WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
6409.12_50
Page 1 of 39
FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
Table of Contents
51 - RENEWAL OPTIONS .............................................................................................. 4
51.1 - Evaluated Lease Renewal Options ................................................................................... 4
51.11 - Determining Continuing Need .................................................................................... 4
51.12 - GSA Leasing Delegation ............................................................................................ 4
51.13 - Past Performance ........................................................................................................ 5
51.14 - Capital Vs. Operating Lease Determination ............................................................... 5
51.15 - National Environmental Policy Act Analysis and Documentation ............................ 5
51.16 - Market Research ......................................................................................................... 6
51.16a - Advertising................................................................................................................ 6
51.17 - Providing Notice to the Lessor ................................................................................... 7
51.18 - Updating Lease Data and Lease Payments ................................................................. 7
51.19 - Submitting Post Award Lease Documents to GSA .................................................... 7
51.2 - Unevaluated Lease Renewal Options ............................................................................... 7
52 - SUCCEEDING LEASES .......................................................................................... 7
52.1 - Determine Continuing Need ............................................................................................. 8
52.2 - GSA Leasing Delegation .................................................................................................. 8
52.3 - Market Research ............................................................................................................... 9
52.31 - Pre-Solicitation Notice ............................................................................................... 9
52.4 - No Potentially Acceptable Locations ............................................................................. 12
52.41 - Request for Lease Proposals ..................................................................................... 12
52.42 - Abstract of Offers ..................................................................................................... 12
52.43 - NEPA Analysis and Documentation ........................................................................ 12
52.5 - Potentially Acceptable Locations ................................................................................... 13
52.51 - Market Survey .......................................................................................................... 13
52.52 - Cost Benefit Analysis ............................................................................................... 13
52.53 - Cost Benefit Analysis Findings ................................................................................ 16
52.6 - Issuing a Succeeding/New Lease ................................................................................... 16
52.61 - Succeeding Lease...................................................................................................... 16
52.62 - New Lease ................................................................................................................ 17
52.7 - Updating Lease Data and Lease Payments ..................................................................... 17
52.8 - Submitting Post Award Lease Documents to GSA ........................................................ 17
53 - SUPERSEDING LEASES ...................................................................................... 17
54 - CHANGE IN SQUARE FOOTAGE - EXPANSION ................................................ 17
54.1 - Determine Continuing Need ........................................................................................... 18
54.2 - GSA Leasing Delegation ................................................................................................ 18
54.3 - Within Scope of Lease.................................................................................................... 18
54.31 - Availability of Space ................................................................................................ 19
54.32 - Market Research ....................................................................................................... 19
54.33 - Competition Determination ...................................................................................... 19
54.34 - Negotiations .............................................................................................................. 19
54.34a - Cost or Pricing Data for Construction .................................................................... 19
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
54.34b - Competitive Proposals for Construction................................................................. 20
54.35 - Modifying the Lease ................................................................................................. 20
54.36 - Construction and Space Acceptance ......................................................................... 20
54.4 - Outside of Scope of Lease .............................................................................................. 20
54.41 - Availability of Space ................................................................................................ 20
54.42 - Pre-Solicitation Notice ............................................................................................. 21
54.43 - Market Survey .......................................................................................................... 21
54.44 - No Potentially Acceptable Locations ....................................................................... 21
54.45 - NEPA Analysis and Documentation ........................................................................ 21
54.46 - Potentially Acceptable Locations ............................................................................. 22
54.47 - Cost Benefit Analysis ............................................................................................... 22
54.47a - Cost Benefit Analysis Findings .............................................................................. 22
54.48 - Issuing a New Lease ................................................................................................. 23
54.5 - Updating Lease Data and Lease Payments ..................................................................... 23
54.6 - Submitting Post Award Lease Documents to GSA ........................................................ 23
55 - CHANGE IN SQUARE FOOTAGE - REDUCTION................................................ 23
55.1 - Determine Continuing Need ........................................................................................... 23
55.2 - Complete Terminations .................................................................................................. 24
55.21- Within Termination Rights ........................................................................................ 24
55.22 - Without Termination Rights ..................................................................................... 24
55.3 - Partial Terminations ....................................................................................................... 24
55.31 - Within Termination Rights ....................................................................................... 24
55.32 - Without Termination Rights ..................................................................................... 25
55.4 - Updating Lease Data and Lease Payments ..................................................................... 25
56 - LEASE EXTENSIONS ........................................................................................... 25
56.1 - Determine Continuing Need ........................................................................................... 25
56.2 - GSA Leasing Delegation ................................................................................................ 26
56.3 - Availability of Space ...................................................................................................... 26
56.31 - Market Research ....................................................................................................... 26
56.32 - Acquisition Plan ....................................................................................................... 26
56.33 - Competition Determination ...................................................................................... 26
56.34 - Negotiations .............................................................................................................. 27
56.35 - NEPA Analysis and Documentation ........................................................................ 27
56.36 - Capital Vs. Operating Lease Determination ............................................................. 27
56.37 - Modifying the Lease ................................................................................................. 27
56.38 - Updating Lease Data and Lease Payments ............................................................... 27
56.39 - Submitting Post Award Lease Documents to GSA .................................................. 28
57 - LEASE HOLDOVERS, STANDSTILL AGREEMENTS, AND CONDEMNATIONS
........................................................................................................................... 28
57.1 - Lease Holdovers ............................................................................................................. 28
57.11 - Determine Continuing Need ..................................................................................... 28
57.12 - Rental Payment ......................................................................................................... 28
57.2 - Standstill Agreement ...................................................................................................... 29
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
57.21 - GSA Leasing Delegation .......................................................................................... 34
57.3 - Condemnation................................................................................................................. 34
58 - SUBLEASING........................................................................................................ 34
58.1 - GSA Leasing Delegation ................................................................................................ 34
58.11 - Backfilling Options................................................................................................... 34
58.2 - Updating Lease Data and Lease Payments ..................................................................... 35
59 - MISCELLANEOUS SPACE NEEDS ..................................................................... 35
59.1 - Space for Conferences, Meetings, Judicial Proceedings, and Emergency Situations .... 35
59.11 - Procurement Method ................................................................................................ 35
59.12 - Procurement Data ..................................................................................................... 36
59.2 - Space to Place Electronic Equipment on Non-Forest Service Communication Towers 36
59.21 - Procurement Method ................................................................................................ 36
59.22 - GSA Leasing Delegation .......................................................................................... 36
59.23 - Procurement Data ..................................................................................................... 36
59.3 - Space to Store Electronic Equipment (Modular/Self Storage Units and Modular Office
Buildings)...................................................................................................................... 37
59.31 - Procurement Method ................................................................................................ 37
59.32 - GSA Leasing Delegation .......................................................................................... 37
59.33 - Procurement Data ..................................................................................................... 37
59.4 - Parking Spaces................................................................................................................ 37
59.41 - Official Parking Spaces ............................................................................................ 37
59.41a - Procurement Method............................................................................................... 38
59.41b - GSA Leasing Delegation ........................................................................................ 38
59.41c - Procurement Data.................................................................................................... 39
59.42 - Unofficial Parking Spaces ........................................................................................ 39
59.42a - Procurement Method............................................................................................... 39
59.42b - GSA Leasing Delegation ........................................................................................ 39
59.42c - Procurement Data.................................................................................................... 39
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
51 - RENEWAL OPTIONS
A renewal option is a unilateral right provided for in the lease, by which, at a specified time and
for a specific price, the Government may elect to remain in its current location for an additional
period of time (see Zero Code, sec. 5).
An electronic version of the applicable General Services Administration (GSA) Leasing Desk
Guide chapter titled: “Chapter 9 – Renewal Options” can be accessed at:
http://www.gsa.gov/graphics/pbs/LDG_Ch_9-Renewal_Options_Final_7-14-11_508c.pdf.
51.1 - Evaluated Lease Renewal Options
An evaluated lease renewal option is a renewal option that has specific terms for rate, was
included in the original solicitation, and was considered in the price evaluation for the lease
award.
To confirm whether the renewal option was evaluated, the Real Property Leasing Officer
(RPLO) shall review the lease file to determine whether Offerors were required to submit a
renewal option, and whether the option was included in the original present value analysis of
offers. If the RPLO cannot find documentation that the renewal option was evaluated, the RPLO
shall presume that the renewal option was not evaluated (see sec 51.2 for details on unevaluated
lease renewal options).
Evaluated renewal options allow the Government to continue occupancy for an additional period.
The RPLO does not have to conduct a competitive procurement in order to exercise an evaluated
renewal option; however, the RPLO shall still reassess market conditions to determine if the
negotiated rate is in the best interest of the Government and document the findings in the lease
file.
