed by the Successful Offeror for compliance with other environmental laws and to ensure any design criteria or mitigation measures prescribed in the National Environmental Policy Act (NEPA) decision document are included in the lease template. This will verify any assumptions and findings in the environmental analysis.
If NEPA is triggered, the RPLO shall obtain a signed copy of the NEPA decision document for the file. The responsible official with signatory authority is typically the Line Officer.
If NEPA is not triggered, the RPLO shall use a WO template to document why NEPA is not triggered. It is very important to remember that the WO templates are NOT NEPA findings, they simply describe why NEPA is not triggered for the lease acquisition. An electronic version of the WO templates can be accessed via the AQM Real Property Intranet, under the section titled Real Property / Leased Assets / NEPA located at: http://fsweb.wo.fs.fed.us/aqm/property/RealProp.php.
44.15 - Other Required Documentation
Prior to award, the RPLO shall confirm that the successful Offeror has submitted the following documents (if applicable):
1. Small Business Subcontracting Plan. If the total contract value excluding services paid for by the Government is over $650,000 (see FAR 19.702 for updates to this threshold), and the successful Offeror is a large business, the successful Offeror shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business concerns, small disadvantaged business, and women-owned small business concerns.
If the successful Offeror is submitting an individual contract plan, the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The plan must be WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 31 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
included in and made a part of the lease. The subcontracting plan must be negotiated within the timeframe specified by the RPLO. Failure to submit and negotiate the subcontracting plan shall make the Offeror ineligible for award of a contract (FAR 19.702).
2. Equal Employment Opportunity Compliance Review/Civil Rights Impact Statement. If the contemplated award is less than $10 million total contract value excluding services paid for by the Government (see 41 CFR 60 for updates to this threshold), and the successful Offeror has certified compliance with the Equal Employment Opportunity requirements, the RPLO may consider the Offeror responsible as to nondiscrimination.
If the award will be greater than $10 million total contract value excluding services paid for by the Government (see 41 CFR 60 for updates to this threshold), the RPLO shall submit the following information to the appropriate Department of Labor Regional Office of Federal Contract Compliance Programs (OFCCP):
a. Names and addresses of the Offeror and each known subcontractor;
b. Name of the person signing the offer;
c. Dollar amount of the offer;
d. Date when the bid will expire; and
e. Date by which the RPLO shall receive advice from the OFCCP in order to award a valid and binding contract. Note, the OFCCP must respond within 15 days or approval can be assumed.
The OFCCP will review the available information on the prospective prime contractor’s compliance status and will notify the RPLO of any deficiencies.
The RPLO shall notify the Offeror of any deficiencies found and direct the Offeror to coordinate further action with the OFCCP. The contract cannot be awarded unless the OFCCP notifies the RPLO that the Offeror has responded or has agreed to respond satisfactorily to the OFCCP requirements.
3. Excluded Parties List. See section 41.24. The RPLO shall confirm that the Offeror has not been disqualified or excluded from participation in federal contracts.
4. Financial Responsibility Determination. The RPLO shall confirm that the Offeror has the financial capability to perform during the lease. The RPLO can confirm this by obtaining a signed letter on a bank letter head from the Offeror describing its financial capability such as: WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 32 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
a. Cash assets,
b. Accounts receivable (moneys owed the Offeror),
c. Cash value of all inventories,
d. Worth or real property (land and improvements) and equipment owned by the Offeror, and/or
e. Current liabilities
44.2 - Notifying the Successful Offeror
The RPLO is no longer required to provide an award letter to the successful Offeror. Instead, the RPLO shall mail the lease package (see secs. 44.21 through 44.25 for details on required attachments) to the successful Offeror. This must be done within the timeframe specified in the RLP. If an award cannot be made in accordance with the timeframe specified in the RLP, the RPLO shall request a written response from each Offeror agreeing to extend the acceptance period through a specific date. If time is critical, the RPLO may request the extensions orally and confirm it promptly in writing.
Upon receipt of the lease package, the successful Offeror shall sign and date both copies of the proposed lease, initial each page, and return both copies to the RPLO. Upon return of the lease package, the RPLO shall ensure that no changes have been made, then initial each page. The RPLO shall sign both copies of the lease, and complete the “Date” space in the “For the Government” section on the first page of each lease. Lastly, the RPLO shall insert a fully executed lease in the lease file and return a copy of the fully executed lease to the Lessor using a transmittal letter.
See section 48 for details on additional lease administration actions that are required.
44.21- Required Attachments for Standard and Streamlined Leases
For Standard and Streamlined leases, the RPLO shall include the following documents:
1. GSA Form L201C, Standard Lease or GSA Form L201B, Streamlined Lease,
2. Site plan,
3. Floor plan,
4. Parking plan (if applicable),
5. Agency specific/special requirements, WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 33 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
6. Additional security requirements,
7. GSA Form 3517B, General Clauses
8. GSA Form 3518, Representations and Certifications,
9. Small Business Subcontracting Plan (if applicable),
10. Building Security Unit Price List (if applicable), and
11. Amendments to RLP (if applicable).
An electronic version of the GSA forms listed above can be accessed via G-REX (see ch. 20, sec. 25.1) or via the GSA Forms website at: http://www.gsa.gov/portal/forms/type/TOP.
44.22 - Required Attachments for Simplified Leases
For Simplified leases, the RPLO shall include the following documents:
1. GSA Form L201-A, Simplified Lease,
2. GSA Form 1364A, Proposal to Lease Space,
3. Site plan,
4. Floor plan,
5. Parking plan (if applicable),
6. Agency specific requirements,
7. Security requirements,
8. Building Security Unit Price List (if applicable),
9. GSA Form 3518, Representations and Certifications, and
10. Amendments to RLP (if applicable).
An electronic version of the GSA forms listed above can be accessed via G-REX (see ch. 20, sec. 25.1) or via the GSA Forms website at: http://www.gsa.gov/portal/forms/type/TOP. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 34 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.23 - Required Attachments for Succeeding/Superseding Leases
For Succeeding/Superseding leases, the RPLO shall prepare the following documents:
1. GSA Form L202A, Succeeding/Superseding Lease,
2. Site plan,
3. Floor plan,
4. Parking plan (if applicable),
5. Agency specific/special requirements,
6. Additional security requirements,
7. GSA Form 3517B, General Clauses,
8. GSA Form 3518, Representations and Certifications,
9. Small Business Subcontracting Plan (if applicable),
10. Building Security Unit Price List (if applicable),
11. Amendments to RLP (if applicable).
An electronic version of the GSA forms listed above can be accessed via G-REX (see ch. 20, sec. 25.1) or via the GSA Forms website at: http://www.gsa.gov/portal/forms/type/TOP.
44.24 - Required Attachments for Long-term Land Leases
For land leases, the RPLO shall state the purpose for which the land may be used and include any terms and conditions agreed upon by the Lessor and the Forest Service. The RPLO shall also ensure that restrictions on uses of the land do not unreasonably limit current or future programs of the Forest Service.
