1: LAND ACQUISITION
1.1.2: New Background
The Federal Aviation Administration has been not been relieved of the requirements of the Competition in Contracting Act, Federal Acquisition Regulations (FAR), Brooks Act, Prompt Payment Act, and other restrictive regulations and laws. This document provides general guidelines for the procurement of real property land interests taking into consideration the changes in laws, instructions and regulations.
1.1.3: Guidelines
Normally land interests needed by the FAA are for on-airport sites or are site specific and will be acquired through a single source. Acquiring interests in land by the competitive method should be used when the possibility exists that more than one acceptable site exists within the delineated area that could satisfy the FAA. s needs.
1.1.4: Request
The process for procurement of real property interests can be initiated informally such as a request for market information, potential costs, or availability. Prior to conducting formal negotiations, or awarding of a contract a formal written request certified by an authorized requesting official must be received. At present, formal certification is normally provided by means of a Procurement Request (PR) however, a memo or other form of document can be used as a formal request as long as the document contains an original signature of an authorized requesting official.
If costs are involved in the procurement, a certification of funding must be received prior to obligation of any funds for any purpose or award of a contract.
1.1: Land Guidance
1.1.1: Applicability
This altered document provides general guidance for the procurement of all real property land interests by lease, purchase, condemnation, or otherwise. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (49 CFR Part 24) is mandatory and establishes the minimum Real Property Acquisition Policies for appraisal, negotiation and property possession standards and requirements.
1.1.5: Requirements
Requirements received from the customer may be general in nature or can be very specific. The Real Estate Contracting Officer should ensure that whatever requirements are received, they contain sufficient detail to assure the customer. s needs are met. The Real Estate Contracting Officer should work with the customer to clarify unclear or incomplete requirements and verify that the procurement requested is in conformance with applicable regulations. When appropriate, the Real Estate Contracting Officer should advise the customer of any alternatives available to satisfy the requirement.
Improvements to the land accomplished by the property owner (i.e. gates, grading, paving, clearing, fencing, etc.), as requested by the FAA, may be included in the procurement. Costs of improvements shall be evaluated to assure they are fair and reasonable. Payment for costs of these improvements can be by lump-sum payment or amortized over the term of a lease.
On requests for renewal of existing leases, the Real Estate Contracting Officer should determine if the property continues to meet the FAA. s needs without any changes. Any changes required in the lease terms should be negotiated and included in the succeeding lease.
Legal description, title information, market survey/appraisal, Environmental Due Diligence Audit (EDDA), Environmental Assessment (EA) or Finding Of No Significant Impact (FONSI) should be obtained as early as possible in the land procurement process. This information is required prior to making a final offer to the property owner(s) for a new land lease/purchase. The requiring office shall provide the EDDA, EA or FONSI.
"Master" leases should be utilized for land lease renewals and new land leases of on-airport properties whenever possible. Master leases consolidate separate land leases into one document, and can significantly reduce the administrative work of the Real Estate Contracting Officer and airport officials.
The Real Estate Contracting Officer makes the determination of the appropriate method of procurement to be used to satisfy the requirement, either competitive or single source. A preliminary assessment of potential available sources may be needed to assist in the determination of the procurement method.
1.1.6: Procurement Method
The single source method of procurement is appropriate when technical requirements, business practices, or programmatic needs have determined that specific location, site, or unique need is required to meet the FAA. s mission, or when it has been determined that only one source is reasonably available that can meet the requirement.
Competition is appropriate when the requirement is not site or location specific and the reasonable possibility exists that there is more than one provider that can meet the FAA. s needs. Competition should be utilized whenever practical and reasonable. Competition is obtained by providing two or more sources an opportunity to express an interest in satisfying the requirement. Advertising is not required. Interest may be expressed either orally or in writing.
1.1.7: Advertising
If the requirement is not for a site specific location and multiple sources may be available to meet the requirement, then advertising to allow for competition may be appropriate. When advertising the Real Estate Contracting Officer should utilize the publicizing method most likely to result in receipt of offers appropriate to satisfy the specific requirement. Advertisements in most cases will be by local or area wide newspapers however, this is not limited and may include commercial trade journals, electronic bulletin boards, and the Commerce Business Daily. Multiple advertising may be utilized if considered necessary.
The Real Estate Contracting Officer determines need or requirement for advertising. Data from a market survey may be used to determine the need for advertising.
1.1.9: Survey / Title / Appraisers
Competition for obtaining the services of surveyors, appraisers, or title companies, is not required, however, obtaining competition for providing these services is encouraged as a sound business practice and should result in award of a contract at the most reasonable cost. Ranking of surveyors as required by the Brooks Act, does not apply to the FAA.
1.1.10: Market Survey / Appraisal
A altered market survey or appraisal should be accomplished for each land procurement where costs are involved.
Market survey data can be used to: determine the availability of properties within the delineated area eliminating unsatisfactory properties from consideration determining the willingness of landowners to provide property for the FAA. s use determining fair market rents determining suitability of responses to advertisements and, determining estimated cost for the purchase of property.
An appraisal is a formal written statement that a qualified appraiser prepares independently and impartially, giving an opinion, as of a specified date, of the defined value of a described parcel of real property, supported by the presentation and analysis of relevant market information. An appraisal is used to determine the fair market rent, and value or just compensation for purchase of a specific property.
10a. Market Survey
Market surveys can be conducted by telephone, mail, on-site visits, or a combination of methods. The survey can be informal - just data gathering, or formal - where a request for written data is made.
When determining estimated market values, data should be obtained from a minimum of three sources. Sources may include, but not limited to: local real estate offices other lessees, city/county/parish/township assessors local appraisers and, governmental offices dealing with land such as the Soil Conservation Service, Bureau of Land Management, and Forest Service.
Market survey data should be recorded and retained in the land procurement files.
10b. Appraisal
The following is offered as guidance on the need for or use of appraisals:
- No appraisal is required for purchase of properties where the just compensation is estimated by the Real Estate Contracting Officer to be less than $2,500.00. (An appraisal is required for any property to be purchased whose value is estimated to be $2,500.00 or greater.)
- A value finding appraisal (opinion of value) can be used for properties whose value is estimated to be $2,500.00 to $5,000.00.
- Short form appraisals may be used for all properties regardless of estimated purchase price.
- For complex appraisal problems the long form appraisal should be used.
- A long form appraisal is required for all eminent domain proceedings regardless of estimated cost.
The Real Estate Contracting Officer shall determine the appropriate type of appraisal method to be used.
The following information should be given, or made available, to the appraiser for consideration or inclusion in the appraisal:
- legal description of property
- ownership data/title information
- results of the EDDA
- on new property the results of the EA or FONSI
- any other data that could have an effect on the property. s value
For the purchase of real property the appraisal should include a before and after valuation of the property to determine the value of any severance damage.
1.1.8: Right Of Entry
The Real Estate Contracting Officer should ensure that a "right of entry" permit to the property for any purpose has been obtained from the land owner prior to ingress by an FAA employee or any of it's agents. Legal counsel should be consulted for the proper action to take if the landowner refuses to grant a "right of entry" permit. Entry onto private property without appropriate rights may constitute trespass.
1.1.11: Lease versus Purchase Analysis
Except as noted below, a lease versus purchase analysis should be made for all new land interests to be acquired and existing land leases to be renewed, taking into consideration the expected term the property will be needed. The analysis is used to determine the most cost-effective method of procurement - purchase or lease. Data from a market survey or appraisal should be used for input into the analysis. If the analysis shows purchase to be the most effective method of procurement, the Real Estate Contracting Officer should initiate land purchase action in accordance with established procedures.
If cost is not a determining factor, such as when a landowner is unwilling to allow FAA use of the property or demands unreasonable lease terms, and eminent domain proceedings are needed, a lease versus purchase analysis is not required.
1.1.13: Evaluation / Negotiation/ Recommendation
Based on the results of market surveys or appraisals the Real Estate Contracting Officer should negotiate with property owners to obtain the necessary land interests at a fair and reasonable cost.
Costs of any improvements to the real property to be included in the procurement should be evaluated to ensure they are reasonable.
When using the competitive method of procurement, all offers received should be evaluated to ensure they can satisfy the FAA. s needs. The total cost to the FAA should be a consideration in making the final selection. In addition to land costs, items such as the following should be considered for each site: site preparation costs, costs for construction of access roads, special maintenance considerations, environmental considerations, and utility service availability and cost.
If multiple offers are received and a competitive range is established, any offer falling within this range may be selected for final negotiation without further consideration of selection factors.
Purchase or lease costs should be comparable to costs charged to the general market. The value of the Government's enhancements, or intended use should not be used in determining the procurement or lease cost of the real property.
When appropriate, environmental cleanup costs for existing conditions should be considered in the negotiations. If environmental contamination is found, the requesting office should state in writing that they request continuation of the procurement.
All reasonable efforts should be made to conclude negotiations to the satisfaction of the concerned parties. Determining when to cease negotiations with landowners who demand unreasonable fees or are unwilling to allow the FAA. s use of their property is at the discretion of the Real Estate Contracting Officer. Eminent domain proceedings, in accordance with established procedures, should be initiated when negotiations have reached an impasse and a satisfactory conclusion to the procurement cannot be reached. Protracted negotiations are generally not in the best interests of both party
1.1.13.1: TEST
TEST
1.1.12: Term Of Lease
As provided in 49 U.S.C., Section 40110 (b)(2)(A) the FAA has authority to lease an interest in real property for not more than 20 years, without regard to FAA annual appropriations. This means the FAA has authority to enter into "firm-term" leases without violating the Antideficiency Act. FAA authority to lease real property does not allow lease terms in excess of 20 years, including all renewal options.
For purposes of this guidance a firm-term lease is defined as the period or length of time the lease or portion thereof cannot be canceled without the approval of the lessor.
Each region/center will determine when and how this authority will be used within the limitations set forth below. In using this firm-term authority, FAA Order 2220.1, Legal Participation in Procurement and Contracting, or its replacement order, must be followed.
Caution must be exercised in implementing firm-term lease authority. A firm-term lease commits the FAA to future rental payments. The FAA must be willing to commit future annual appropriations for the term of occupancy. If funding is not committed the FAA would be in default of the lease and subject to claims by the lessor. Funding is the responsibility of the using organization and must be understood up front.
The cost or terms of the longer firm-term lease must be advantageous to the FAA as compared to a one-year lease with renewal options. Prior to executing a firm-term lease the real estate acquisition team should advise and provide the organization responsible for funding with an analysis of potential lease costs and/or savings. Also prior to executing the lease the real estate acquisition team should obtain a written statement that acknowledges the terms and funding requirements of the firm term lease, including future budget year requirements. This written funding statement will be maintained in the real estate lease file.
A firm-term lease shall not be entered into if, in the judgment of the real estate contracting officer (CO), there is any doubt about the long term need of the user. The objective in leasing a facility is to obtain what is best not only for the user but also for the FAA. In some cases obtaining the lowest cost is not always the best, even though it is an important consideration.
There is no requirement to use firm-term authority. Firm-term leases are a tool in obtaining what is best for the FAA. If firm-term authority is used, the manner in which contract documents are written must be consistent. In establishing that consistency Regions/Centers should consider establishing, at least for some interim period, an appropriate level of firm-term lease review above the real estate CO.
