[Federal Register Volume 76, Number 103 (Friday, May 27, 2011)]
[Rules and Regulations]
[Pages 30842-30855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-12198]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 501, 552, and 570

[GSAR Amendment 2011-01; GSAR Case 2006-G508 (Change 48) Docket 2009-
0017; Sequence 1]
RIN 3090-AI96


General Services Administration Acquisition Regulation; Rewrite 
of Part 570; Acquiring Leasehold Interests in Real Property

AGENCY: Office of Acquisition Policy, General Services Administration 
(GSA).

ACTION: Final rule.

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SUMMARY: The General Services Administration (GSA) is amending the 
General Services Administration Acquisition Regulation (GSAR) to revise 
sections that provide requirements for acquiring leasehold interests in 
real property.

DATES: Effective Date: June 27, 2011.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms.

[[Page 30843]]

Deborah Lague, Procurement Analyst, at (202) 694-8149. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat (MVCB), 1275 First Street, 7th Floor, Washington, DC 20417, 
(202) 501-4755. Please cite GSAR Case 2006-G508.

SUPPLEMENTARY INFORMATION:

A. Background

    On December 4, 2009, GSA published in the Federal Register at 74 FR 
63704, a Proposed Rule with a request for comments. As a result, public 
comments were received.
    GSA is amended the GSAR subpart 501.106 by removing the reference 
to ``570.702(c)'' and adding ``570.802(c)'' and ``570.802(d)'' in their 
place.
    GSA moved advertising requirements from Part 505 to section 
570.106, Advertising, Publicizing, and Notifications to Congress, since 
most of the guidance on advertising requirements contained in Part 505 
relate to the leasing program. The changes to Part 505 have already 
been implemented in GSAR case 2008-G503, published in the Federal 
Register at 75 FR 32860, June 10, 2010.
    GSA is amending the GSAR to revise GSAR Part 570, Acquiring 
Leasehold Interests in Real Property. In summary, GSA is amending this 
part to update regulatory provisions that are applicable to lease 
transactions; to provide sustainability guidance on implementing 
Executive Order 13514 and Guiding Principles for Federal Leadership in 
High Performance and Sustainable Buildings; to delete the dollar value 
of the simplified lease acquisition threshold and instead reference 
Federal Acquisition Regulation (FAR) 2.101 for information about the 
threshold; and to clarify the meaning and improve the readability of 
this part. In addition, GSA is moving advertising requirements from 
Part 505 to Part 570, since most of the guidance on advertising 
requirements contained in Part 505 relate to the leasing program.
    This rule revises GSAR 570 as follows:
    Overall changes were made throughout the text to change ``you'' to 
``contracting officer,'' and to edit language for clarity.
    GSAR 570.101(b) is revised to delete GSAR rules that are no longer 
applicable to the acquisition of leasehold interests in real property 
and to add current references to GSAR 522.805, 522.807, and 532.111.
    GSAR 570.101(c) is revised to update the GSAR provisions that are 
applicable in leasing transactions. This section is revised to delete 
GSAM sections from the GSAR and move them to the GSAM, the non-
regulatory portion of the manual.
    GSAR 570.101(d) is added to explain that the FAR does not apply to 
leasehold acquisitions of real property and to further explain that 
references to the FAR in Part 570 are used as a matter of policy where 
the underlying statute behind the FAR provision applies to leasing or 
as matter of administrative convenience.
    GSAR 570.102 is revised to add definitions for ``ANSI/BOMA Office 
Area (ABOA)'', ``lease acquisition,'' ``lease extension,'' ``lease 
renewal (option),'' ``succeeding lease,'' and ``superseding lease.'' 
The definition for ``simplified lease acquisition threshold'' is 
revised to delete the dollar value, and instead reference FAR 2.101 for 
information about the threshold. The definition for ``small business'' 
is revised to delete the dollar limit for annual average gross receipts 
and to reference the size standard established by the Small Business 
Administration. Further revisions were made to include where the size 
standards may be found on the web. The definition of ``rent and related 
services'' is deleted because it is not used within the subpart. The 
definition for ``space in buildings'' is deleted because this 
definition was only referenced at 570.105-3 which is also being 
deleted.
    GSAR 570.103 is revised to update the statutory reference to 
leasing authority. In addition, GSAR 570.103 is revised, consistent 
with statute and regulation, to allow the contracting officer to 
designate a contracting officer's representative.
    GSAR 570.105-2 is re-titled, Criteria for the Use of Two-phase 
Design-build. GSAR 570.105-2 is revised to update the statutory 
reference to leasing authority. GSAR 570.105-2(c) is added to reference 
570.305, where additional procedures can be found regarding two-phase 
design-build selections that apply to acquisition of leasehold 
interests.
    GSAR 570.105-3 is deleted in its entirety because sealed bidding is 
not used in GSA leasing transactions. Since negotiations or discussions 
are not allowed under sealed bidding, GSA has determined that the use 
of negotiated acquisition procedures in real property lease 
acquisitions enables GSA to clarify and explain SFO requirements to 
more effectively address the unique elements of each property and 
obtain better lease pricing.
    GSAR 570.106 is re-titled Advertising, Publicizing, and 
Notifications to Congress, and revised to incorporate advertising 
requirements from Part 505, because most of the exceptions to 
advertising requirements contained in Part 505 relate to the leasing 
program.
    GSAR 570.106-1, Synopsis of Lease Awards, is added to incorporate 
synopsizing requirements of lease awards from Part 505.
    GSAR 570.108 is revised to update reference to ``Excluded Parties 
List System'' (EPLS).
    GSAR 570.109 is revised to add the language ``representations and'' 
for clarification.
    GSAR 570.110 is revised to require the contracting officer to 
obtain two bids or cost and pricing data for price analysis of offered 
tenant improvement costs.
    GSAR 570.111 is revised to require that the inspection and 
acceptance document contain the ANSI/BOMA Office Area (ABOA) square 
footage accepted and the acceptance date.
    GSAR 570.115, Novation and Change of Ownership, is added to include 
language stating that FAR 42.12 applies in the event of a transfer of 
ownership of the leased premises or a change in the lessor's legal 
name.
    GSAR 570.116, Contract Format, is added to include language stating 
that the uniform contract format is not required for leases of real 
property.
    GSAR 570.117, Sustainable Requirements for Lease Acquisitions, is 
added to add a requirement for the contracting officer to include 
sustainable design requirements appropriate for the type of leasing 
action in the solicitations for offers, to identify the location of 
solicitation requirements and instructions on http://www.gsa.gov/leasing, and to include guidance on Executive Order 13514 and the 
Guiding Principles for Federal Leadership in High Performance and 
Sustainable Buildings.
    GSAR 570.203-3(a), is revised to add a reference to ``GSA Form 
3626'' for clarity and to require the contracting officer to include 
sustainable design requirements in offers.
    GSAR 570.203-4 is revised to include a reference to the thresholds 
at FAR 15.403-4 and 19.702(a). It is further revised to require that 
the contracting officer make an affirmative determination of price 
reasonableness.
    GSAR Subpart 570.3 is renamed Acquisition Procedures for Leasehold 
Interests in Real Property Over the Simplified Lease Acquisition 
Threshold.
    GSAR 570.303-1 is revised to add a requirement that each 
Solicitation for Offers (SFO) must include sustainable design 
requirements.
    GSAR 570.303-2 is revised to allow electronic issuance of 
solicitations.
    GSAR 570.303-4 is revised to require contracting officers to re-
advertise and

[[Page 30844]]