If it is necessary for the RPLO to make revisions to the basic format of the sample land leases as provided in exhibits 01 through 03, or use the Lessor’s lease template, the lease must be reviewed by the Regional Office of General Counsel (OGC) for legal sufficiency and must be approved at a level above the RPLO.
When finalized, the RPLO shall record the lease in the lands record of the County where the land is located. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 35 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
A hard copy example of the three common land leases is provided in exhibits 01, 02, and 03 and described below:
1. Exhibit 01 is an example of a lease for an air operations base which contains clauses required by the Federal Aviation Administration.
2. Exhibit 02 is an example of a lease for a communications tower site where the cement pad and communications tower is owned by the Forest Service.
3. Exhibit 03 is an example of a lease for experimental forests and ranges where costly structures or investments are planned.
*If the Forest Service executes an agreement with the Lessor to cover the details of specific operations that will performed on the land, the RPLO shall reference the agreement that was executed. These type of agreements are separate documents from the lease but should still be referenced. See FSM 1580 and a member of the Grants and Agreements staff for more information on agreements. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 36 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 – Exhibit 01
UNITED STATES GOVERNMENT LEASE FOR AIR OPERATIONS BASE
(Under authority of 16 U.S.C. 571c)
Lease No. 57-82FT-5-101 Date: November 8, 1994
LESSOR: County of Jefferson, Colorado
LESSEE: The United States of America By the Contracting Officer, Region 2 Forest Service, Department of Agriculture
THIS LEASE, made and entered into this date by and between the COUNTY of JEFFERSON, STATE OF COLORADO, whose address is Golden, Colorado, and whose interest in the property hereinafter described is that of owner, hereinafter called the Lessor and the UNITED STATES OF AMERICA by the Contracting Officer, Region 2, Forest Service, Department of Agriculture, whose office address is Denver, Colorado, hereinafter called the Government:
WITNESSETH: The parties hereto for the considerations hereinafter mentioned, convenant, and agree as follows:
1. The Lessor hereby leases to the Government the following described premises at the Jefferson County Airport:
(Enter the complete legal description of all land involved.)
. . . said premises, containing 8.73 acres (3.5329175 Hectors), more or less, as shown on the attached plats.
The leased premises are to be used to construct, maintain, and occupy the improvements and facilities necessary for air operations with access to airport taxiways and runways.
2. TO HAVE AND TO HOLD the said premises with appurtenances for the term beginning on January 1, 1995, through December 31, 2015, subject to termination and renewal rights as may be hereinafter set forth.
3. The Government will pay the Lessor upon execution of this lease rent of one dollar ($1.00) in consideration of the right to use the said premises during the stated term and renewal thereof. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 37 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 - Exhibit 01--Continued
4. The Government may terminate this lease at any time by giving at least 120 days notice in writing to the Lessor.
5. This lease may be renewed at the option of the Government for a period of 20 years, for an annual rent of $1.00 under the terms and conditions specified herein, provided notice be given in writing to the Lessor at least 120 days before this lease otherwise would expire.
6. The said premises will be used for Government purposes, and the Government hereby covenants and agrees not to assign this lease without written permission from the Lessor and not to permit the use of the above-described tract or parcel of land by anyone other than the Government, its agents and servants, and cooperators with the Government.
7. The Lessor shall furnish to the Government, during the occupancy of said premises under the terms of this lease, the following:
a. Ingress to and Egress from Adjacent Property. The Government shall have all reasonable right, free of charge, to ingress to and egress from said property for the uses and purposes herein mentioned, provided, that the use of adjacent property and of all runways and airport facilities shall be subject to all rules and regulations governing the use of said airport facilities.
b. Routine Services. Lessor agrees to furnish to the Government's buildings and structures such routine services as are furnished to other lessees now or to be located on the Jefferson County Airport and at proportionate costs to the Government. These services shall include, but not be limited to, fire protection, snow removal, and weed control.
c. Rights-of-Way. The Lessor guarantees to the Government rights-of-way, free of charge, to install at Government expense all powerlines and waterlines required to service Government improvements and facilities.
8. The Government shall have the rights, during the existence of this lease:
(a) to erect such structures and associated facilities as may be needed upon the premises hereby leased, such improvements to be and remain the property of the Government and may be removed therefrom by the Government within a reasonable time after termination of this lease or renewal thereof, and WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 38 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 - Exhibit 01--Continued
(b) to dispose of improvements in place, in the event that use is discontinued by the Government; provided that if disposition of the improvements is to a party or parties other than the Lessor, the improvements be removed from the premises within a reasonable period.
9. Any structures or improvements erected or constructed upon the premises will not compromise the airport requirements consistent with Federal Acquisition Regulation 77, Objects Affecting Navigable Airspace, and other recommended airport design criteria of the Federal Aviation Administration, unless previously approved by the Administrator of the Federal Aviation Administration or the Administrator's duly authorized representative.
10. It is agreed and understood by and between the parties that the Government will maintain the premises and property furnished under this lease in good repair and tenantable condition during the continuance of the lease.
11. A joint physical survey and inspection report of the demised premises shall be made as of the effective date of this lease, reflecting the then present condition, and shall be signed on behalf of the parties hereto.
12. Nothing in this lease shall be construed as obligating the Government to expend, or as involving the United States in any obligation for the future payment of money in excess of appropriations authorized by law and administratively made available.
13. The Lessor agrees not to discriminate by segregation or otherwise against any person or persons because of race, creed, color, religion, national origin, sex, marital status, or handicap in furnishing, or by refusing to furnish, to such person or persons the use of any facility, including any and all services, privileges, accommodations, and activities provided thereby. Nothing herein shall require the furnishing to the general public of the use of any facility customarily furnished by the Lessor solely to tenants, their employees, customers, patients, clients, guests, and invitees.
14. No Member of, or Delegate to, Congress, or Resident Commissioner, shall be admitted to any share or part of this lease contract, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this lease contract if made with a corporation for its general benefit. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 39 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 - Exhibit 01--Continued
IN WITNESS WHEREOF, the parties hereto have hereunder subscribed their names as of the date first above written.
LESSOR
County of Jefferson
By: /s/ James R. Truman, Chairman, Board of County Commissioners
IN PRESENCE OF
Sophia F. Samuels
1472 Park Street County Clerk and Recorder , Denver, Colorado 80000 (SEAL) (Address)
LESSEE
UNITED STATES OF AMERICA
By Debra C. Goeden , Contracting Officer Region 2, Forest Service Department of Agriculture WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 40 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 - Exhibit 02
UNITED STATES GOVERNMENT LEASE FOR COMMUNICATIONS TOWER SITE
(Under the authority of 16 U.S.C. 571c)
Lease No. 57-0343-5-ID021
Date of Lease: August 10, 2005
LESSOR: Paul Smith P. O. Box XX Pinehurst, ID 55555 Phone: 123-456-789
LESSEE: The United States of America By the Leasing Contracting Officer Region 1, Forest Service Attn: Acquisition Management Department of Agriculture
THIS LEASE, made and entered into this date by and between Paul Wingfield, whose address is P. O. Box XX, Pinehurst, ID 55555 and whose interest in the property hereinafter described is that of owner, hereinafter called the Lessor, and by and between the UNITED STATES OF AMERICA, by the Leasing Contracting Officer, Region 1, acting through the Forest Service, Department of Agriculture (hereinafter called the “United States” or "Forest Service”), whose office address is Federal Building, P. O. Box 7669, Missoula, Montana 59807, hereinafter called the Government, or the Lessee.
