41 C.F.R. Subpart B—Acquisition by Lease
Title 41 - Public Contracts and Property Management
Federal agencies may consider leases of privately owned land and buildings only when needs cannot be met satisfactorily in Government-controlled space and one or more of the following conditions exist: (a) Leasing is more advantageous to the Government than constructing a new building, or more advantageous than altering an existing Federal building. (b) New construction or alteration is unwarranted because demand for space in the community is insufficient, or is indefinite in scope or duration. (c) Federal agencies cannot provide for the completion of a new building within a reasonable time. No, Federal agencies possessing independent statutory authority to acquire leased space are not subject to GSA authority and, therefore, may not be subject to the requirements of this part. However, lease prospectus approval requirements of 40 U.S.C. Section 3307 may still apply appropriations to lease of space for public purposes under an agency's independent leasing authority. Federal agencies must acquire leases on the most favorable basis to the Federal Government, with due consideration to maintenance and operational efficiency, and at charges consistent with prevailing market rates for comparable facilities in the community. Federal agencies, upon approval from GSA, may enter into lease agreements with any person, partnership, corporation, or other public or private entity, provided that such lease agreements do not bind the Government for periods in excess of twenty years (40 U.S.C. 585(a)). Federal agencies may not enter into lease agreements with persons who are barred from contracting with the Federal Government (e.g., Members of Congress or debarred or suspended contractors). Yes, the limitations on leasing certain types of space are as follows: (a) In general, Federal agencies may not lease any space to accommodate computer and telecommunications operations; secure or sensitive activities related to the national defense or security; or a permanent courtroom, judicial chamber, or administrative office for any United States court, if the average annual net rental cost of leasing such space would exceed the prospectus threshold (40 U.S.C. 3307(f)(1)). (b) However, Federal agencies may lease such space if the Administrator of General Services first determines that leasing such space is necessary to meet requirements that cannot be met in public buildings, and then submits such determination to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives in accordance with 40 U.S.C. 3307(f)(2). Yes, Executive agencies must acquire leased space by negotiation, except where the sealed bid procedure is required by the Competition in Contracting Act, as amended (CICA) (41 U.S.C. 253(a)). Federal agencies, upon approval from GSA, must perform all functions of leasing building space, and land incidental thereto, for their use except as provided in this subpart. No one, except the Contracting Officer or his or her designee, may contact lessors, offerors, or potential offerors concerning space leased or to be leased for the purpose of making oral or written representation or commitments or agreements with respect to the terms of occupancy of particular space, tenant improvements, alterations and repairs, or payment for overtime services. Yes, upon request, GSA may perform, on a reimbursable basis, all functions of leasing building space, and land incidental thereto, for Federal agencies possessing independent statutory authority to lease space. However, GSA reserves the right to accept or reject reimbursable leasing service requests on a case-by-case basis. Federal agencies must apply the contingent fee policies in 48 CFR 3.4 to all negotiated and sealed bid contracts for the acquisition of real property by lease. Federal agencies must appropriately adapt the representations and covenants required by that subpart for use in leases of real property for Government use. The heads of Federal agencies must— (a) Cooperate with and assist the Administrator of General Services in carrying out his responsibilities respecting office buildings and space; (b) Take measures to give GSA early notice of new or changing space requirements; (c) Seek to economize their requirements for space; and (d) Continuously review their needs for space in and near the District of Columbia, taking into account the feasibility of decentralizing services or activities that can be carried on elsewhere without excessive costs or significant loss of efficiency. Yes, Executive agencies must obtain full and open competition among suitable locations meeting minimum Government requirements, except as otherwise provided by CICA, 41 U.S.C. 253.
Title 41: Public Contracts and Property Management
PART 102–73—REAL ESTATE ACQUISITION
Subpart B—Acquisition by Lease
§ 102-73.45 When may Federal agencies consider leases of privately owned land and buildings to satisfy their space needs?
§ 102-73.50 Are Federal agencies that possess independent statutory authority to acquire leased space subject to requirements of this part?