12a. Firm-term authority for land leases only:
Regions/Centers:
1-20 Years Firm-term Unlimited. Leases not exceeding 20 years including all renewal periods. Unless a firm-term lease is clearly advantageous to the FAA, suggest the "TERM" clause in the standard land lease that provides for 30 day termination by the Government be used.
However, all FAA leasing actions in Headquarters organizations in Washington D.C. must be coordinated through the Real Estate Policy Branch (ASU-140), in order insure all relevant planning and policy issues are taken into consideration prior to using this authority. All requests shall be sent through channels to the attention of the Real Estate Policy Branch (ASU-140).
12b. Other Lease Considerations:
To provide some protection to the FAA the lease should include a clause allowing the FAA to sublease the premises in whole or in part.  
1.1.13.1: TEST
TEST
1.1.14: Contract Execution
The Real Estate Contracting Officer will make any necessary changes or additions to the contract based on negotiations with the landowner. Legal review is recommended where deviation from standard clauses is made in a contract. Legal review is required on purchase contracts and legal counsel shall provide an opinion of title. The Department of Justice rules on condemnation and title requirements must be followed
Lease documents should not state the specific type of facility to be placed on the premises. Stating the specific use (i.e. RCAG site and Access Road) could limit what type of facility the FAA is legally allowed to install on the premises throughout the term of the lease.
The Prompt Payment Act does not apply to the FAA however, the FAA should make payments within 30 days after acceptance or as provided in the contract. As determined by the Real Estate Contracting Officer, the FAA may apply late payment interest to payments made within the scope of real property contracting actions.
The Government is to make all payments through the use of EFT (P.L. 104-134). See Section D., Real Estate Asset Management, for guidance.
The Real Estate Contracting Officer shall send an appropriate number of contracts to the property owner for signature and return for final execution. All off-airport leases and purchase documents (deeds) shall be recorded in the appropriate County/Parish/Township office.
1.1.15: Documentation
Sufficient documentation should be developed that explains and justifies the procurement action taken. These documents should be retained in the applicable real estate procurement file as appropriate:
- Copies of EDDA. s, and EA. s or FONSI. s
- Fair Market Value determination or appraisal
- Lease vs. Purchase Analysis
- Negotiation record
- Summary of actions explaining rational used to complete the procurement (Justification for single source procurement. NOTE: The certified request for renewal of an existing lease for on or off-airport land interests or procurement of new on or off-airport site specific land interests provides sufficient justification for single source procurement and no additional written justification will be required. Provided the request accurately reflects what was acquired.)
- Recorded contract with all amendments
- Legal description, and plat of survey
- Ownership data
- Copies of other offers
- Signed or authorized request for procurement action
- Certification of funding
- EFT information - Generally, the Vendor/Miscellaneous Payment Information Form or statement requesting a waiver of EFT.
Optional:
- Photos of the property acquired
1.3: Lease Forms:
1.2: Land Clause Matrix - Describes when the clauses are appropriate to use
CLAUSE TITLE DATE OF CLAUSELAND LEASE CLAUSE MATRIX
ON AIRPORT
OFF AIRPORT
PRESCRIPTIONAnti-Kickback
Oct-96
M
M
Insert in all leases IAW 41 U.S.C. 51-58.
Assignment of Claims
Oct-96
N/A
R
Insert in all leases unless the terms of the lease prohibit assignment of claims. 
Cancellation
Aug-02
M
M
Insert in all leases to perserve the Governments rights to terminate for our convenience.
Consideration (Cost)
1.1.16: Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (49 CFR Part 24). (www.fhwa.dot.gov/realestate/49cfr.htm) and (http://www.fhwa.dot.gov/realestate/UAfnl99.htm)
This Act was intended to establish a uniform policy for the fair and equitable treatment of persons who are displaced as a direct result of programs or projects that are undertaken by a Federal agency or with Federal financial assistance.  The ACT ensures that displaced persons shall not suffer disproportionate injuries as the result of programs and projects designed for the benefit of the public as a whole and minimizes the hardship of displacement on such persons.  The ACT also establishes minimum Real Property Acquisition Policies for appraisal, negotiation and property possession standards and requirements.
The Uniform Act applies to any Federal or federally assisted program or project if Federal funding is used in any phase of the program or project.  Provisions of the Uniform Act are mandatory and are applicable to each Federal agency that administers programs or provides financial assistance for projects, which involve land acquisition or relocation assistance.
 The Uniform Relocation Act of 1970 was enacted January 2, l971 and amended by: the 1987 Uniform Act Amendments, 1991 Public Law 102-240 and the Nov 1997 Public Law 105-17. The Final Rule on the 1997 amendments was published in the February 12, l999 Federal Register (Volume 64, Number 29, pages 7127-7133), http://www.fhwa.dot.gov/realestate/UAfnl99.htm.  This final rule provides that “an alien not lawfully present in the United States shall not be eligible to receive relocation payments or any other assistance provided under the Uniform Act unless such ineligibility would result in exceptional and extremely unusual hardship to the alien’s spouse, parent, or child and such spouse, parent, or child is a citizen or an alien admitted for permanent residence”.  The final rule requires that persons seeking relocation payments or assistance under the Uniform Act certify, as a condition of eligibility, that they are citizens or are otherwise lawfully present in the United States.  The format of the certification is left up to each Agency.  The certifications may be for individuals or a family [in which case the head of household may certify as to the status of other family members (see section 24.208(a)(2))].  FHWA has determined that the final rule applies to businesses as well as individuals and believes the prohibition on benefits must be applied differently to differing “ownership” situations, such as: a sole proprietorship, a partnership or a corporation.  Any payments that a business is eligible to receive should be reduced by a percentage based on the prorated shares of the ownership between eligible and ineligible owners.  The following web site lists immigration offices you may need to contact if you chose to verify self certified immigration information: http://www.ins.usdoj.gov/natz/statemap.htm
 The Uniform Act designates the Department of Transportation (The Department) as the lead agency for implementing the Uniform Act.   The Department has delegated this responsibility to the Federal Highway Administration (FHWA) [49 CFR 1.48(cc)].   Pursuant to section 213 of the Uniform Act, the FHWA promulgated a single government–wide regulation for implementing the Uniform Act, at 49 CFR Part 24 ( 1.1.17: Prescriptions for Real Estate Clauses:
A. "Hazardous Substance Contamination" – A land lease for "on airport" technical facilities may not be executed unless a Phase One EDDA is performed in accordance with FAA Order 1050.19 or the land lease contains the Hazardous Substance Contamination clause. If a Phase One Environmental Due Diligence Audit (EDDA) is not performed, this clause shall be inserted in all new land leases and renewal land leases for "on airport" technical facilities. Leases in effect as of the date of this change are not required to be modified, that is to replace the reference to "Government facilities" with a list of each "type of facility". However, when an existing land lease for an "on airport" facility is modified/amended, this clause shall be updated to reflect the "type of facility" on the property. When applicable state law or federal law in the relevant district or circuit courts is such that this clause, as drafted, is unacceptable to the airport sponsor or ineffective to fulfill the intent of the clause, it may be modified, as appropriate, with written concurrence of AGC 600 or Regional Counsel as long as the original intent of the clause is maintained. If agreement on the clause cannot be reached, a Phase One EDDA can be preformed in lieu of having the clause in the lease. U.S. DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION   LAND LEASE OFF AIRPORT   Lease No: DTFA_ _ - _ _ - L - _ _ _ _ _ (a) (b) (c) [a=local designator, b=fiscal year, c= five digit lease #] Geographical Location: (Physical location - City, State, ZIP) THIS LEASE is hereby entered into by (_full name of lessor)_________ whose address is (insert complete address) hereinafter referred to as the Lessor and the United States of America, herein after referred to as the Government. This lease shall become effective when it is fully executed by all parties. The terms and provisions of this lease, and the conditions herein, bind the Lessor and the Lessor’s heirs, executors, administrators, successors, and assigns. WITNESSETH: The parties hereto, for the consideration hereinafter mentioned covenant and agree as follows: PREMISES (AUG-02): The Lessor hereby leases to the Government the following described property, hereinafter referred to as the premises, viz: INSERT LEGAL DESCRIPTION OF THE PROPERTY INCLUDE THE LEGAL DESCRIPTION OF THE CLEAR ZONES AND EASEMENTS. INCLUDE THE QUANTATIVE TOTAL ACREAGE AND BREAKOUT OF THE ACREAGE AS FOLLOWS: 1) THE FOOTPRINT, 2) THE CLEAR ZONE AND 3) THE EASEMENTS. A. Together with a right-of-way for ingress to and egress from the premises a right-of-way for establishing and maintaining a pole line or pole lines for extending electric power and/or telecommunication lines to the premises and a right-of-way for subsurface power, communication and/or water lines to the premises all rights-of-way to be over said lands and adjoining lands of the Lessor, and unless herein described otherwise, to be by routes reasonably determined to be the most convenient to the Government. B. And the right of grading, conditioning, and installing drainage facilities, and seeding the soil of the premises, and the removal of all obstructions from the premises which may constitute a hindrance to the establishment and maintenance of Government facilities. C. And the right to make alterations, attach fixtures, and erect additions, structures, or signs, in or upon the premises hereby leased, which alterations, fixtures, additions, structures or signs so placed in or upon, or attached to the said premises shall be and remain the property of the Government. 2. TERM (AUG-02): To have and to hold, for the term commencing on ____________and continuing though ___________ inclusive, PROVIDED, that adequate appropriations are available from year to year for the payment of rentals. 3. RENEWAL OPTIONS (AUG-02): This lease contains the following options for annual renewals: Option 1 - from m/d/y through m/d/y at an annual ... This document provides general guidance in the acquisition of office, storage and special purpose space.  U.S. DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION   LAND LEASE ON AIRPORT   Lease No: DTFA_ _ - _ _ - L -_ _ _ _ _ (a) (b) (c) [a=local designator, b=fiscal year, c= five digit lease #] Geographical Location: (Physical location - City, State, ZIP) THIS LEASE is hereby entered into by (_full name of lessor) whose address is (insert complete address) hereinafter referred to as the Lessor and the United States of America, herein after referred to as the Government. This lease shall become effective when it is fully executed by all parties. The terms and provisions of this lease, and the conditions herein, bind the Lessor and the Lessor’s administrators, successors, and assigns. WITNESSETH: The parties hereto, for the consideration hereinafter mentioned covenant and agree as follows: PREMISES (AUG-02): The Lessor hereby leases to the Government the following described property, hereinafter referred to as the premises, viz: INSERT LEGAL DESCRIPTION OF THE PROPERTY INCLUDE THE LEGAL DESCRIPTION OF THE CLEAR ZONES AND EASEMENTS. INCLUDE THE QUANTATIVE TOTAL ACREAGE AND BREAKOUT OF THE ACREAGE AS FOLLOWS: 1) THE FOOTPRINT, 2) THE CLEAR ZONE AND 3) THE EASEMENTS. A. Together with a right-of-way for ingress to and egress from the premises a right-of-way for establishing and maintaining a pole line or pole lines for extending electric power and/or telecommunication lines to the premises and a right-of-way for subsurface power, communication and/or water lines to the premises all rights-of-way to be over said lands and adjoining lands of the Lessor, and unless herein described otherwise, to be by routes reasonably determined to be the most convenient to the Government. B. And the right of grading, conditioning, and installing drainage facilities, and seeding the soil of the premises, and the removal of all obstructions from the premises which may constitute a hindrance to the establishment and maintenance of Government facilities. C. And the right to make alterations, attach fixtures, and erect additions, structures, or signs, in or upon the premises hereby leased, which alterations, fixtures, additions, structures or signs so placed in or upon, or attached to the said premises shall be and remain the property of the Government. TERM (AUG-02): To have and to hold, for the term commencing on ____________ and continuing though ___________ inclusive, PROVIDED, that adequate appropriations are available from year to year for the payment of rentals. RENEWAL OPTIONS (AUG-02): This lease contains the following options for annual renewals: Option 1 - from m/d/y through m/d/y at an annual rate of $____... The acquisition of real property interests is usually informally initiated by a request for market information and estimated costs.  