reissue a solicitation when a complete revision of a solicitation is 
required in accordance with GSAR 570.106.
    GSAR 570.304 is revised to adequately distinguish between best 
value and low price technically acceptable acquisitions.
    GSAR 570.305 is revised to require the contracting officer to 
consider planned subcontracting opportunities for small disadvantaged 
business concerns during phase one evaluations.
    GSAR 570.306(b) is revised to require the contracting officer to 
review the elements of the lessor's proposed rent to analyze whether 
the individual elements are realistic and reflect the lessor's 
understanding of work to be performed. GSAR 570.306(c) is revised to 
add information on past performance evaluations. GSAR 570.306(f) was 
revised to direct the reader to important paragraphs in Part 570 
concerning the evaluation of offers.
    GSAR 570.401 is revised to add language indicating that if a 
renewal option was not evaluated as part of the lease at award, then 
the addition of a renewal option during the lease term must satisfy the 
requirements of GSAM 506 regarding full and open competition.
    GSAR 570.402-2 is revised to update the reference to publication 
and advertising requirements for leases.
    GSAR 570.404 is revised to clarify that a superseding lease may be 
used when market conditions warrant renegotiation of an existing lease, 
and to provide considerations of a cost benefit analysis.
    GSAR 570.405 is revised to provide examples of situations where 
lease extensions may be appropriate.
    GSAR 570.501(a) is revised to explain that the procedures in 
570.502 apply to alterations acquired directly from a lessor by 
modification or supplemental lease agreement.
    GSAR 570.502 is deleted because this information is addressed in 
570.501(a).
    GSAR 570.502-1 is revised to tie the threshold to the FAR 
definition of the micro-purchase threshold.
    GSAR 570.502-2 is revised to delete language referencing progress 
payments. This section is further revised to allow the lease 
contracting officer to delegate alteration contracting authority to a 
warranted contracting officer's representative in GSA or the tenant 
agency.
    GSAR 570.503 is revised to delete paragraph (b) from the GSAM and 
incorporate it into the GSAR.
    New section GSAR 570.6 Contracting for Overtime Services and 
Utilities in Leases is added to provide requirements for when overtime 
services and utilities are needed.
    GSAR 570.601 is renumbered as 570.701 and is revised to delete the 
reference to the dollar value of the thresholds, and to instead provide 
the FAR reference because the thresholds may change. GSAR 570.601 is 
revised to include the following additional FAR provisions or clauses 
that must be included in solicitations:
    52.204-6, Data Universal Numbering system (DUNS) Number;
    52.204-7, Central Contractor Registration;
    52.219-28, Post-Award Small Business Program Rerepresentation (use 
if lease term exceeds five years),
    52.232-33, Electronic Funds Transfer--Central Contractor 
Registration;
    52.222-36, Affirmative Action for Workers with Disabilities;
    52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards;
    52.204-5, Women-Owned Business (Other than Small Business);
    52.203-13, Contractor Code of Business Ethics and Conduct;
    52.203-14, Display of Hotline Poster(s).
    GSAR 570.602 and 570.603 are renumbered as 570.702 and 703, 
respectively, and are revised to require the contracting officer to 
document the file when deleting or substantially changing a clause. 
GSAR 570.603 is further revised to number the paragraphs (a) and (b), 
and to include language in paragraphs (a) and (b) to require the 
contracting officer to include the following additional clauses in 
leaseholds for real property:
    552.215-70, Examination of Records by GSA;
    552.270-28, Mutuality of Obligation;
    552.270-29, Acceptance of Space;
    552.270-30, Price Adjustment for Illegal or Improper Activity;
    552.270-31, Prompt Payment;
    552.270-32, Covenant Against Contingent Fees.
    GSAR 570.604 is renumbered as 570.704 and is revised to delete the 
reference to clause 552.203-5, Covenant Against Contingent Fees, 
because the updated clause number is now referenced in 570.703.
    GSAR 570.701 is renumbered as 570.801 and is revised to delete the 
instructions to omit the reference to Standard Form (SF)2-A.
    GSAR 570.802(d) is added to allow the use of the GSA Form 1217, 
Lessor's Annual Cost Statement, to obtain pricing information regarding 
offered services and lease commissions.
    The clause at 552.270-1, Instructions to Offerors--Acquisition 
Leasehold Interest in Real Property, is revised to add language 
requiring execution and delivery of a lease to effectuate contract 
formation. It also adds paragraph (f) to address paperwork collection 
information.
    The provision at 552.270-3, Parties to Execute Leases, is revised 
to make it consistent with the instructions contained in FAR 4.102.
    The clause at 552.270-7, Fire and Casualty Damage, is revised to 
permit the government to assess a property's condition before giving 
notice of termination.
    The clause at 552.270-14, Changes, is revised to change ``usable 
square foot'' to ``ABOA square foot,'' and to specify the impact of the 
failure to assert a claim for a price adjustment.
    The clause at 552.270-16, Adjustment for Vacant Premises, is 
revised to clarify when and how adjustments for vacant premises will be 
made.
    The clause at 552.270-18, Default in Delivery--Time Extensions, is 
revised to update the terminology of ``usable square footage'' to 
``ABOA square footage.''
    The clause at 552.270-20, Payment, is revised to update the 
terminology of ``usable square footage'' to ``ABOA square footage.''
    The clause at 552.270-29, Acceptance of Space, is revised to update 
the terminology of ``usable square footage'' to ``ABOA square footage'' 
and to simplify the reference to a section in the solicitation.
    The following clauses were added to GSAR Part 570: 552.270-30, 
Price Adjustment for Illegal or Improper Activity; 552.270-31, Prompt 
Payment; and 552.270-32, Covenant Against Contingent Fees.

B. Discussion of Comments

    Two public comments from one respondent were received in response 
to the proposed rule.
    Comment: One comment recommended deleting the language ``and 
delivery'' at GSAR 552.270-1(e)(7), Instructions to Offerors.
    Response: Do not concur. Execution and delivery in the legal sense 
are both necessary elements to effectuate the contract. Absent 
delivery, the offeror would not know that the contract was executed and 
that the offeror was bound to perform.
    Comment: The second comment recommended at GSAM 570.106-1(c), for 
the posting of a justification for other than full and open competition 
on the FedBizOpps website, be revised to clarify when the justification 
is to be posted.

[[Page 30845]]

    Response: Do not concur. Justifications for other than full and 
open are required to be posted after award by Section 844 of the 
National Defense Authorization Act for Fiscal Year 2008, ``Public 
Disclosure of Justification and Approval Documents for Noncompetitive 
Contracts''. Parties receive notice of the opportunity to express 
interest in the leasing action by posting of the notice required by 
section GSAM 570.402-2 of the proposed regulation.

C. Executive Orders 12866 and 13563

    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.
    In accordance with Executive Order 13563, Improving Regulation and 
Regulatory Review, dated January 18, 2011, GSA determined that this 
rule is not excessively burdensome to the public, and is consistent 
with amending the General Services Administration Acquisition 
Regulation (GSAR) to revise GSAR Part 570, Acquiring Leasehold 
Interests in Real Property.

D. Regulatory Flexibility Act

    The General Services Administration certifies that this final rule 
will not have a significant economic impact on a substantial number of 
small entities within the meaning of the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq., because the rule is not considered substantive. It 
clarifies existing language, deletes obsolete coverage, and edits 
existing language.

E. Paperwork Reduction Act

    The Paperwork Reduction Act does apply; however, these changes to 
the GSAR do not impose additional information collection requirements 
to the paperwork burden previously approved under OMB Control Number 
3090-0086.
    The Paperwork Reduction Act applies because the rule contains 
information collection requirements. Accordingly, the Regulatory 
Secretariat has forwarded a request to receive approval of the new 
information collection requirement concerning GSAR Case 2006-G508, 
Acquiring Leasehold Interests in Real Property, to the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

Annual Reporting Burden

    At 570.702(d), the contracting officer may use GSA Form 1217, 
Lessor's Annual Cost Statement, to obtain pricing information regarding 
offered services and lease commissions.
    The annual reporting burden is estimated as follows:
    Respondents: 5,733.
    Responses per respondent: 1.
    Total annual responses: 5,733.
    Preparation hours per response: 1 hour.
    Total response burden hours: 5,733.
    Public reporting burden for this collection of information is 
estimated to average 1 hour per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.

List of Subjects in 48 CFR Parts 501, 552, and 570

    Government procurement.

    Dated: May 12, 2011.
Rodney P. Lantier,
Deputy Director, Office of Acquisition Policy.

    Therefore, GSA amends 48 CFR parts 501, 552, and 570 as set forth 
below:

0
1. The authority citation for 48 CFR parts 501, 552, and 570 continues 
to read as follows:

    Authority:  40 U.S.C. 121(c).

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION 
SYSTEM


501.106  [Amended]

0
2. Amend section 501.106 by removing from the table the entry 
``570.702(c)'' and adding the entries ``570.802(c)'' and ``570.802(d)'' 
in its place to read as follows:


501.106  OMB Approval under the Paperwork Reduction Act.

------------------------------------------------------------------------
                                                            OMB control
                     GSAR reference                             No.
------------------------------------------------------------------------
 
                                * * * * *
570.802(c)..............................................       3090-0086
570.802(d)..............................................       3090-0086
------------------------------------------------------------------------

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Amend section 552.270-1 by--
0
a. Removing from the introductory text ``570.602'' and adding 
``570.702'' in its place;
0
b. Removing from the introductory text ``MAR 1998'' and adding ``JUN 
2011'' in its place;
0
c. Removing from paragraph (a) in the definition heading, ``In Writing 
or Written'' and adding ``In writing, writing or written'' in its 
place, and removing ``which'' and adding ``that'' in its place;
0
d. Removing from paragraph (c)(2)(i)(A) ``5th'' and adding ``fifth'' in 
its place;
0
e. Adding in paragraph (c)(2)(i)(E) the word ``that'' before ``the 
Contracting Officer'';
0
f. Revising paragraph (e)(7);
0
g. Adding paragraph (f); and
0
h. Removing from Alternates I and II ``570.602'' and adding ``570.702'' 
in their place.
    The newly added and revised text reads as follows:


552.270-1  Instructions to Offerors--Acquisition of Leasehold Interests 
in Real Property.

* * * * *
    (e) * * *
    (7) The execution and delivery of the Lease contract by the 
Government establishes a valid award and contract.
* * * * *
    (f) Paperwork collection. The information collection requirements 
contained in this solicitation/contract are either required by 
regulation or approved by the Office of Management and Budget pursuant 
to the Paperwork Reduction Act and assigned OMB Control No. 3090-0163.
* * * * *


552.270-2  [Amended]

0
4. Amend section 552.270-2 by removing from the introductory text 
``570.602'' and adding ``570.702'' in its place.

