the procedures in FAR Part 14 and Part 514.

(b) The negotiated method is normally the best suited for acquiring space in buildings through a lease contract because it is necessary to conduct discussions with offerors about their proposals and factors other than price must be considered in making the award.

(c) Unless another acquisition procedure authorized by law is used, the design-build selection procedures in section 303M of the Federal Property and Administrative Services Act of 1949, as amended, shall be used for lease construction projects, including projects with options to purchase the real property leased. The design-build selection procedures in section 303M shall be used when the lease involves the design and construction of a public building, facility or work for lease to the Government when the contracting officer determines that this method is appropriate, based on the following:

(1) Three or more offers are anticipated;

(2) A substantial amount of design work will be performed by offerors, that may result in offerors incurring substantial expenses in preparing offers; and

(3) Criteria, such as the following, have been considered:

(i) The extent to which the project requirements have been adequately defined;

(ii) The time constraints for delivery of the project;

(iii) The capability and experience of potential contractors;

(iv) The suitability of the project for use of the two-phase selection procedures;

(v) The capability of the agency to manage the two-phase selection process; and

(vi) Other criteria established by the head of the contracting activity.

[54 FR 26585, June 23, 1989, as amended at 61 FR 24721, May 16, 1996; 62 FR 5166, Feb. 4, 1997]

570.107 Oral presentations.

Oral presentations may be used for acquisitions of leasehold interests in

real property. Follow the procedures in FAR 15.102.

[63 FR 18846, Apr. 16, 1998]

Subpart 570.2—-Simplified Lease Acquisition Procedures

SOURCE: 60 FR 42796, Aug. 17, 1995, unless otherwise noted.

570.201 Definitions.

Simplified lease acquisition procedures mean the procedures described in this subpart for awarding leases at or below the simplified lease acquisition threshold of $100,000, including options.

570.202 Purpose.

The purpose of this subpart is to prescribe simplified procedures for small leases in order to reduce administrative costs while providing for the efficient and economical acquisition of leasehold interests in real property.

570.203 Policy.

Simplified lease acquisition procedures should be used to the maximum extent practicable for actions at or below the simplified lease acquisition threshold.

570.204 Procedures.

570.204-1 Market survey.

A market survey must be conducted to identify potential sources. The contracting officer may use information available within GSA or from other available sources to identify locations that will meet the Government's minimum requirements.

570.204-2 Competition.

(a) When the lease is not expected to exceed the simplified lease acquisition threshold, the solicitation of at least three sources is considered to promote competition to the maximum extent practicable. When repeated requirements for space occur in the same market, and if practicable, two sources not included in the most recent solicitation should be invited to submit offers.

(b) If only one source is solicited, the file must be documented with an explanation for the lack of competition.

570.204-3 Soliciting offers.

(a) Offers should be solicited by presenting each prospective offeror with a proposed short form lease or SFO which identifies all minimum requirements, all award factors, including price or cost, and any significant subfactors that will be considered in awarding the lease and which states the relative importance the Government places on the evaluation factors or subfactors. In describing the evaluation factors to be considered, the solicitation shall clearly disclose whether all evaluation factors other than cost or price when combined, are significantly more important than cost or price; approximately equal in importance to cost or price; or significantly less important than cost or price.

(b) The proposed lease or SFO must describe the Government's requirements and include, either in full text or by reference, applicable FAR provisions and contract clauses required by 570.701 and applicable GSAR provisions and clauses required by 570.702 and 570.703.

(c) To the extent necessary, the Government's requirements, pricing matters, evaluation procedures and submission of offers should be reviewed with prospective offerors.

570.204-4 Negotiation, evaluation, and award.

(a) Negotiations, if applicable, should be conducted in accordance with 570.305.

(b) Offers must be evaluated in accordance with the solicitation. The contracting officer shall evaluate the price and document the lease file to demonstrate that the proposed contract prices represent fair and reasonable prices. In cases where the total cost exceeds $500,000, cost and pricing data must be obtained unless the requirement is waived or one of the exceptions at FAR 15.403-1 applies. For purposes of FAR 15.403–1(c)(1)(iii), "same or similar items" means similar space leased to the general public. A market survey and/or an appraisal conducted in accordance with accepted real property appraisal procedures may be used as evidence to establish the price reasonableness.

(c) An acceptable small business subcontracting plan must be provided if the total contract value of the lease will exceed $500,000, unless the lease will be awarded to a small business concern.

(d) The contracting officer should review the List of Parties Excluded from Federal Procurement and Nonprocurement Programs, to ensure the proposed awardee is eligible to receive the award and is otherwise responsible before awarding the lease.

(e) An award will be made to the responsible offeror whose proposal represents the best value after evaluation considering price and other factors included in the solicitation.

[63 FR 18846, Apr. 16, 1998] 570.204-5 Inspection.

The space must be inspected to ensure that it is in substantial compliance with the Government's requirements and specifications before acceptance by the contracting officer. The contract file must be documented accordingly.