§ 102-73.55 On what basis must Federal agencies acquire leases?
§ 102-73.60 With whom may Federal agencies enter into lease agreements?
§ 102-73.65 Are there any limitations on leasing certain types of space?
§ 102-73.70 Are Executive agencies required to acquire leased space by negotiation?
§ 102-73.75 What functions must Federal agencies perform with regard to leasing building space?
§ 102-73.80 Who is authorized to contact lessor, offerors, or potential offerors concerning space leased or to be leased?
§ 102-73.85 Can agencies with independent statutory authority to lease space have GSA perform the leasing functions?
§ 102-73.90 What contingent fee policy must Federal agencies apply to the acquisition of real property by lease?
§ 102-73.95 How are Federal agencies required to assist GSA?
Competition in Contracting Act of 1984
§ 102-73.100 Is the Competition in Contracting Act of 1984, as amended (CICA), applicable to lease acquisition?
National Environmental Policy Act of 1969 (NEPA)
§ 102-73.105 What policies must Federal agencies follow to implement the requirements of NEPA when acquiring real property by lease?
Federal agencies must follow the NEPA policies identified in §§102–76.40 and 102–76.45 of this chapter.
Lease Construction
§ 102-73.110 What rules must Executive agencies follow when acquiring leasehold interests in buildings constructed for Federal Government use?
When acquiring leasehold interests in buildings to be constructed for Federal Government use, Executive agencies must—
(a) Establish detailed building specifications before agreeing to a contract that will result in the construction of a building;
(b) Use competitive procedures;
(c) Inspect every building during construction to ensure that the building complies with the Government's specifications;
(d) Evaluate every building after completion of construction to determine that the building complies with the Government's specifications; and
(e) Ensure that any contract that will result in the construction of a building contains provisions permitting the Government to reduce the rent during any period when the building does not comply with the Government's specifications.
Price Preference for Historic Properties
§ 102-73.115 Must Federal agencies offer a price preference to space in historic properties when acquiring leased space?
Yes, Federal agencies must give a price preference to space in historic properties when acquiring leased space using either the lowest price technically acceptable or the best value tradeoff source selection processes.
§ 102-73.120 How much of a price preference must Federal agencies give when acquiring leased space using the lowest price technically acceptable source selection process?
Federal agencies must give a price evaluation preference to space in historic properties as follows:
(a) First to suitable historic properties within historic districts, a 10 percent price preference.
(b) If no suitable historic property within an historic district is offered, or the 10 percent preference does not result in such property being the lowest price technically acceptable offer, the Government will give a 2.5 percent price preference to suitable non-historic developed or undeveloped sites within historic districts.
(c) If no suitable non-historic developed or undeveloped site within an historic district is offered, or the 2.5 percent preference does not result in such property being the lowest price technically acceptable offer, the Government will give a 10 percent price preference to suitable historic properties outside of historic districts.
(d) Finally, if no suitable historic property outside of historic districts is offered, no historic price preference will be given to any property offered.
§ 102-73.125 How much of a price preference must Federal agencies give when acquiring leased space using the best value tradeoff source selection process?
When award will be based on the best value tradeoff source selection process, which permits tradeoffs among price and non-price factors, the Government will give a price evaluation preference to historic properties as follows:
(a) First to suitable historic properties within historic districts, a 10 percent price preference.
(b) If no suitable historic property within an historic district is offered or remains in the competition, the Government will give a 2.5 percent price preference to suitable non-historic developed or undeveloped sites within historic districts.
(c) If no suitable non-historic developed or undeveloped site within an historic district is offered or remains in the competition, the Government will give a 10 percent price preference to suitable historic properties outside of historic districts.
(d) Finally, if no suitable historic property outside of historic districts is offered, no historic price preference will be given to any property offered.
Leases With Purchase Options
§ 102-73.130 When may Federal agencies consider acquiring leases with purchase options?