WITNESSETH: The parties hereto for the consideration hereinafter mentioned, covenant and agree as follows:
1. The Lessor hereby leases to the Government the following described premises:
SE¼ & SW¼, SEC 34, T49N, R2E, Boise Meridian
Said tract containing portion of land containing 12’ X 12’ cement pad with a communication towers more or less, as shown on attached maps. The leased tract is to be used for the purpose of maintaining a 12 X 12 cement pad with a communication towers. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 41 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 - Exhibit 02--Continued
2. TO HAVE AND TO HOLD the said premises with appurtenances for the term beginning on September 1, 2005, through August 31, 2017, subject to termination and renewal rights as may be hereinafter set forth.
3. The Government shall pay the Lessor upon execution of this lease annual rent of $1,700.00 per year, paid in arrears, in consideration for the right to use said premise during the stated term. Rent for a lesser period shall be prorated. Rent checks shall be made payable to:
Paul Smith, P. O. Box XX, Pinehurst, ID 5555
4. The Government may terminate this lease at any time by giving a least 90 days’ notice in writing to the Lessor. Said notice shall be computed commencing with the day after the date of mailing.
5. This lease may be renewed at the option of the Government for a period of 12 years, for an annual rent of $1,785.00 under the terms and conditions specified herein, provided notice be given in writing to the Lessor at least 90 days before this lease otherwise would expire.
6. The said premises shall be used only for Government purposes, and Lessee hereby covenants and agrees not to assign this lease without written permission from the Lessor and not to permit the use of the above-described tract of land by anyone other than the Lessee, its agents and servants, and operators with the Lessee.
7. The Lessor shall furnish to the Government, during occupancy of said premises under the terms of this lease, full right-of-way access across other land belonging to the Lessor.
8. The Government shall have the right during the existence of this lease to maintain the cement pad and Communication tower; such structure shall be and remain the property of the Government and may be removed therefrom by the Government within a reasonable time after the termination of this lease; to dispose of the structure in place, in the event that use is discontinued by the Government; provided that if disposition of the structure is to a party or parties other than the Lessor, the cement pad and Communication tower shall be removed from the premises within a reasonable period.
9. It is agreed and understood by and between the parties that the Lessee will maintain the premises furnished under this lease in good repair and tenantable condition during the continuance of the lease. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 42 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 - Exhibit 02--Continued
10. A joint physical survey and inspection report of the demised premises shall be made as of the effective date of this lease, reflecting the then present condition, and will be signed on behalf of the parties hereto.
11. Nothing in this lease shall be construed as obligating the Lessee to expend, or as involving the United States in any obligation for future payment of money in excess of appropriations authorized by law and administratively made available.
12. The Lessor agrees that he will not discriminate by segregation or otherwise against any person or persons because of race, creed, color, or national origin in furnishing, or by refusing to furnish, to such person or persons the use of any facility, including any and all services, privileges, accommodations, and activities provided thereby. Nothing herein shall require the furnishing to the general public of the use of any facility customarily furnished by the Lessor solely to tenants, their employees, customers, patients, clients, guests, and invitees.
13. No Member of, or Delegate to, Congress, or Resident Commissioner, shall be admitted to any share or part of this lease contract, or to any benefit that may arise there from; but this provision shall not be construed to extend to this lease contract if made with a corporation for its general benefit.
IN WITNESS WHEREOF, the parties have hereunto subscribed their names as of the date first above written.
LESSOR: PAUL SMITH
By______(Signature) (Official Title)
IN PRESENCE OF:
______(Signature) (Address)
LESSEE: UNITED STATES OF AMERICA
______, Leasing Contracting Officer SMOKEY BEAR Region 1, Forest Service Department of Agriculture WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 43 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 - Exhibit 03
UNITED STATES GOVERNMENT LEASE FOR EXPERIMENTAL FOREST
(Under the authority of 16 U.S.C. 571c)
Lease No. 57-76CT-5-048 Date: October 25, 1994
LESSOR: Bentley Timber Company
LESSEE: The United States of America By the Contracting Officer, Southeastern Forest Experiment Station, Forest Service, Department of Agriculture
THIS LEASE, made and entered into this date by and between the BENTLEY TIMBER COMPANY, a corporation of the State of North Carolina, whose address is Calhoun, North Carolina, and whose interest in the property hereinafter described is that of owner, hereinafter called the Lessor, and the UNITED STATES OF AMERICA by the Contracting Officer, Southeastern Forest Experiment Station, Forest Service, Department of Agriculture, whose office address is Asheville, North Carolina, hereinafter called the Government:
WITNESSETH:
WHEREAS, it is the desire of the Government to conduct forestry research and related studies, and
WHEREAS, the Lessor has land adapted to the research to be conducted, and desires to lease such land to the Government,
NOW THEREFORE: The parties hereto for the considerations hereinafter mentioned, covenant and agree as follows:
1. The Lessor hereby leases to the Government for research and related scientific purposes a tract of land in Calhoun County, North Carolina, selected by the Government, containing 67 acres (27.114029 hectors), more or less, and being the lands shown on the attached map and described as follows:
(Ensure the complete legal description of the Land) WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 44 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.2 4 – Exhibit 03--Continued
2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term beginning on January 1, 1994, through December 31, 2029, subject to termination and renewal rights as may be hereinafter set forth.
3. The Government shall pay the Lessor upon execution of this lease rent of one dollar ($1.00) in consideration for the right to use the said premise during the stated term and renewal thereof.
4. This lease may be renewed at the option of the Government for a period of 35 years, for an annual rent of $1.00 under the terms and conditions specified herein, provided notice be given in writing to the Lessor at least 120 days before this lease otherwise would expire.
5. The Government may terminate this lease at any time by giving at least a 90 days notice in writing to the Lessor.
6. The leased premises shall be used only for Government purposes.
7. The Lessor shall provide such forest fire protection for the land herein leased as it does for its other lands adjacent to and in the immediate vicinity of the land under this lease. All cost of additional fire protection as may be requested by the Government will be paid by the United States.
8. The Lessor shall provide such utilization roads for the area herein leased as it does in the utilization of other similar forest lands belonging to said Lessor. The actual construction of these utilization roads may be done by the Lessor or the Government as may be periodically and mutually agreed upon.