51.11 - Determining Continuing Need
The RPLO shall confirm the Unit’s continuing need for space and work with the Forest Service
Engineering staff to determine whether any new improvements, alterations, or upgrades are
needed to meet current building code requirements or unit needs.
The RPLO shall also obtain written approval from the Unit confirming the availability of funds
prior to beginning the lease renewal process.
51.12 - GSA Leasing Delegation
In accordance with Federal Management Regulation (FMR) 2008-B1, the RPLO is required to
contact GSA for leasing authority to exercise an evaluated renewal option if the lease was
awarded prior to the issuance of the FMR Bulletin 2008-B1 in November 2008. The RPLO shall
request this authority at least 18 months in advance of the lease expiration.
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
To request leasing authority to exercise an evaluated renewal option if the lease was awarded
prior to the issuance of FMR Bulletin 2008-B1, the RPLO shall generate a new delegation
request in GSA’s Real Estate Exchange system (G-REX) (see ch. 20, sec. 25 for details on
G-REX). The RPLO shall also upload the following documents into G-REX:
1. Copy of the SF-2 and any supplemental lease agreements (SLAs) that pertain to the
lease term and rental rates.
2. Copy of the original Price Negotiation Memorandum (PNM) or any negotiation
records that demonstrate that the renewal option was negotiated.
3. Copy of the Capital vs Operating lease determination.
3. NEPA documentation (see sec. 51.14 for more details).
The RPLO is authorized to exercise an evaluated renewal option without creating a new
delegation request in G-REX if GSA has subsequently issued a delegation letter approving a
lease term that included renewal options (post issuance of the FMR Bulletin 2008-B1).
51.13 - Past Performance
The RPLO shall confirm that the Lessor performed satisfactorily during the initial term of the
lease and that there are no outstanding lease administration issues.
The RPLO shall also review the Excluded Parties Listing System (EPLS) via the System for
Award Management (SAM) to confirm that the Lessor has not been placed on the debarred
bidders list. The RPLO can access SAM system electronically at: http://www.sam.gov.
See chapter 40, section 41.24 of this Handbook for more details.
51.14 - Capital Vs. Operating Lease Determination
If the lease contains a renewal option, the RPLO shall check the lease file to determine if the
renewal option was included in the original capital vs. operating lease determination (see ch.20,
sec. 24.1 for details on capital vs. operating lease determinations).
If the renewal option was not included in the original capital vs. operating lease determination,
the RPLO shall confirm that the lease will remain an operating lease before a renewal option can
be exercised.
51.15 - National Environmental Policy Act Analysis and Documentation
A lease renewal does not typically trigger a National Environmental Policy Act (NEPA)
evaluation (see ch. 30, sec. 32.2). However, since GSA requires the RPLO to provide
documentation of NEPA compliance with their request for leasing authority (sec. 51.12), the
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
RPLO shall use a Washington Office template to document why NEPA is not triggered. It is
very important to remember that the Washington Office templates are NOT NEPA findings, they
simply describe why NEPA is not triggered.
An electronic version of the Washington Office templates can be accessed via the Acquisition
Management (AQM) Real Property Intranet, under the section titled “Quick Picks” located at:
http://fsweb.wo.fs.fed.us/aqm/property/RealProp.php.
51.16 - Market Research
The RPLO shall review current market information to determine whether the renewal option is
fair and reasonable or that it is advantageous to the Government. To do this, the RPLO shall
compare the renewal option rate to the prevailing rental rates for comparable space in the same
market. The RPLO shall also consider relocation costs.
If the RPLO determines that the rental rate is above-market, then the RPLO shall not exercise the
renewal option unless the RPLO can negotiate a fair and reasonable rate for the current location
or determine that the current location is more advantageous through some other means (the
RPLO should contact the Authorized Officer at the Unit for assistance in this determination). If
the renewal option is not exercised, the RPLO may either compete the requirement or seek a
succeeding lease (see sec. 52 for details on succeeding leases).
If the RPLO determines that the rental rate is fair and reasonable with prevailing rental rates for
comparable space, the RPLO may exercise the renewal option if:
1. The space covered by the renewal option fulfills an existing need (sec. 51.11),
2. The RPLO has obtained leasing authority from GSA (sec. 51.12),
3. The Lessor has demonstrated satisfactory past performance (sec. 51.13),
4. The lease remains an operating lease (sec. 51.15), and
5. Funds are available (sec. 51.11).
51.16a - Advertising
The RPLO does not have to advertise an evaluated renewal option before exercising it,
regardless of square footage involved (General Service Administration Acquisition Manual
(GSAM) 517.207).
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
51.17 - Providing Notice to the Lessor
Upon receiving leasing authority from GSA, the RPLO shall advise the Lessor in writing that the
Government will exercise the renewal option within the timeframe specified in the lease. To
document the lease renewal, the RPLO shall execute and send a unilateral Service Level
Agreement (SLA) to the Lessor and insert the SLA in the lease file. Since this is just an
administrative change, the Lessor does not have to sign the SLA. An exception would apply if
other changes are incorporated in the SLA.
51.18 - Updating Lease Data and Lease Payments
The RPLO shall update lease data in Infra and the Lease Acquisition Plan Module (Lease AP)
and work with the Albuquerque Service Center, Service Wide Accounts Maintenance staff
(ASC-SWAM) to set up lease payments. See chapter 40, section 48 of this Handbook for details
on these processes.
51.19 - Submitting Post Award Lease Documents to GSA
The RPLO shall submit certain post-renewal lease documents to GSA. See chapter 40, section
48.5 for details on submitting post award documents to GSA.
51.2 - Unevaluated Lease Renewal Options
An unevaluated lease renewal option is a renewal option that has no specific terms for rate, was
not included in the original solicitation, and was not evaluated as part of the price evaluation for
the lease award.
The RPLO shall follow the procedures for a new lease acquisition (see chs. 20, 30, and 40 of this
Handbook) or a succeeding lease (see sec. 52) in order to maintain a presence in a building that
does not have an evaluated lease renewal option.
52 - SUCCEEDING LEASES
A succeeding lease is a lease with an effective date that immediately follows the expiration date
of an existing lease for space in the same building (see Zero Code, sec. 5). A succeeding lease
establishes new terms and conditions and results in a new lease contract.
An electronic version of the applicable GSA Leasing Desk Guide chapter titled:
“Chapter 5 – Succeeding Lease, Superseding Lease” can be accessed at:
http://www.gsa.gov/graphics/pbs/LDG-Ch5-Succeeding-Superseding_121710-508c.pdf.
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
52.1 - Determine Continuing Need
The RPLO shall confirm the Unit’s continuing need for space and work with the Forest Service
Engineering staff to determine whether any new improvements, alterations, or upgrades are
needed to meet current building code requirements or Unit needs.
The RPLO shall consider the following items when deciding whether to pursue a succeeding
lease:
1. Is Government-owned space available that may meet the Unit’s requirements?
2. Has the Unit’s requirements changed significantly?
3. Is the Unit satisfied with the current location?
4. If so, can the existing location meet the new requirements?
5. Does the building meet current codes for fire/life safety, accessibility, sustainability,
and security requirements? If not, can the existing building or space be altered to meet
current codes?
6. Is the current Lessor willing to make needed improvements?
7. Does the Unit wish to pursue a succeeding lease with the current Lessor?
8. Does the current Lessor have a good record of past performance?
9. Will the Unit be able to continue to work in the existing space or will it have to
temporarily relocate to allow for the construction of new improvements?
10. If needed, does the Lessor have adequate swing space available if the Unit has to
temporarily relocate?
Prior to pursuing a succeeding lease, the RPLO shall obtain written approval from the Unit
confirming the availability of funds.
52.2 - GSA Leasing Delegation
In accordance with FMR 2008-B1, the RPLO shall apply to GSA for leasing authority to enter
into a succeeding lease for General Purpose Space less than 19,999 square feet and Special
Purpose Space greater than 2,500 square feet for a lease term up to 20 years when the lease
amount is below prospectus level. The RPLO shall request this authority at least 18 months in
advance of the lease expiration.
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
The process for requesting leasing authority for a succeeding lease is the same as requesting
leasing authority for a new lease. See chapter 20, section 25 for details on submitting a Leasing
Delegation Authorization Request Application.
52.3 - Market Research
The RPLO shall review current market information to identify all possible spaces which meet, or
are capable of meeting, the Forest Service’s space requirements.
When performing the market research, the RPLO shall gather rental rates and other specific
building information, including relocation costs. The RPLO will use this information to perform
the cost benefit analysis (see sec. 52.52 for details on performing a cost benefit analysis) prior to
lease award.