Agencies may consider leasing with a purchase option at or below fair market value, consistent with the lease-purchase scoring rules, when one or more of the following conditions exist:
(a) The purchase option offers economic and other advantages to the Government and is consistent with the Government's goals.
(b) The Government is the sole or major tenant of the building, and has a long-term need for the property.
(c) Leasing with a purchase option is otherwise in the best interest of the Government.
Scoring Rules
§ 102-73.135 What scoring rules must Federal agencies follow when considering leases and leases with purchase options?
All Federal agencies must follow the budget scorekeeping rules for leases, capital leases, and lease-purchases identified in appendices A and B of OMB Circular A–11. (For availability, see 5 CFR 1310.3.)
Delegations of Leasing Authority
§ 102-73.140 When may agencies that do not possess independent leasing authority lease space?
Federal agencies may perform for themselves all functions necessary to acquire leased space in buildings and land incidental thereto when—
(a) The authority may be delegated (see §102–72.30) on the different types of delegations related to real estate leasing);
(b) The space may be leased for no rental, or for a nominal consideration of $1 per annum, and is limited to terms not to exceed 1 year;
(c) Authority has been requested by an Executive agency and a specific delegation has been granted by the Administrator of General Services;
(d) A categorical delegation has been granted by the Administrator of General Services for space to accommodate particular types of agency activities, such as military recruiting offices or space for certain county level agricultural activities (see §102–73.155 for a listing of categorical delegations); or
(e) The required space is found by the Administrator of General Services to be wholly or predominantly utilized for the special purposes of the agency to occupy such space and is not generally suitable for use by other agencies. Federal agencies must obtain prior approval from the GSA regional office having jurisdiction for the proposed leasing action, before initiating a leasing action involving 2,500 or more square feet of such special purpose space. GSA's approval must be based upon a finding that there is no vacant Government-owned or leased space available that will meet the agency's requirements. Agency special purpose space delegations can be found in §§102–73.170 through 102–73.225.
Categorical Space Delegations
§ 102-73.145 What is a categorical space delegation?
A categorical space delegation is a standing delegation of authority from the Administrator of General Services to a Federal agency to acquire a type of space identified in §102–73.155, subject to limitations in this part.
§ 102-73.150 What is the policy for categorical space delegations?
Subject to the limitations cited in §§102–73.230 through 102–73.240, all Federal agencies are authorized to acquire the types of space listed in §102–73.155 and, except where otherwise noted, may lease space for terms, including all options, of up to 20 years.
§ 102-73.155 What types of space can Federal agencies acquire with a categorical space delegation?
Federal agencies can use categorical space delegations to acquire—
(a) Space to house antennas, repeaters, or transmission equipment;
(b) Depots, including, but not limited to, stockpiling depots and torpedo net depots;
(c) Docks, piers, and mooring facilities (including closed storage space required in combination with such facilities);
(d) Fumigation areas;
(e) Garage space (may be leased only on a fiscal year basis);
(f) Greenhouses;
(g) Hangars and other airport operating facilities including, but not limited to, flight preparation space, aircraft storage areas, and repair shops;
(h) Hospitals, including medical clinics;
(i) Housing (temporary), including hotels (does not include quarters obtained pursuant to temporary duty travel or employee relocation);
(j) Laundries;
(k) Quarantine facilities for plants, birds, and other animals;
(l) Ranger stations, i.e., facilities that typically include small offices staffed by one or more uniformed employees, and may include sleeping/family quarters, parking areas, garages, and storage space. Office space within ranger stations is minimal and does not comprise a majority of the space. (May also be referred to as guard stations, information centers, or kiosks);
(m) Recruiting space for the armed forces (lease terms, including all options, limited to 5 years);
(n) Schools directly related to the special purpose function(s) of an agency;
(o) Specialized storage/depot facilities, such as cold storage; self-storage units; and lumber, oil, gasoline, shipbuilding materials, and pesticide materials/equipment storage (general purpose warehouse type storage facilities not included); and
(p) Space for short-term use (such as conferences and meetings, judicial proceedings, and emergency situations).