The Real Estate Contracting Officer (RECO) must receive a written request along with a funding certification in order to start the acquisition process.  A certification of funding must be received prior to the obligation of any funds for any purpose (i.e., surveys, appraisals, space lease, etc.) or the award of a contract.   This certification is normally provided by a Procurement Request (PR), which must commit valid funding to fully cover the first fiscal year costs.  The RECO will ensure that existing leases are renewed at a fair annual rental.  Relocation to acquire a better space is always an option.  The RECO will ensure that all new and updated clauses are incorporated in the renewal lease agreement. The RECO should assist the customer in the development of requirements to ensure that the space to be acquired will meet their needs and that it will conform to FAA regulations. The customer should be advised of available alternatives that may fulfill their needs at a lower cost or in a more efficient manner. The RECO must consider the potential budgetary impacts of long-term (over 5 years including options) space leases when developing alternatives and generally should avoid any lease terms that could result in the lease being classified as a capital lease or lease purchase, unless the customer has prepared and obtained budgetary authority for such a lease.  See OMB Circular A-11, Appendix B, "Budgetary Treatment of Lease Purchases and Leases of Capital Assets" for further information. When the FAA is currently leasing space, in or near the delineated area, consideration should be given to the advantages of collocation, both from economic and program point of view. If there is a demonstrated advantage to collocation, negotiations may be conducted with the lessor provided the proposed rental will be comparable with the market survey determination of the fair annual rental. The FAA's mission generally requires that offices be located within 5 miles of an airport and outside the central business area. On requests for renewal of existing leases, the RECO should determine that if the property continues to meet the FAA’s needs, any changes required in the lease terms should be negotiated and included in the renewal. If the competitive range method is used, once offers are determined to be within the competitive range, selection for final award may be made without further consideration of the selection criteria.  Selection from the competitive range group may be made based upon that proposed offer that is best suited to the FAA's needs, in the RECO's opinion.  This includes benefits offered that have not previously been addressed in the FAA's requirements provided.  Any new benefits identified do not change the evaluation criteria used to develop the competitive range group.    The evaluation criteria should be in writing and the lease file should indicate how the criteria would be used.  Use of the evaluation criteria should be consistent through out the procurement.  The use of “best and final” offers is generally not used in real property acquisitions.  Negotiations may be terminated at anytime by the RECO. When using the competitive range method in determining the offer most advantageous to the FAA the reason for selection should be some characteristic (or group of characteristics) that cannot be obtained from one or more of the other offerors.  As an example, the selected offer may be located very near the main gate so as to provide ideal access to the FAA by its airport customers.  The RECO should review the offer(s) and make a selection that will represent the best value.  Price must always be considered along with the other written evaluation criteria.  RECO's required for both competitive and sole source procurement conduct a price evaluation of the offeror(s).  The length of the lease determines whether actual or discounted dollars are used.  Programs to evaluate offers dollars are available. As part of the evaluation, a fair market value determination must be made.  This can be done by appraisal or use of market data.  This is true for competitive or non-competitive space. The requiring office should be advised as soon as possible of the recommendation for award. Competition is the preferred method of procurement and should be utilized whenever practical and reasonable.  Competition is appropriate when the requirement is not site specific.  The single source method of procurement is appropriate when technical requirements, business practices, or programmatic needs have determined that a specific site is required to meet the FAA's mission.  The lease file should document the reason(s) competition was not used in the acquisition.  Sufficient documentation must be developed to explain and justify the lease acquisition actions taken. The lease acquisition file documents should contain at a minimum the required documents/forms listed Space Lease Acquisition File Matrix Checklist. Find the checklist for 1) standard lease, 2) small lease and 3) renewal lease. The RECO should also remember to start a new acquisition file when leases are renewed or succeeded.  The old lease acquisition file should be filed separately and eventually archived. Legal review of leases is recommended where there is deviation from AMS clauses.  Legal review is required on all purchases.  The Department of Justice rules and requirements must be followed for condemnation and title review. After negotiations and when all FAA criteria have been met, the RECO will prepare three original leases for signature by the offeror.  Prior to the RECO signing the returned lease document it should be compared to the copy retained in the file to ensure that no changes have been made by the offeror.  The RECO will execute all originals leases. After execution, the RECO should ensure that all information is entered into the real property database, i.e. REMS. RECO will request offers from those in the competitive range. RECO will begin negotiating the FAA’s requirements with the offerors, either from the competitive range or single source.  Below are the items typically negotiated with the owners or owner’s authorized representative: After the market survey or inspection, the specialist and the customer representative should confer and determine if the building meets or can be made to meet the requirements by the specified occupancy date.  If a building cannot meet or be made to meet the FAA requirements, the offeror should be informed, verbally or in writing, that the building will not be considered and provided a brief explanation.  No further negotiations or consideration is required once an offer has been excluded. If during negotiations an agreement is reached regarding all of the FAA’s requirements however, the rental/price is higher than the market survey indicates, the lessor can be asked to lower the rental (or any other particular item price) to a stated rate.  This may be done formally or informally.  The requested lower rental may be based upon the market or another offer. The RECO should arrange to inspect the space sufficiently in advance of the required occupancy date to ensure that it is ready for the customer.  The lessor must provide evidence of a valid occupancy permit at this time unless the local jurisdiction does not issue occupancy permits.  Acceptance may be provided in writing or verbally with any discrepancies or unfinished items noted in the lease file.  In most cases the FAA and the lessor will agree to discrepancies in writing.  However when large deficiencies remain it is often advantageous to delay acceptance until they are completed.  The lease should be amended to reflect the actual commencement date. Minor deficiencies are often referred to as "punch list items".  These items need not prevent acceptance of space and commencement of rent.  A follow-up inspection should be scheduled to ensure that the deficiencies are corrected.  The results of the follow-up inspection should be documented in the file.  Advertising If advertising is to be accomplished, the RECO shall utilize the publicizing method most likely to result in receipt of offers appropriate to satisfying the specific requirement.  The content of the advertisement is at the discretion of the RECO.  Advertisements in most cases will be by local newspapers however, this is not limited and may include commercial trade journals, electronic bulletin boards, and the Commerce Business Daily.  Multiple advertising may be utilized if necessary. Advertising is not required when the RECO determines that it is not warranted, or reasonable competitive access can be achieved.  Data from an advertisement or market survey may be used to determine the competitive range. Market Survey An on-site market survey visit is important in both a competitive and single source acquisitions. The market survey determines the competitive range of offers that are likely to qualify for an award base upon the FAA requirements. The market survey is also essential to the contracting officer for determination of the fair market value (FMV) of the rent AND the FMV of asset under lease.  This is necessary in both competitive and single source acquisitions. I.        General: The following guidance presents the space standard for all administrative space in FAA owned, leased and GSA controlled facilities.  The following guidance is designed to promote the efficient utilization of FAA administrative office space. This guidance has been developed to help FAA LOB and Staff Offices (SO) effectively plan and manage FAA's real property use and cost. Since there are many variables associated with space, e.g. configuration of existing space, funding limitations, available furniture, etc., it makes it impossible to establish rigid space standards. Therefore the administrative space standard establishes a baseline for all FAA LOB and SO (referred to as the "originating office" in this document) to use in order to determine and evaluate individual administrative office needs. This space standard should be adhered to and deviated from only in those instances when documentation supports such deviation.  This administrative space standard applies to all authorized personnel (i.e. permanent, temporary, part-time, seasonal employees and approved FAA contractors). II.        APPLICABILITY:    This standard is applicable to all FAA owned, FAA leased and GSA controlled administrative space except for those facilities defined in Section VI, Exemptions to the Administrative Space Standard below.  Existing space will be subject to the space standard when an originating office alters/reconfigures or acquires additional or new space or occupies GSA controlled space (see section IX, GSA Controlled Space).  III.       DEFINITIONS: Below are definitions for commonly used terms in this guidance. 1.     Administrative Primary Office Space - Primary Office Space is the personnel-occupied area in which an activity's normal operational functions are performed.  Space is allocated based on the total number of authorized personnel (permanent, temporary, part-time, seasonal employees and approved FAA contractors) occupying open or closed office work areas. 2.     Administrative Support Space - All secondary/shared workstations, extraordinary circulation space, and space for those specific mission needs outside the agency's requirements for housing personnel.  This includes space for mission needs such as reception/waiting areas, meeting areas, file areas, central storage areas, processing areas, and, conference rooms not having special buildout, library and reference areas. 3.     Acquiring Organization - The regional real estate section in Logistics or the space management organization in the centers is the main point of contact for space requests. 4.     Common Use Space – Space used by multiple FAA organizations and available for use by all FAA personnel.  Space such as conference rooms (not associated with a single FAA organization), general reception areas, loading docks and shipping and receiving platforms, etc. 5.     Hotelling - Employees reserve workspace in advance at the corporate office where there are fewer workspaces than staff (the ratio of staff to offices can be anywhere from 2:1 to 10:1 or higher). 6.     Joint Use Space - Space that benefits all of the building tenants such as cafeterias, conference rooms (those not under FAA control), credit unions, snack bars, health/fitness facilities, and child care centers. 7.     Occupiable Square feet  - The method of measurement for the office area where FAA occupies a facility. It is determined as follows: A.    Requirements: Managers responsible for implementing the provisions of this policy on vehicle parking should assess the parking requirements of their workforce, the available parking at the facility and in the vicinity, the requirements established in FAA Order 1600.69 (FAA Facility Security Management Program), the requirements of both the Uniform Federal Accessibility Standards (UFAS) and the Americans with Disabilities Act (ADA), and the cost of implementing this policy to the maximum extent possible. The FAA has determined that both UFAS and ADA apply to all FAA facilities where there is an overlap in parking requirements, the FAA shall implement the more stringent requirement.  