52.31 - Pre-Solicitation Notice
The RPLO may place a notice in a local newspaper or via FedBizOpps to publicize that the
Government’s lease is expiring and request expressions of interest from potential Offerors.
Although a notice is only required for spaces over 10,000 square feet, it is advisable to publicize
all succeeding lease projects.
The notice should:
1. Indicate that the Government’s lease is expiring;
2. Describe the Government’s space needs;
3. Advise prospective Offerors that the Government may reconsider the cost of moving,
alterations, and so forth in their determination of feasibility if a succeeding lease is being
contemplated; and
4. Provide contact information
The RPLO shall retain a copy of the notice in the lease file. See exhibit 01 for a sample notice.
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
52.31 – Exhibit 01
Expressions of Interest Sought
Requirement:
The United States Government currently occupies office and related space in a building under
lease in Anywhere, VA that will be expiring. The Government is seeking to lease
approximately 14,500 contiguous rentable square feet of office and related space. The rentable
space must yield a minimum of 12,000 contiguous ANSI/BOMA Office area square feet
(ABOA). The lease term requirement is for 10 years. The space must be available for occupancy
by November 1, 2010. The delineated area is the County of Somewhere in VA.
Other applicable requirements include:
•
•
•
5 reserved parking spots for official Government vehicles
Other
Other
The Government is considering alternative space if economically advantageous. The
Government will use the information it receives in response to this advertisement as a basis to
develop a cost-benefit analysis and to determine whether to compete the lease requirement or
pursue a sole source justification to remain at its current location. In making this determination,
the Government will consider, among other things, the availability of alternate space that
potentially can satisfy the Government’s requirements, as well as costs likely to be incurred
through relocating, such as physical move costs, replication of tenant improvements and
telecommunications infrastructure, and non-productive agency downtime.
Please send expressions of interest to:
Smokey Bear, Real Property Leasing Officer
1234 Forest Service Lane, Anywhere, VA 55555
Telephone: 1-234-567-8910
Fax: 1-987-654-3210
Email: Smokey.Bear@fs.fed.us
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EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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52.31 – Exhibit 01--Continued
Expressions of Interest must be submitted to the above address by 5:00 PM on June 30, 2010
and must include the following information:
•
•
•
•
•
•
•
•
•
Building name and address and location of the available space within the building.
Rentable square feet available and expected rental rate per rentable square foot, fully
serviced.
ANSI/BOMA Office area square feet (ABOA) to be offered and expected rental rate per
square foot, fully serviced. Indicate whether or not the quoted rental rate includes an
amount for tenant improvements and state the amount, if any.
Date of space availability.
Method of rentable space measurement.
Building ownership information.
Amount of parking available on-site and its cost. Include whether expected rental rate
includes the cost of the required Government parking (if any).
Energy efficiency and renewable energy features existing within the building.
List of building services provided.
The Government’s decision regarding whether to relocate will be based, in part, on
information received in response to this advertisement.
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EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
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52.4 - No Potentially Acceptable Locations
If after completing the market research and advertising, the RPLO finds that no potentially
acceptable locations (other than the current Lessor) are identified, the RPLO shall:
For proposed lease acquisitions above the simplified lease acquisition threshold (SLAT), prepare
a Justification for Other than Full and Open Competition to negotiate directly with the present
Lessor. Refer to Chapter 20, section 28 to determine whether the Justification for Other than
Full and Open Competition requires an additional level of approval in accordance with the total
lease value.
For proposed lease acquisitions below the SLAT, document the file to explain lack of
competition. A formal justification is not required.
52.41 - Request for Lease Proposals
If there will be minimal or no changes to the leased space, the RPLO shall issue the
Succeeding/Superseding Request for Lease Proposals (RLP) to the current Lessor. The RLP
provides instructions and sets forth requirements for the Lessor to submit a proposal. See
chapter 30 for details on issuing the Succeeding/Superseding RLP.
If major alterations are required, the RPLO shall issue the Standard RLP to the current Lessor.
See chapter 30 for details on issuing the Standard RLP.
52.42 - Abstract of Offers
If the RPLO issues a Succeeding/Superseding RLP, the RPLO may use GSA’s streamlined
Succeeding/Superseding Abstract of Offers Excel worksheet to document the Lessor’s offer.
The worksheet will allow the RPLO to compare the Lessor’s offer and subsequent iterations
against Succeeding/Superseding RLP requirements. It will also assist the RPLO in tracking
negotiations with the Lessor. An electronic version of the streamlined abstract of offers can be
accessed via G-REX (see ch. 20, sec. 25.1).
If the RPLO issues a Standard RLP, the RPLO shall develop an abstract of offers in accordance
with the instructions provided in chapter 40.
52.43 - NEPA Analysis and Documentation
A succeeding lease does not typically trigger a NEPA evaluation (see ch. 30, sec. 32.2).
However, since GSA requires the RPLO to provide documentation of NEPA compliance for
leases above SLAT in the post award documents (see ch. 40, sec. 48.5), the RPLO shall use a
Washington Office template to document why NEPA is not triggered. It is very important to
remember that the Washington Office templates are NOT NEPA findings, they simply describe
why NEPA is not triggered.
WO AMENDMENT 6409.12-2014-1
EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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FSH 6409.12 - LEASING OFFICERS’ HANDBOOK
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An electronic version of the Washington Office templates can be accessed via the AQM Real
Property Intranet, under the section titled “Quick Picks” located at:
http://fsweb.wo.fs.fed.us/aqm/property/RealProp.php.
52.5 - Potentially Acceptable Locations
If after completing the market research and advertising, the RPLO identifies potentially
acceptable locations, the RPLO shall conduct a market survey (see sec. 52.51) and a cost benefit
analysis (see sec. 52.52) to compare the costs and prices for a new lease at one of these locations
to the costs and prices for a succeeding lease at the current location. The cost benefit analysis
must summarize the total present value of the costs and prices for the firm term of the lease
(GSAM 570.402-6).
52.51 - Market Survey
The RPLO shall conduct a market survey to evaluate the possibility that the potentially
acceptable locations can meet the Forest Service’s space requirements. This includes obtaining a
price quote from the current Lessor. See chapter 20, section 26 for details on performing a
market survey.
The RPLO may choose to use GSA’s combined Market Analysis/Negotiation template rather
than GSA Form 2991, Market Survey for Existing Buildings, to document the market survey.
An electronic version of this form can be accessed via G-REX (see ch. 20, sec. 25.1).
52.52 - Cost Benefit Analysis
The RPLO shall address the following factors in the cost benefit analysis:
1. The price of the current location,
2. The prices of other potentially available properties,
3. Relocation costs including the estimated costs for moving, telecommunications,
administrative time, and alterations,
4. Duplication of costs to the Government (such as for loss of productivity), and
5. Other appropriate factors such as costs to meet lease security standards in the new
location versus retrofitting the existing location to meet lease security standards.
To compare the costs obtained during the market survey, the RPLO shall:
1. Adjust the rates quoted to reflect any special requirements.
2. Adjust the rates quoted to reflect fully serviced leases.
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3. Document the following information:
a. Name and address of the firm solicited,
b. Name of the firm’s representative providing the quote,
c. Price(s) quoted,
d. Description of the space and services for which the quote is provided,
e. Name of the RPLO soliciting the quotation, and
f. Date the quote was received.
The RPLO shall compare the quotes received to the present Lessor’s price. See exhibit 01 for a
sample cost benefit analysis for succeeding leases.
The RPLO may use GSA’s Excel based Succeeding/Superseding Decision Tool, which contains
a cost benefit analysis tab, to compare the costs and prices for a lease at potentially suitable
properties to the costs and prices for a succeeding lease at the current location. An electronic
version of the decision tool can be accessed via G-REX (see ch. 20, sec. 25.1).
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EFFECTIVE DATE: 07/08/2014
DURATION: This amendment is effective until superseded or removed.
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52.52 - Exhibit 01
Sample Cost Benefit Analysis for Succeeding Leases
5-Year (Firm Term) Analysis: Cost-benefit Analysis
Acquisition of 19,000 Rentable Square Feet (RSF)
5-Year (Firm Term) Analysis:
Present Location
Alternate Location
5-yr. Total rent / annual RSF rate
$3,072,000 / $32.34
$ 2,900,720 / $30.53
Cost of physical move
$5,029
$21,604
Voice and Data move
$10,057
$68,974
Duplication of alterations
$0
$500,000
Total 5-year cost / annual RSF rate
$3,087,086 / $32.50
$3,491,298 / $36.75
(no escalations included)
Firm term lease savings
$404,212
Conclusion:
Based on this cost-benefit analysis, the Government cannot expect to recover relocation and
duplication costs through competition.
