Implementation of the Delegation of Lease Acquisition Authority

GENERAL SERVICES ADMINISTRATION

[GSA Bulletin FPMR D-239, Supplement 1]

Implementation of the Delegation of Lease Acquisition Authority

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Notice of bulletin.

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SUMMARY: The attached bulletin announces the details for the

implementation of the Delegation of Lease Acquisition Authority from

the General Services Administration.

FOR FURTHER INFORMATION CONTACT:

Ms. Marjorie L. Lomax, Director, Evaluation and Outreach, Office of

Real Property on (202) 501-0379 or the OGP homepage at: http://

policyworks.gov/org/main/mp/linkit.htm.

SUPPLEMENTARY INFORMATION:

Public Buildings and Space

To: Heads of Federal Agencies

Subject: Implementation of the Delegation of Lease Acquisition

Authority

1. Purpose. This bulletin announces the details for the

implementation of the Delegation of Lease Acquisition Authority from

the General Services Administration (GSA).

2. Expiration. This bulletin contains information of a continuing

nature and will remain in effect until canceled.

3. Background. a. The Administrator of General Services signed a

letter on September 25, 1996, to the heads of all Federal agencies

announcing the new ``Can't Beat GSA Leasing'' program and delegating

authority to them to lease space on their own. This bulletin provides

details about the delegation.

b. Federal agencies now have an option to either use GSA when a new

lease is necessary or conduct the lease procurement themselves. The

delegation program includes some conditions which agencies need to meet

when the procurement is not performed by GSA. These conditions,

discussed below, include training in lease contracting, and reporting

data to GSA. Beyond this, GSA's Office of Governmentwide Policy (OGP)

will evaluate the effectiveness of the Government's leasing program.

c. One condition of the delegation is the use of adequately trained

lease contracting officers for procurements. To assist agencies in any

training necessary for their personnel, we are sharing information on

what GSA does. Our specialists complete, at a minimum, five basic

formal training courses. Beyond these courses, GSA requires a

combination of hands-on experience and additional training in

development of space requirements, Federal real property leasing

policies and procedures, space planning, budgeting and property

administration. The basic formal training courses are:

1. Federal Real Property Leasing or Basic Lease Contracting.

2. Government Contract Negotiating or Federal Real Property Leases.

3. Cost and Price Analysis of Leasing Proposals.

4. Real Estate Law or Federal Real Property Lease Law.

5. Real Estate Appraisal Principles.

d. The OGP develops, coordinates and issues Governmentwide policy

as well as evaluates and assesses the effectiveness of policy

implementation. In evaluating the effectiveness of the leasing program,

Federal agencies will be asked to work together with OGP on reviews of

this program. Those agencies using the delegation are asked to provide

OGP with leasing performance data every six months. This data, along

with data from GSA's Public Buildings Service, will permit OGP to

analyze and evaluate the overall Governmentwide leasing program and

recommend fine-tuning to improve it. Initial reports should be provided

by April 30, 1997, and include all actions through the end of March

1997. Specific information regarding data collection is noted below.

4. Action

a. Federal agencies operating under this program are subject to the

conditions and reporting requirements of the delegation of authority.

(1) The semi-annual performance reports are due April 30, and

October 31.

(2) Report should be sent to the GSA, OGP, Office of Real Property

Policy (MP), 18th & F Streets, NW., Room 6223, Washington, DC 20405.

(3) Reports should be presented in a spreadsheet format with a disk

containing the data.

(4) The following definitions are provided for reporting data:

(a) Contract Number.

(b) Building Address--Street address, city and state of the leased

building.

(c) CBA--Is this building within the Central Business Area (CBA)?

(Yes or No)

(d) Number of Offers Received--The number of offers received in

response to the requirement.

(e) Rentable Sq. Ft.--The area for which rent is charged. It is

based on the local commercial method of measurement.

(f) ANSI (BOMA) Usable Sq. Ft.--The assignable space used by the

agency's personnel and furnishings. It is measured to the inside finish

of the dominant portion (e.g. window glass line) of permanent exterior

walls. It also includes circulation within the space assignment. This

term replaces GSA's ``Occupiable'' space measurement.

(g) Rental Range--Provide the high and low dollar per sq. ft. rates

for acceptable properties found during the market survey and from best

and final offers received. (Specify method of measurement used for

square foot rates.)

(h) Effective Rent Rate--The rate is obtained by dividing the total

rent to be paid over the lease term (after deducting from the total

rent any credits due such as cash payments to adjust for rent-free

periods or stepped rents from the lessor) by the length of the lease

term. This is then divided by the rentable square feet in the lease.

Estimated CPI escalations and tax escalations are not to be included in

this calculation.

(i) Annual Contract rent--Total annual rent.

(j) Effective date of Lease--Date the lease takes effect.

(k) Expiration Date--Date the current lease term expires.

(l) Lease Term--The specific terms of the lease including any

cancellations or renewal rights.

(m) Completion Time--The total number of days required from GSA

notice of no suitable available space to lease award.

(n) Build-Out Time--The total number of days required from contract

award to space occupancy.

(o) Comments--This should include information pertinent to the

leasing action including whether fully serviced or what services are

not provided as part of the lease and the cost of such services (e.g.

electricity, cleaning, etc.).

(b) Further information regarding this program may be obtained by

contacting Ms. Marjorie L. Lomax, Director, Evaluation and Outreach,

Office of Real Property on (202) 501-0379 or the OGP homepage at:

http://policyworks.gov/org/main/mp/linkit.htm.

[[Page 66669]]

Dated: December 9, 1996.

G. Martin Wagner,

Associate Administrator for Governmentwide Policy.

[FR Doc. 96-32061 Filed 12-17-96; 8:45 am]

BILLING CODE 6820-23-M