Be sure to include requirements for accessible parking spaces in the assessment and the requirement sent forward to the RECO. B.  Parking at GSA-Controlled Buildings: In new or existing space provided for FAA use, GSA parking policies will be followed.  Requests for new leased space or requests for renewal of existing leased space should include FAA’s parking requirements for official and employee vehicles.  Special requests for accessible parking must be clearly delineated.  GSA is currently billing parking at a per-space rate and will break out the cost of parking as a separate line item in the GSA rent.  Although accessible parking spaces are larger in area, GSA attempts to negotiate the same rate for accessible and regular parking spaces. C.  Parking at FAA Owned or FAA Leased Buildings Adequate parking for official and employee vehicles should be provided at the time a facility is initially constructed or leased.  If parking requirements subsequently change, the requiring activity shall identify the new requirements and funds for the additional parking.  At some FAA facilities and duty stations, especially at airports, adequate on site employee parking is not available and commercial parking is exceedingly expensive.  In these instances, every reasonable effort shall be made to obtain free employee parking that is at least equivalent to the parking accommodations provided to employees at the airport or commercial entities in the nearby area. The cost the FAA negotiates for these parking spaces should be at or below market value (e.g. if the airport has negotiated a lower than market rate for its employees, the FAA should attempt to negotiate an equivalent below market rate). In some instances this may result in employees parking at satellite parking facilities located some distance from their facility or duty station and utilizing a shuttle bus service to reach their workplace.  In order to determine the adequacy of parking facilities of this type, facility managers should carefully evaluate the frequency of the shuttle service, the safety of employees at satellite parking facilities, and the costs of acquiring alternative parking accommodations located closer to the FAA facility or duty station.  If accessible parking cannot be provided at the facility, the shuttle transportation to and from the remote lots must be equipped with accessible boarding equipment so that FAA employees with disabilities can reach their duty station during working hours. D.  Allocation of Parking Spaces Available at Facilities: Accessible parking spaces [as defined in UFAS and/or ADA] shall be provided for FAA employees with disabilities.  All visitors parking shall also meet the requirements of ADA and/or UFAS.  Since the FAA may not be able to provide one hundred percent of the desired non-accessible parking spaces, the available FAA parking spaces (exclusive of accessible spaces) at both FAA owned and leased facilities shall be allocated in accordance with the following priorities: Government-owned and Government-leased vehicles used for criminal apprehension, firefigh... A.        Firm-Term Lease Consideration As provided in 49 U.S.C., Section 40110 (b)(2)(A) [copy attached] the FAA has authority to lease an interest in real property for not more than 20 years, without regard to FAA annual appropriations.  This means the FAA has authority to enter into "firm-term" leases without violating the Antideficiency Act. However, this does not relieve FAA from obtaining necessary budget authority before proceeding with a “firm-term” lease. Generally budget authority must be obtained for the rent for the entire period covered by the firm term, even though the funds are only obligated one year at a time. See OMB Circular A-11, Appendix B, "Budgetary Treatment of Lease Purchases and Leases of Capital Assets" for further information on lease scoring requirements.   FAA authority to lease real property does not allow lease terms in excess of 20 years, including all renewal options. For purposes of this guidance a firm-term lease is defined as the period or length of time the lease or portion thereof cannot be canceled without the approval of the lessor. Each region/center will determine when and how this authority will be used within the limitations set forth below.  In using this firm-term authority, FAA Order 2220.1, Legal Participation in Procurement and Contracting, or its replacement order, must be followed. Caution must be exercised in implementing firm-term lease authority.  A firm-term lease commits the FAA to future rental payments.  The FAA must be willing to commit future annual appropriations for the term of occupancy.  If funding is not committed, the FAA would be in default of the lease and subject to claims by the lessor.  Funding is the responsibility of the using organization and must be understood up front. The using organization must consider the budgetary impact of firm term lease funding and score the lease for proper budget authority before issuing a requisition and certifying the funds for the first year’s rent. See OMB Circular A-11, Appendix B, "Budgetary Treatment of Lease Purchases and Leases of Capital Assets" for further information on lease scoring requirements. The cost or terms of the longer firm-term lease must be advantageous to the FAA as compared to a one-year lease with renewal options.  Prior to executing a firm-term lease the real estate acquisition team should advise and provide the organization responsible for funding with an analysis of potential lease costs and/or savings.  Also prior to executing the lease the real estate acquisition team should obtain a written statement that acknowledges the terms and funding requirements of the firm term lease, including future budget year requirements.  This written funding statement will be maintained in the real estate lease file. A firm-term lease shall not be entered into if, in the judgment of the RECO, there is any doubt about the long-term need of the user.  The objective in leasing a facility is to obtain what is best not only for the user but also for the FAA.  In some cases obtaining the lowest cost is not always the best, even though it is an important consideration. Flexibility, especially in space leasing, needs to be part of the consideration for entering into a firm-term lease.  As an example, if some cost savings would be realized with a 10-year firm-term space lease versus a 5-year firm-term lease, then some thought must be given to the potential for change (i.e., mission or operational need) at this facility in years 6-10.  In this situation, it may be more advantageous to the FAA to lease for 5 years firm with an option to renew for an additional 3-5 years firm.  It should be remembered that in the past, if space was requested for 5 years (based upon projected need) the FAA could lease for 10 years, wit... Alterations or improvements done by the lessor may be amortized over the term of the lease, made by lump-sum payment, or other method determined appropriate by the RECO.  Alterations and Improvement under an existing lease generally are considered single source and do not require competition. 1.)        Alterations It is normally in the FAA’s best interest to have the lessor perform alterations in his/her own building, thereby eliminating any question of liability on the part of the FAA. Alterations performed under an existing FAA lease by the lessor should be at a fair and reasonable cost.  Determination of fair and reasonable may be made by 1.) formal appraisal, 2.) construction data, 3.) cost to build publications,  and 4.) independent government cost estimate. 2.)        Improvements The FAA can make permanent improvements to private facilities under the provisions of the lease agreement.  The ability to make permanent improvements using a third party is governed by 1.) 49 USC Section 44502 (a)(5) and the decision by the Comptroller General B-239520 (8/16/90). The lessor should be considered first in providing improvements. Improvements should be evaluated for their value using FAA accounting practices.  Determination of fair and reasonable may be made by 1.) formal appraisal, 2.) construction  data, 3.) cost to build publications, and independent government estimate. This section provides general guidance for the application of the Rural Development Act (RDA).  In accordance with the Rural Development Act (RDA) of 1972 (P.L. 92-419, 86 Stat. 670, 7 U.S.C. Section 2661) and DOT Order 4320.1A (Location of New Federal Offices and Other Facilities in Rural Areas), the FAA must give first consideration to rural areas when locating new space, land, and other facilities (i.e. research and development facilities, warehouses, labs, clinics, etc.) unless mission or program requirements call for urban areas.  This guidance applies to all new and lease renewals for space and land acquisition as of January 2003.  However, this guidance does not apply to unmanned and on-airport facilities such as VORTACS, RCAGS, GS, LOC, MALSR, etc.  Frequently Ask Questions: 1.) After giving first consideration to rural area, what should the RECO do? 2.) How do you define rural area? 3.) Which should the RECO consider first the central business district (urban areas - Executive Order (EO)12072 and EO 13006) requirement or the rural areas (RDA)? 4.) If the FAA is using General Services Administration (GSA) to acquire new space or other facilities, is the GSA required to follow the RDA? Conference or meeting space requirements may range from the rental of a room for a one-day meeting or training session to a large conference of several days.  As in all procurements of commercial space the requiring organization must first seek the availability of Government-owned or controlled space.  The FAA is required to make inquiries regarding the availability of Government-controlled space to GSA regional offices and to document such inquiries. The requirements for obtaining GSA authorization are outlined in Federal Property Management Regulation 101-17.101-4. The selection of commercial meeting space may be based on a location, which provides the most advantageous solution to the FAA’s needs.  Procedurally, the requesting organizations should first check on the availability of FAA space.  Check with the Regional Logistics Division to determine local procedures and restrictions.  If FAA space is not available, then initiate your request in accordance with local procedures. A vendor/hotel may be contacted to acquire an estimated cost however, no commitment should be made at that time.  Upon receipt of authorization to procure commercial space, you should proceed in accordance with federal and local procedures as provided by the appropriate Regional Logistics Division. FAA will comply with FAA Orders 1600.69, Facility Security Management Program, 1600.72, Contractor and Industrial Security Program, and 1600.73, Contractor and Industrial Security Program Operating Procedures. The Order establishes standards, procedures and techniques for the protection of FAA employees, agency property, facilities, contractors, and the public.  FAA reserves the right to restrict access to FAA facilities.  1.  RECOs should seek consultation support from local Servicing Security Element (SSE) for security issues.  The SSE can provide services to RECOs for the following matters: (Revised 10/2003) 2.  Contractor and Industrial Security Facility Program for Leased Facilities (Revised 10/2003) FAA reserves the right to restrict access to FAA facilities. Depending on the terms of the lease agreement, any person or individual employed or hired by the lessor, or requiring access to perform work or provide services in or upon the leased premises may receive the same level of security investigation requirements as do FAA employees as determined by FAA personnel security specialists. There is a sequential process by which suitability and security determinations must be completed before any person(s) or individual(s) employed or to be hired by the lessor can perform work or provide services under the terms of the lease agreement. Each step is essential to the process and must be conducted in a specific sequence in order for the process as a whole to succeed. The RECO must be familiar with the process prior to initiating negotiations with the prospective lessor. It is also essential that the RECO work closely with the FAA SSE and the operating office or LOB tenant organization so that the best interests of the Government and the FAA are protected. The primary role of the RECO is to ensure that the security investigative program in leased facilities is established between the lessor and the FAA. Establishing a Contracting Officer Representative (COR) to assist with monitoring and maintaining the security requirements for leased space should be considered. Individuals employed or to be hired by the lessor to perform work or provide services in leased space typically fall in low-risk positions. These positions may include janitorial, construction, maintenance, property management, and repair workers. It could also include delivery personnel and repair technicians. The first step in the investigative process is for the operating office or LOB tenant organization to assess the level of access that may be required by the various positions to provide the services specified by the lease. This requires the completion of FAA Form 1600-77, Contractor Position Risk/Sensitivity Level Designation Record [see Order 1600.73 for each type position. The RECO should assist... Guidance on Interpretation of the FAA 2002 Appropriation Act Section 335 APP-510, AFZ-400, AGC-500 and ASU-140 met to discuss the recent language in the FAA 2002 Appropriation Act. Below is the interpretation of the language in the 2002 appropriation act. If you have further questions regarding this guidance please contact ASU-140. A.    