/s/ Smokey Bear
9/1/10
Real Property Leasing Officer
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52.53 - Cost Benefit Analysis Findings
If the RPLO finds that:
1. Potentially acceptable locations are identified, but the Government cannot expect to
recover relocation costs and duplication of costs through competition, the RPLO shall
prepare a justification to negotiate directly with the present Lessor and issue the RLP to
the current Lessor (see sec. 52.41 for details on negotiating directly with the present
Lessor).
2. Potentially acceptable locations are identified and the relocation costs (including
estimated cost for moving, telecommunications and alterations, amortized over the firm
term of the lease) are not significant enough to preclude recovery of such cost through
competition, the RPLO shall decide which lease model applies, develop the associated
RLP package, then negotiate with all potential Offerors.
Acquisition Plan - see chapter 20, section 27.1 for details on preparing an acquisition
plan.
RLP - see chapter 30 for a description of the GSA lease models and instructions for
developing and distributing the RLP package. For proposed lease acquisitions below
the SLAT, the RPLO shall solicit at least three sources to promote competition to the
maximum extent practicable (GSAM 570.203-3).
Abstract of Offers - see chapter 40, section 41 for details on developing an abstract
of offers.
Negotiations - see chapter 40, section 43 for details on negotiating with potential
Offerors and compiling a price negotiation memorandum.
52.6 - Issuing a Succeeding/New Lease
52.61 - Succeeding Lease
If the current location is selected and there will be minimal or no changes to the leased space, the
RPLO should use the Succeeding/Superseding GSA lease model to issue the lease (see ch.40 for
details on the Succeeding/Superseding GSA lease model). If the current location is selected and
major alterations are required, the RPLO should use the Standard GSA lease model to issue the
lease (see ch. 40 for details on the Standard GSA lease model).
The RPLO shall follow the procedures outlined in chapter 40, sections 44 - 48 to award and issue
a succeeding lease.
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52.62 - New Lease
If a new location is selected, the RPLO shall use the GSA lease model which best applies to the
lease acquisition. This lease model should correspond with the RLP that was issued.
The RPLO shall follow the procedures outlined in chapter 40, sections 44 - 48 to award and issue
a new lease.
52.7 - Updating Lease Data and Lease Payments
The RPLO shall update lease data in Infra and Lease AP and work with ASC-SWAM to set up
lease payments. See chapter 40, section 48 for details on these processes.
52.8 - Submitting Post Award Lease Documents to GSA
The RPLO shall submit certain documents to GSA within 30 days after lease award. See chapter
40, section 48.5 for details on this requirement.
53 - SUPERSEDING LEASES
A superseding lease is a lease that replaces an existing lease, prior to the scheduled expiration of
the existing lease term (see Zero Code, sec. 5). A superseding lease establishes new terms and
conditions and results in a new lease contract.
The RPLO should consider pursuing a superseding lease to replace an existing lease when the
Government needs numerous or detailed modifications to a space that would cause complications
or substantially change the existing lease. Additionally, the RPLO should consider pursuing a
superseding lease to take advantage of favorable market conditions that would result in
considerable financial savings to the Government.
The superseding lease process steps are identical to the succeeding lease process steps described
in section 52 above. An electronic version of the applicable GSA Leasing Desk Guide chapter
titled: “Chapter 5 – Succeeding Lease, Superseding Lease” can be accessed at:
http://www.gsa.gov/graphics/pbs/LDG-Ch5-Succeeding-Superseding_121710-508c.pdf.
54 - CHANGE IN SQUARE FOOTAGE - EXPANSION
When the Forest Service needs additional space, the RPLO may seek a space expansion to
accommodate the Unit’s needs. A space expansion usually does not result in a change to the
lease termination date.
An electronic version of the applicable GSA Leasing Desk Guide chapter titled: “Chapter 6 –
Change in Square Footage – Expansion and Reduction” can be accessed at:
http://www.gsa.gov/graphics/pbs/LDG-Ch6-Expansion-Reduction_121710-508c.pdf.
WO AMENDMENT 6409.12-2014-1
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CHAPTER 50 - CONTINUED SPACE REQUIREMENTS
54.1 - Determine Continuing Need
The RPLO shall confirm the Unit’s continuing need for space and work with the Forest Service
Engineering staff to determine whether any new improvements, alterations, or upgrades are
needed to meet current building code requirements or Unit needs.
The RPLO should handle requests for expansion space differently depending on the size of the
expansion area and whether the expansion space is within the scope of the lease or outside the
scope of the lease. To determine this, the RPLO shall consider factors such as the extent of the
change, the performance period, the difference in cost between the awarded lease and the lease
as modified, and whether the expansion space is of a nature which potential Offerors would
reasonably have anticipated.
Prior to acquiring expansion space, the RPLO shall obtain written approval from the Unit
confirming the availability of funds.
54.2 - GSA Leasing Delegation
In accordance with FMR 2008-B1, if during the term of the lease, expansion space is required,
the RPLO shall apply to GSA for leasing authority prior to negotiating with the Lessor for the
expansion space. GSA will not delegate leasing authority if the initial and expansion space
together exceeds 19,999 rentable square feet of General Purpose space.
The process for requesting leasing authority for expansion space is the same as requesting
leasing authority for a new lease. See chapter 20, section 25 for details on submitting a Leasing
Delegation Authorization Request Application.
54.3 - Within Scope of Lease
The RPLO may determine that an expansion space request is within the general scope of the
lease when the following criteria are met:





The expansion request is made from the same Unit that requested the existing lease;
Personnel to be housed in the expansion space have a mission-related need to be colocated with the employees in the existing space;
The expansion request is coterminous with the existing lease term;
The expansion request is for a reasonable amount of space in comparison to the space
currently under lease; note the general rule of thumb is 10 percent or less of the total
Usable Square Feet (also referred to as ANSI/BOMA Office Area Square Feet).
The expansion request is not received immediately after award of the lease; and
If the above criteria are met, the RPLO should document the lease file with a written
determination documenting that the expansion space request is within the general scope of the
lease and apply to GSA for leasing authority (section 54.2).
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54.31 - Availability of Space
The RPLO shall work with the Lessor to confirm that the expansion space exists or that the space
can be constructed at the leased location to satisfy the space need. The RPLO shall also ask the
Lessor to provide a proposed cost of the expansion space.
54.32 - Market Research
The RPLO shall assess the market; including the price for vacant space being considered for
expansion as well as comparable alternate space in the same market, to determine whether the
Lessor’s proposal for the expansion space is fair and reasonable.
54.33 - Competition Determination
If it is determined that the expansion request meets the criteria above and is within the general
scope of the lease, the RPLO may acquire the expansion space through negotiations with the
Lessor without a Justification for Other than Full and Open Competition (GSAM 570.403).
54.34 - Negotiations
The RPLO shall advise the Lessor that the terms and conditions (other than price) in the existing
lease will also be in effect for the expansion space.
If construction is required, the RPLO shall provide the Lessor with a scope of work, including
plans and specifications, and request that the Lessor submit a proposal to complete the
construction for the expansion space. The RPLO shall negotiate the cost of construction with the
Lessor based on the Lessor’s submission of detailed cost or pricing data (see sec.54.34a) or on
the results of a competitive proposal process handled by the Forest Service (see sec.54.34b).
The Lessor must account for all of these costs in its proposal.
54.34a - Cost or Pricing Data for Construction
The RPLO shall negotiate a price with the Lessor based on the submission of the Lessor’s
proposal and a Government estimate. If needed, the RPLO should request technical support to
assist during the review. Once an agreement has been reached, the RPLO shall document the
price determination in a price negotiation memorandum. See chapter 40, section 43.4 for more
details on composing a price negotiation memorandum.
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54.34b - Competitive Proposals for Construction
If a price for construction cannot be reached between the Forest Service and the Lessor, the lease
provides the RPLO with the right to complete the construction through a competitive proposal
process. If this approach is used, the RPLO shall use all of the standard contracting procedures
that would apply for a construction contract as if the work was to be performed on Federal
property.
54.35 - Modifying the Lease
Once the RPLO has determined that the Lessor’s offer is fair and reasonable, the RPLO shall use
an SLA to modify the lease, specifying the new square footage, new rental rate, and any other
proposed modifications to the contract. If the Lessor will be performing the construction, the
RPLO shall also include the construction timeline, design intent drawings, interior finishes,
construction drawings, and method of payment for the alterations.