9. The Government has the right, during the existence of this lease, to erect such structures and associated and related facilities as may be needed; to erect additions or signs upon the premise hereby based; such improvements shall be and remain the property of the Government and may be removed therefrom by the Government within a reasonable time after termination of this lease or renewal thereof; to dispose of improvements in place, in the event that use is discontinued by the Government, provided that if disposition of the improvements is to a party or parties other than the Lessor, the improvements be removed from the premises within a reasonable period. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 45 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 – Exhibit 03--Continued
10. No forest products produced on the land herein leased will be severed from the stump, or otherwise obtained from the tree, except under the direction of the Director of the Southeastern Forest Experiment Station. All logging and transportation of forest products on the leased area will be under Director's exclusive control and supervision, or that of the Director's authorized representative, and any forest products so cut or otherwise obtained shall belong to the Lessor and be disposed of as directed by it.
11. The Government will report to the Lessor, at intervals not exceeding 1 year during the term of the lease, the volumes of forest products severed from the stump or otherwise obtained, and the tracts of land from which such products were cut or otherwise obtained.
12. The cutting, hauling, and delivery of forest products shall be done by the Lessor, the Government, or a third party as may be periodically and mutually agreed under the terms of this lease or other suitable arrangements.
13. The Government, within the limits of available funds and personnel and consistent with working plans of experiments, will conduct on the land herein leased experimental work in forestry or related studies, adapted to the needs of the region where the said land is located, with the object of supplying practical information to the owners of similar land; such studies may include, but are not limited to, the following: studies of costs and returns, utilization, silvicultural methods, practical thinning procedure, growth, effect of fire, and factors that have a bearing on the relative advantages of managing forests for large-sized and small-sized material and in even-aged and uneven-aged stands.
14. The Government will, within the limits of available funds and personnel and consistent with working plans of experiments, use due diligence in securing greatest yields of forest products. The Lessor agrees to take said products in the manner prescribed.
15. The Lessor shall join the Government periodically in conferences to review working plans of research projects and to consider additional studies pertinent to the solution of forestry and related land management problems of the region.
16. Periodically during the term of the lease, the Government will make available to the Lessor the significant findings from experiments herein provided for, but no data therein contained shall be given publicity in any manner by said Lessor without the consent of the Director of the Southeastern Forest Experiment Station, it being understood that the right to publish, or otherwise impart to the public, the results of the experiments conducted hereunder, shall be vested in the Government, but the preliminary reports will be provided the Lessor prior to publication by the Government. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 46 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 – Exhibit 03--Continued
17. The Lessor, its successor, Lessees, and assigns shall not develop and operate said lands for the production, saving, and marketing of oil, gas, coal, and other minerals there from except with the approval and under the direction of the Director of the Southeastern Forest Experiment Station; except, that the Lessor specifically reserves to itself, its successors and assigns, at all times during the term hereof, the right to enter upon the leased premises to explore for and mine coal and remove the same therefrom by appropriate means provided said mining operations shall be by deep mine methods only and shall be conducted in such way as not materially to interfere with the use of said premises by the Government for the purposes herein specified.
18. Nothing in the lease shall be construed as obligating the Government to expend, or as involving the United States in any obligation for the further payment of money, in excess of appropriations authorized by law and administratively allocated for this work.
19. This lease may be assigned in whole or in part by either party, but only with the consent of the other party, and any sale or other disposition of any of said lands by Lessor shall be subject to this lease.
20. The Lessor agrees not to discriminate by segregation or otherwise against any person or persons because of race, creed, color, religion, national origin, sex, marital status, or handicap in furnishing, or by refusing to furnish, to such person or persons the use of any facility, including any and all services, privileges, accommodations, and activities provided thereby. Nothing herein shall require the furnishings to the general public of the use of any facility customarily furnished by the Lessor solely to tenants, their employees, customers, patients, clients, guests, and invitees.
21. No Member of, or Delegate to, Congress, or Resident Commissioner, shall be admitted to any share or part of this lease contract, or any benefit that may arise therefrom; but this provision shall not be construed to extend to this lease contract if made with a corporation for its general benefit. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 47 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.24 – Exhibit 03 - Continued
IN WITNESS WHEREOF, the parties have hereunto subscribed their names as of the date first above written.
LESSOR:
By: /s/ W. Frank Pine The Bentley Timber Company President
IN PRESENCE OF 1600 Golf Street Suite 26 /s/ Teri T. Stone Asheville, NC 28000 (Signature) (Address)
LESSEE:
United States of America Contracting Officer
By /s/ Brenda P. Clay Southeastern Forest Experiment Station CERTIFICATION:
I, Blaine C. Smith , certify that I am the Secretary of the Corporation named as Lessor in the attached lease; that W. Frank Pine , who signed said lease on behalf of the Lessor, was then President of said Corporation; that said lease was duly signed for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers.
(Corporate seal) 10-25-94 /s/ Blaine C. Smith (Date) (Signature) WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 48 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.25 - Scheduling the Move-In
As soon as the location of the new facility is determined, the Unit should contact commercial moving companies to secure moving services. The Unit should check references that are current, and insist that all moving company personnel are experienced employees of the mover and are equipped to handle the Forest Service’s unique needs. After the commercial moving company is selected, the Unit should determine whether the moving company or Forest Service employees will be packing and supplying the packing materials. The Unit shall contact the RPLO to confirm moving logistics and timeframes.
The Unit itself is responsible for addressing information technology (IT) needs for the new space and the removal of IT equipment from the old space (see ch. 20, sec. 27.3 for more details).
44.3 - Notifying Unsuccessful Offerors
The RPLO shall provide a notification in writing of the award to all unsuccessful Offerors whose offer was in the competitive range (FAR 15.503). The RPLO may also choose to provide a notification in writing of the award to Offerors whose offer was not in the competitive range. The notice should include:
1. The number of offers solicited,
2. The number of offers received,
3. The name and address of each Offeror receiving an award,
4. The items, quantities, and unit prices of each award, and
5. The reason the each offer was not accepted.
44.4 - Post-Award Debriefing
Unsuccessful Offerors may request a debriefing within 3 days after receiving notification of the award. If requested, the RPLO shall provide a debriefing within 5 days and follow the post- award debriefing procedures outlined in FAR 15.506.
44.5 - Post-Award Protest
Unsuccessful Offerors may file a protest within 10 days after contract award or within 5 days after a debriefing date has been offered.
If the Forest Service receives an agency protest, or is notified that a protest has been filed directly with the GAO, the RPLO shall follow the post-award protest procedures outlined in FAR 33.1. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 49 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
44.6 - Post-Award Publicizing in FedBizOpps
The RPLO shall publish a post-award synopsis in FedBizOpps (http://www.FBO.gov) within 14 days after lease award when the total value of the lease, including option periods, and excluding the cost and services paid for by the Government exceeds $25,000 (FAR 5.301).
The RPLO does not have to publish a post-award synopsis in FedBizOpps for lease modifications/alterations made within the scope of the lease which have no subcontracting opportunities.