0
5. Amend section 552.270-3 by--
0
a. Removing from the introductory text ``570.602'' and adding 
``570.702'' in its place;
0
b. Removing from the date of the provision ``Sep 1999'' and adding 
``JUN 2011'' in its place;
0
c. Revising paragraph (a);
0
d. Removing from paragraph (b) ``shall be signed with'' and adding 
``must be signed in'' in its place, and removing ``, if requested by 
the government,'';
0
e. Removing from paragraph (c) ``shall be signed with'' and adding 
``must be signed in'' in its place; and
0
f. Adding paragraphs (d) and (e).
    The revised and added text reads as follows:


552.270-3  Parties to Execute Lease.

* * * * *
    (a) If the lessor is an individual, that individual shall sign 
the lease. A lease with an individual doing business as a firm shall 
be signed by that individual, and the signature shall be followed by 
the individual's typed, stamped, or printed name and the words, ``an 
individual doing business as ------ [insert name of firm].''
* * * * *
    (d) If the Lessor is a joint venture, the lease must be signed 
by each participant in the

[[Page 30846]]

joint venture in the manner prescribed in paragraphs (a) through (c) 
of this provision for each type of participant. When a corporation 
is participating in the joint venture, the corporation shall provide 
evidence that the corporation is authorized to participate in the 
joint venture.
    (e) If the lease is executed by an attorney, agent, or trustee 
on behalf of the Lessor, an authenticated copy of the power of 
attorney, or other evidence to act on behalf of the Lessor, must 
accompany the lease.
* * * * *
0
6. Amend section 552.270-4 by--
0
a. Removing from the introductory text ``570.603'' and adding 
``570.703'' in its place;
0
b. Removing paragraph (l); and
0
c. Redesignating paragraphs (a) through (k) as (b) through (l) 
respectively; and adding a new paragraph (a).
    The newly added text reads as follows:


552.270-4  Definitions.

* * * * *
    (a) ANSI/BOMA Office Area (ABOA) means the area ``where a tenant 
normally houses personnel, and/or furniture, for which a measurement 
is to be computed,'' as stated by the American National Standards 
Institute/Building Owners and Managers Association (ANSI/BOMA) 
publication, Z65.1-1996.
* * * * *


552.270-5  [Amended]

0
7a. Amend section 552.270-5 in the introductory text by removing 
``570.603'' and adding ``570.703'' in their place.


552.270-6  [Amended]

0
7b. Amend section 552.270-6 in the introductory text by removing 
``570.603'' and adding ``570.703'' in their place.


552.270-7  [Amended]

0
8. Amend section 552.270-7 by--
0
a. Removing from the introductory text ``570.603'' and adding 
``570.703'' in its place;
0
b. Removing from the date of the clause ``Sep 1999'' and adding ``JUN 
2011'' in its place; and
0
c. Removing ``of the fire or other casualty'' and adding ``after such 
determination'' in its place.


552.270-8  [Amended]

0
9a. Amend section 552.270-8 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-9  [Amended]

0
9b. Amend section 552.270-9 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-10  [Amended]

0
9c. Amend section 552.270-10 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-11  [Amended]

0
9d. Amend section 552.270-11 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-12  [Amended]

0
9e. Amend section 552.270-12 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-13  [Amended]

0
9f. Amend section 552.270-13 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.
0
10. Amend section 552.270-14 by--
0
a. Removing from the introductory text ``570.603'' and adding 
``570.703'' in its place, and removing ``Sep 1999'' and adding ``Jun 
2011'' in its place;
0
b. Removing from paragraph (b)(4) ``usable'' and adding ``ABOA'' in its 
place; and
0
c. Adding a new sentence to paragraph (c) after the first sentence.
    The added text reads as follows:


552.270-14  Changes.

* * * * *
    (c) * * * The Lessor's failure to assert its right for adjustment 
within the time frame specified herein shall be a waiver of the 
Lessor's right to an adjustment under this paragraph. * * *
* * * * *


552.270-15  [Amended]

0
11. Amend section 552.270-15 by removing ``570.603'' and adding 
``570.703'' in its place.
0
12. Revise section 552.270-16 to read as follows:


552.270-16  Adjustment for Vacant Premises.

    As prescribed in 570.703, insert the following clause:

Adjustment for Vacant Premises (JUN 2011)

    (a) If the Government fails to occupy any portion of the leased 
premises or vacates the premises in whole or in part before the 
lease term expires, the rental rate will be reduced. The reduction 
shall occur after the Government gives 30 calendar days notice to 
the Lessor, and shall continue in effect until the Government 
occupies or reoccupies the vacant premises or the lease expires or 
is terminated.
    (b) The rate will be reduced by that portion of the costs per 
ABOA square foot of operating expenses not required to maintain the 
space. In addition, at the first operating cost adjustment after the 
notice of reduction to the rent, the base cost of services subject 
to escalation will be reduced by said amount. In the event that the 
Government occupies or reoccupies the vacant premises on the lease 
anniversary date following the occupation of the vacant premises, 
the base cost of services subject to escalation will be increased by 
said amount.
    (c) The reduction in operating costs shall be negotiated and 
stated in the lease.


(End of clause)


552.270-17  [Amended]

0
13. Amend section 552.270-17 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-18  [Amended]

0
14. Amend section 552.270-18 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place and removing from 
paragraph (c) ``usable'' and adding ``ABOA'' in its place.


552.270-19  [Amended]

0
15. Amend section 552.270-19 by removing ``570.603'' and adding 
``570.703'' in its place.


552.270-20  [Amended]

0
16. Amend section 552.270-20 by--
0
a. Removing from the introductory text ``570.603'' and adding 
``570.703'' in its place;
0
b. Removing from paragraphs (a), (b), and (c) ``usable'' and adding 
``ABOA'' in its place five times; and
0
c. Removing from paragraph (c) ``Usable'' and adding ``ABOA'' in its 
place, and removing ``USF'' two times.


552.270-21  [Amended]

0
17a. Amend section 552.270-21 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-22  [Amended]

0
17b. Amend section 552.270-22 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-23  [Amended]

0
17c. Amend section 552.270-23 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-24  [Amended]

0
17d. Amend section 552.270-24 in the introductory text by removing

[[Page 30847]]

``570.603'' and adding ``570.703'' in its place.


552.270-25  [Amended]

0
17e. Amend section 552.270-25 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-26  [Amended]

0
17f. Amend section 552.270-26 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-27  [Amended]

0
17g. Amend section 552.270-27 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-28  [Amended]

0
17h. Amend section 552.270-28 in the introductory text by removing 
``570.603'' and adding ``570.703'' in its place.


552.270-29  [Amended]

0
18. Amend section 552.270-29 by--
0
a. Removing from the introductory text ``570.603'' and adding 
``570.703'' in its place;
0
b. Removing from date of the clause ``Sep 1999'' and adding ``Jun 
2011'' in its place; and
0
c. Amending paragraph (b) by removing ``usable square footage as 
indicated in Paragraph 1.1, Amount and Type of Space, of this 
solicitation'' and adding ``ABOA square footage as indicated in the 
solicitation paragraph, Amount and Type of Space'' in its place.

0
19. Add new sections 552.270-30, 552.270-31, and 552.270-32 to read as 
follows:


552.270-30  Price Adjustment for Illegal or Improper Activity.

    As prescribed in 570.703, insert the following clause:

Price Adjustment for Illegal or Improper Activity (JUN 2011)

    (a) If the head of the contracting activity (HCA) or his or her 
designee determines that there was a violation of subsection 27(a) 
of the Office of Federal Procurement Policy Act, as amended (41 
U.S.C. 423), as implemented in the Federal Acquisition Regulation, 
the Government, at its election, may--
    (1) Reduce the monthly rental under this lease by five percent 
of the amount of the rental for each month of the remaining term of 
the lease, including any option periods, and recover five percent of 
the rental already paid;
    (2) Reduce payments for alterations not included in monthly 
rental payments by five percent of the amount of the alterations 
agreement; or
    (3) Reduce the payments for violations by a Lessor's 
subcontractor by an amount not to exceed the amount of profit or fee 
reflected in the subcontract at the time the subcontract was placed.
    (b) Prior to making a determination as set forth above, the HCA 
or designee shall provide to the Lessor a written notice of the 
action being considered and the basis thereof. The Lessor shall have 
a period determined by the agency head or designee, but not less 
than 30 calendar days after receipt of such notice, to submit in 
person, in writing, or through a representative, information and 
argument in opposition to the proposed reduction. The agency head or 
designee may, upon good cause shown, determine to deduct less than 
the above amounts from payments.
    (c) The rights and remedies of the Government specified herein 
are not exclusive, and are in addition to any other rights and 
remedies provided by law or under this lease.


(End of clause)


552.270-31  Prompt Payment.