In both instances, the RPLO shall document the lease modifications by sending two SLAs to the
Lessor for signature. Upon receipt of the Lessor’s signed and dated SLAs, the RPLO shall
ensure that no changes have been made, then sign and date both copies. The RPLO shall insert a
fully executed SLA in the lease file and return the other fully executed lease SLA to the Lessor
using a transmittal letter.
54.36 - Construction and Space Acceptance
See chapter 40, section 47 for details on the pre-construction meeting, progress inspections,
change orders, pre-occupancy inspection, and space acceptance.
54.4 - Outside of Scope of Lease
After applying the criteria discussed in section 54.3, the RPLO may determine that an expansion
request is outside the general scope of the lease. If assistance is needed to make this
determination, the RPLO should solicit the help of Washington Office, Asset Management staff
or the Regional Office of General Counsel (OGC). When the determination is made, the RPLO
should document the lease file stating that the expansion space request is outside the general
scope of the lease.
54.41 - Availability of Space
The RPLO shall work with the Lessor to confirm that vacant space is available to accommodate
the expansion space or that the space can be constructed at the leased location to satisfy the space
need. The RPLO shall also ask the Lessor to provide a proposed cost of the expansion space.
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DURATION: This amendment is effective until superseded or removed.
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54.42 - Pre-Solicitation Notice
The RPLO may place a notice in a local newspaper or via FedBizOpps to publicize that the
Government is seeking space. See section 52.31 and Exhibit 01 for details on publicizing.
54.43 - Market Survey
The RPLO shall determine if it is in the Government’s best interest to acquire expansion space in
the existing location or to relocate. To do this, the RPLO shall perform a market survey to
identify all possible spaces which meet, or are capable of meeting, the Forest Service’s total
space requirements, including the expansion space. See chapter 20, section 26 for more details
on conducting a market survey.
If alternative locations are available that can satisfy the total requirement, the RPLO shall
perform a cost benefit analysis (see sec.52.52 for details on conducting a cost benefit analysis) to
determine if it is in the Government’s best interest to acquire expansion space in the existing
location or to relocate.
54.44 - No Potentially Acceptable Locations
If after completing the market survey and advertising, the RPLO finds that no potentially
acceptable locations (other than the current Lessor) are identified, the RPLO shall:
For proposed lease acquisitions above the SLAT, prepare a Justification for Other than Full and
Open Competition to negotiate directly with the present Lessor. Refer to Chapter 20, section 28
to determine whether the Justification for Other than Full and Open Competition requires an
additional level of approval in accordance with the total lease value.
For proposed lease acquisitions below the SLAT, document the file to explain lack of
competition. A formal justification is not required,
The negotiation, SLAs, construction, space acceptance, and rent commencement steps are the
same as for in-scope expansions. See sections 54.34 - 54.37 for more details.
54.45 - NEPA Analysis and Documentation
The RPLO shall contact the Environmental Coordinator at the applicable level of responsibility
early in the expansion process for a determination of what type of NEPA evaluation (if any) must
be undertaken. See chapter 20, section 23.2 and Forest Service NEPA procedures at 36 CFR
220, FSM 1950.43, and FSH 1909.15 for more details.
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54.46 - Potentially Acceptable Locations
If after completing the market survey and advertising, the RPLO identifies potentially acceptable
locations, the RPLO shall conduct a cost benefit analysis (see sec. 52.52) to compare the costs
and prices for a lease at potentially suitable properties to the costs and prices for a space
expansion at the current location. The analysis must summarize the total present value of the
costs and prices for the firm term of the lease (GSAM 570.402-6). If the lease has cancellation
rights, the analysis must include the cost of the unexpired portion of the firm lease term rather
than the full lease term.
54.47 - Cost Benefit Analysis
See section 52.52 for details on how to conduct a cost benefit analysis.
54.47a - Cost Benefit Analysis Findings
If the RPLO finds that:
1. The cost benefit analysis supports a space expansion at the existing location, the
RPLO shall follow the steps outlined in section 54.44.
The cost benefit analysis does not support a space expansion at the existing location,
the RPLO shall proceed with a replacement lease for the entire requirement. To do this,
the RPLO shall decide which lease model applies, develop the associated RLP package,
then negotiate with all potential Offerors.
2.
Acquisition Plan - see chapter 20, section 27.1 for details on preparing an acquisition
plan.
RLP - see chapter 30 for a description of the GSA lease models and instructions for
developing and distributing the RLP package. For proposed lease acquisitions below
the SLAT, the RPLO shall solicit at least three sources to promote competition to the
maximum extent practicable (GSAM 570.203-3).
Abstract of Offers - see chapter 40, section 41 for details on developing an abstract
of offers.
Negotiations - see chapter 40, section 43 for details on negotiating with potential
Offerors and compiling a price negotiation memorandum.
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54.48 - Issuing a New Lease
If a new location is selected, the RPLO shall use the GSA lease model which best applies to the
lease acquisition. This lease model should correspond with the RLP that was issued. See
chapter 30 for a description of the GSA lease models and instructions for developing and
distributing the RLP package.
The RPLO shall follow the procedures outlined in chapter 40, Sections 44 – 48 to award and
issue a new lease.
54.5 - Updating Lease Data and Lease Payments
The RPLO shall update lease data in Infra and Lease AP and work with ASC-SWAM to set up
lease payments. See chapter 40, section 48 for details on these processes.
54.6 - Submitting Post Award Lease Documents to GSA
The RPLO shall submit certain post-renewal lease documents to GSA. See chapter 40,
section 48.5 for details on submitting post award documents to GSA.
55 - CHANGE IN SQUARE FOOTAGE - REDUCTION
When the Forest Service no longer needs space currently under lease, the RPLO shall terminate
the lease within the termination rights period, or if that’s not an option, determine whether
backfill opportunities exist prior to negotiating with the Lessor to affect the release of
unoccupied space.
An electronic version of the applicable GSA Leasing Desk Guide chapter titled: “Chapter 6 Change in Square Footage - Expansion and Reduction” can be accessed at:
http://www.gsa.gov/graphics/pbs/LDG-Ch6-Expansion-Reduction_121710-508c.pdf.
55.1 - Determine Continuing Need
The RPLO shall confirm the Unit’s need to vacate space currently under lease. When the RPLO
determines that the Forest Service no longer needs this space, the RPLO should consider the
following:




Does the FS possess termination rights under the lease?
If so, what are the notification requirements for exercising termination rights?
Is the FS terminating all or a portion of its space?
If a portion, does the FS possess partial termination rights or full termination rights?
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55.2 - Complete Terminations
55.21- Within Termination Rights
The simplest form of termination occurs when the FS elects to terminate its entire space during
the Government’s termination rights period. In this instance, the RPLO may notify the Lessor in
writing as prescribed by the terms of the lease and proceed to close out the space just as if the
lease had expired.
See chapter 40, section 48.1 for details on closing out an existing lease.
55.22 - Without Termination Rights
If the lease does not grant the FS the right to terminate, or if termination rights take effect so far
into the future that allowing the lease to run its course would pose an unacceptable financial
burden to the Government, the RPLO should determine if reasonable backfill opportunities exist.
To do this, the RPLO shall first contact GSA to report the excess space. GSA will determine if
there are any federal agencies that can fill the space. If there are no federal tenants available, the
RPLO shall determine if there are any state or local government agencies or private sector
companies that can fill the space. See section 58 for details on backfilling space.
When all options for backfill are exhausted, the RPLO should contact the Lessor to request the
right to terminate or at a minimum, request a reduction in the operating costs paid for as part of
the rent for the remainder of the term, in accordance with the general lease clause titled
“Adjustment for Vacant Premises”. Most Lessors will require the FS to make some form of a
lump-sum payment, called a buyout, for the right to terminate. In this circumstance, the RPLO
should perform an analysis to establish the present value of the remaining term of the lease with
the reduction applied and compare it to the Lessor’s buyout requirement.
The RPLO shall determine whether it is more favorable to continue making monthly rent
payments or to compensate the Lessor in a lump-sum payment. The RPLO shall clearly
document the decision in the lease file. If the FS will compensate the Lessor in a lump-sum
payment, the RPLO shall ensure that there is sufficient funding and a commitment of funds has
been received by the Budget Officer before agreeing to the buyout terms with the Lessor.
55.3 - Partial Terminations
55.31 - Within Termination Rights
If the lease grants the FS to right terminate a part of the space under the lease, the RPLO shall
notify the Lessor in writing as prescribed by the terms of the lease, supply a floor plan that
clearly delineates the space being terminated, and issue an SLA to document the new square
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footage, new rental rate, altered building systems costs, and any other issues that must be
addressed. The RPLO shall also advise the Lessor that the terms and conditions (other than
price) in the existing lease will remain in effect for the space remaining under the lease.