Below is the language from the Act: Sec. 335. None of the funds in this Act shall be used to pursue or adopt guidelines or regulations requiring airport sponsors to provide to the Federal Aviation Administration without cost building construction, maintenance, utilities and expenses, or space in airport sponsor-owned buildings for services relating to air traffic control, air navigation or weather reporting. The prohibition of funds in this section does not apply to negotiations between the Agency and airport sponsors to achieve agreement on ``below-market'' rates for these items or to grant assurances that require airport sponsors to provide land without cost to the FAA for ATC facilities. 1.     What does this mean for the FAA? The language indicates that the FAA is not allowed to expend any funds, i.e. salaries, on implementing the guidance. Basically the FAA has gone back to business prior to the issuance of the May 18, 1999 memo implementing the guidance on October 1, 2000. Further it should be noted that 1) rent-free space should continue under existing leases until those leases expire, and 2) an airport sponsor may provide rent-free space for any new leases or renewal leases if done so voluntarily and not required by the FAA. 2. Advantages to the Language a. Senate report requested that the OIG conduct a study on the impact of implementing this guidance. The study report should support the implementation of the rent-free guidance. No date as to when the report will be finished. b. The language indicates that the FAA is entitled to negotiate below market rates with the airport sponsors. B. Questions and Answers: 1.     What is the FAA allowed to negotiate? 2.     Should the FAA only be negotiating a one year lease at a market rent until we know what's going to happen in 2003 or should we go with a typical 5 year lease market rent assuming this rent free entitlement will go away? Building must meet current seismic safety requirements (E.O. 12699 & 12941 & P.L. 101-614) The FAA is required to implement a program to mitigate seismic hazards in deficient buildings occupied by FAA. It is FAA’s policy to ensure the safety of its employees accordingly, every effort should be made in the acquisition of space to house FAA employees in seismically safe buildings. In this regard, any new leases or after the expiration of the last renewal term are to be made in buildings that do not comply with seismic standards which are not exempt. Existing leases may be held without action until the lease expires (including the expiration of the last renewal term). While there are several levels of seismic performance, for leasing purposes “Substantial Life-Safety” will be the accepted performance objective.  A higher seismic performance standard can be requested from offerors and modifications to increase the level of the standard seismic clause can be done by the RECO.  Unless stated otherwise all discussions below will refer to “Substantial Life-Safety” seismic performance.  Except for buildings which require seismic performance objectives beyond Substantial Life Safety because of agency mission requirements (customer if in doubt, check with end-user), the following buildings are exempt from these standards: Leased Facilities - In addition to the above exceptions, non-federally owned buildings and portions of such buildings leased by the Federal Government are exempt from these Seismic Standards if both of the following apply:   And A licensed structural engineer, hired by the offeror (or if appropriate the Government), is required to certify on the “Certification of Seismic Compliance” form that the construction meets the established acceptable stan... Legend: Mandatory (M) – When applicable these clauses shall be included in leases as written. These clauses are either: 1.) mandated by law 2.) set by legal precedent 3.) and/or established by FAA policy. Recommended (R) – In general these clauses provide useful protection to the government. These clauses, or a modified version, should be used in all applicable circumstances. RECO may tailor the clause to meet a specific situation. Changes that have legal impact require region/center legal approval. Optional (O) – RECO decides whether or not these clauses or a modified version should be included in the lease. Deviations from the suggested wording must have the region/center legal approval, if there is a legal impact.   CLAUSE TITLE   DATE STANDARD LEASE SMALL LEASE ANTENNA TOWERS PRESCRIPTION Space Lease Template Clauses 1. This Lease 10/96 M M M Insert in all leases in order to complete a lease contract and follow FAA contract policy. 2. Description 10/96 M M M Insert in all leases in order to complete a lease contract and follow FAA contract policy. 3. Term 10/96 M*   ATTACHMENT A Lease Number DTFA__-___-_______ I. SECTION A - GENERAL BUILDING REQUIREMENTS AND SPECIFICATIONS   A1-Ceilings (10/96) Must have acoustical treatment with a flame spread of 25 or less and smoke development rating of 50 or less. A2-Doors (10/96) Exterior doors shall be weather tight, equipped with cylinder locks and door checks, automatic door closures and open outward. The FAA will be furnished at least two master keys and two keys for each lock. Interior doors must be solid cord and at least 32 by 80 inches with a minimum opening of 32 inches and be of sturdy construction. Fire doors shall conform to NFPA Standard No. 80. As designated by the FAA, doors shall be equipped with non-removable hinge pins, and "Best" locks with 7-pin removable cores. The FAA shall provide cores. A3-Floor Load (8/02) All adjoining floor areas shall be 1) of a common level not varying more than 1/4 inch over a 10-foot, 0-inch horizontal run in accordance with the American Concrete Institute standards, 2) non-slip, and 3) acceptable to the Real Estate Contracting Officer. Under floor surfaces shall be smooth and level. Office areas shall have a minimum live load capacity of 50 pounds per square foot plus 20 pounds per square foot for moveable partitions. Storage areas shall have a minimum live load capacity of 100 pounds per square foot including moveable partitions. A report showing the floor load capacity, at no cost to the Government, by a registered professional engineer may be required by the Contracting Officer. A4-General Health and Safety Standards (8/02) Local Health, Environmental (OSHA and EPA), and Safety Standards and Building Codes shall be complied with when accomplishing any cleaning, construction, renovation, remodeling, maintenance or testing done in the leased space and areas connected to or integrated with the leased space. Whenever FAA Standards require work processes or precautions to be provided, the Lessor shall coordinate with the FAA during the work so that proper requirements are met. A5-HVAC (10/96) Heating, ventilation and air-conditioning systems are required which maintain a temperature range of 68-72 degrees Fahrenheit year-round. These temperatures must be maintained throughout the leased premises and service areas regardless of outside temperatures during hours of operation. For further information see ASHRAE standard ANSI/ ANSI/ASHRAE 62-1999 - Ventilation for Acceptable Indoor Air Quality. A6-Lighting (10/96) Modern, diffused, energy efficient (T-8 or better) fluorescent fixtures shall be provided maintaining a uniform lighting level of 50 foot candles at working surfaces. Emergency lighting must provide at least 0.5 foot candles of illumination throughout the exit path, including exit access routes, exit stairways, or other routes such as passageways to the outside of the building. A7-Painting (8/02) Prior to occupancy all surfaces must be newly painted with non-lead based paints in colors acceptable to the FAA. All surfaces must be repainted after working hours at Lessor’s expense at least every five years. This includes moving and return of the furniture. Any existing lead based... Proposal to Lease Space Section I - Description of Premises Building Name and Address: Building Description: Number of Floors Total Rentable Square Feet Total Occupiable Square Feet ________________________   Section II - Space Offered, Initial Lease and Renewal Rental Rates OFFICE Common Area Factor* Occupiable Sq. Ft. STORAGE CERTIFICATION OF SEISMIC COMPLIANCE (For Existing Building and/or New Buildings) Date:   I certify that the building at ___________________________________________________   Complete This Section for Existing Buildings: q Is in COMPLIANCE of SUBSTANTIAL LIFE SAFETY with regard to seismic safety and meets, at a minimum, the appropriate provisions of ICSSC RP4, Standards of Seismic Safety for Existing Federally Owned or Lease Buildings as follows:   q Building meets appropriate seismic provisions of ________ edition of (Date)_______________________. (Standard or Code) OR q Is LESS THAN SUBSTANTIAL LIFE SAFETY with regard to seismic safety. The building has adequate strength to resist the appropriate evaluation earthquake defined in FEMA 178, NEHPR Handbook for the Seismic Evaluation of Existing Buildings, without significant structural failure. (Required documentation attached)   Name:   License No.:SEAL   Expiration Date:   FAA Use: Building is exempt from seismic consideration because _____________________   ______________________________. ____________________   Contracting Officer FEDERAL AVIATION ADMINISTRATION 1. REQUEST FOR LEASE PROPOSALS 2. STATEMENT DATE LESSOR'S ANNUAL COST STATEMENT IMPORTANT - Read attached "Instructions" 3. RENTABLE (SQ. FT.) 3A. ENTIRE BUILDING 3B. LEASED BY GOV'T 4. BUILDING NAME AND ADDRESS (No., street, city, state, and zip code)     SECTION I - ESTIMATED ANNUAL COST OF SERVICES AND UTILITIES FURNISHED BY LESSOR AS PART OF RENTAL CONSIDERATION LESSOR'S ANNUAL COST FOR FOR GOVERNMENT USE ONLY SERVICES AND UTILITIES (a) ENTIRE BUILDING (b) GOV'T-LEASED AREA (c) A. CLEANING, JANITOR AND/OR CHAR SERVICE 5. SALARIES 6. SUPPLIES (Wax, cleansers, cloths, etc.) 7. CONTRACT SERVICES (Window washing, waste and snow removal) B. HEATING 8. SALARIES 9. FUEL ("x" one) OIL GAS COAL ELECTRIC PREPARED BY DATE LEASE ACTION SUMMARY LEASE NUMBER     A. REQUIREMENTS NAME OF REQUESTING OFFICE     NAME AND TITLE OF AGENCY REPRESENTATIVE TELEPHONE NUMBER OCCUPIABLE SF (Range) OCCUPANCY DATE     GENERAL DELINEATED AREA REIMB. WORK AUTHORIZATION TYPE OF SPACE   ¨ OFFICE ¨ WAREHOUSE ¨ NOT REQUIRED ¨ IN FILE ¨ OTHER (Specify) NOTIFICATION SF 81 IN FILE DATE ACTION ¨ TELEPHONE CALL ¨ LETTER ¨ OTHER (Specify)   ¨ YES ¨ NO B. MARKET SURVEY AND NEGOTIATIONS 1 ADDRESS OF OFFERED SPACE LOCATION OF OFFERED SPACE LOCATION IDENTIFIED FROM ¨... FAA LEASE NUMBER:_______________________   LESSOR NAME:______________________ FACILITY:_________________________________   LESSOR ADDRESS:___________________ CITY AND STATE:__________________________    ____________________________________ SQUARE FOOTAGE:________________________     ____________________________________   I.     REQUEST/REQUIREMENT REQUIRED NOT DOCUMENT A.     Request for space B.     Special Requirements (Specs) C.     Justification of Delineated  Area D.     PR E.      Rural Development Checklist   II.     NEGOTIATION PROCESS   REQUIRED NOT DOCUMENT A.     Small Lease Form B.     Attachment A C.     Lessor Annual Cost Statement D.     Space Safety and Environmental Checklist E.      Correspondence to Lessors Legend: Required – When applicable these documents shall be included in lease acquisition file. Not Required -In general the other documents listed in the “Space Lease Acquisition File Checklist) provide useful protection to the government. 
However they are not considered required for the lease acquisition file. CHECKLIST ITEM STANDARD LEASE SMALL LEASE RENEWAL LEASE PRESCRIPTION         A. Space Requirements Questionnaire or other request for space R R NR Formal or informal request from the end-user including at a minimum the estimated square footage, number of personnel, and delineated area. The Space Requirements Questionnaire form provides the end user with a tool to determine their requirements.  B. Special Requirements (SPECS) NR NR NR Only provide special requirements if known at the beginning of the process.  C. Justification of Delineated Area R NR NR End user must include a justification for their delineated area for newly competitive standard space leases. D. PR R R R Required to submit a signed PR or another authorized request certifying funds. E. Rural Development Act Checklist R R NR The RECO is required to fill out the checklist for the appropriate reason for not considering location in rural area. Legend: M = Mandatory, R = Recommended, O = Optional, *
Indicates Clause on Lease Form
  SOLICITATION/AWARD PROCESS  <... FAA LEASE NUMBER:_______________________   LESSOR NAME:______________________ FACILITY:_________________________________   LESSOR ADDRESS:___________________ CITY AND STATE:__________________________    ____________________________________ SQUARE FOOTAGE:________________________     ____________________________________   I.     REQUEST/REQUIREMENT REQUIRED NOT DOCUMENT A.     Space Requirements Questionnaire or other request for space B.     Special Requirements (Specs) C.     Justification of Delineated  Area D.     PR E.      Rural Development Checklist F.      Other   II.    