    As prescribed in 570.703, insert the following clause:

Prompt Payment (JUN 2011)

    The Government will make payments under the terms and conditions 
specified in this clause. Payment shall be considered as being made 
on the day a check is dated or an electronic funds transfer is made. 
All days referred to in this clause are calendar days, unless 
otherwise specified.
    (a) Payment due date--(1) Rental payments. Rent shall be paid 
monthly in arrears and will be due on the first workday of each 
month, and only as provided for by the lease.
    (i) When the date for commencement of rent falls on the 15th day 
of the month or earlier, the initial monthly rental payment under 
this contract shall become due on the first workday of the month 
following the month in which the commencement of the rent is 
effective.
    (ii) When the date for commencement of rent falls after the 15th 
day of the month, the initial monthly rental payment under this 
contract shall become due on the first workday of the second month 
following the month in which the commencement of the rent is 
effective.
    (2) Other payments. The due date for making payments other than 
rent shall be the later of the following two events:
    (i) The 30th day after the designated billing office has 
received a proper invoice from the Contractor.
    (ii) The 30th day after Government acceptance of the work or 
service. However, if the designated billing office fails to annotate 
the invoice with the actual date of receipt, the invoice payment due 
date shall be deemed to be the 30th day after the Contractor's 
invoice is dated, provided a proper invoice is received and there is 
no disagreement over quantity, quality, or Contractor compliance 
with contract requirements.
    (b) Invoice and inspection requirements for payments other than 
rent. (1) The Contractor shall prepare and submit an invoice to the 
designated billing office after completion of the work. A proper 
invoice shall include the following items:
    (i) Name and address of the Contractor.
    (ii) Invoice date.
    (iii) Lease number.
    (iv) Government's order number or other authorization.
    (v) Description, price, and quantity of work or services 
delivered.
    (vi) Name and address of Contractor official to whom payment is 
to be sent (must be the same as that in the remittance address in 
the lease or the order).
    (vii) Name (where practicable), title, phone number, and mailing 
address of person to be notified in the event of a defective 
invoice.
    (2) The Government will inspect and determine the acceptability 
of the work performed or services delivered within seven days after 
the receipt of a proper invoice or notification of completion of the 
work or services unless a different period is specified at the time 
the order is placed. If actual acceptance occurs later, for the 
purpose of determining the payment due date and calculation of 
interest, acceptance will be deemed to occur on the last day of the 
seven day inspection period. If the work or service is rejected for 
failure to conform to the technical requirements of the contract, 
the seven days will be counted beginning with receipt of a new 
invoice or notification. In either case, the Contractor is not 
entitled to any payment or interest unless actual acceptance by the 
Government occurs.
    (c) Interest Penalty. (1) An interest penalty shall be paid 
automatically by the Government, without request from the 
Contractor, if payment is not made by the due date.
    (2) The interest penalty shall be at the rate established by the 
Secretary of the Treasury under Section 12 of the Contract Disputes 
Act of 1978 (41 U.S.C. 611) that is in effect on the day after the 
due date. This rate is referred to as the ``Renegotiation Board 
Interest Rate,'' and it is published in the Federal Register 
semiannually on or about January 1 and July 1. The interest penalty 
shall accrue daily on the payment amount approved by the Government 
and be compounded in 30-day increments inclusive from the first day 
after the due date through the payment date.
    (3) Interest penalties will not continue to accrue after the 
filing of a claim for such penalties under the clause at 52.233-1, 
Disputes, or for more than one year. Interest penalties of less than 
$1.00 need not be paid.
    (4) Interest penalties are not required on payment delays due to 
disagreement between the Government and Contractor over the payment 
amount or other issues involving contract compliance or on amounts 
temporarily withheld or retained in accordance with the terms of the 
contract. Claims involving disputes, and any interest that may be 
payable, will be resolved in accordance with the clause at 52.233-1, 
Disputes.
    (d) Overpayments. If the Lessor becomes aware of a duplicate 
payment or that the Government has otherwise overpaid on a payment, 
the Contractor shall--

[[Page 30848]]

    (1) Return the overpayment amount to the payment office cited in 
the contract along with a description of the overpayment including 
the--
    (i) Circumstances of the overpayment (e.g., duplicate payment, 
erroneous payment, liquidation errors, date(s) of overpayment);
    (ii) Affected lease number;
    (iii) Affected lease line item or subline item, if applicable; 
and
    (iv) Lessor point of contact.
    (2) Provide a copy of the remittance and supporting 
documentation to the Contracting Officer.


(End of clause)
    Alternate I (Sep 1999). If Alternate I is used, subparagraph (a)(1) 
of the basic clause should be designated as paragraph (a) and 
subparagraph (a)(2) and paragraph (b) should be deleted. Paragraph (c) 
of the basic clause should be redesignated as (b).


552.270-32  Covenant Against Contingent Fees.

    As prescribed in 570.703, insert the following clause:

Covenant Against Contingent Fees (JUN 2011)

    (a) The Contractor warrants that no person or agency has been 
employed or retained to solicit or obtain this contract upon an 
agreement or understanding for a contingent fee, except a bona fide 
employee or agency. For breach or violation of this warranty, the 
Government shall have the right to annul this contract without 
liability or, in its discretion, to deduct from the contract price 
or consideration, or otherwise recover the full amount of the 
contingent fee.
    (b) Bona fide agency, as used in this clause, means an 
established commercial or selling agency (including licensed real 
estate agents or brokers), maintained by a Contractor for the 
purpose of securing business, that neither exerts nor proposes to 
exert improper influence to solicit or obtain Government contracts 
nor holds itself out as being able to obtain any Government contract 
or contracts through improper influence.
    Bona fide employee, as used in this clause, means a person, 
employed by a Contractor and subject to the Contractor's supervision 
and control as to time, place, and manner of performance, who 
neither exerts nor proposes to exert improper influence to solicit 
or obtain Government contracts nor holds out as being able to obtain 
any Government contract or contracts through improper influence.
    Contingent fee, as used in this clause, means any commission, 
percentage, brokerage, or other fee that is contingent upon the 
success that a person or concern has in securing a Government 
contract.
    Improper influence, as used in this clause, means any influence 
that induces or tends to induce a Government employee or officer to 
give consideration or to act regarding a Government contract on any 
basis other than the merits of the matter.


(End of clause)

PART 570--ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY

0
20. Amend section 570.101 by--
0
a. Removing from paragraph (b), from the table, ``504.5'', ``505'', 
``514.201-7(b)'', ``515.204-1'', ``522.8'', ``532.1'', and ``532.908'' 
and adding, in numerical order, ``522.805'', ``522.807'', and 
``532.111'', respectively; and
0
b. Adding a paragraph (d).
    The added text reads as follows:


570.101  Applicability.

* * * * *
    (d) The FAR does not apply to leasehold acquisitions of real 
property. Where referenced in this part, FAR provisions have been 
adopted based on a statutory requirement applicable to such lease 
acquisitions or as a matter of policy, including, but not limited to 
``Federal agency procurement'' as defined at FAR 3.104.
0
21. Amend section 570.102 by--
0
a. Removing the definition ``Acquisition'';
0
b. Adding, in alphabetical order, the definition ``ANSI/BOMA Office 
Area (ABOA)'';
0
c. Adding, in alphabetical order, the definition ``Lease acquisition'';
0
d. Adding, in alphabetical order, the definition ``Lease extension'';
0
e. Adding, in alphabetical order, the definition ``Lease renewal 
(option)'';
0
f. Removing the definition ``Rent and related services'';
0
g. Revising the definition ``Simplified lease acquisition threshold'';
0
h. Revising the definition ``Small business'';
0
i. Revising the definition ``Solicitation for Offers (SFO)'';
0
j. Removing the definition ``Space in buildings'';
0
k. Removing from the definition ``Substantially as follows'' or 
``substantially the same as,'' the word ``you'' and adding ``the 
contracting officer'' in its place.
0
l. Adding, in alphabetical order, the definition ``Succeeding lease''; 
and
0
m. Adding, in alphabetical order, the definition ``Superseding lease''.
    The added and revised text reads as follows:


570.102  Definitions.

    ANSI/BOMA Office Area (ABOA) means the area ``where a tenant 
normally houses personnel, and/or furniture, for which a measurement is 
to be computed,'' as stated by the American National Standards 
Institute/Building Owners and Managers Association (ANSI/BOMA) 
publication, Z65.1-1996.
* * * * *
    Lease acquisition means the acquiring by lease of an interest in 
improved real property for use by the Government, whether the space 
already exists or must be constructed.
    Lease extension means extension of the expiration date of a lease 
to provide for continued occupancy on a short term basis.
    Lease renewal (option) means the right, but not the obligation of 
the Government to continue a lease upon specified terms and conditions, 
including lease term and rent.
* * * * *
    Simplified lease acquisition threshold means the simplified 
acquisition threshold (see FAR 2.101), when applied to the average 
annual amount of rent for the term of the lease, including option 
periods and excluding the cost of services.
    Small business means a concern including affiliates, which is 
organized for profit, is independently-owned and operated, is not 
dominant in the field of leasing commercial real estate, and that has 
annual average gross receipts for the preceding three fiscal years 
which are less than the size standard established by the Small Business 
Administration pursuant to 13 CFR Part 121. The size standards may be 
found at http://www.sba.gov/size/sizetable_2002.html. For most lease 
procurements, the NAICS code is 531190.
    Solicitation for Offers (SFO) means a request for proposals.
* * * * *
    Succeeding lease means a lease whose effective date immediately 
follows the expiration date of an existing lease for space in the same 
building.
    Superseding lease means a lease that replaces an existing lease, 
prior to the scheduled expiration of the existing lease term.