570.301 Market surveys.

A market survey must be conducted to identify potential sources. The contracting officer may use information available within GSA or from other available sources to identify locations that will meet the Government's minimum requirements.

570.302 Publicizing/Advertising.

(a) Leasing actions for blocks of space of more than 10,000 square feet must be publicized in local newspapers and may also be posted on an on-line information system, system, unless exempt under FAR 5.202 or 505.202.

(b) When the Government intends to acquire a leasehold interest in a building to be constructed on a preselected site, the proposed acquisition must be synopsized in the Commerce Business Daily (CBD).

570.303 Solicitation for offers (SFO).

(a) The SFO is the basis for the entire lease negotiation process and must be made a part of the lease. SFO's must contain the information necessary to enable the prospective offeror to prepare a proposal. Each SFO, at a minimum, must

(1) Be in writing.

(2) Contain a description of the minimum requirements of the Government, including

(i) A description of the required space.

(ii) Specifications. The type of specification will depend upon the nature of the space needed by the agency and the market available to satisfy the need. Specifications may be stated in terms of function, performance, or design requirements. The specification must be drafted to promote full and open competition and include restrictive provisions or conditions only to the extent necessary to satisfy the needs of the agency or as authorized by law.

(iii) Any special requirements. (iv) A delivery schedule.

(3) State the method to be used to measure space.

(4) Specify a date and place for the submission of offers.

(5) Indicate how offers will be evaluated.

(6) Indicate how offers are to be structured.

(7) Describe the source selection procedures to be used.

(i) Unless the design-build selection procedures are being used as authorized by 570.106(c), the solicitation must comply with FAR 15.304 and either:

(A) FAR 15.101-1 if the Government will use the tradeoff process, or

(B) FAR 15.101-2 if the Government will use the lowest price technically acceptable source selection process.

(ii) When the design-build selection procedures are being used as authorized by 570.106(c), the solicitation must

(A) Identify the evaluation factors and subfactors to be used in evaluating phase-one proposals and indicate their relative importance,

(B) State the maximum number of offerors that are to be selected to submit competitive proposals in phasetwo, and

(C) Identify the evaluation factors and subfactors, including cost or price, to be used in evaluating phase-two proposals and selecting the successful offeror. Evaluation factors to be used in evaluating phase-one proposals must be stated in the solicitation. Phase-one factors include specialized experience and technical competence, capability to perform, past performance of the offeror's team (including the architectengineer and construction members of the team) and other appropriate factors, such as site or location. In phaseone, offerors will not be required to submit detailed design information or cost or price information and use of cost related or price related evaluation factors is not permitted. The maximum number of offerors to be selected for phase-two must not exceed 5 unless the contracting officer determines that specifying a number greater than 5 is in the Government's interest and is consistent with the purpose and objectives of the two-phase selection process. For phase-two the solicitation should identify all factors, including price or cost, and any significant subfactors that will be considered in awarding the lease and state the relative importance the Government places on those evaluation factors and subfactors and otherwise comply with paragraph (a)(7)(i) of this section.

(8) Include a statement outlining the information that may be disclosed in preaward and postaward debriefings.

(9) Include appropriate forms as prescribed in subpart 570.8.

(b) The SFO must be released to all prospective offerors at the same time.

[60 FR 42797, Aug. 17, 1995, as amended at 61 FR 24721, May 16, 1996; 63 FR 18846, Apr. 16, 1998]

570.304 Changes to SFO's.

(a) When the Government's requirements change (either before or after receipt of proposals), the SFO must be amended in writing.

(b) When time is of the essence, information on SFO amendments may be provided orally if—

(1) A record is made of the information provided;

(2) All offerors or prospective offerors are given notice, or attempts to provide offerors or prospective offerors

with such notice are made, on the same day, if possible; and

(3) The information provided orally is promptly confirmed by a written amendment.

(c) When amendments to the Government's requirements occur, the following procedures apply—

(1) If proposals have not been submitted, amendments must be sent to all prospective offerors who have been sent a copy of the SFO.

(2) If proposals have been received, the amendments must be sent to all of the offerors.

(3) If an amendment is so substantial that it requires a complete revision of the SFO, the SFO should be concealed and a new SFO issued.

570.305 Negotiations.

(a) Follow the procedures in FAR 15.306 and 15.307 for exchanges (including clarifications, communications, negotiations, and discussions) and revisions.

(b) Place a written record of all exchanges in the lease file.

(c) Provide prompt written notice to any offeror excluded from the competitive range or otherwise eliminated from the competition in accordance with FAR 15.503(a)(1).

[63 FR 18846, Apr. 16, 1998]

570.306 [Reserved]

570.307 Late offers, modifications of offers, and withdrawals of offers.

Offers determined to be received late will be handled in accordance with FAR 15.208.

[63 FR 18847, Apr. 16, 1998]

570.308 Preaward requirements.

570.308-1 General.