The synopsis must contain, at a minimum, the following information:
1. Lease number, award date, and RLP number,
2. Lease address,
3. Name and address of Lessor,
4. Lease term and number of options, and
5. Square footage.
44.61 - Posting of Justifications for Other Than Full and Open Competition
The RPLO shall publish Justifications for Other than Full and Open Competition in FedBizOpps within 14 days after lease award. For lease awards permitted on the basis of unusual and compelling urgency, the RPLO shall publish Justifications for Other than Full and Open Competition on FedBizOpps within 30 days after lease award.
Prior to posting, the RPLO shall screen all justifications for contractor proprietary data and remove all such data, references, and citations as are necessary to protect the proprietary data in accordance with the Freedom of Information Act before publication. See 5 U.S.C. 552 for more details.
44.7- Contracting Officer’s Representative Designation
After the lease is awarded, the RPLO may designate a qualified Contracting Officer’s Representative (COR) to ensure that the lease is administered properly. For new construction, the RPLO may also designate a qualified construction COR.
45 - DESIGN INTENT AND CONSTRUCTION DRAWINGS
After the lease is awarded, the RPLO shall review the lease to ensure that the timeframes for completion of the space are met. Missing these dates could cause many complications, including liquidated damages or paying rent before the space is complete and ready for occupancy. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 50 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
45.1 - Design Intent Drawings
Design intent drawings (DIDs) are drawings that show partitions and doors, schematic demolition, voice, data, and electrical outlet locations, level of finishes, generic furniture layout, and any additional details necessary to communicate the “design intent” for the purpose of preparing construction documents.
DIDs do not contain mechanical, electrical, or plumbing specifications or drawings. They do not carry furniture or computer and telecommunication specifications; nor do they contain signage, artwork, keying, or hardware schedules.
The lease will specify whether DIDs should be prepared by the Lessor or the Government. It will also specify whether a DID conference is required and contain timeframes for approval and final submittal of the DIDs to the Lessor.
Once the DIDs are complete (either by the Lessor or by the Government) the RPLO shall:
1. Submit DIDs to the Forest Service Engineering staff for review and approval. This review should include examination of furniture plans, and other details that show exit paths, emergency lighting, and sprinklers.
2. Submit approved DIDs via cover letter to the Lessor and request that construction drawings be developed.
45.11 - Interior Finishes
Interior finish samples should be provided by the Lessor and selected by the Forest Service during the design process. The RPLO shall coordinate with the Forest Service Engineering staff to ensure that the interior finish selections comply with the RLP.
45.2 - Construction Drawings
Construction drawings (CDs) provide the specifications, engineering calculations, and construction details necessary to construct the space. They are also the basis for determining code compliance, obtaining building permits, evaluating contractual performance, and determining legal liability for occupants’ safety and welfare. CDs reflect both the lease requirements and specifications in the DIDs.
Once the CDs are received from the Lessor, the RPLO shall:
1. Submit DIDs to the Forest Service Engineering staff for review and approval. This review should ensure that the CDs conform to the lease and DIDs. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 51 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
2. If corrections are required, notify the Lessor in writing and request a specific time period for correction and subsequent review.
3. Send approved CDs via cover letter to the Lessor and instruct the Lessor in writing not to proceed with any above standard construction items without written approval by the RPLO.
46 - PRE-OCCUPANCY CONSTRUCTION
46.1 - Tenant Improvements
If the Tenant Improvement (TI) approach is used, the RPLO shall negotiate a construction cost with the Lessor that is equal to or less than the tenant improvement allowance (TIA) provided for in the lease. The RPLO shall negotiate the final cost of TI based on the Lessor’s submission of detailed cost or pricing data or on the results of a competitive proposal process handled by the Lessor.
46.11 - Cost or Pricing Data
The RPLO may negotiate a price with the Lessor based on detailed cost or pricing data. If this process is used, the Lessor shall submit detailed cost or pricing data in the Tenant Improvements Cost Summary (TICS) table. The TICS table allows the Lessor to separate all functional elements of a building into shell and tenant improvement categories. To complete the TICS table, the Lessor shall input the proposed costs for each of the indicated elements, and then submit the completed table using the instructions provided in the RLP.
An electronic version of the TICS table can be accessed via the Forest Service’s Real Property Intranet, under the section titled “Leasing Documents” located at: http://fsweb.wo.fs.fed.us/aqm/property/RealProp.php.
Before entering into negotiations, the RPLO shall obtain a Government estimate using the DIDs, CDs, and the TICS table.
The RPLO shall negotiate a price with the Lessor based on the submission of the Lessor’s proposal and the Government estimate. If needed, the RPLO should request technical support to assist during negotiations. Once an agreement has been reached, the RPLO shall document the price determination in a Price Negotiation Memorandum (see sec. 43.4).
46.12 - Competitive Proposals
The RPLO may negotiate a price with the Lessor based upon the results of a competitive proposal process (instead of using detailed cost or pricing data) if the following conditions are met (FAR 15.403): WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 52 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
1. The TI scope of work includes the lease, the RLP and all attachments, the CDs, and written specifications.
2. Each General Contractor (or Subcontractor) must submit their proposal in the TICS table for review by the Government. The general Subcontractors shall submit the supporting bids from major Subcontractors. The Government retains the right to determine whether bids meet the scope of work, the price is reasonable, and the Contractors are qualified. The Government reserves the right to reject all bids.
3. No building shell items are included.
4. The TI bids are compared to a Government estimate.
5. A minimum of 2 qualified General Contractors must be invited to participate in the competitive proposal process. In the absence of sufficient competition from 2 General Contractors, a minimum of 2 qualified Subcontractors from each trade of the Tenant Improvement Cost Summary Table must be invited to participate.
6. The Government reserves the right to be represented at all negotiation sessions between the Lessor and potential Contractors.
7. The Lessor demonstrates that all efforts have been made to obtain the most competitive prices possible.
8. The Lessor completes the cost proposal process in the timeframe specified in the RLP.
The RPLO shall review the competitive bids to determine whether the bids comply with the above parameters. If needed, the RPLO should request technical support to assist during the review.
Once the review is complete, the RPLO shall negotiate with the Lessor to verify that the lowest bid is fair and reasonable and there is adequate competition. Once an agreement has been reached, the RPLO shall accept the Lessor’s cost proposal and document the price determination in a Price Negotiation Memorandum (see sec. 43.4).
46.13 - Tenant Improvement Price Negotiation Memorandum
See section 43.4 for a detailed discussion on price negotiation memorandums. An electronic version of a Tenant Improvement Price Negotiation template can be accessed at: http://www.gsa.gov/graphics/pbs/RSL_2007-04_Att_2_R2-p93-j_0Z5RDZ-i34K-pR.doc WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 53 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
46.14 - Notice to Proceed
Once the RPLO accepts the Lessor’s TI cost proposal, the RPLO shall issue a Notice to Proceed (NTP) letter which binds the Government contractually. The content of the letter should reflect whether the construction contract was awarded competitively or on the basis of cost and pricing, and whether the TI cost is below or exceeds the TIA. If the TI cost will exceed the TIA, the RPLO shall also issue a unilateral supplemental lease agreement (SLA) ordering the excess TIs.