The RPLO shall document the lease modifications by sending two SLAs to the Lessor for
signature. Upon receipt of the Lessor’s signed and dated SLAs, the RPLO shall ensure that no
changes have been made, then sign and date both copies. The RPLO shall insert a fully executed
SLA in the lease file and return the other fully executed SLA to the Lessor using a transmittal
letter.
If construction is required to subdivide the remaining space, the RPLO shall request that the
Lessor submit a proposal to complete the construction. See sections 54.34 - 54.36 for details on
negotiation and construction.
55.32 - Without Termination Rights
See section 55.22 for details on backfilling space.
55.4 - Updating Lease Data and Lease Payments
The RPLO shall update lease data in Infra and Lease AP and work with ASC-SWAM to set up
lease payments. See chapter 40, section 48 for details on these processes.
56 - LEASE EXTENSIONS
A lease extension is an extension beyond the expiration date of a lease to allow for continued
occupancy, usually not to exceed one year, however this varies on a case-by-case basis (see Zero
Code, section 5). A lease extension can perform an important function in filling a short-term
gap, by allowing continued occupancy if a lease is near expiration and no other viable options
are available.
An electronic version of the applicable GSA Leasing Desk Guide chapter titled: “Chapter 7 –
Lease Extension” can be accessed at:
http://www.gsa.gov/graphics/pbs/LDG-Chapter7-Extensions-2-15-11_508c.pdf.
56.1 - Determine Continuing Need
The RPLO should only consider pursuing a lease extension after all other options have been
exhausted. A lease extension may be necessary in one of the following situations:

The Unit occupying the leased space is scheduled to move into other federallycontrolled space, but unexpected delays are encountered in preparing the new space
for occupancy.
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


The Government encounters unexpected delays outside of its control in acquiring
replacement space.
The Government is consolidating various agencies and the RPLO needs to extend the
terms of some leases to establish a common expiration date.
The Unit occupying the space has encountered delays in planning for a potential
relocation to other federally controlled space due to documented organizational,
financial, or other uncertainties.
Prior to beginning the lease extension process, the RPLO shall obtain approval from the Unit
confirming the availability of funds.
56.2 - GSA Leasing Delegation
In accordance with FMR 2008-B1, if a lease extension is necessary, the RPLO shall apply to
GSA for leasing authority prior to negotiating with the Lessor for a lease extension.
The process for requesting leasing authority for a lease extension is the same as requesting
leasing authority for a new lease. See chapter 20, section 25 for details on submitting a Leasing
Delegation Authorization Request Application.
56.3 - Availability of Space
The RPLO shall confirm that the lease can be extended for the existing space and ask the Lessor
to provide a proposed cost for the lease extension.
56.31 - Market Research
The RPLO shall review current market information to determine whether the Lessor’s proposal
for the lease extension is fair and reasonable.
56.32 - Acquisition Plan
The RPLO shall prepare an acquisition plan for the lease extension. See chapter 20, section 27.1
for details on preparing an acquisition plan.
56.33 - Competition Determination
For proposed lease acquisitions above the SLAT, the RPLO shall prepare a Justification for
Other than Full and Open Competition to negotiate directly with the present Lessor.
For proposed lease acquisitions below the SLAT, the RPLO shall document the file to explain
lack of competition. A formal justification is not required.
See chapter 20, section 28 for more details on competition determination requirements.
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56.34 - Negotiations
The RPLO should meet with the Lessor to discuss the Lessor’s proposed price for the lease
extension and negotiate the best price for the Government. See chapter 40, section 43 for details
on negotiating with the Lessor and composing a price negotiation memorandum.
56.35 - NEPA Analysis and Documentation
A lease extension does not typically trigger a NEPA evaluation (see ch. 30, sec. 32.2). However,
since GSA requires the RPLO to provide documentation of NEPA compliance for leases above
SLAT in the post award documents (see ch. 40, sec. 48.5), the RPLO shall use a Washington
Office template to document why NEPA is not triggered. It is very important to remember that
the Washington Office templates are NOT NEPA findings, they simply describe why NEPA is
not triggered.
An electronic version of the Washington Office templates can be accessed via the AQM Real
Property Intranet, under the section titled “Quick Picks” located at:
http://fsweb.wo.fs.fed.us/aqm/property/RealProp.php.
56.36 - Capital Vs. Operating Lease Determination
The RPLO shall confirm that the lease will remain an operating lease during the extension
period. See chapter 20, section 24.1 for details on performing a capital vs. operating lease
determination.
56.37 - Modifying the Lease
Once the RPLO has determined that the Lessor’s offer is fair and reasonable, the RPLO shall
modify the lease to specify the revised expiration date, any changes to the rental rate and/or
operating expense base, and any other terms which have been modified.
The RPLO shall document the lease modifications by sending two SLAs to the Lessor for
signature. Upon receipt of the Lessor’s signed and dated SLAs, the RPLO shall ensure that no
changes have been made, then sign and date both copies. The RPLO shall insert a fully executed
SLA in the lease file and return the other fully executed SLA to the Lessor using a transmittal
letter.
56.38 - Updating Lease Data and Lease Payments
The RPLO shall update lease data in Infra and Lease AP and work with ASC-SWAM to set up
lease payments. See chapter 40, section 48 for details on these processes.
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EFFECTIVE DATE: 07/08/2014
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56.39 - Submitting Post Award Lease Documents to GSA
The RPLO shall submit certain post-renewal lease documents to GSA. See chapter 40, section
48.5 for details on submitting post award documents to GSA.
57 - LEASE HOLDOVERS, STANDSTILL AGREEMENTS, AND CONDEMNATIONS
An electronic version of the applicable GSA Leasing Desk Guide chapter titled: “Chapter 10 Lease Holdovers, Standstill Agreements, and Condemnations” can be accessed at:
http://www.gsa.gov/graphics/pbs/LDG-Ch10-Holdovers_2-15-11_508c.pdf.
57.1 - Lease Holdovers
A holdover is a tenancy that is created when the tenant continues to occupy the premises beyond
the expiration date of the lease term (see Zero Code, sec. 5). Holdover tenancies often lead to
friction between the landlord and should be avoided.
The RPLO shall do everything possible to avoid holdovers by:
1. Submitting requirements request letters to Units 18 months to 3 years before lease
expiration.
2. Negotiating timely extensions to existing leases.
3. Timely awarding and diligently managing follow-on leases.
57.11 - Determine Continuing Need
If a succeeding lease or lease extension has not been reached within 120 days of the existing
lease’s expiration, the RPLO should contact the Regional Office of General Counsel to review
available options, including entering into a standstill agreement with the Lessor (see sec. 57.2 for
details on standstill agreements) or condemning the leasehold interest (see sec. 57.3 for details on
condemnations).
57.12 - Rental Payment
If the Forest Service occupies space after expiration of a lease, the Forest Service must continue
to make monthly rental payments at the current rental rate stated in the expired lease.
Rental payments must be adjusted to the new negotiated amount retroactive to the agreed-upon
effective date of the succeeding lease or lease extension only after execution of the succeeding
lease or lease extension by the RPLO.
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57.2 - Standstill Agreement
A standstill agreement is an agreement that preserves the status quo between the Lessor and the
Government (see Zero Code, sec. 5). It is a temporary measure that is entered into instead of a
holdover (see sec. 57.1) or condemnation (see sec. 57.3) to buy time for the lease acquisition
process to run its course. The agreement is not intended to imply that the incumbent will be the
successful Offeror for a new lease or that the parties will necessarily execute an extension or a
succeeding lease.
In general, a standstill agreement should state:
1. The terms and conditions of the expiring lease remain in full force and effect, except
as otherwise amended by the standstill agreement.
2. The parties agree to negotiate an extension or succeeding lease, as appropriate.
3. The Government agrees not to condemn the promises by the power of eminent domain
and will not file a Declaration of Taking during the term of the standstill agreement.
4. The Government agrees to continue to pay rent at the then-current rental rate stated in
the lease and to comply with all other terms and conditions of the lease, except as
otherwise amended by the standstill agreement.
5. The Lessor agrees not to do the following:
a. Undertake to evict the Government from the premises;
b. Interfere with the use or occupancy of the premises by the Government;
c. Interrupt the building operations, services, and utilities as provided under the
expiring lease;
d. Market the space to potential tenants if the Government is planning to remain in
the premises; and
e. Threaten to do any of the acts described above.
If it is necessary to execute a standstill agreement, the RPLO shall contact the Regional Office of
General Counsel to review the agreement and verify its legal sufficiency.