Special Purpose Space Delegations
§ 102-73.160 What is an agency special purpose space delegation?
An agency special purpose space delegation is a standing delegation of authority from the Administrator of General Services to specific Federal agencies to lease their own special purpose space (identified in §§102–73.170 through 102–73.225), subject to limitations in this part.
§ 102-73.165 What is the policy for agency special purpose space delegations?
Subject to the limitations on annual rental amounts, lease terms, and leases on parking spaces cited in §§102–73.230 through 102–73.240, the agencies listed below are authorized to acquire special purpose space associated with that agency and, except where otherwise noted, may lease such space for terms, including all options, of up to 20 years. The agencies and types of space subject to special purpose space delegations are specified in §§102–73.170 through 102–73.225.
§ 102-73.170 What types of special purpose space may the Department of Agriculture lease?
The Department of Agriculture is delegated the authority to lease the following types of special purpose space:
(a) Cotton classing laboratories (lease terms, including all options, limited to 5 years).
(b) Land (if unimproved, may be leased only on a fiscal year basis).
(c) Miscellaneous storage by cubic foot or weight basis.
(d) Office space when required to be located in or adjacent to stockyards, produce markets, produce terminals, airports, and other ports (lease terms, including all options, limited to 5 years).
(e) Space for agricultural commodities stored in licensed warehouses and utilized under warehouse contracts.
(f) Space utilized in cooperation with State and local governments or their instrumentalities (extension services) where the cooperating State or local government occupies a portion of the space and pays a portion of the rent.
§ 102-73.175 What types of special purpose space may the Department of Commerce lease?
The Department of Commerce is delegated authority to lease the following types of special purpose space:
(a) Space required by the Census Bureau in connection with conducting the decennial census (lease terms, including all options, limited to 5 years).
(b) Laboratories for testing materials, classified or ordnance devices, calibration of instruments, and atmospheric and oceanic research (lease terms, including all options, limited to 5 years).
(c) Maritime training stations.
(d) Radio stations.
(e) Land (if unimproved, may be leased only on a fiscal year basis).
(f) National Weather Service meteorological facilities.
§ 102-73.180 What types of special purpose space may the Department of Defense lease?
The Department of Defense is delegated authority to lease the following types of special purpose space:
(a) Air Force—Civil Air Patrol Liaison Offices and land incidental thereto when required for use incidental to, in conjunction with, and in close proximity to airports, including aircraft and warning stations (if unimproved, land may be leased only on a fiscal year basis; for space, lease terms, including all options, limited to 5 years).
(b) Armories.
(c) Film library in the vicinity of Washington, DC.
(d) Mess halls.
(e) Ports of embarkation and debarkation.
(f) Post exchanges.
(g) Postal Concentration Center, Long Island City, NY.
(h) Recreation centers.
(i) Reserve training space.
(j) Service clubs.
(k) Testing laboratories (lease terms, including all options, limited to 5 years).
§ 102-73.185 What types of special purpose space may the Department of Energy lease?
The Department of Energy, as the successor to the Atomic Energy Commission, is delegated authority to lease facilities housing the special purpose or special location activities of the old Atomic Energy Commission.
§ 102-73.190 What types of special purpose space may the Federal Communications Commission lease?
The Federal Communications Commission is delegated authority to lease monitoring station sites.
§ 102-73.195 What types of special purpose space may the Department of Health and Human Services lease?
The Department of Health and Human Services is delegated authority to lease laboratories (lease terms, including all options, limited to 5 years).
§ 102-73.196 What types of special purpose space may the Department of Homeland Security lease?
The Department of Homeland Security is delegated authority to lease whatever space its organizational units or components had authority to lease prior to the creation of the Department of Homeland Security, including—
(a) Border patrol offices similar in character and utilization to police stations, involving the handling of prisoners, firearms, and motor vehicles, regardless of location (lease terms, including all options limited to 5 years);
(b) Space for the U.S. Coast Guard oceanic unit, Woods Hole, MA; and
(c) Space for the U.S. Coast Guard port security activities.