(a) If an offeror answers affirmatively on the Contingent Fee Representation and Agreement, in order to comply with the warranty requirement of 41 U.S.C. 254(a), the requirements of FAR 3.4 and 503.4 must be followed for leasing actions expected to exceed the simplified lease acquisition threshold.

(b) Other applicable certifications should be reviewed for compliance with regulations.

[60 FR 42797, Aug. 17, 1995, as amended at 63 FR 18847, Apr. 16, 1998]

570.308-2 Cost or pricing data.

(a) Cost or pricing data are required under the circumstances described in FAR 15.403-4.

(b) The exceptions to and waivers of submission of cost or pricing data outlined in FAR 15.403-1 apply to leasing actions. For purposes of FAR 15.403– 1(c)(1)(iii), "same or similar items" means similar space leased to the general public. A market survey and/or an appraisal conducted in accordance with accepted real property appraisal procedures may be used as evidence to establish the price reasonableness.

(c) In exceptional cases, the requirement for submission of cost or pricing data may be waived under FAR 15.4031(c)(4).

(d) When cost or pricing data is required, the contracting officer shall follow the procedural requirements in FAR 15.403-5.

[63 FR 18847, Apr. 16, 1998]

570.308-3 Proposal evaluation.

(a) Offers must be evaluated in accordance with the solicitation.

(b) The contracting officer shall evaluate the price and document the lease file to demonstrate that the proposed contract prices represent fair and reasonable prices.

(c) The contracting officer shall evaluate past performance in accordance with FAR 15.305(a)(2).

(d) The lease file must document the evaluation of other award factors listed in the solicitation. The file must include the basis for evaluation, an analysis of each offer, and a summary of findings. An abstract of final proposal revisions may be prepared to aid in the analysis of offers received.

[63 FR 18847, Apr. 16, 1998] 570.308-4 Responsibility tions.

determina

(a) The contracting officer shall make a determination that the prospective awardee is responsible with respect to the lease being considered. The

contracting officer's signature on the contract is deemed to be an affirmative determination. When an offeror is found to be nonresponsible, the contracting officer shall make, sign and place in the contract file a determination of nonresponsibility which shall state the basis for the determination.

(b) If a small business concern is found to be nonresponsible, the procedures at FAR 19.6 and 519.6 must be followed. All documents and reports supporting a determination of responsibility or nonresponsibility must be placed in the lease file.

570.309 Award.

(a) As used in this section, "day" has the meaning set forth at FAR 33.101.

(b) The contracting officer is designated as the source selection authority unless the Head of the Contracting Activity appoints another individual for a particular leasing action or group of leasing actions.

(c) An award will be made to the responsible offeror whose proposal represents the best value after evaluation in accordance with the factors and subfactors in the solicitation.

(d) Award will be made in writing within the timeframe specified in the SFO. If an award cannot be made within that time, the contracting officer shall request in writing from each offeror an extension of the acceptance period through a specific date.

(e) Unsuccessful offerors will be notified in writing or electronically in accordance with FAR 15.503(b).

(f) 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.

[63 FR 18847, Apr. 16, 1998]

570.310 Debriefings.

The procedures in FAR 15.505 and 15.506 apply to leasing actions. [63 FR 18847, Apr. 16, 1998]

570.311 Inspection.

The space must be inspected to ensure that it is in substantial compliance with the Government's requirements and specifications before acceptance by the contracting officer. The

contract file must be documented accordingly.

Subpart 570.4-Mistakes, Protest, Miscellaneous

570.401 Disclosure of mistakes after award.

When a mistake in a lessor's offer is not discovered until after award, the mistake should be handled as provided in FAR 14.407-4 and subpart 514.4.

[63 FR 18847, Apr. 16, 1998]

570.402 Protests.

Protests regarding the award of lease contracts are handled as provided in FAR Subpart 33.1 and Subpart 533.1. 570.403 Awards to Federal employees.

Offers from officers or employees of the Government must be handled as provided in FAR 3.6 and 503.6.

Subpart 570.5-Special Aspects of Contracting for Continued Space Requirements

570.501 Renewal options.

(a) Exercise of options. Before exercising an option, the provisions of Part 517 must be followed.

(b) Notification. When a contracting officer determines that it is in the best interest of the Government to continue to lease a property, the lessor must be notified within the timeframe required by the lease.

(c) Market survey. When the right to renew a lease exists, a renewal must be based on a market survey and other applicable considerations. Surveys should focus on the prevailing rental rates for comparable space.

[54 FR 26585, June 23, 1989, as amended at 55 FR 11588, Mar. 29, 1990; 60 FR 19363, Apr. 18, 1995]

570.502 Succeeding leases.

(a) General. Succeeding leases for the continued occupancy of space in a building which do not exceed the simplified lease acquisition threshold may be acquired through use of the simplified procedures outlined in subpart 570.2. Absence of competition must be