0
22. Revise section 570.103 to read as follows:


570.103  Authority to lease.

    (a) The Administrator of General Services is authorized by 40 
U.S.C. Sec.  585 to enter into a lease agreement for the accommodation 
of a Federal agency in a building (or improvement) which is in 
existence or being erected by the lessor for the accommodation of the 
Federal agency. The lease agreement may not bind the Government for 
more than 20 years.
    (b) The contracting officer has exclusive authority to enter into 
and administer leases on the Government's behalf to the extent provided 
in the certificate of appointment as a contracting officer. Nothing in 
this paragraph is intended to limit the

[[Page 30849]]

contracting officer's authority to designate, consistent with statute 
and regulation, a contracting officer's representative.


570.104  [Amended]

0
23. Amend section 570.104 by removing ``you use'' and adding ``the 
contracting officer uses'' in its place.

0
24. Revise section 570.105-1 to read as follows:


570.105-1  Contracting by negotiation.

    Contracting by negotiation is appropriate for acquiring space in a 
building through a lease contract. The contracting officer will usually 
need to conduct discussions with offerors about their proposals and 
consider factors other than price in making the award.
0
25. Amend section 570.105-2 by--
0
a. Revising the section heading;
0
b. Revising the introductory text;
0
c. Removing from paragraph (a) ``You anticipate'' and adding ``The 
contracting officer anticipates that'' in its place, and removing 
``public'';
0
d. Removing from the introductory text of paragraph (b) ``You 
determine'' and adding ``The contracting officer determines whether'' 
in its place;
0
e. Removing from paragraph (b)(1) ``You expect'' and adding ``The 
contracting officer expects'' in its place;
0
f. Removing from paragraph (b)(4) ``You consider'' and adding ``The 
contracting officer considers'' in its place;
0
g. Redesignating paragraphs (b)(4)(iv) through (b)(4)(vi) as paragraphs 
(b)(4)(v) through (b)(4)(vii), respectively, and adding a new paragraph 
(b)(4)(iv); and
0
h. Adding paragraph (c).
    The revised and added text reads as follows:


570.105-2  Criteria for the use of two-phase design-build.

    The contracting officer may use the two-phase design-build 
selection procedures in 41 U.S.C. 253m for lease construction projects. 
This includes lease construction projects with options to purchase the 
real property leased. Use the procedures in 41 U.S.C. 253m and FAR 36.3 
when the conditions in (a) and (b) below are met:
* * * * *
    (b) * * *
    (4) * * *
    (iv) The past performance of potential contractors.
* * * * *
    (c) See 570.305 for additional information.


570.105-3  [Removed]

0
26. Remove section 570.105-3.

0
27a. Revise section 570.106 to read as follows:


570.106  Advertising, publicizing, and notifications to Congress.

    (a) If a proposed acquisition is not exempt under FAR 5.202 or GSAR 
570.106(e), and is for a leasehold interest in real property estimated 
to exceed 10,000 square feet, then the contracting officer must 
publicize the proposed acquisition in http://www.FBO.gov.
    (b) For leasehold acquisitions where the solicitation requires the 
construction of a new building on a preselected site, the contracting 
officer, in accordance with the timeframes established in FAR 5.203, 
must publicize the proposed acquisition in http://www.FBO.gov 
regardless of size or value.
    (c) For leasehold acquisitions not subject to a square foot 
measurement (e.g., antennas, piers, parking), contracting officers must 
publicize the proposed acquisition in http://www.FBO.gov when the 
contract action is expected to exceed $25,000, unless an exception 
under FAR 5.202 applies.
    (d) Other than as identified in paragraphs (a) through (c) of this 
section, the contracting officer need not publicize the proposed 
acquisition of a leasehold interest in real property, including 
expansion requests within the scope of a lease (see 570.403), lease 
extensions under the conditions defined in 570.405, and building 
alterations within the scope of a lease (see 570.5). However, the 
contracting officer may publicize proposed lease acquisitions of any 
dollar value or square footage in http://www.FBO.gov or local 
newspapers if, in the opinion of the contracting officer, doing so is 
necessary to promote competition.
    (e) The contracting officer may issue a consolidated advertisement 
for multiple leasing actions.
    (f) Except as otherwise provided in paragraph (b) of this section, 
where publicizing of the proposed acquisition is required, the notice 
shall be published in http://www.FBO.gov not less than three calendar 
days prior to issuance of a solicitation.
    (g) Except as otherwise provided in paragraph (b) of this section 
and as set forth in paragraphs (g) and (h) of this section, the 
contracting officer shall provide offerors not less than 20 calendar 
days between solicitation issuance and the date established for receipt 
of initial offers.
    (1) For a proposed acquisition using simplified lease acquisition 
procedures (see 570.2), consider the individual acquisition and 
establish a reasonable response time.
    (2) In cases of unusual and compelling urgency (FAR 6.303-2), 
provide as much time as reasonably possible under the circumstances and 
document the contract file.
    (h) If a Member of Congress has specifically requested notification 
of award, the contracting officer must provide award notifications in 
accordance with 505.303.

0
27b. Add section 570.106-1 to read as follows:


570.106-1  Synopsis of lease awards.

    (a) Except for lease actions described in paragraph (b) of this 
section, contracting officers must synopsize in http://www.FBO.gov 
awards exceeding $25,000 total contract value that are likely to result 
in the award of any subcontracts. However, the dollar threshold is not 
a prohibition against publicizing an award of a smaller amount when 
publicizing would be advantageous to industry or to the Government.
    (b) A notice is not required if--
    (1) The notice would disclose the occupant agency's needs and the 
disclosure of such needs would compromise the national security; or
    (2) The lease--
    (i) Is for an amount not greater than the simplified lease 
acquisition threshold;
    (ii) Was made through a means where access to the notice of 
proposed lease action was provided through http://www.FBO.gov; and
    (iii) Permitted the public to respond to the solicitation 
electronically.
    (c) Justifications for other than full and open competition must be 
posted in http://www.FBO.gov. Information exempt from public disclosure 
must be redacted.


570.107  [Amended]

0
28. Amend section 570.107 by removing ``You may use'' and adding ``The 
contracting officer may require'' in its place.


570.108  [Amended]

0
29. Amend section 570.108 by--
0
a. Removing from paragraph (a) ``List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs'' and adding ``Excluded Parties 
List System (EPLS)'' in its place;
0
b. Removing from paragraph (b) ``Your'' and adding ``The contracting 
officer's'' in its place;
0
c. Removing from paragraph (c) ``you find'' and adding ``the 
contracting officer finds'' in its place; and
0
d. Removing from paragraph (d) ``you find'' and adding ``the 
contracting officer finds'' in its place.


570.109  [Amended]

0
30. Amend section 570.109 by removing from the introductory text

[[Page 30850]]

``certifications'' and adding ``representations and certifications'' in 
its place.

0
31. Amend section 570.110 by revising paragraph (b) to read as follows:


570.110  Cost or pricing data and information other than cost or 
pricing data.

* * * * *
    (b) FAR 15.403-1 defines exceptions to and waivers for submitting 
cost or pricing data. Most leasing actions will have adequate price 
competition. For price analysis of offered rental rates, the 
contracting officer may use a market survey, an appraisal conducted 
using accepted real property appraisal procedures to establish a market 
price for comparison, or other relevant market research data. For price 
analysis of offered tenant improvement costs, obtain two offers or cost 
and pricing data.
* * * * *

0
32. Revise section 570.111 to read as follows:


570.111  Inspection and acceptance.

    Before accepting the space, the contracting officer must verify 
that the space complies with the Government's requirements and 
specifications and document this in an inspection report. The 
inspection and acceptance document must contain the square footage 
accepted and the acceptance date. Include the inspection and acceptance 
in the contract file. When space such as piers, antennas, and parking 
are leased, square footage may not be the manner in which the amount of 
space is specified; therefore, document that the space complies with 
the Government's written requirements.


570.112  [Amended]

0
33. Amend section 570.112 by removing ``you receive'' and adding ``the 
contracting officer receives'' in its place.

0
34. Revise section 570.113 to read as follows:


570.113  Disclosure of mistakes after award.

    If a mistake in a lessor's offer is discovered after award, the 
contracting officer should process it substantially in accordance with 
FAR 14.407-4 and GSAM 514.407-4.

0
35. Add sections 570.115, 570.116, 570.117, 570.117-1, and 570.117-2 to 
read as follows:


570.115  Novation and change of ownership.

    In the event of a transfer of ownership of the leased premises or a 
change in the lessor's legal name, FAR 42.12 applies.


570.116  Contract format.

    The uniform contract format is not required for leases of real 
property.