§ 102-73.200 What types of special purpose space may the Department of the Interior lease?
The Department of the Interior is delegated authority to lease the following types of special purpose space:
(a) Space in buildings and land incidental thereto used by field crews of the Bureau of Reclamation, Bureau of Land Management, and the Geological Survey in areas where no other Government agencies are quartered (unimproved land may be leased only on a fiscal year basis).
(b) National Parks/Monuments Visitors Centers consisting primarily of special purpose space (e.g., visitor reception, information, and rest room facilities) and not general office or administrative space.
§ 102-73.205 What types of special purpose space may the Department of Justice lease?
The Department of the Justice is delegated authority to lease the following types of special purpose space:
(a) U.S. marshals office in any Alaska location (lease terms, including all options, limited to 5 years).
(b) Space used for storage and maintenance of surveillance vehicles and seized property (lease terms, including all options, limited to 5 years).
(c) Space used for review and custody of records and other evidentiary materials (lease terms, including all options, limited to 5 years).
(d) Space used for trial preparation where space is not available in Federal buildings, Federal courthouses, USPS facilities, or GSA-leased buildings (lease terms limited to not more than 1 year).
§ 102-73.210 What types of special purpose space may the Office of Thrift Supervision lease?
The Office of Thrift Supervision is delegated authority to lease space for field offices of Examining Divisions required to be located within Office of Thrift Supervision buildings or immediately adjoining or adjacent to such buildings (lease terms, including all options, limited to 5 years).
§ 102-73.215 What types of special purpose space may the Department of Transportation lease?
The Department of Transportation is delegated authority to lease the following types of special purpose space (or real property):
(a) Land for the Federal Aviation Administration (FAA) at airports (unimproved land may be leased only on a fiscal year basis).
(b) General purpose office space not exceeding 10,000 square feet for the FAA at airports in buildings under the jurisdiction of public or private airport authorities (lease terms, including all options, limited to 5 years).
§ 102-73.220 What types of special purpose space may the Department of the Treasury lease?
The Department of the Treasury is delegated authority to lease the following types of special purpose space:
(a) Space and land incidental thereto for the use of the Comptroller of the Currency, as well as the operation, maintenance and custody thereof (if unimproved, land may be leased only on a fiscal year basis; lease term for space, including all options, limited to 5 years).
(b) Aerostat radar facilities necessary for U.S. Custom Service mission activities.
§ 102-73.225 What types of special purpose space may the Department of Veterans Affairs lease?
The Department of Veterans Affairs is delegated authority to lease the following types of special purpose space:
(a) Guidance and training centers located at schools and colleges.
(b) Space used for veterans hospitals, including outpatient and medical-related clinics, such as drug, mental health, and alcohol.
Limitations on the Use of Delegated Authority
§ 102-73.230 When must Federal agencies submit a prospectus to lease real property?
In accordance with 40 U.S.C. 3307, Federal agencies must submit a prospectus to the Administrator of General Services for leases involving a net annual rental, excluding services and utilities, in excess of the prospectus threshold provided in 40 U.S.C. 3307. Agencies must be aware that prospectus thresholds are indexed and change each year.
§ 102-73.235 What is the maximum lease term that a Federal agency may agree to when it has been delegated lease acquisition authority from GSA?
Pursuant to GSA's authority to enter into lease agreements contained in 40 U.S.C. 585(a)(2), agencies delegated the authorities outlined herein may enter into leases for the term specified in the delegation. In those cases where agency special purposes space delegations include the authority to acquire unimproved land, the land may be leased only on a fiscal year basis.
§ 102-73.240 What policy must Federal agencies follow to acquire official parking spaces?
Federal agencies that need parking must utilize available Government-owned or leased facilities. Federal agencies must make inquiries regarding availability of such Government-controlled space to GSA regional offices and document such inquiries. If no suitable Government-controlled facilities are available, an agency may use its own procurement authority to acquire parking by service contract.
Browse Previous | Browse Next