See Exhibit 01 for a sample standstill agreement.
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57.2 – Exhibit 01
Standstill Agreement
THIS STANDSTILL AGREEMENT (hereinafter "Agreement") is made by and
between
(hereinafter "Lessor"), whose address is
and the United States of America
(hereinafter "Government"), acting by and through the Chief of the Forest Service’s authorized
representatives (hereinafter "FS") whose address is
_____________________________________.
RECITALS
1. The Lessor owns certain improved real property located at _____________________,
(hereinafter" Premises"). The Government currently occupies approximately
__________________________square feet of office and related space on the
_____________ floor(s) of the Premises pursuant to Lease No. _____________________
(hereinafter "Lease"), as amended. The Lease expires on ______________. The
Government has not obtained alternative space for its tenants presently occupying the
Premises and the Lessor and the Government (hereinafter collectively the "Parties" and
each individually a "Party") have not consummated a lease extension agreement to date.
2. The Parties do not want an unnecessary condemnation lawsuit and the Government
does not want its operations, services, or tenancy interrupted or disturbed. Neither Party
wants a lease holdover and the Parties prefer their negotiations to end with a lease
extension at a monthly rental rate to be retroactively effective from
_______________________________.
3. By this Agreement the Parties seek to preserve the status quo pending the completion of
a leasehold acquisition procedure that could result in a mutually acceptable lease
extension, and by the terms of which the Government could continue to lease the
Premises from the Lessor.
4. The Parties believe this Agreement will facilitate settlement negotiations. As
evidenced by their signatures to this Agreement, the Parties agree that no right, action, or
claim either Party may otherwise have against the other Party will be prejudiced or aived
by this Agreement.
NOW THEREFORE, in consideration of the foregoing recitals and the mutual
covenants set forth herein, the adequacy of which is hereby acknowledged by the
undersigned, the Parties agree as follows:
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57.2 – Exhibit 01--Continued
During the term of this Agreement:
1. The Parties agree to negotiate, actively and in good faith, a lease extension for the
Premises.
2. The Government will not condemn the Premises by the power of eminent domain, and
will not file a Declaration of Taking with respect to the Premises.
3. The Lessor will not initiate an "inverse condemnation" or breach of lease action in any
United States Court or tribunal with respect to the Premises.
4. The Lessor will not:
A. Undertake to evict the Government from the Premises;
B. Interfere with the use or occupancy of the Premises by the Government;
C. Interrupt the operations, building services, or utilities of the Government from
what they were while the lease was in effect;
D. Market the space to potential tenants if the Government is planning to remain in
the premises; or
E. Threaten to do any of the acts referenced in A, B, C, or D above.
5. Each Party agrees not to take any action to alter its position to the detriment of the
other Party in any condemnation type action arising out of these facts.
At all times after this Agreement becomes effective:
6. The Government will receive full credit for money paid to Lessor during the term of
this Agreement in accordance with Lease No. ________________whether there is a lease
extension, other legal action, or settlement.
7. Neither Party will seek or accept severance damages or attorney's fees from the other
Party for the period this Agreement is in effect.
8. In the event that a lease extension, with respect to the Premises, is not executed by the
Parties during the course of this Agreement, or that this Agreement is otherwise
terminated, then any legal proceeding arising there from is stipulated by the Parties to be
deemed to have commenced on ______________________________.
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57.2 – Exhibit 01--Continued
9. Termination of Agreement: The Parties agree that all terms and conditions of the
Lease will remain in full force and effect during the term of this Agreement. This
Agreement will terminate on the earlier of , or on the date a lease extension agreement
is signed by the Parties. This termination provision may be amended to extend the
termination date of this Agreement by the mutual written consent of the Parties.
10. Successors in Interest: All of the terms, covenants, and provisions herein contained
will bind and inure to the benefit of the Parties, their heirs, executors, administrators,
personal representatives, successors, trustees, receivers, and assigns as applicable, except
as otherwise provided herein.
11. Merger Clause: All prior understandings and agreements with respect to the subject
matter of this Agreement, written or oral are merged into this Agreement. This
Agreement represents the final agreement between the Parties with respect to such
subject matter, and may not be superseded, except by a separate written agreement signed
and agreed to by the Parties.
12. Amendments: Neither this Agreement, nor any terms hereof, may be changed,
waived, discharged or terminated orally, but only by an instrument in writing signed by
the Party against whom the enforcement of a change, waiver, discharge, or termination is
sought.
13. Construction: Any provision contained in this Agreement that is prohibited or
unenforceable will be ineffective to the extent of such prohibition or enforceability
without invalidating the remaining provisions hereof. A waiver by a Party of any right,
covenant, condition, or remedy in any instance hereunder will not operate as a waiver of
such right, covenant, condition, or remedy in any other instance, and waiver by a Party of
any breach of the terms hereof will not be a waiver of any additional or subsequent
breach. This Agreement will be governed by, and construed in accordance with, the laws
of the United States of America.
14. Counterparts: This Agreement may be executed in photocopied counterparts that,
when taken together, will constitute a single agreement.
15. Effective Date: This Agreement is effective and enforceable only after having been
first signed by the Lessor, and second, accepted and signed by the Government.
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57.2 – Exhibit 01--Continued
IN WITNESS WHEREOF, the Parties have executed this Agreement as of
LESSOR
Signature:
Printed Name:
Title:
Date:
UNITED STATES OF AMERICA,
acting by and through the
Chief of the Forest Service
and authorized representatives
Signature:
Printed Name:
Title:
Date:
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57.21 - GSA Leasing Delegation
In accordance with FMR 2008-B1, prior to entering into a standstill agreement, the RPLO shall
apply to GSA for leasing authority. This request can be included in the request for a lease
extension (see sec. 56.2) or a long term lease action (see ch. 20, sec. 25). The RPLO shall
indicate in the request that the Forest Service is seeking an extension or a long term lease with a
standstill agreement in place until the lease action is awarded.
57.3 - Condemnation
A condemnation is the sovereign power of the Federal Government, authorized by the Fifth
Amendment of the U.S. Constitution, to take private property, such as leasehold estates, for
public purposes upon the payment of “just compensation” (see Zero Code, sec. 5).
If the RPLO and the Office of General Counsel determine that no other viable option exists, the
RPLO should file a request for condemnation with the U.S. Department of Justice (DOJ) and
follow the condemnation procedure outlined in the DOJ document titled “A Procedural Guide for
the Acquisition of Real Property by Governmental Agencies”. The RPLO can access this guide
electronically at: http://fimsinfo.doe.gov/RE/acq_guide_fed_1972.pdf.
The DOJ will make the final decision on whether to file a condemnation action.
58 - SUBLEASING
A sublease is a lease agreement conveying a part of leased real property to another person/entity
with the lessee acting as the Subessor under the terms of the pre-existing lease. The Sublessor
retains liability for rent payments (see Zero Code, sec. 5).
58.1 - GSA Leasing Delegation
In accordance with FMR Bulletin 2008-B1, the Forest Service may not enter into subleases for
properties leased using GSA’s delegated leasing authority (see Zero Code, sec. 6, exhibit 01).
58.11 - Backfilling Options
When the Forest Service is in leased space and has excess space available, the RPLO shall notify
the existing Lessor to see if there’s an opportunity to turn back the excess space (see sec. 55.2 for
details on early terminations).
If the RPLO is unable to turn back the excess space, the RPLO should determine if there are any
United States Department of Agriculture (USDA) or Department of Interior (DOI) employees
available to occupy the space. If there are USDA or DOI employees available, the RPLO should
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work with the local Grants & Agreements (G&A) staff to execute an interagency agreement to
allow the USDA or DOI employees to occupy the space (see Chapter 20, sec. 22.2 for details on
Forest Service collocations).
If there are no USDA or DOI employees available to occupy the space, the RPLO shall contact
GSA to report the excess space. GSA will determine if there are any Federal agencies that can
fill the space. If there are Federal employees available, the RPLO shall work with GSA to
coordinate renovations, if needed, to ensure the space can be made marketable in order to meet
the needs of the Federal employees. GSA will work with the Lessor to re-lease the space to the
Federal employees.
If GSA determines that there are no Federal employees available, the Forest Service shall
continue to pay the current rent and administer the lease until the lease expires. The RPLO shall
make every effort to reduce the cleaning and operating expenses portion of the rent for the
vacated space.