570.117  Sustainable requirements for lease acquisition.

    Contracting officers must include sustainable design requirements 
appropriate for the type of leasing action in the solicitations for 
offers. Contracting officers can find solicitation requirements and 
instructions on http://www.gsa.gov/leasing under Leasing Policies and 
Procedures, Green Leasing, and in the Leasing Desk Guide to assist them 
in complying with GSA's sustainable requirements identified in this 
part.


570.117-1  Federal leadership in environmental, energy, and economic 
performance.

    In order to create a clean energy economy that will increase our 
Nation's prosperity, promote energy security, protect the interests of 
taxpayers, and safeguard the health of our environment, GSA will 
accomplish all requirements of E.O. 13514 that apply to lease 
acquisition.


570.117-2  Guiding principles for federal leadership in high 
performance and sustainable buildings.

    GSA is committed to the design, construction, operation, and 
maintenance of leased space that comply with all of the following 
Guiding Principles:
    (a) Employ Integrated Design Principles;
    (b) Optimize Energy Performance;
    (c) Protect and Conserve Water;
    (d) Enhance Indoor Environmental Quality; and
    (e) Reduce the Environmental Impact of Building Materials.

0
36. Amend section 570.203-2 by--
0
a. Revising paragraph (a); and
0
b. Removing from paragraph (b) ``you solicit'' and adding ``the 
contracting officer solicits'' in its place.
    The revised text reads as follows:


570.203-2  Competition.

    (a) To the maximum extent practicable, the contracting officer must 
solicit at least three sources to promote competition. If there are 
repeated requirements for space in the same market, invite two sources, 
if practicable, that are not included in the most recent solicitation 
to submit offers.
* * * * *

0
37. Revise section 570.203-3 to read as follows:


570.203-3  Soliciting offers.

    (a) The contracting officer must solicit offers by providing each 
prospective offeror a proposed short form lease GSA Form 3626 or SFO. 
The short form lease or SFO must:
    (1) Describe the Government's requirements.
    (2) List all award factors, including price or cost, and any 
significant subfactors that the contracting officer will consider in 
awarding the lease.
    (3) State the relative importance of the evaluation factors and 
subfactors.
    (4) State whether all evaluation factors other than cost or price, 
when combined, are either:
    (i) Significantly more important than cost or price.
    (ii) Approximately equal in importance to cost or price.
    (iii) Significantly less important than cost or price.
    (5) Include either in full text or by reference, applicable FAR 
provisions and contract clauses required by 570.6.
    (6) Include sustainable design requirements.
    (b) As necessary, review with prospective offerors the Government's 
requirements, pricing matters, evaluation procedures and submission of 
offers.

0
38. Revise section 570.203-4 to read as follows:


570.203-4  Negotiation, evaluation, and award.

    (a) If the contracting officer needs to conduct negotiations, use 
the procedures in 570.307.
    (b) Evaluate offers in accordance with the solicitation. Evaluate 
prices and document the lease file to demonstrate whether the proposed 
contract prices are fair and reasonable. See 570.110.
    (c) If the total price, including options, exceeds the amount 
established by FAR 15.403-4, consider whether the contracting officer 
needs cost and pricing data to determine that the price is fair and 
reasonable. In most cases, the exceptions at FAR 15.403-1 will apply.
    (d) Regardless of the process used, the contracting officer must 
determine whether the price is fair and reasonable.
    (e) If the total contract value of the lease, including options, 
will exceed the amount established by FAR 19.702(a), the proposed 
awardee must provide an acceptable small business subcontracting plan. 
This requirement does not apply if the proposed awardee is a small 
business concern.
    (f) Make award to the responsible offeror whose proposal represents 
the best value to the Government considering price and other factors 
included in the solicitation.

[[Page 30851]]

Subpart 570.3--Acquisition Procedures for Leasehold Interests in 
Real Property Over the Simplified Lease Acquisition Threshold

0
39. Revise the heading of subpart 570.3 to read as set forth above.

0
40. Amend section 570.303-1 by removing from the introductory text 
``provide all the following'', removing from paragraph (h) ``570.7'' 
and adding ``570.8'' in its place, and adding a new paragraph (i) to 
read as follows:


570.303-1  Preparing the SFO.

* * * * *
    (i) Include sustainable design requirements.

0
41. Revise section 570.303-2 to read as follows:


570.303-2  Issuing the SFO.

    Release the SFO to all prospective offerors at the same time. The 
SFO may be released electronically.

0
42. Amend section 570.303-4 by revising paragraph (d) and adding 
paragraph (e) to read as follows:


570.303-4  Changes to SFOs.

* * * * *
    (d) If an amendment is so substantial that it requires a complete 
revision of the SFO, cancel the SFO, readvertise if required by 
570.106, and issue a new SFO.
    (e) If there are changes to the Government's requirements for 
amount of space, delineated area, occupancy date, and/or other major 
aspects of the requirements, the contracting officer shall consider 
whether there is a need to readvertise, and to document the file 
accordingly.

0
43. Amend section 570.304 by revising the introductory text of 
paragraph (a), and revising paragraphs (c) and (d), to read as follows:


570.304  General source selection procedures.

    (a) These procedures apply to acquisitions of leasehold interests 
except if the contracting officer uses one of the following:
* * * * *
    (c) In a trade off procurement, the contracting officer must 
include price or cost to the Government, past performance, the planned 
participation of small disadvantaged business concerns in performance 
of the contract, and other factors as required by FAR 15.304 as 
evaluation factors. The contracting officer may include other 
evaluation factors as needed.
    (d) The evaluation factors and significant subfactors must comply 
with FAR 15.304 and either one of the following:
    (1) FAR 15.101-1 if the contracting officer will use the tradeoff 
process.
    (2) FAR 15.101-2 if the contracting officer will use the lowest 
price technically acceptable source selection process.

0
44. Amend section 570.305 by--
0
a. Removing from paragraph (a) ``you use'' and adding ``the contracting 
officer uses'' in its place, and adding ``Follow FAR 36.3.'' to the end 
of the paragraph;
0
b. Redesignating paragraph (c)(1)(iv) as paragraph (c)(1)(v), and 
adding a new paragraph (c)(1)(iv); and
0
c. Revising paragraphs (c)(2) and introductory text of paragraph (d).
    The revised and added text reads as follows:


570.305  Two-phase design-build selection procedures.

* * * * *
    (c) * * *
    (1) * * *
    (iv) The planned participation of small disadvantaged business 
concerns in performance of the contract.
* * * * *
    (2) The contracting officer shall not require offerors to submit 
detailed design information or cost or price information in phase one. 
The contracting officer shall not use cost related or price related 
evaluation factors.
    (d) The contracting officer shall set the maximum number of 
offerors to be selected for phase-two to not exceed five unless the 
contracting officer determines that a number greater than five is both:
* * * * *

0
45. Amend section 570.306 by--
0
a. Removing from paragraph (a) ``You'' and adding ``The contracting 
officer'' in its place;
0
b. Revising paragraphs (b) and (c);
0
c. Redesignating paragraph (d) as paragraph (e), and adding a new 
paragraph (d); and
0
d. Adding paragraph (f).
    The revised and added text reads as follows:


570.306  Evaluating offers.

* * * * *
    (b) Evaluate prices and document the lease file to demonstrate that 
the proposed contract price is fair and reasonable. The contracting 
officer must review the elements of the offeror's proposed rent to 
analyze whether the individual elements are realistic and reflect the 
offeror's clear understanding of the work to be performed. The 
contracting officer must discuss any inconsistencies with the offeror. 
If the offeror refuses to support or make any changes to the rent 
proposed, consider the risk to the Government prior to making any lease 
award.
    (c) Evaluate past performance on previous lease projects in 
accordance with 515.305 and FAR 15.305(a)(2). Obtain information 
through:
    (1) Questionnaires tailored to the circumstances of the 
acquisition;
    (2) Interviews with program managers or contracting officers;
    (3) Other sources; or
    (4) Past performance information collected under FAR 42.15 and 
available through the Past Performance Information Retrieval System 
(PPIRS) at http://www.ppirs.gov.
    (d) The contracting officer may obtain information to evaluate an 
offeror's past performance on subcontracting plan goals and small 
disadvantaged business participation, monetary targets, and 
notifications under FAR 19.1202-4(b) from the following sources:
    (1) The Small Business Administration;
    (2) Information on prior contracts from contracting officers and 
administrative contracting officers;
    (3) Offeror's references; and
    (4) Past performance information collected under FAR 42.15 and 
available through PPIRS.
* * * * *
    (f) Also see the requirements in 570.108, 570.109 and 570.111.

0
46. Revise section 570.308 to read as follows:


570.308  Award.

    (a) Make award to the responsible offeror whose proposal represents 
the best value after evaluation in accordance with the factors and 
subfactors in the SFO.
    (b) Make award in writing and in the timeframe specified in the 
SFO.
    (1) If the contracting officer cannot make an award in that time, 
request in writing from each offeror an extension of the acceptance 
period through a specific date.
    (2) If time is critical, the contracting officer may request the 
extensions orally. The contracting officer must make a record of the 
request and confirm it promptly in writing.
    (c) Notify unsuccessful offerors in writing or electronically in 
accordance with FAR 15.501 and 15.503(b).
    (d) The source selection authority may reject all proposals 
received in response to an SFO, if doing so is in the best interest of 
the Government.