An electronic version of the SLA, GSA Form 276, can be accessed via GSA Forms Library webpage at: http://gsa.gov/portal/forms/download/114618
A sample Notice to Proceed letter is contained in exhibit 01. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 54 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
46.14 – Exhibit 01
Notice to Proceed Sample Letter
Dear Mr. XXXXX:
On [month day, year], the Government awarded a contract to lease space at [building name, address, city, state, zip] under the terms and conditions of Lease GS-[xxx-xxxxx]. The Tenant Improvements Prior to the Government’s Initial Acceptance of Space paragraph in the Solicitation for Offers (SFO) attached to and forming a part of this lease required you to submit a proposal based on adequate competition for the Tenant Improvement (TI) costs associated with this lease. The lease allowed you to submit this information instead of cost and pricing data.
Based on this contract requirement, we have reviewed your TI costs and determined that they are fair and reasonable. This letter represents your Notice to Proceed (NTP) with the construction of the TIs in the amount of $______. The lease requires completion of the construction no later than [month day, year]. If the TI allowance in the lease is more than the above NTP amount, the rental rate will be adjusted downward in accordance with other provisions of the lease.
Based on this contract requirement, we have reviewed your TI costs and determined that they are fair and reasonable. This letter represents your Notice to Proceed (NTP) with the construction of the TIs in the amount of $______. The lease requires completion of the construction no later than [month day, year]. Further, the NTP for the amount above represents the tenant improvement allowance (TIA) that is stated in the lease and amortized in the contract rental rate. Since the total TI costs exceed the TIA, the TI cost balance is being ordered via the lease amendment attached to this letter. Three copies of Lease Amendment No. __ are enclosed. Please sign two copies, have your signatures witnessed and return them to me no later than______. I will return a fully executed copy for your records.
Since you were unable to provide documentation of sufficient competition to meet the requirements of FAR 15.403- 1(c)(1), the lease required you to provide cost and pricing data as well as a certificate of current cost or pricing data, in the format specified in FAR 15.406-2, certifying that to the best of your knowledge and belief, the cost or pricing data were accurate, complete, and current as of the date of agreement on price. Based on this contract requirement, we have reviewed your TI costs and determined that they are fair and reasonable. This letter represents your Notice to Proceed (NTP) with the construction of the TIs in the amount of $______. The lease requires completion of the construction no later than [month day, year]. If the TI allowance in the lease is more than the above NTP amount, the rental rate will be adjusted downward in accordance with other provisions of the lease.
Since you were unable to provide documentation of sufficient competition to meet the requirements of FAR 15.403- 1(c)(1), the lease required you to provide cost and pricing data as well as a certificate of current cost or pricing data, in the format specified in FAR 15.406-2, certifying that to the best of your knowledge and belief, the cost or pricing data were accurate, complete, and current as of the date of agreement on price. Based on this contract requirement, we have reviewed your TI costs and determined that they are fair and reasonable. This letter represents your Notice to Proceed (NTP) with the construction of the TIs in the amount of $______. The lease requires completion of the construction no later than [month day, year]. Further, the NTP for the amount above represents the tenant improvement allowance (TIA) that is stated in the lease and amortized in the contract rental rate. Since the total TI costs exceed the TIA, the TI cost balance is being ordered via the lease amendment attached to this letter. Three copies of Lease Amendment No. __ are enclosed. Please sign two copies, have your signatures witnessed and return them to me no later than______. I will return a fully executed copy for your records.
If you have any questions, please contact me at [email address] or [phone number].
Sincerely, Name, Title WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 55 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
Enclosures WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 56 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
46.2 - Turnkey Build-Outs
If the turnkey approach is used, the construction costs have already been negotiated, and the Lessor can proceed with construction.
47 - CONSTRUCTION COMMENCEMENT
47.1 - Pre-Construction Meeting
Prior to the commencement of construction, the RPLO should host a pre-construction meeting. Attendees should include the RPLO, a member(s) of the Forest Service Engineering staff, a member(s) of the Forest Service LE&I staff (if applicable), the Lessor, and the Lessor’s Contractor/Architect/Project Manager. The purpose of the meeting is to establish roles, responsibilities, procedures, and the construction schedule. Unless otherwise assigned, the Lessor is responsible for taking and distributing minutes of this meeting.
47.2 - Progress Inspections
During construction, the RPLO or COR must make periodic progress inspections. Progress inspections are important because they provide an opportunity for the RPLO or COR to verify compliance with the lease construction schedule, the CDs, and observe the quality of the construction work.
Although the RPLO will not always conduct progress inspections, it is important that the RPLO stay informed of any issues that arise before the construction is complete.
47.21 - Payroll Review
For new construction or the complete rehabilitation or reconstruction of an existing building where the Forest Service will be the sole or predominant tenant, the RPLO should request payrolls from the Lessor’s Contractors/Subcontractors to ensure they are receiving the Davis- Bacon wage rates as required by the lease.
47.3 - Change Orders
47.31 - Lessor Changes
When a change in construction is initiated by the Lessor, the Lessor shall notify the RPLO to describe the scope of the change, costs, and changes to the construction schedule. The RPLO shall review this information and update the Capital vs. Operating Lease Spreadsheet to determine whether the lease will remain an operating lease.
If the lease will remain an operating lease and the Forest Service is amenable to the change, the RPLO shall document the change in an SLA and the Lessor shall update the design documents. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 57 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
If the lease will not remain an operating lease or the Forest Service is not amenable to the change, the RPLO shall discuss alternatives with the Lessor. If it becomes necessary for the Forest Service to compromise any lease requirement to accommodate the Lessor, the RPLO should require an equivalent value of compensation from the Lessor, either in the form of reduced rent or other benefit of equal or greater value to the Government.
The RPLO shall maintain a change order log throughout the term of the project for the lease file. The Lessor or its architect/general contractor is also responsible for maintaining a change order log.
47.32 - Forest Service Changes
A change order may not be initiated by anyone other than the RPLO. When the Forest Service determines that a change in construction is required, the RPLO shall clearly document the scope of the change, any effects on the construction schedule, and provide to the Lessor for review and pricing. All change orders must be substantiated by a Government estimate to ensure that the price provided by the Lessor is fair and reasonable.
The RPLO shall negotiate a price for the change, including the cost for the Lessor to update the design documents. The RPLO shall also update the Capital vs. Operating Lease spreadsheet to ensure that the lease will remain an operating lease. Once a price is finalized, the RPLO and the Lessor shall decide whether the Forest Service will pay for the change via a lump sum or whether the cost will be amortized through the rent. Once finalized, the RPLO shall document the change in an SLA.
The RPLO shall maintain a change order log throughout the term of the project for the lease file. The Lessor or its Architect/General Contractor is also responsible for maintaining a change order log.