SOLICITATION/AWARD PROCESS   REQUIRED NOT DOCUMENT A.     Procurement Method – Competition or Single Source B.     Copy of responses to Advertisement C.     Space Market Survey Form D.     Space Solicitation Information FAA LEASE NUMBER:_______________________   LESSOR NAME:______________________ FACILITY:_________________________________   LESSOR ADDRESS:___________________ CITY AND STATE:__________________________    ____________________________________ SQUARE FOOTAGE:________________________     ____________________________________   I.     REQUEST/REQUIREMENT REQUIRED NOT DOCUMENT   II.     NEGOTIATION PROCESS   REQUIRED NOT DOCUMENT C.     Lessor Annual Cost Statement D.     Space Safety and Environmental Checklist E.      Certification of Seismic Compliance F.      Correspondence to Lessor G.   Negotiation Documentation or   Space Action Summary Form H.   Price Evaluation FEDERAL AVIATION ADMINISTRATION LEASE FOR REAL PROPERTY LEASE NUMBER DTFA__-___-_______ Date of Lease:_____________ 1. THIS LEASE (9/98), entered into by and between _________________________ whose interest in the property hereinafter described is that of _________________________, hereby referred to as LESSOR, and the United States of America, hereinafter referred to as the GOVERNMENT OR FAA: WITNESSETH: The Parties hereto, and for the consideration hereinafter mentioned, covenant and agree as follows: 2. DESCRIPTION (10/96) - The Lessor hereby leases to the GOVERNMENT the following described premises: 3. TERM (1/01) - To have and to hold, for the term commencing on_______________ and continuing through______________ inclusive, PROVIDED, that adequate appropriations are available from year to year for the payment of rentals. This lease succeeds lease number DTFAXX-XX-L-00000, which expires on ______________. 4. CANCELLATION (8/02) - The GOVERNMENT may terminate this lease at any time, in whole or in part, if the Real Estate Contracting Officer (RECO) determines that a termination is in the best interest of the Government, on or after ______________by giving at least _____________days notice in writing to the Lessor. No rental shall accrue after the effective date of termination. Said notice shall be computed commencing with the day after the date of mailing. 5. RENTAL (10/96) - Rent in the amount of $_______________ per __________shall be payable to the Lessor in arrears and will be due on the first workday of each _______________, without the submission of invoices or vouchers. Subject to available appropriations. Rent shall be considered paid on the date a check is dated or an electronic funds transfer is made. Rent for a period of less than a __________ shall be prorated. Checks will be made payable to: 6. SERVICES AND UTILITIES (To be provided by Lessor as part of rent. Services shall be Building Standard, unless level of service is prescribed elsewhere in the lease.) (10/96) Services, utilities, and maintenance will be provided daily, extending from __________ a.m. to __________ p.m. except Saturday, Sunday, and Federal holidays. Services supplied to technical equipment shall be supplied 24 hours a day, and seven days a week. The GOVERNMENT shall have access to the leased premises at all times, including the use of electrical services, toilets, lights, elevators, and GOVERNMENT office machines without additional payment. FEDERAL AVIATION ADMINISTRATION SMALL LEASE FOR REAL PROPERTY LEASE NUMBER DTFA__-___-_______ Date of Lease:_____________ 1. THIS LEASE (9/98), entered into by and between _________________________ whose interest in the property hereinafter described is that of _________________________, hereby referred to as LESSOR, and the United States of America, hereinafter referred to as the GOVERNMENT OR FAA: WITNESSETH: The Parties hereto, and for the consideration hereinafter mentioned, covenant and agree as follows: 2. DESCRIPTION (10/96) - The LESSOR hereby leases to the GOVERNMENT the following described premises: 3. TERM (1/01) - To have and to hold, for the term commencing on_______________ and continuing through______________ inclusive, PROVIDED, that adequate appropriations are available from year to year for the payment of rentals. This lease succeeds lease number DTFAXX-XX-L-00000, which expires on ______________. 4. CANCELLATION (8/02) -The GOVERNMENT may terminate this lease at any time, in whole or in part, if the Real Estate Contracting Officer (RECO) determines that a termination is in the best interest of the Government, on or after ______________by giving at least _____________days notice in writing to the LESSOR. No rental shall accrue after the effective date of termination. Said notice shall be computed commencing with the day after the date of mailing. م. RENTAL (10/96) - Rent in the amount of $_______________ per __________shall be payable to the LESSOR in arrears and will be due on the first workday of each _______________, without the submission of invoices or vouchers. Subject to available appropriations. Rent shall be considered paid on the date a check is dated or an electronic funds transfer is made. Rent for a period of less than a __________ shall be prorated. Checks will be made payable to: ن. SERVICES AND UTILITIES (To be provided by LESSOR as part of rent. Services shall be Building Standard, unless level of service is prescribed elsewhere in the lease.) (10/96) Services, utilities, and maintenance will be provided daily, extending from __________ a.m. to _________ p.m. except Saturday, Sunday, and Federal holidays. Services supplied to technical equipment shall be supplied 24 hours a day, and seven days a week. The GOVERNMENT shall have access to the leased premises at all times, including the use of electrical services, toilets, lights, elevators, and GOVERNMENT office machines without additional payment.2.6.12: Space Market Survey Form
MARKET SURVEY - SPACE I. REQUIREMENTS II. BUILDING SURVEYED          (              ) 9. SPACE AVAILABLE     III. ASKING PRICE AND TERMS Place PHOTOGRAPH Here 12. SERVICES INCLUDED IN RENT   U.S. Department of Transportation SUPPLEMENTAL LEASE AGREEMENT SUPPLEMENTAL AGREEMENT DATE TO LEASE NO. ADDRESS OF PREMISES THIS AGREEMENT, made and entered into this date by and between whose address is hereinafter called the Lessor, and the UNITED STATES OF AMERICA, hereinafter called the Government: WHEREAS, the parties hereto desire to amend the above Lease. NOW THEREFORE, these parties for the considerations hereinafter mentioned covenant and agree that the said Lease is amended, as follows:         All other terms and conditions of the lease shall remain in force and effect Important: Lessor ¨ is, ¨ is not required to sign this document and return ___ copies to the issuing office. Return receipt requested. IN WITNESS WHEREOF, the parties subscribed their names as of the above date. LESSOR: . BY_________________________________                                                    _______________________________        (Signature)                                                                                                          (Title) IN THE PRESENCE OF (witnessed by:)2.6.14: Space Solicitation Information
  FAA SOLICITATION FOR REAL PROPERTY INSTRUCTIONS AND PROCEDURES PART I - DESCRIPTION OF REQUIREMENTS The Federal Aviation Administration desires to lease first class office space within the boundaries listed below. Location: East West South North In (City/County), (State). Type And Amount Space offered must be in a quality building of sound and substantial construction and conform or be capable of being altered to conform with the requirements set forth herein. All space will be measured in occupiable square feet, unless indicated otherwise. Office: Storage: Other: Reserved Parking Spaces: The right to use appurtenant areas and facilities is included. The FAA estimates a need for (Number) linear feet of finished and painted ceiling-high partitions, which includes (Number) interior doors. These partitions shall have low sound transmission, flamespread, and smoke development properties, as further defined in the attached requirements. Demolition of existing improvements necessary to satisfy the FAA's layout shall be done at the lessor's expense. Term Of Lease The lease term is for (year(s) with the FAA having the option to renew for (number) additional years. The FAA may terminate the lease at anytime on or after the (number) (year/month). Occupancy Date Occupancy is required within (number) calendar days from the date of award. The FAA will deliver layout drawings and necessary finish selection to successful offeror within (number) days after award. Offer Acceptance Period Offers are due by (Date), and must remain open for (Number) days. Offers are to be sent to the Contracting Officer: (Name) Federal Aviation Administration Logisti... Building Name:_______________________________________________________________________ Street Address:_________________________________________________________________________ City:_________________________________________, State: ______ Zip Code___________________ Approximate outside dimensions of building:_________________________________________________ Square footage of building___________________, Square footage of proposed space______________ Total number of floors in building_____________, Floors proposed space is on ___________________ Year Building constructed __________________, Year of last major renovation__________________ Security No Provisions Secure Building Alarm System Guard Controlled Entry Other,________________________________________________________ Emergency Illumination: In Space offered In corridors In Stairwells Building structural support Combustible (Timber, wood, etc.) Noncumbustible (Concrete, steel, masonry, etc.) Other types of uses present in the building (check all that apply): Restaurants Storage Manufacturing Other, describe____________________ Laboratories Retail Industrial ___________________________________ Vertical openings between two or more floor: Stairs (check one): Open Enclosed with doors Shafts (check one) Open Enclosed with doors_____________________________________ Other (check one) 2.6.17: Facility Security Checklist
Facility Security Checklist The purpose of this checklist is to ensure that the security requirements are considered at the beginning of the space planning process. PART 1 – Establishing the Security Requirements After the user’s requirement is received, the RECO will contact the LOB and SSE to discuss the following questions to begin planning the users security requirements. 1. Questions for the RECO to ask LOB and SSE 2. Questions the SSE will need to ask the LOB or RECO 3. Information the SSE would be providing to the RECO and LOB PART II – TYPES OF SECURITY REQUIREMENTS FOR DIFFERENT LEVELS Below is a list of typical security requirements for the various levels of buildings. However each client will have requirements developed based upon an assessment of their needs and types of facility. Typical SL 2 Security Measures Typical SL 1 Security Measures   Cost Metrics from FSRM Program The purpose of this questionnaire is to gather as much information as possible at the beginning of the space planning process. The first part of this questionnaire helps the user establish their space requirements. It should serve as a guide for the user group in determining space requirements for new space, altering/re-confirguring and/or adding to existing space. The second part of this questionnaire will also help the real estate/procurement personnel in obtaining the best possible space to lease for all new requirements. Some of the requested technical information (which will not apply in all procurements) can be obtained from the manufacturer or supplier of the related item (i.e. BTU’s, floor load, weight). If you have any questions or desire assistance in completing any portion of this form, contact the Real Estate Contracting Officer (RECO) named below. NAME:_____________________________________________ PHONE: __________________ FAX:_____________________ ADDRESS: ____________________________________ ____________________________________ PART I - SPACE REQUIREMENTS SECTION A: ORGANIZATIONAL ANALYSIS 1. Organizational Information               2. ORGANIZATIONAL SPACE DATA REQUIREMENTS (Note: If written information is available on any of these areas, please submit.) Checklist for RDA First consideration has been given to rural location however: (check the appropriate reason) ___ Due to mission requirement, an urban location was selected. ___ Due to programmatic needs, an urban location was selected.   ___ Consideration to rural area location is not applicable for air navigation facilities (unmanned or on-airport) where site selection is critical to meet technical mission requirements.   There are certain real estate related asset management principles that are imposed on all agencies and/or have been adopted by the FAA. This asset management guidance section will generally contain information that relates to more than one type of procurement (i.e., land and space or space and utilities, etc.) The Government is to make all payments through the use of EFT (P.L. 104-134). l General The requirement for Electronic Fund Transfer (EFT) applies to all Federal payments for real property and utility transactions. This requirement takes effect immediately. However, if the contractor (vendor) certifies in writing to the real estate contracting officer that the contractor does not have an account with a financial institution or an authorized payment agent, payment may be made by other than EFT (most commonly by check). If the contractor does not have a method for EFT the section "Payee/Company Information" on the Vendor/Miscellaneous Payment Information Form must still be completed. The FAA will use the TIN (or SSN) information for purposes of collecting and reporting on any delinquent amounts arising out of such person’s relationship with the Government. As written, the EFT clause requires that only the successful offeror complete the form. This requires the RECO to request the completed form immediately prior to award. In areas with sufficient competition the RECO may elect to make EFT an award factor. The completed form should be filed with the appropriate accounting office and a copy retained with the contract file for the life of the contract and included in the close-out file. The real estate clause "Electronic Funds Transfer Payment" has been written to provide for the most common EFT, which is through an Automated Clearing House (ACH). However, the Federal Reserve Wire Transfer System (often referred to as Fed Wire) can also be used, at the Government’s option. If the Federal Reserve Wire Transfer System is used, slightly different information will be required from the contractor. The information needed for the Fed Wire System is: 1. The contract number to which this notice applies. 