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CHAPTER 2 LEASE LAW

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Solicitation Process
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The government must make sure that the solicitation process is carried out in a reasonable
manner in accordance with the stated evaluation factors and use proper documentation
Establish the delineated area considering Executive Order (EO) 12072 in locating lease space
in the central business area
Once offers are received an agency must have meaningful discussions with those in the
competitive range
After the evaluation is completed and an apparent successful offeror selected, the contracting
officer must determine whether the offeror is responsible. Some responsibility determinations
must involve the Small Business Administration (SBA)
Once the decision is made, the contracting officer’s role in the solicitation process doesn’t stop.
Changes may have been made to the lease
GSA Lease Reform and Forms
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Global RLP and Lease Template
o The global RLP and lease template were developed by GSA to allow more flexibility in
drafting RLP packages to meet the requirements of each individual lease acquisition
Global RLP Package
o GSA Form 3517B General Clauses - must be incorporated by reference to make them a
part of the lease.
o GSA Form 1217, Lessor’s Annual Cost Statement – is included in the RLP Package;
however, it is not incorporated by reference and, therefore, is not a part of the lease. It
is not a pricing document; it is an estimate only.
SLAT (Simplified Lease Acquisition Threshold) Model
o Replaced the simplified lease model
o The SLAT model may be used for any lease acquisition meeting all of the criteria for
use
 Average net annual rent at or below 250,000 (Current SLAT LEVEL)
 The acquisition will use the Lowest Price Technically Acceptable (LPTA) source
selection method
Small Lease
o The small lease process is identified to be less formal than the usual lease acquisition
 Leases of 3,000 ANSI/BOMA Office Area square feet or less not exceeding the
SLAT
o Small leases are fully serviced, turnkey leases with a fixed rent that covers all lessor
costs, including all shell upgrades, tenant improvements, operating costs, taxes, and
security upgrades
Succeeding/Superseding Lease
o The succeeding/superseding lease is a solution for situations where it is in the best
interest of the government to stay in place and a full and open competition would
impose an unnecessary burden on the market and the government
o LAC 2015-06 eliminated the succeeding/superseding lease model.
o These leases now use the global RLP and lease template
Solicitation
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The type of solicitation normally used when negotiating a lease is called a request for lease
proposals (RLP) package. The term negotiation generally implies a series of offers and
counteroffers and written and oral discussions until the parties reach a mutually satisfactory
agreement
Negotiating the terms of the lease enables the LCO/CO to ensure that there is a "meeting of
the minds" and a thorough understanding of the agency's needs
It would generally be self-defeating to rely on an offeror's promise, alone, to meet the agency's
requirements
Evaluation Criteria
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After proposals have been received, the government is required to evaluate them based on the
precise criteria announced in the solicitation
The reason for this is to demonstrate that the agency acted properly in evaluating every
proposal against the criteria and plan that was a part of the proposal
Competitive Range
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The question of competitive range – which has been held by GAO to encompass both price
and technical considerations is whether the offeror’s proposal should be included in
discussions or rejected
The rule is that the competitive range must include all of the most highly rated proposals
unless the range is further reduced for the purpose of efficiency
If the LCO/CO intends to conduct discussions, which is normal in leasing, he/she must
establish a competitive range. In establishing a competitive range, the LCO/CO has to follow 2
rules
o The first rule is found in FAR 15.306 and requires that the competitive range include all
of the most highly rated proposals, unless further reduced for efficiency. In addition to
the FAR rule, there is a second rule that is required by the Comptroller General (GAO).
o The second rule, as required by the Comptroller General (GAO) states that “any offer
included in the competitive range must have a reasonable chance of selection.” Not any
chance, but a reasonable chance. Finally, if discussions are conducted, the LCO/CO
must hold discussions with all offerors in the competitive range.
Necessity for Discussions
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If a competitive range is established, there must be meaningful discussions
These discussions are exchanges between the government and offerors that are undertaken
with the intent of allowing the offerors to revise their proposals
Discussions must be held with all offerors in the competitive range
The requirement for discussions includes advising offerors of deficiencies and significant
weaknesses in their proposals and offering them the opportunity to satisfy the government’s
requirements through the submission of revised proposals
Discussions are not required but, as noted above, if discussions are conducted, the LCO/CO
must conduct meaningful discussions with all offerors in the competitive range and advise all
offerors of
o 1) deficiencies
o 2) significant weaknesses;
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o 3) mistakes.
o 4) adverse past performance to which the offeror has not had an opportunity to
respond, and its relevance, if any; and.
Agencies are not, however, obligated to afford offerors all-encompassing discussions or
discuss every element of a technically acceptable proposal that has received less than the
maximum possible rating
Likewise, there is no requirement on the part of an agency to identify relative weakness. In a
proposal that is technically acceptable but presents a relatively less desirable approach than
others received
Ending Discussions
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At the conclusion of discussions, inform offerors that discussions have been concluded, offers
are being given an opportunity to submit written final proposal revisions
Evaluation and Selection
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To ensure that prices are fair and reasonable, some proposal analysis concerning price must
be made
Price analysis is the process of examining and evaluating a proposed price without evaluating
its separate cost elements and proposed profit
Each price analysis technique involves comparing the proposed price with one or more prices
An independent government estimate is often also required
In leasing, price analysis for the shell rent and operation costs begins with the definition of
requirements and ends at the point of award
If using the tradeoff source selection approach, the government has the right to select a lessor
that will charge a higher rent for a higher quality building, or vice versa
Debriefing
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Debriefing is the process by which the government provides unsuccessful offerors with the
government’s evaluation, or any significant factors contained in their proposals, citing the
weaknesses and deficiencies noted. The purpose behind a debriefing, either before or after
award, is to explain to the unsuccessful offeror why its offer was not selected
An offeror who is entitled to a debriefing, must request that debriefing within 3 days of receipt
of notice of exclusion from the competitive range or the receipt of a Notice of Award (to another
offeror).
At the request of the offeror to be debriefed, a pre-award debriefing may be delayed until after
award.
The Lease Contracting Officer normally chair the debriefing session, with other team members
providing support
Responsibility
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Before awarding a lease to an offeror, the offeror must be determined to be responsible in
accordance with the standards in FAR 9.104
If the offeror is a small business, the contracting officer, must refer the matter to SBA before
excluding the offeror as not responsible. SBA will review the contracting officer’s determination
of no responsibility and either issue or deny the offeror a certificate of competency
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o The LCO/CO must forward a nonresponsibility decision for review before excluding
either the small business lessor or small business offeror as nonresponsible
o However, the LCO/CO always makes an initial finding of nonresponsibility before
referring that finding to the SBA. The LCO/CO only forwards this matter to the SBA if
he/she makes an initial nonresponsibility finding
If SBA finds the offeror responsible and issues a COC, the contracting officer must accept this
determination and award to the offeror if otherwise successful
o NAICS Code (Real Estate Leasing) internet URL: https:/ /www.sba.gov/ content/smallbusiness-sizestandards). NAICS Codes for Real Estate Leasing are found on Sticky
Notes Pages 18 & 19.
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