47.4 - Pre-Occupancy Inspection
The RPLO or COR, a member(s) of the Engineering staff, and the Lessor or their designee shall conduct a preoccupancy inspection to ensure that the Lessor has met the conditions of the lease before the Forest Service takes occupancy (FSH 7309.11, ch. 30, sec. 31.5).
The following are the types of issues to look for during the inspection:
1. Measurements – the final measured space must contain the minimum ABOA square footage required by the lease.
2. The overall condition of the space— should be clean, complete, ready to move in.
3. Finishes—should be fully installed, with the specified materials, in a workmanlike manner. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 58 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
4. Partitions, doors, and hardware—should be the correct type.
5. ABAAS compliance — entrances and ramps, restrooms, elevators. An accessibility checklist identifies the most common specific issues that need to be considered in designs. They involve parking, entrances, doors, elevators, drinking fountains, ramps, restrooms, and miscellaneous other requirements.
6. Restrooms — should be fully equipped and stocked, with working fixtures.
7. Adequate light levels.
8. HVAC balancing.
9. Electrical outlets—should be operable, the correct type, and placed properly.
10. Special requirements.
11. Security items, such as blast film.
During the inspection, the RPLO should prepare a punch list of deficiencies that need to be corrected (if any). The RPLO should immediately follow-up with the Lessor regarding any items that need attention, correction, or installation.
Before the RPLO can accept the space, it must be “substantially complete”. This means that all work necessary for the Forest Service’s access, occupancy, use, and enjoyment has been completed, except for minor matters that don’t interfere with access, occupancy, use, or enjoyment. If the RPLO rejects the space as not substantially complete, the RPLO shall explain to the Lessor what is required to meet substantial completion. The Lessor should immediately undertake remedial action and, when the space is ready, issue a subsequent notice to inspect the space.
When the space is substantially complete, the Lessor shall provide a valid certificate of occupancy to verify that the space meets all applicable local legal and code requirements. If the local jurisdiction does not issue certificates of occupancy, the Lessor shall have a licensed fire protection engineer verify that the space meets all applicable local legal and code requirements.
47.5 - Pre-Occupancy Tests
The Lessor shall provide written certification that the radon levels in the air and water (if applicable) are below the Environmental Protection Agency’s recommended level. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 59 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
47.6 - Space Acceptance and Lease Commencement
After the space is deemed substantially complete, and the Lessor has provided a valid certificate of occupancy and acceptable pre-occupancy test results, the RPLO shall modify the lease to include a lease commencement date. The RPLO shall prepare an SLA to specify the effective and expiration dates of the lease, the square footage, rental rates, and rental payment information. The SLA must be signed by the RPLO and the Lessor. The RPLO shall also provide a letter documenting any remaining punch list items (if applicable) and request that the Lessor provide a schedule for resolving the punch list items.
If the lease involves a large amount of space with a phased completion, acceptance, and move-in, it may be necessary for the RPLO to set a composite date for commencement of rent. To do this, the RPLO shall:
1. Divide the total annual rent for all segments of twelve to arrive at the monthly average.
2. Divide the total actual rent paid through the day before rent is to commence on the last increment of space by the average monthly rent from step 1 above. With the resulting amount, count back from the specific date used.
Example: $120,000/12 = $10,000
Rent is to begin on the 15th of the month $10,000/15 = $666.67
48 - LEASE COMMENCEMENT
48.1 - Close-out of Existing Lease
If the new lease replaces an existing lease, the RPLO shall coordinate the disposition of the old lease by completing the following:
1. Absent a Waiver of Restoration lease clause that allows the Forest Service to abandon property in the space after lease expiration, the Forest Service must clear the property of all Government equipment and furniture, including antennas. Failure to remove all Government assets could put the Forest Service in a holdover position if the lease has already expired, meaning that the previous Lessor could file a claim for additional rent payments. Also, absent a Waiver of Restoration clause, the Forest Service must make repairs for damage caused by the Forest Service and restore the premises to the same relative condition as when first occupied, less ordinary wear and tear. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 60 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
2. Conduct a final condition inspection with the Lessor or Property Manager.
3. Obtain a signed “release” from the Lessor of all claims other than unpaid rent. If damage has occurred to the space beyond normal wear and tear, work with the Lessor to prepare an agreement for compensation.
4. Return keys to the Lessor.
5. Notify the Albuquerque Service Center - Service-Wide Account Maintenance staff (ASC-SWAM) and the ASC - Real Property staff that the lease is no longer active.
6. Update the lease data in Infra (see sec. 48.6)
The Unit must complete the following:
1. Notify service contractors,
2. Notify telephone company, and
3. Notify utility companies.
48.2 - Lease Payments
The Forest Service lease payment process is handled by the ASC-SWAM staff. Once the lease is awarded, the RPLO shall coordinate with ASC-SWAM to request lease payments. This includes rental payments, lease payment updates (such as when a name change or change in ownership occurs), and one-time payments (such as for alterations).
48.21 - Lease Payment Worksheet
To notify the ASC-SWAM of any changes to the lease that require a payment to be made (including a one-time lump sum payment), the RPLO shall:
1. Complete/update, date, and sign the Lease Worksheet. An electronic version of the Lease Worksheet can be accessed via the AQM Asset Management/Real Property/Leased Assets intranet page at: http://fsweb.wo.fs.fed.us/aqm/property/rp_leased.php.
*Note: Please submit a separate Lease Worksheet for each lease.
2. Obtain a completed and certified FS-6500-224, Commitment & Obligation Request for all lease actions (this includes lease actions with an annual lease amount less than $100,000.00). An electronic version of FS-6500-224 can be accessed via the FS intranet via the “Forms” link at: https://fs.usda.gov/FSI_Forms/fs_6500_224.doc WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 61 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
3. Send the completed/updated Lease Worksheet, approved Commitment & Obligation Request, and a copy of the lease contract and any SLAs to:
Email: [email protected]
Fax: 1-877-796-3592
48.22 - Central Contractor Registration in the System for Award Management
The Central Contractor Registration Database (CCR), the primary vendor database for the Government which validates vendor information and electronically shares data with government finance offices to facilitate paperless payments through electronic funds transfer (EFT), is now a part of the System for Award Management (SAM).
The RPLO shall ensure that the Lessor has an active registration in SAM at the time of lease award and throughout the life of the lease. To remain active, the Lessor shall update or renew its registration annually.
SAM can be accessed electronically at: http://www.sam.gov.
48.23 - Vendor Code Set-Up
The Vendor Code is a number assigned by the Forest Service and used in the accounting system to gather information about vendors, organizations, or persons to whom money is owed or who owes money to the Government. It is the responsibility of the RPLO to determine whether the Lessor is an established vendor in the Financial Management Modernization Initiative (FMMI).