2. The contractor’s name and remittance address, as stated in the contract and account number at the contractor’s financial agent. 3. The signature, title, and telephone number of the contractor official authorized to provide this information. 4. Name, address, telegraphic abbreviation, and the 9-digit Routing Transit Number for the contractor’s financial agent. l Change of EFT information by the contractor. If the EFT information changes after submission of correct EFT information, the Government will begin using the changed EFT information no later than the 30th day after its receipt. However, the contractor may request that no further payments be made until the changed EFT information is implemented by the payment office. The contractor is required to designate a single financial agent capable of receiving and processing the electronic funds transfer using the EFT method. l Liability for uncompleted or erroneous transfers. (1) If an uncompleted or erroneous transfer occurs because the Government failed to use the contractor-provided EFT information in the correct manner, the Government remains responsible for (i) making a correct payment, (ii) paying any prompt payment penalty that may be due, and (iii) recovering any erroneously directed funds. (2) If an uncompleted or erroneous transfer occurs because contractor-provided EFT information was incorrect at the time of Government release of the EFT payment transaction instruction to the Federal Reserve System and: (i) If the funds are no longer under the control of the payment office, the Government is deemed to have made payment and the contractor is responsible for recovery of any erroneously directed funds or (ii) If the funds remain under the control of the payment office, the Government retains the right to either make payment by mail or suspend the payment in accordance wit... This document provides general guidance in administrative and general asset management areas. This document is intended to provide guidance only. Capitalization is not to be confused with accountability. In general, capitalization is the method of treating an asset as it relates to an agreed upon set of accounting principals. Accountability is keeping track or being aware of assets or items determined important because of their use, value, or significance. Capitalization and accountability of assets will overlap but should not be considered synonymous. The threshold policy for capitalization of assets, other than land, is $25,000 and a useful life of at least two years. Land purchases will be capitalized at any cost. Land only leases, that do not provide a bargain purchase option and do not result in FAA ownership during the term of the lease, are not capitalized. The FAA is required to capitalize certain improvements in both owned and leased space (See FAA Order 2700.31, Chapter 8). Also, the FAA is required to make a determination as to whether leases (including real property leases) are capital or operating leases and insure they are reflected correctly in the appropriate database. Documentation relating to capital improvements and determinations of capital versus operating leases is to be retained in the appropriate lease file. Documentation, as a minimum, should consist of the form "Evaluation of Real Property Lease to determine Accounting Treatment". Specific information and guidance relating to capitalization and capital leases is contained in FAA Order 2700.31. Any conflicts in capitalization guidance will use FAA Order 2700.31 as the final authority. Typically, the determination of whether a lease will be a capital lease is accomplished well in advance of site acquisition because of the possible budget score-keeping (OMB Circular A-11) that may be required. Consultation with the regional accounting organization regarding OMB Circular A-11 requirements should be done prior to any commitment on the part of the FAA. (See FAA Order 2700.31) There are six criteria to determine whether a lease is capital or operating.   Because such phrases as “long duration” and “high payment” are subjective, OMB Circular A-11 sets forth which six criteria listed below to be used by Federal agencies in distinguishing between an operating lease, a capital lease, or a lease-purchase.  If either of the first two criteria is not met, the lease is classified as a lease-purchase. If the first two criteria are met and one or more of the other four criteria listed below are not met, the lease is classified as a capital lease. If and only if all six criteria are met is a lease classified as an operating lease. 1. Ownership of the asset remains with the lessor during the term of the lease and is not transferred to the Government at or shortly after the end of the lease term.             2. The lease does not contain a bargain-price purchase option.             3. The lease term does not exceed 75 percent of the estimated economic life of the asset.             4. The present value of the minimum lease payments over the life of the lease does not exceed 90 percent of the fair market value of the asset at the beginning of the lease term.             5. The asset is a general-purpose asset rather than for a special purpose of the Federal government and is not built to unique specification of the Government as lessee.             6.  There is a private sector market for the asset. Although the foregoing criteria are simply stated, additional clarification is needed in order to apply them. <... The purpose of this section is to provide guidance and outline responsibilities for conducting real property inventories and for updating real property records to reflect the inventory results. Authority Conducting physical inventories is necessary to achieve appropriate accountability and control over the FAA’s real property assets.  The physical inventory establishes a direct relationship between actual and recorded assets and ensures that asset transactions have been properly recorded in the real property records database. The Federal Property and Administrative Services Act of 1949 (40 U.S.C. 4836) requires maintenance of adequate inventory controls and accountability systems for property.  In addition, property is to be inventoried continuously to determine if assets have been excessed or disposed of.  Federal Accounting Standards Advisory Board (FASAB) Statement of Federal Financial Accounting Standards (SFFAS) #3 and Office of Management and Budget (OMB) Circular No. A-123 – Management Accountability and Control of Federal Government Assets also address the need for management controls that ensure the accuracy of financial reporting related to property, plant and equipment. Standard A physical inventory of 20% of a region’s/center’s capitalized assets should be conducted annually. Capitalized assets include all land, regardless of cost, and buildings and other structures with an acquisition cost greater than or equal to $25,000 and an estimated useful life of 2 years or more. This will result in a 100% inventory of the FAA’s capitalized assets every 5 years. Responsibilities The FAA organizations/personnel involved in the annual physical inventory effort should include: Real Estate Policy Branch (ASU-140) at Headquarters initiates the annual physical inventory and assigns a national real property inventory coordinator. National Real Property Inventory Coordinators coordinates the overall physical inventory, issues detailed instructions to the regions/centers, supports the regional/center real property inventory coordinators and reports on the final results. Regional/Center Logistics Division appoints a regional/center real property inventory coordinator. Regional/Center Real Property Inventory Coordinators coordinate the physical inventory effort in their region/center, distribute inventory asset listings, follow up on results and adjust the real property records database to reflect the results. Real Estate Specialists verify owned land assets in their region/center. Regional Airways Facilities (AF) designates a regional real property inventory team member. Regional AF Team Member identifies AF contacts to Regional Real Property Inventory Coordinator, makes initial contact and follows up on issues related to getting the job done.  The AF team member would not be responsible for distributing and receiving listings or following up on individual data items.  This would be the responsibility of the Regional/Center Real Property Inventory Coordinator System... LEASE or PR NUMBER: __________________________LOCATION (City /state)__________________  FACILTY Contraction(s):_______________________     Check which applies:  Pre-lease Evaluation___ Lease Inception Evaluation___ Modification:___ Retroactive of Existing Lease_______ Lease Purchase/Amortized Leasehold Improvement_____ General Instructions:  The Real Estate Contracting Officer (RECO) shall follow the instructions to complete the questions in Sections 1, 2 and 3 for all cost real property leases, including real property agreements and permits, and modifications to the lease that change the term or amount of real property under lease.  Complete answers to the questions in the order presented and follow the instructions for each section.   Exceptions:  No-cost leases DO NOT require the evaluation of lease form to be completed.  If the Lease is no cost – STOP and DO NOT PROCEED ANY FURTHER.   NOTE: RECOs must NOT enter into leases that classify as capital unless the requisitioning organization has verified that they have scored their budget IAW the requirements of OMB Circular A-11 and have reserved appropriate funds for a capital lease. Section 1.    Test for Leases Automatically Classified as Operating Leases   Answer “Yes” or “No” to Each Question in Section 1.  Any “Yes” response below indicates that the lease is automatically considered an operating lease.  Complete all questions.  1a) Yes ___ No ___ Are the aggregate base lease payments (total rent minus executory/service costs) over the entire lease term, including options, less than $25,000?  1b) Yes ___ No ___ Is the Lease with other federal agency (including GSA space assignments)?  1c) Yes ___ No ___ Is the Lease for Land only (including Rights of Way), without ownership transfer or bargain purchase option?  1d) Yes____ No___ Is the Lease term five years or less, without ownership transfer or bargain purchase option? If any of the Questions (1a-d) above are marked “Yes”, then this lease is automatically considered an operating lease.  Do not fill out Section 2, Skip to Section 3.  If all responses to 1a-d are marked “No”, proceed to fill out section 2.  Section 2.  Test for Leases Automatically Classified as Capital Leases  Answer the questions either Yes or No.  Any “Yes” response below indicates the lease is automatically considered a capital lease.  2a) Yes ___ No ___ Does the lease transfers ownership (title) to the Government by the end of, or shortly after the lease term.  Note: An option to purchase the property does not constitute ownership transfer, since an option must be exercised in order to be effective.  2b)Yes ___ No ___ Does the lease contain a bargain purchase option?  Note: A bargain purchase option is an option to purchase the leased asset at less than FMV.  After completing section 2, proceed to Section 3.  Section 3.  LEASE DETAILS and ECONOMIC LIFE TEST        ... VENDOR/MISCELLANEOUS PAYMENT INFORMATION FORM This form is used for both Taxpayer Identification Number (TIN) notification and Automated Clearing House (ACH) payments with an addendum record that contains payment-related information processed through the Vendor Express Program. Recipients of these payments should bring this information to the attention of their financial institution when presenting this form for completion. PRIVACY ACT STATEMENT The following information is provided to comply with the Privacy Act of 1974 (P.L. 93-579) and the Debt Collection Improvement Act of 1996 (P.L. 104-134, Ch. 10). All information collected on this form is required under the provisions of 31 U.S.C. 3322 and 7701, 31 CFR 210, and Internal Revenue Code 6109. This information will be used by the Treasury Department to transmit payment data, by electronic means to vendor’s financial institution. The FAA will use the TIN information for purposes of collecting and reporting on any delinquent amounts arising out of such person’s relationship with the Government. Failure to provide the information may delay or prevent the receipt of payments through the Automated Clearing House Payment System. AGENCY INFORMATION FEDERAL PROGRAM AGENCY: Federal Aviation Administration AGENCY IDENTIFIER: FAA AGENCY LOCATION CODE (ALC): 69-00-1104 ACH FORMAT: [X] CCD+ [ ] CTX [ ] CTP ADDRESS:   CONTACT PERSON NAME: TELEPHONE NUMBER: ( ) ADDITIONAL INFORMATION (Assigned payee vendor number, etc.):   PAYEE/COMPANY INFORMATION BUSINESS NAME: SSN or TAXPAYER ID NO. SOLE PROPRIETOR NAME (If different from above): BUSINESS STATUS: {Check here if previously provided [ ]} [ ] Individual/Sole Proprietor [ ] Corporation [ ] Partnership [ ] Other ______________ (please specify) ADDRESS: CONTACT PERSON NAME: TELEPHONE NUMBER: <... Objectives This guidance is to assist in the accountability of real property assets (inventory). This section provides guidance that augments FAA Acquisition Management System (AMS) Real Property policy found at http:/fast.faa.gov/ams/ams5-0 and http://fast.faa.gov/ams/ams3-1.htm#3-1-4. The primary objectives of the real property inventory system are to: General Accountability for real property is the process of ensuring the recordation of real property assets for all FAA owned, leased, and utilized real property assets. Functions of real property accountability may include, but are not limited to, the documentation, verification, and confirmation of the existence of real property records and are to be documented in an automated information system. Please note: Accountability is not to be confused with capitalization as described in Real Estate Guidance,Management,Section 3.1.5 Capitalization. Nor is this section to be confused with Inventory as described in Real Estate Guidance,Management,Section 3.1.6 Inventory Roles and Responsibilities Program managers and/or their designee(s) must manage FAA inventory (real property assets). Management will be accomplished by ensuring the integrity of the data. Data management will enable management to formulate sound financial decisions. This includes the ability to collect accurate, timely, complete, reliable and consistent information to provide for adequate reporting to support government and agency decision-making to support the preparation and execution of agency budgets, and to facilitate the preparation of financial statements providing a complete audit trail. Provided below are the roles and responsibilities for Headquarters, Regions, and Centers. A.   