CHAPTER 2:

New or Replacing Lease

New or Replacing Lease ..............................................................................................................2.i

Overview: The New or Replacing Lease Process ................................................................ 2.1-1

Part 1: Acquisition Planning/Pre-Solicitation Requirements ............................................. 2.1-1

Part 2: Market Survey Process .............................................................................................. 2.2-1

Part 3: Solicitation Process ................................................................................................... 2.3-1

Part 4: Pre-Negotiation/Negotiations Process..................................................................... 2.4-1

Part 5: Award Determination ................................................................................................. 2.5-1

Part 6: Design, TI and BSAC Negotiations, and Notice to Proceed................................... 2.6-1

Part 7: Construction Phase.................................................................................................... 2.7-1

Part 8: Lease Commencement and Closeout ...................................................................... 2.8-1

Part 9: Attachments................................................................................................................ 2.9-1

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CHAPTER 2: New or Replacing Lease

Overview: The New or Replacing Lease Process

Overview: The New or Replacing Lease Process

A new or replacing lease utilizes all aspects of the leasing process, from acquisition planning to post-award tenant improvements and occupancy.

It is important to understand the three main categories of leases that PBS executes.

New or replacing leases are defined as leases with new terms and conditions and new lease contract numbers, applicable for either a new requirement or to replace an existing expiring lease.

Succeeding leases are defined as non-competitive (sole-source) lease acquisitions secured to provide for the Governments continued occupancy of the current premises at the end of a lease term without a break in tenancy. They establish new terms and conditions and have new lease contract numbers. Such a lease would generally be used where acceptable new locations are not identified, or where acceptable locations are identified but a cost-benefit analysis indicates that award to an offeror other than the current 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. Succeeding leases are discussed further in Chapter 5.

Superseding leases are defined as new leases that replace existing leases prior to their expiration. The existing lease is terminated simultaneously, effective with the commencement of the superseding lease. The Government considers executing a superseding lease to replace an existing lease when the Government needs numerous or detailed modifications to a space that would cause complications or substantially change the existing lease, or where better terms are available in a market. They are procured following non-competitive sole-source procedures and have new lease contract numbers. Superseding leases are discussed further in Chapter 5.

This chapter describes the procedures, techniques, instructions, and guidelines governing the acquisition of new or replacing leased space. It explains when a new or replacing lease is advisable or required, as compared to succeeding or superseding leases, extensions, responses to holdovers, and other lease processes. Note that, whenever possible, leases with contract value at or below the simplified lease acquisition threshold (SLAT) should follow simplified procedures which are highlighted in Chapter 3, Simplified Lease Acquisition.

The space requirements addressed in Chapter 1, Requirements Development, must be completed or refined before starting the leasing process. However, a delineated area may require later revision based on the findings of the market survey.

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http://www.gsa.gov/graphics/pbs/LDG_Ch_3-Simplified_Lease_Acquisition_5-31-11_508.pdf

CHAPTER 2: New or Replacing Lease

Overview: The New or Replacing Lease Process

As the diagram below illustrates, the general process for a new or replacing lease involves eight major stages. This chapter discusses each one. It is important to understand that these stages are simplified labels of convenience for distinct groups of related activities. In actual practice, these steps are not perfectly separate and linearit is not uncommon for some activities of one stage to extend into one or more subsequent stages and to require concurrent effort on several simultaneous responsibilities. (CTRL + click on a topic title in the diagram to go to that part of this chapter.)

New or Replacing LeaseProcess View

Acquisition Planning / Pre-Solicitation Requirements

Market Survey Process

Solicitation Process

Pre-Negotiation / Negotiations Process

Award Determination

Design, TI Negotiations, and Notice to Proceed

Construction Phase

Lease Commencement and Closeout

PBS Leasing Desk GuideThis page last revised: 07/20/2016

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CHAPTER 2: New or Replacing Lease

Part 1: Acquisition Planning/Pre-Solicitation Requirements

1. Overview

Part 1: Acquisition Planning/Pre-Solicitation Requirements

1. Overview............................................................................................................................... 2.1-2

2. Lease Acquisition Models and Templates ........................................................................ 2.1-3

a. Available Lease Models .................................................................................................. 2.1-3

b. Global Templates ............................................................................................................ 2.1-4

3. System Requirements......................................................................................................... 2.1-4

4. Electronic Files .................................................................................................................... 2.1-5

5. Components of Acquisition Planning ............................................................................... 2.1-5

a. Acquisition Planning Defined .......................................................................................... 2.1-5

b. Acquisition Plan Development ........................................................................................ 2.1-6

c. Lease Term Strategy..................................................................................................... 2.1-10

d. Funding Considerations ................................................................................................ 2.1-10

e. Prospectus Requirement .............................................................................................. 2.1-11

f. Determining Source Selection Approach....................................................................... 2.1-12

g. Schedules ..................................................................................................................... 2.1-12

h. Approval ........................................................................................................................ 2.1-13

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CHAPTER 2: New or Replacing Lease

Part 1: Acquisition Planning/Pre-Solicitation Requirements

1. Overview

1. Overview

This part describes the elements of acquisition planning that establish the proper groundwork and strategy for a lease. It defines acquisition planning and identifies significant components and steps in the acquisition planning process, including the following:

Developing the acquisition plan, with consideration for promoting full and open

competition, or preparing justifications for other than full and open competition;

Estimating project costs;

Identifying funding issues, such as ascertaining customer funding and lease scoring;

Preparing a lease prospectus as necessary;

Determining the acquisition approach; and

Managing the lease action in G-REX and REXUS.

A number of the activities at this stage must proceed concurrently, rather than in a linear sequence. (Note that G-REX proceeds through these activities in sequence; however, in practice the Leasing Specialist may perform multiple tasks concurrently, and must ensure that this work is properly documented in a timely manner within G-REX.)

The following illustration shows the major steps in lease acquisition planning and pre-solicitation process. Each step label is linked to the section that discusses the topic.

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CHAPTER 2: New or Replacing Lease

Part 1: Acquisition Planning/Pre-Solicitation Requirements

2. Lease Acquisition Models and Templates

Acquisition Planning/Pre-Solicitation Process

Prepare prospectus (if applicable)

Funding considerations

Obtain approval for acquisition plan

Lease acquisition models and templates

Acquisition Planning/Pre-Solicitation Requirements

Market Survey Process

Solici