58.2 - Updating Lease Data and Lease Payments
Whether or not the space is backfilled as described in section 58.11, the RPLO shall update the
“Utilization” data for the affected lease in Infra. For specific instructions on how to update the
“Utilization” data, please go to the Real Property Management Help website at:
http://fsweb.nrm.fs.fed.us/support/docs.php?module=FRPP. The RPLO should also reference
the assigned name or number of the interagency agreement or special use authorization executed
for the affected lease. See chapter 40, section 48 for additional details on updating lease data.
In addition, the Forest Service must continue to pay the Lessor as stated in the lease. The RPLO
shall defer to the payments clause outlined in the interagency agreement or special uses
authorization to collect monies owed for the backfilled space to replenish operation and
maintenance costs. See chapter 40, section 48 for additional details on updating lease payment
data.
59 - MISCELLANEOUS SPACE NEEDS
59.1 - Space for Conferences, Meetings, Judicial Proceedings, and Emergency
Situations
The Forest Service may acquire space for conferences, meetings, judicial proceedings, and
emergency situations when Government-owned or leased space is not already available.
59.11 - Procurement Method
A Unit may rent this type of space for short term use (generally not to exceed 180 days) using a
purchase card, purchase order, or via a service contract (see FSH 6309.32 for details on these
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types of procurements). The Unit must follow Federal Acquisition Regulation (FAR),
Agriculture Acquisition Regulation (AGAR), AGAR Advisories, Forest Service Acquisition
Regulations (FSAR) and purchase card policies and procedures.
59.12 - Procurement Data
If the space is procured via a purchase card, purchase order, or service contract, the Unit must
process the transaction (as applicable) via the Integrated Acquisition System (IAS). Detailed
information for using IAS can be accessed via the Forest Service’s AQM Intranet located at:
http://fsweb.wo.fs.fed.us/aqm/IAS/.
59.2 - Space to Place Electronic Equipment on Non-Forest Service
Communication Towers
The Forest Service may acquire space to house antennas, repeaters, or transmission equipment
when Government-owned or lease space is not already available without request leasing
authority from GSA.
59.21 - Procurement Method
A Unit may rent this type of space using a purchase card, purchase order, or a service contract
for a term of 180 days up to 5 years (see FSH 6309.32 for details on these types of
procurements). The Unit must follow Federal Acquisition Regulation (FAR), Agriculture
Acquisition Regulation (AGAR), AGAR Advisories, Forest Service Acquisition Regulations
(FSAR), and purchase card policies and procedures.
The Unit may also contact the RPLO to request that a lease be used to procure the space. If a
lease will be used, the RPLO is responsible for following the market survey, competition,
negotiation, and lease award requirements discussed in chapters 20, 30, and 40 of this Handbook.
59.22 - GSA Leasing Delegation
If a lease will be used to procure the space, the Forest Service has been granted a standing
delegation of authority from GSA to acquire this type of space without requesting leasing
authority from GSA (see ch. 20, sec. 25.31 for details on categorical space delegations).
59.23 - Procurement Data
See section 59.12.
If a lease is used to procure the space, the RPLO shall create a lease record in the infra Real
Property Management module. See chapter 40, section 48 for details on creating a lease record.
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59.3 - Space to Store Electronic Equipment (Modular/Self Storage Units and
Modular Office Buildings)
The Forest Service may acquire space to store electronic equipment when Government-owned or
lease space is not already available without requesting lease authority from GSA.
59.31 - Procurement Method
A Unit may rent this type of space for a term of 180 days up to 5 years using a purchase card,
purchase order, or via a service contract (see FSH 6309.32 for details on these types of
procurements). The Unit must follow Federal Acquisition Regulation (FAR), Agriculture
Acquisition Regulation (AGAR), AGAR Advisories, Forest Service Acquisition Regulations
(FSAR), and purchase card policies and procedures.
The Unit may also contact the RPLO to request that a lease be used to procure the space. If a
lease will be used to procure the space, the RPLO is responsible for following the market survey,
competition, negotiation, and lease award requirements discussed in chapters 20, 30, and 40 of
this Handbook.
59.32 - GSA Leasing Delegation
If a lease will be used to procure the space, the Forest Service has been granted a standing
delegation of authority from GSA to acquire this type of space without requesting leasing
authority from GSA (see ch. 20, sec. 25.31 for details on categorical space delegations).
59.33 - Procurement Data
See section 59.23.
59.4 - Parking Spaces
The Forest Service may acquire parking spaces when Government-owned or leased space is not
already available.
An electronic version of the applicable General Services Administration (GSA) Leasing Desk
Guide, Appendix H titled: “Parking Acquisition” can be accessed at:
http://www.gsa.gov/portal/mediaId/180863/fileName/LAC-2013-05_-_Appendix_H__Parking_Acquisition_ALL_11012013.
59.41 - Official Parking Spaces
Official parking spaces are parking spaces provided for official government vehicles owned or
leased on behalf of the Government or privately owned vehicles designated for official use in the
performance of the Forest Service’s mission.
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59.41a - Procurement Method
A Unit may rent this space for a term of 180 days up to 5 years using a purchase card, purchase
order, or via a service contract (see FSH 6309.32 for details on these types of procurements).
The Unit must follow Federal Acquisition Regulation (FAR), Agriculture Acquisition Regulation
(AGAR), AGAR Advisories, Forest Service Acquisition Regulations (FSAR), and purchase card
policies and procedures.
The Unit may also contact the RPLO to request that a lease be used to procure the space. The
RPLO may procure unimproved land for parking on a fiscal year basis using a special purpose
lease delegation (see ch. 20, sec. 25.32). The RPLO may also procure garage space for parking
on a fiscal year basis using a categorical lease delegation (see ch. 20, sec. 25.31). If the Unit
wishes to install improvements, the RPLO may submit a request to use the Forest Service land
lease authority to procure land for parking for a lease term consistent with the expected life cycle
of the improvements (see ch. 20, sec. 25.33).
If a lease will be used to procure the space, the RPLO is responsible for following the market
survey, competition, negotiation, and lease award requirements discussed in chapters 20, 30, and
40 of this Handbook. If the dollar value of the lease will be less than $150,000 average net
annual rent for the term of the lease, including option periods (referred to as the simplified lease
acquisition threshold – SLAT), the RPLO should use GSA Form 3626, U.S. Government Lease
for Real Property (short form), and its attachments. If the dollar value of the lease will be greater
than the SLAT, the RPLO should use the appropriate lease model (see ch. 40 of this Handbook
for more details).
An electronic version of the GSA Form 3626, U.S. Government Lease for Real Property (short
form) can be accessed at:
http://www.gsa.gov/portal/forms/download/115078.
59.41b - GSA Leasing Delegation
If a lease will be used to procure unimproved land or garage space on a fiscal year basis, the
Forest Service has been granted a standing delegation of authority from GSA to acquire this type
of space without requesting leasing authority from GSA (see ch. 20, sec. 25.31 - 25.32 for details
on categorical and special purpose space delegations).
If a land lease will be used to procure a long-term land lease for the purpose of erecting
permanent structures, the Forest Service has independent authority to acquire this type of space
without requesting leasing authority from GSA (see ch. 20, sec. 23.33 for details on long-term
land leases).
For all other lease acquisitions, the RPLO shall apply to GSA for leasing authority prior to
beginning the lease acquisition process. See chapter 20, section 25 for details on submitting a
Leasing Delegation Authorization Request Application.
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59.41c - Procurement Data
See section 59.23.
59.42 - Unofficial Parking Spaces
Unofficial parking spaces are employee and visitor parking spaces. In general, the Government
is not allowed to use appropriated funds to cover personal expenses such as parking.
Government employees and visitors are typically responsible for coordinating and funding their
own parking arrangements.
59.42a - Procurement Method
The RPLO must evaluate offers to ensure that unofficial parking spaces are not subsidized by the
offered rent. In some areas, such as outside of major metropolitan areas or suburban areas, it is
common for parking to be made available to lessees for employee use at no supplemental cost
because it is mandated by local code requirements.
The Government Accountability Office (GAO) has determined that in isolated cases, agencies
may use appropriated funds to provide parking to its employees when it’s necessary to avoid a
“significant impairment to the agency’s operating efficiency”. In such cases, the RPLO is
responsible for working with the requesting Unit to complete the GSA “Parking Determination
and Findings Document”. This document shall be signed by the Chief of the Forest Service, then
provided to GSA for review. An electronic version of the GSA “Parking Determination and
Findings Document” can be accessed at:
http://www.gsa.gov/portal/forms/download/115078.
If GSA determines that the Forest Service may use appropriated funds to provide parking to its
employees, the RPLO must review the procurement methods described in section 59.41a to
determine which procurement method is most appropriate.
59.42b - GSA Leasing Delegation
See section 59.41b.
59.42c - Procurement Data
See section 59.23.