To determine whether a Lessor has been assigned a Vendor Code, the RPLO shall:
1. Complete and sign the Vendor Code Information Worksheet, FS-6500-231. An electronic version of the Vendor Code Information Worksheet can be accessed electronically at: https://fs.usda.gov/FSI_Forms/fs_6500_231.doc
2. Send the completed FS-6500-231 to the ASC via email at: [email protected].
If a change in ownership occurs, the RPLO shall ensure that the subsequent Lessor or payee is established in SAM (see sec. 48.22) and the Lessor has been assigned a Vendor Code according to the process described above. See Chapter 60, section 62.3 for more details on administering a change of ownership. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 62 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
48.3 - Utility Payments
If the RPLO awards a net lease, rather than a fully serviced lease (see Zero Code, sec. 5), the Forest Service is responsible for paying the cost of utilities directly to the utility provider. The utility payment process is handled by the administrative staff for the Unit who will be using the space.
Once the lease is awarded, the RPLO shall provide a copy of the lease, billing invoices, and valid accounting information to the administrative staff at the Unit. The administrative staff will review this information and set up an account(s) in the Telephone Utility Maintenance System (TUMS) to issue the required payments.
48.4 - Mistakes after Award
If the RPLO finds a mistake in the Lessor’s offer after lease award, the RPLO may correct the mistake with an SLA if the essential requirements of the RLP are not changed and if correcting the mistake will be advantageous to the Government. The RPLO may also decide to rescind the award or reform the lease to correct the mistake if this will not increase the price above the next lowest offer (FAR 14.407-4).
The RPLO should coordinate each proposed SLA with the Regional Office of General Counsel (OGC) for legal sufficiency.
48.5 - Submitting Post-Award Lease Documents to GSA
In accordance with FMR Bulletin 2008-B1, the RPLO shall submit certain lease documents to GSA within 30 days after lease award.
48.51 - Lease Acquisitions above the SLAT
For lease acquisitions above the SLAT, RPLOs shall provide GSA with the following documents:
1. The fully-executed lease document and all attachments,
2. The RLP and any amendments issued during the procurement,
3. The pre-solicitation ad posted in FedBizOpps or in a local publication,
4. If a sole source contract, a Justification for Other Than Full and Open Competition,
5. The market survey data, including historic buildings considered in accordance with Executive Order 13006, WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 63 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
6. Documentation of compliance with NEPA,
7. Documentation that vending facilities will be provided in accordance with the Randolph-Sheppard Act,
8. The Capital Vs. Operating Lease Spreadsheet,
9. The Price Negotiation Memorandum,
10. Documentation that the building meets all applicable fire and life safety requirements,
11. The seismic Compliance Certification,
12. The Post-Award Synopsis posted in FedBizOpps,
13. The Small Business Subcontracting Plan, if applicable,
14. Documentation that the Excluded Parties list was checked,
15. The pre-occupancy final inspection verifying measurement of the space, correction of deficiencies, and punch-list items,
16. A Funds Availability Statement signed by the Budget Officer, and
17. Documentation that the negotiated rental rate is within the prevailing market rental rate for the class of building leased; this documentation may include information from organizations such as SIOR, Black’s Guide, Torto-Wheaton, or Co-Star. If the negotiated rental rate exceeds the market range, provide information as to why the market rate was exceeded.
48.52 - Lease Acquisitions below the SLAT
For lease acquisitions above the SLAT, RPLOs shall provide GSA with the following documents:
1. The fully-executed lease and all attachments,
2. If a sole source contract, a Justification for Other Than Full and Open Competition,
3. The market survey data, including historic buildings considered in accordance with Executive Order 13006,
4. The Capital Vs. Operating Lease Spreadsheet, WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 64 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
5. The Price Negotiation Memorandum,
6. The Post-Award Synopsis posted in FedBizOpps,
7. Documentation that the building meets all applicable fire and life safety requirements,
8. The Small Business Subcontracting Plan, if applicable,
9. Documentation that the Excluded Parties list was checked, and
10. A Funds Availability Statement signed by the Budget Officer.
48.6 - Post-Occupancy Deliverables
The RPLO shall ensure that the Lessor provides the post occupancy deliverables required in the lease. This could include:
1. As-built drawings.
2. Schedule of periodic services.
3. Completion of LEED documentation.
4. Energy Star® documentation.
5. Construction waste management plan.
6. Recycling plan.
7. Warranties.
8. Additional special requirements.
48.7 - Updating Lease Data
The RPLO is responsible for keeping Forest lease data current in Infra and the Lease Acquisition Plan module in WorkPlan.
Infra is an integrated Forest Service database which includes programs to manage information needs for individual and grouped assets, including Forest Service leases (see Zero Code, sec. 5). The RPLO shall enter lease data directly into Infra.
The Lease Acquisition Plan module (Lease AP) is a program within WorkPlan that serves as an acquisition planning tool for RPLOs. The RPLO shall enter certain data directly in the Lease AP to track milestones for leasing needs. WO AMENDMENT 6409.12-2014-1 6409.12_40 EFFECTIVE DATE: 07/08/2014 Page 65 of 65 DURATION: This amendment is effective until superseded or removed.
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK CHAPTER 40 - EVALUATING OFFERS, NEGOTIATING, AND AWARDING LEASE
48.71 - User Access
The RPLO shall have a USDA eAuthentication account to use Infra. Additionally, the RPLO shall be assigned a specific real property management user role(s) to edit and view lease data in Infra. For more information on real property management user roles in Infra, please go to the User Management Application (UMA) Help website at: http://fsweb.nrm.fs.fed.us/support/help/rpm/.
The RPLO shall have an account in WorkPlan to insert/update data in the Lease AP module. It is recommended that only one or two individuals from each Region request a WorkPlan account. To register for an account, please go to the WorkPlan website at: http://apps.fs.fed.us/WorkPlan/jsps/desktop/default_desktop.jsp.
48.72 - Infra
The RPLO shall create and maintain a lease record in the Infra Real Property Management module each time a Forest Service lease is executed and subsequently updated via lease renewal, succeeding lease/superseding lease, lease extension, SLA, or termination. The first step is to identify the Installation and Installation Site where the lease is in effect. The RPLO shall then link the leased building, land or other structure to the Installation Site. Next, the RPLO shall enter the details of the lease. The RPLO is responsible for keeping all lease data current.
For specific instructions on how to create a lease record, insert required data elements, and maintain lease records, please go to the Real Property Management Help website at: http://fsweb.nrm.fs.fed.us/support/help/rpm/.
48.8 - Lease Acquisition Plan Module
The RPLO shall ensure that certain data fields are added/updated in the Acquisition Planning module in WorkPlan each time a Forest Service lease is executed and subsequently updated via lease renewal, succeeding lease/superseding lease, lease extension, SLA, or termination.
For specific instructions on how to add/update these data elements in WorkPlan, please go to the AQM Acquisition Planning page at: http://fsweb.wo.fs.fed.us/aqm/planning/#res.
In addition, step-by-step guidance is available via the Help feature in WorkPlan at: http://apps.fs.fed.us/WorkPlan/jsps/desktop/default_desktop.jsp