0
47. Revise section 570.401 to read as follows:

[[Page 30852]]

570.401  Renewal options.

    (a) Exercise of options. Before exercising an option to renew, 
follow the procedures in 517.207. The contract must first provide the 
right to renew the lease. If a renewal option was not evaluated as part 
of the lease at award, then the addition of a renewal option during the 
lease term must satisfy the requirements of GSAM 506 regarding full and 
open competition.
    (b) Market information review. Before exercising an option to renew 
a lease, review current market information to determine that the rental 
rate in the option is fair and reasonable.

0
48. Revise section 570.402-1 to read as follows:


570.402-1  General.

    (a) If a succeeding lease for the continued occupancy of space in a 
building does not exceed the simplified lease acquisition threshold, 
the contracting officer may use the simplified procedures in 570.2. 
Explain the absence of competition in the contract file.
    (b) If a succeeding lease will exceed the simplified lease 
acquisition threshold, the contracting officer may enter into the lease 
under either of the following conditions:
    (1) The contracting officer does not identify any potential 
acceptable locations.
    (2) The contracting officer identifies potential acceptable 
locations, but a cost-benefit analysis indicates that award to an 
offeror other than the present lessor will result in substantial 
relocation costs or duplication of costs to the Government, and the 
Government cannot expect to recover such costs through competition.

0
49. Amend section 570.402-2 by revising the introductory text, and 
paragraphs (a) through (c) to read as follows:


570.402-2  Publicizing/Advertising.

    The contracting officer must publish a notice if required by 
570.106. The notice should:
    (a) Indicate that the Government's lease is expiring.
    (b) Describe the requirements in terms of type and quantity of 
space.
    (c) Indicate that the Government is interested in considering 
alternative space if economically advantageous, and that otherwise the 
Government intends to pursue a sole source acquisition.
* * * * *

0
50. Amend section 570.402-4 by removing ``you do'' and adding ``the 
contracting officer does'' in its place, and removing ``you may prepare 
a'' and adding ``prepare a written'' in its place.


570.402-5  [Amended]

0
51. Amend section 570.402-5 by removing from the introductory text 
``you identify'' and adding ``the contracting officer identifies'' in 
its place, and removing from paragraph (b)(1) ``you'' and adding ``the 
contracting officer'' in its place.


570.403  [Amended]

0
52. Amend section 570.403 by--
0
a. Removing from paragraph (a) ``you'' and adding ``the contracting 
officer'' in its place;
0
b. Removing from the introductory text of paragraph (b) ``determine'' 
and adding ``the contracting officer must determine'' in its place, and 
removing ``or to satisfy'' and adding ``or to meet the expansion 
requirement and existing tenancy to'' in its place;
0
c. Removing from the introductory text of paragraph (c) ``you 
determine'' and adding ``the contracting officer determines'' in its 
place.


570.404  [Amended]

0
53. Amend section 570.404 by removing from paragraph (a), ``.'' and 
adding ``or when market conditions warrant renegotiation of an existing 
lease.'' in its place; and removing from paragraph (b) ``you'' and 
adding ``the contracting officer'' in its place.

0
54. Amend section 570.405 by--
0
a. Removing from paragraph (b) ``you'' and adding ``the contracting 
officer'' in its place;
0
b. Removing from the introductory text of paragraph (c) ``such as the'' 
and adding ``such as, but not limited to, the'' in its place;
0
c. Removing from paragraph (c)(3) ``agencies occupying the leased space 
and you need'' and adding ``agencies and the contracting officer 
needs'' in its place; and
0
d. Adding paragraph (c)(4).
    The added text reads as follows:


570.405  Lease extensions.

* * * * *
    (c) * * *
    (4) The agency 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.

0
55. Amend section 570.501 by--
0
a. Revising the introductory text of paragraph (a), and paragraph 
(a)(1);
0
b. Removing from the introductory text of paragraph (b) ``general''; 
and
0
c. Removing from paragraph (b)(1) ``justified'' and adding ``as 
justified'' in its place.
    The revised text reads as follows:


570.501  General.

    (a) The procedures in 570.502 apply to alterations acquired 
directly from a lessor by modification or supplemental lease agreement. 
This is allowed if the following conditions are met:
    (1) The alterations fall within the scope of the lease. Consider 
whether the work can be regarded fairly and reasonably as part of the 
original lease requirement.
* * * * *

0
56. Revise sections 570.502, 570.502-1, and 570.502-2 to read as 
follows:


570.502  Alterations by the lessor.


570.502-1  Justification and approval requirements.

    If the proposed alterations are outside the general scope of the 
lease and the contracting officer plans to acquire them from the lessor 
without competition, the following justification and approval 
requirements apply:
    (a) If the alteration project will not exceed the micro-purchase 
threshold identified in FAR 2.101(b), no justification and approval is 
required.
    (b) If the alteration project will exceed the micro-purchase 
threshold identified in FAR 2.101(b), but not the simplified lease 
acquisition threshold, the contracting officer may use simplified 
acquisition procedures and explain the absence of competition in the 
file.
    (c) If the alteration project will exceed the simplified lease 
acquisition threshold, the justification and approval requirements in 
FAR 6.3 and 506.3 apply.


570.502-2  Procedures.

    (a) Scope of work. The contracting officer must prepare a scope of 
work for each alteration project.
    (b) Independent Government estimate. The contracting officer must 
obtain an independent Government estimate for each alteration project, 
including changes to existing alteration agreements with the lessor.
    (c) Request for proposal.
    (1) The contracting officer must provide the scope of work to the 
lessor, including any plans and specifications, and request a proposal.
    (2) The contracting officer must request sufficient cost or price 
information to permit a price analysis.
    (d) Audits. If the contracting officer requires cost or pricing 
data and the alteration project will exceed the threshold identified in 
FAR 15.403-4, request an audit.

[[Page 30853]]

    (e) Proposal evaluation. The contracting officer must--
    (1) Determine if the proposal meets the Government's requirements.
    (2) Analyze price or cost information. At a minimum, compare the 
proposed cost to the independent estimate and, if applicable, any audit 
results received.
    (3) Analyze profit following FAR 15.404-4.
    (4) Document the analysis under this paragraph and the resulting 
negotiation objectives.
    (f) Price negotiations. The contracting officer must--
    (1) Exercise sound judgment. Make reasonable compromises as 
necessary.
    (2) Provide the lessor with the greatest incentive for efficient 
and economical performance.
    (3) Document negotiations in the contract file, including 
discussions regarding restoration cost or waiver of restoration cost.
    (g) Order. For modifications not exceeding the simplified 
acquisition threshold, lease contracting officers may delegate 
alteration contracting authority to a warranted contracting officer's 
representative in GSA or the tenant agency. Alterations awards must 
reference the lease number. If the modification does not exceed the 
simplified acquisition threshold, the contracting officer may use GSA 
Form 300, Order for Supplies or Services. Reference the lease on the 
form.
    (h) Inspection and payment. The contracting officer must not make 
final payment for alterations until the work is:
    (1) Inspected by a qualified Government employee or independent 
Government contractor.
    (2) Confirmed as completed in a satisfactory manner.

0
57. Revise section 570.503 to read as follows:


570.503  Alterations by the Government or through a separate contract.

    If the Government chooses to exercise its right to make the 
alterations rather than contracting directly with the lessor, the 
Government may either:
    (a) Have Federal employees perform the work.
    (b) Contract out the work using standard contracting procedures 
that apply to a construction contract performed on Federal property. If 
the Government decides to contract for the work, invite the lessor, as 
well as all other prospective contractors, to submit offers for the 
project.

0
58a. Redesignate Subparts 570.6 (consisting of 570.601 through 570.604) 
and 570.7 (consisting of 570.701 through 570.702) as Subparts 570.7 
(consisting of 570.701 through 570.704) and 570.8 (consisting of 
570.801 through 570.802), respectively;

0
58b. Add a new Subpart 570.6 to read as follows:
Subpart 570.6--Contracting for Overtime Services and Utilities in 
Leases
Sec.
570.601 General.

Subpart 570.6--Contracting for Overtime Services and Utilities in 
Leases


570.601  General.

    (a) Lease tenant agencies may need overtime services and utilities 
on a regular or intermittent basis. Lease contracting officers may 
negotiate overtime rates for services and utilities and include those 
rates in leases where a need is projected. Only lease contracting 
officers may negotiate overtime rates.
    (b) An independent government estimate is required in support of 
the negotiated rate.
    (c) Order. To order overtime services and utilities, if the order 
does not exceed the simplified acquisition threshold, a warranted 
contracting officer's representative, in GSA or the tenant agency, may 
place an order. The order must reference the lease number.
    (d) Payment. Do not make final payment for services and utilities 
until confirmed as delivered in a satisfactory manner.

0
59. Revise the newly redesignated section 570.701 to read as follows:


570.701  FAR provisions and clauses.

    Include provisions or clauses substantially the same as the FAR 
provisions and clauses listed below.

------------------------------------------------------------------------
                If . . .                        Then include . . .
------------------------------------------------------------------------
(a) the estimated value of the           52.204-3 Taxpayer
 acquisition exceeds the micro-purchase   Identification.
 threshold identified in FAR 2.101.      52.204-6 Data Universal
                                          Numbering System (DUNS)
                                          Number.
                                         52.204-7 Central Contractor
                                          Registration.
                                         52.219-1 Small Business Program
                                          Representations.
                                         52.219-28 Post-Award Small
                                          Business Program
                                          Rerepresentation (use if lease
                                          term exceeds five years).
                                         52.232-23 Assignment of Claims.
                                         52.232-33 Electronic Funds
                                          Transfer--Central Contractor
                                          Registration.
                                         52.233-1 Disputes.
(b) the estimated value of the           52.222-21 Prohibition of
 acquisition exceeds $10,000.             Segregated Facilities.
                                         52.222-22 Previous Contracts
                                          and Compliance Reports.
                                         52.222-25 Affirmative Action
                                          Compliance.
                                         52.222-26 Equal Opportunity.
                                         52.222-35 Affirmative Action
                                          for Disabled Veterans and
                                          Veterans of the Vietnam Era.
                                         52.222-36 Affirmative Action
                                          for Workers with Disabilities.
                                         52.222-37 Employment Reports on
                                          Disabled Veterans and Veterans
                                          of the Vietnam Era.
(c) the estimated value of the           52.204-10 Reporting Executive
 acquisition is $25,000 or more (not      Compensation and First-Tier
 applicable to individuals).              Subcontract Awards.
(d) the estimated value of the           52.209-6 Protecting the
 acquisition exceeds the threshold        Government's Interest when
 identified in FAR 9.409(b).              Subcontracting with
                                          Contractors Debarred,
                                          Suspended, or Proposed for
                                          Debarment.
(e) the estimated value of the           52.203-11 Certification and
 acquisition exceeds $100,000.            Disclosure Regarding Payments
                                          to Influence Certain Federal
                                          Transactions.
(f) the estimated value of the           52.203-2 Certificate of
 acquisition exceeds the simplified       Independent Price
 lease acquisition threshold.             Determination.
                                         52.203-7 Anti-Kickback
                                          Procedures.
                                         52.204-5 Women-Owned Business
                                          (Other than Small Business).
                                         52.209-5 Certification
                                          Regarding Debarment,
                                          Suspension, Proposed
                                          Debarment, and Other
                                          Responsibility Matters.

[[Page 30854]]

 
                                         52.215-2 Audit and Records--
                                          Negotiation.
                                         52.219-8 Utilization of Small
                                          Business Concerns.
                                         52.223-6 Drug-Free Workplace.
                                         52.233-2 Service of Protest.
(g) the estimated value of the           52.219-9 Small Business
 acquisition exceeds the threshold        Subcontracting Plan.
 identified in FAR 19.708(b).            52.219-16 Liquidated Damages--
                                          Subcontracting Plan.
(h) the estimated value of the           52.219-24 Small Disadvantaged
 acquisition the estimated value of the   Business Participation
 acquisition exceeds the threshold        Program--Targets.
 identified in FAR 19.1202-2(a) and the  52.219-25 Small Disadvantaged
 contracting officer is using a best      Business Participation
 value trade off analysis in an           Program--Disadvantaged Status
 acquisition includes an evaluation       and Reporting.
 factor that considers the extent of
 participation of small disadvantaged
 business concerns in accordance with
 FAR 19.12.
(i) the value of the contract is         52.203-13 Contractor Code of
 expected to exceed $5 million and the    Business Ethics and Conduct.
 performance period is 120 days or more. 52.203-14 Display of Hotline
                                          Poster(s).
(j) the estimated value of the           52.222-24 Pre-award On-site
 acquisition exceeds $10 million.         Equal Opportunity Compliance
                                          Review.
(k) the contracting officer requires     52.215-10 Price Reduction for
 cost or pricing data for work or         Defective Cost or Pricing Data
 services exceeding the threshold        52.215-12 Subcontractor Cost or
 identified in FAR 15.403-4.              Pricing Data.
(l) the contracting officer authorizes   52.215-5 Facsimile Proposals.
 submission of facsimile proposals.
(m) a negotiated acquisition provides    52.219-26 Small Disadvantaged
 monetary incentives based on actual      Business Participation
 achievement of small disadvantaged       Program--Incentive
 business subcontracting targets under    Subcontracting.
 FAR 19.1203 and 519.1203.
------------------------------------------------------------------------

570.702  [Amended]

0
60. Revise the introductory text of the newly designated section 
570.702 to read as follows:


570.702  GSAR Solicitation provisions.

    Each SFO must include provisions substantially the same as the 
following, unless the contracting officer determines that the provision 
is not appropriate. However, document the file with the basis for 
deleting or substantially changing a clause.
* * * * *

0
61. Revise the newly redesignated section 570.703 to read as follows:


570.703  GSAR contract clauses.

    (a) Insert clauses substantially the same as the following in 
solicitations and contracts for leasehold interests in real property 
that exceed the simplified lease acquisition threshold, unless the 
contracting officer determines that a clause is not appropriate. 
However, document the file with the basis for deleting or substantially 
changing a clause. A deviation is not required under section 570.704 to 
determine that a clause in this section is not appropriate. Use the 
clauses at your discretion in actions at or below the simplified lease 
acquisition threshold.

552.215-70 Examination of Records by GSA.
552.270-4 Definitions. You must use this clause if you use 552.270-28.
552.270-5 Subletting and Assignment.
552.270-6 Maintenance of Building and Premises--Right of Entry.
552.270-7 Fire and Casualty Damage.
552.270-8 Compliance with Applicable Law.
552.270-9 Inspection--Right of Entry.
552.270-10 Failure in Performance.
552.270-11 Successors Bound.
552.270-12 Alterations.
552.270-13 Proposals for Adjustment.
552.270-14 Changes.
552.270-15 Liquidated Damages. Insert this clause in solicitations and 
contracts if you have a critical requirement to meet the delivery date 
and you cannot establish an actual cost for the loss to the Government 
resulting from late delivery.
552.270-16 Adjustment for Vacant Premises.
552.270-17 Delivery and Condition.
552.270-18 Default in Delivery--Time Extensions.
552.270-19 Progressive Occupancy.
552.270-20 Payment.
552.270-21 Effect of Acceptance and Occupancy.
552.270-22 Default by Lessor During the Term.
552.270-23 Subordination, Nondisturbance and Attornment
552.270-24 Statement of Lease.
552.270-25 Substitution of Tenant Agency.
552.270-26 No Waiver.
552.270-27 Integrated Agreement.
552.270-28 Mutuality of Obligation.
552.270-29 Acceptance of Space.
    (b) Include the following provisions and clauses in leasehold 
interests in real property.
552.270-30 Price Adjustment for Illegal Improper Activity.
552.270-31 Prompt Payment.
552.270-32 Covenant Against Contingent Fees.

0
62. Revise section 570.704 to read as follows:


570.704  Deviations to provisions and clauses.

    (a) The contracting officer needs a deviation approved under 
Subpart 501.4 to omit any required provision or clause.
    (b) The contracting officer also needs an approved deviation to 
modify the language of a provision or clause mandated by statute (e.g., 
FAR 52.215-2, Audit and Records--Negotiation). The authorizing statute 
must allow for a waiver.
    (c) Certain clauses required by non-GSA regulations require 
approval of the issuing agency before the contracting officer can 
delete or modify them. For example, FARs 52.222-26, Equal Opportunity; 
52.222-35, Affirmative Action for Disabled Veterans and Veterans of the 
Vietnam Era; and 52.222-36, Affirmative Action for Workers with 
Disabilities, require the approval of the Department of Labor's Office 
of Federal Contract Compliance Programs before they can be deleted from 
or modified in the SFO or lease.

0
63. Revise the newly redesignated section 570.801 to read as follows:


570.801  Standard forms.

    Use Standard Form 2, U.S. Government Lease for Real Property, to 
award leases unless the contracting officer uses GSA Form 3626 (see 
570.802).

0
64. Revise the newly redesignated section 570.802 to read as follows:


570.802  GSA Forms

    (a) The contracting officer may use GSA Form 3626, U.S. Government 
Lease for Real Property (Short Form), to award leases if using the 
simplified leasing procedures in Subpart 570.2 or if the contracting 
officer determines it advantageous to use the form.
    (b) The contracting officer may use GSA Form 276, Supplemental 
Lease

[[Page 30855]]

Agreement, for actions requiring the agreement of both parties. This 
includes actions such as amending an existing lease to acquire 
additional space, obtaining partial release of space, revising the 
terms of a lease, settling restoration claims, and acquiring 
alterations.
    (c) The contracting officer may use GSA Form 1364, Proposal To 
Lease Space to obtain offers from prospective offerors.
    (d) The contracting officer may use GSA Form 1217, Lessor's Annual 
Cost Statement, to obtain pricing information regarding offered 
services and lease commissions.

[FR Doc. 2011-12198 Filed 5-26-11; 8:45 am]
BILLING CODE 6820-61-P