ASU140 will: a. Manage REMS nationwide b. Provide advice and assistance to Regions and Centers regarding functions of REMS. c. Monitor the REMS database and periodically report findings as needed or requested. d. Maintain oversight and control of the REMS database reflecting the content, and recommend corrective actions. e. Identify systemic weaknesses through review of reported deficiencies and recommend policy and/or guidance actions be taken. B.  Regions and Centers will: f. Conduct and document by electronic input in to the REMS database all relevant acquisition, management, and disposal of real estate. g. Ensure that REMS data is consistent with data housed on Delphi h. Monitor data periodically for accuracy i. Enter corrective actions for inaccuracies j. Where assistance is required or desired, request assistance from Headquarters. REMS Roles and Responsibilities ASU100 has overall responsibility for the REMS application. As such, ASU100 has desig... Utility services should be obtained from sources of supply, which are most advantageous to the Government in terms of economy, efficiency, reliability or service. Although single source is generally the method used to acquire utility services, the FAA will acquire utilities competitively whenever practical and reasonable. When competition is practical, the selection of a source of supply requires careful and thorough study. A primary factor to consider when acquiring utility services competitively is the reliability of the service as in most instances interruptions to the service would result in serious losses to the FAA. The CO should consider the use of General Services Administration Area Wide utility contracts whenever possible. When acquiring utility services from a supplier whose rates and terms and conditions of service are fixed or adjusted by a regulatory body, the CO may elect to secure such services through execution of the utility supplier. s standard application or service agreement forms. Prior to execution of such forms, the CO should carefully review the documents to insure the terms and conditions are acceptable and do not conflict with any applicable regulations. Specific FAA clauses may be incorporated as appropriate by attachment to the utility supplier. s standard form. Generally, contracts for utility services are not restricted to a specified term with a firm date set for termination of services. The CO need only insure that adequate termination rights are provided in the agreement to meet program needs. When utility services are expected to continue for an indefinite period, the CO should periodically review the requirement to insure that the services are still the most advantageous to the Government and that the services are being provided at the most economical applicable rate. The process for acquisition of utilities can be initiated informally such as a request for potential costs, and availability. Prior to conducting formal negotiations, or awarding of a contract a formal written request certified by an authorized requesting official must be received. At present, formal certification is normally provided by means of a Procurement Request (PR). A memo can be used as a formal request as long as an approved certifying official certifies the document. Whatever document is used as the official request, it must commit valid funding in an amount sufficient to cover the first fiscal year costs to be obligated in any contract awarded. The FAA has been relieved from the requirements of the Competition in Contracting Act (CICA), Federal Acquisition Regulations (FAR), Brooks Act, Prompt Payment Act, and other restrictive regulations and laws The utility acquisition process is to be conducted following the best commercial business practices, in a fair and equitable manner, while complying with all applicable regulations. In most cases the Real Estate Contracting Officer will arrange for and sign any utility related documents. However, this does not preclude other FAA personnel, with authority to contractually commit the FAA to the payment of funds, from obtaining utility services using these guidelines. Any utility services obtained by personnel other than Real Estate Contracting Officers must be coordinated with the appropriate real estate office. In this document CO is used to indicate the individual with authority to commit the FAA to the payment of funds when obtaining utility services. This document provides general guidance in the acquisition of utility services. Interpreted in the broadest manner possible, the Federal Aviation Administration (FAA) real property policy and principles are the primary document used in determining appropriate utility acquisition procedures. If technical requirements, best business practices, or programmatic needs indicate that utilities may be acquired from any source available, the CO can solicit the utility companies providing service within the area of the facility to be installed. If formal advertising is to be accomplished, the CO should utilize the publicizing method most likely to result in receipt of offers appropriate to satisfy the specific requirement. Advertisements in most cases will be by area wide newspapers however, this is not limited and may include commercial trade journals, electronic bulletin boards, and the Commerce Business Daily. Multiple advertising may be utilized if considered necessary.1.3.2: Land Off an Airport
2.1: Applicability
2.2: Real Estate Acquisition Process
1.3.1: Land On an Airport
2.2.1: Request
2: SPACE ACQUISITION GUIDANCE
2.2.4: Renewals
2.2.2: Requirements and Planning
2.2.8: Evaluation of Offers
2.2.3: Procurement Method
2.2.9: Documentation to the Lease File
2.2.10: Award
2.2.6: Request for Offers
2.2.7: Negotiation
2.3: Post Award Real Estate Process
2.3.1: Inspection and Acceptance
2.2.5: Advertising and Market Survey
2.4: Appendices
2.4.1: Appendix A: Administrative Space Guidance
2.4.2: Appendix B: Vehicle Parking Guidance
2.4.4: Appendix D: Lease Terms
2.3.2: Alterations and Improvements
2.4.3: Appendix C: Rural Development Act Guidance
2.4.6: Appendix F: Short-term Conference and Meeting Space
2.4.7: Appendix G: Security
2.4.5: Appendix E: Rent-Free Guidance
2.4.8: Appendix H: Seismic
2.5: Space Clause Matrix
2.6.4: Proposal to lease Space Format
SFO No. ____________________
Square
Feet
Annual Rate per
Occupiable Sq.Ft.
Renewal Term,
Annual Rate per
Occupiable Sq.Ft.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
2.6.2: Certification of Seismic Compliance
2.6.3: Lessors Annual Cost Statement
2.6.10: Small Space Lease Acquisition File Checklist
REQUIRED
 IN FILE
REQUIRED
 IN FILE2.6.9: Standard Space Lease Acquisition File Checklist
REQUIRED
 IN FILE
REQUIRED
 IN FILE
REQUIRED
 IN FILE
REQUIRED
 IN FILE
$
B. PER SQ. FT.
$
C. MEASUREMENT USED FOR QUOTE
Federal Aviation Administration2.6.13: Space Safety and Environmental Checklist
2.6.16: Space Requirements Questionnaire
 
 
  
3: MANAGEMENT
3.1.2: Background
3.1: Management Guidance
3.1.3: Guidelines
3.1.4: Electronic Fund Transfer
3.1.1: Applicability
3.1.5: Capitalization
3.1.6: Real Property Physical Inventories and Records
3.2.1: Lease Evalution Form
EVALUATION OF LEASE TO DETERMINE ACCOUNTING TREATMENT - REAL PROPERTY
Effective for awards after 1/1/2005
3.2.2: Vendor/Miscellaneous Payment Information Form
3.1.7: Accountability
3.2: Management Forms
4: UTILITY ACQUISITION
4.1: Utility Guidance
4.1.3: Guidelines
4.1.4: Request
4.1.2: Background
4.1.1: Applicability
4.1.6: Advertising
4.1.5: Requirements
Requirements
Requirements received from the requesting official may be general in nature or can be very specific. The CO should make certain that whatever requirements are received contain sufficient detail to meet the needs of the requiring office. The CO should work with the requester to clarify unclear or incomplete requirements. The CO should also verify that the acquisition requested is in conformance with applicable regulations.
Construction for installation of the utility service may be accomplished by the utility company (i.e. power lines, transformers, water lines, etc.), as requested by the FAA, and included in the acquisition. Costs of construction should be evaluated to assure they are fair and reasonable. Payment of these costs can be by lump-sum payment or amortized over a specified period of time.
On requests for renewal of existing utility contracts, the CO should determine if the service continues to meet the FAA. s needs without any changes. Any changes required in the service should be negotiated and included in the succeeding contract.
4.1.8: Award
The CO should make any necessary corrections or additions to the proposed utility contract or Application For Service, based on the negotiations. Legal review of contracts is not mandatory, however, it is recommended in complex or unusual situations.
The Government is to make all payments through the use of EFT (P.L. 104-134). See Section D., Real Estate Asset Management, for guidance.
An appropriate number of proposed original utility contracts, or applications for utility service, should be sent to the successful offeror. (The CO should ensure that the number of documents with original signatures is sufficient to meet the FAA. s needs.) The provider must sign all originals, and return them for signature by the CO. The CO will sign all originals that now become the utility contract. After the CO signs the contract, one executed contract must be delivered or mailed to the provider, and a second original placed in the contract file.
4.1.10: Documentation
Sufficient documentation shall be developed to justify the acquisition action taken. These documents shall be retained in the applicable utility acquisition file.
Required:
1) Negotiation records
Show all discussions relating to reaching a final agreement with the offeror.*
2) Summary of actions with record of determination for selected offer.
A. This is a historical document that shows business judgment and line of reasoning used from the start of the process to the final action taken. *In simple utility hook-ups negotiations/discussions may be stated here without the need for additional records addressing negotiations.
3) Contract with all amendments
A. Should contain primary utility contract document.
B. Modifications and/or attachments relating to the utility contract.
C. Supplemental Agreements.
4) Facility drawings (as appropriate)
5) Signed request and certification of funding.
6) Appropriate information put into the real estate information system.
7) EFT information - Generally, the Vendor/Miscellaneous Payment Information Form or Information relating to a waiver of EFT.
4.1.7: Evaluation of Offers
Construction costs required as a result of a utility project should be evaluated to assure that they are fair and reasonable. An estimate by the government may be used to assist in this evaluation. If the offer exceeds the government estimate, construction may be accomplished through a formal government construction contract. Care must be taken however, so that the total costs involved are considered in making this determination. Generally, if the government constructs, it will also be responsible for maintenance, which over time can exceed the cost of construction.
The CO should review the offer(s) and make a selection that will represent the best value to the FAA. While price need not be the primary factor it must be considered and addressed in the contract file. The CO should obtain a rate schedule from the utility company and assure that the rate charged to the FAA is the lowest applicable rate available for which the FAA qualifies.
4.1.9: Inspection and Acceptance
The CO should arrange to inspect the utility service being provided sufficiently in advance of the required date to ensure that it is ready for use. The inspection may be delegated to a knowledgeable FAA employee.
Acceptance of the service should be provided in writing with any discrepancies or unfinished items noted. The CO should work with the utility provider to assure that any deficiencies are corrected.
The Prompt Payment Act does not apply to the FAA however, the FAA should make payments within 30 days after acceptance or as provided in the contract. As determined by the Real Estate Contracting Officer, the FAA may apply late payment interest to payments made within the scope of real property contracting actions.
4.2: Utility Clause Matrix
UTILITY CONTRACTS
CLAUSE TITLE
DATE
STATUS
COMMENTS
Advance Payment
10/96
M
 Anti-Kickback
10/96
M
 Billing Information
10/96
R
 Contract Disputes
4/96
O
*Longer version - maybe substituted for shorter version
Covenant Against Contingent Fees
10/96
M
 Electronic Funds Transfer
(EFT) Payment
11/97
M
 Facilities Charges
10/96
R
 Interest For Late Payments
10/96
O
 Nonrecurring Charge
10/96
O
 Officials Not to Benefit
10/96
M
  4.3.2: Utility Clauses- Full version of Contract Disputes Clause . last updated 01/2001
- Full version of Protest Clause . last updated 01/2001
- Full version of Protest Clause After. Award   last updated 01/2001
4.3.1: Utility Application
Federal Aviation Administration
Contract NO.: DTFA**-**-U-*****
UTILITY SERVICE BY APPLICATION
 
Issuing Office:
Date Service Required:_____________
Type of Utility: ___________________
FAA, Real Estate and Utilities
 
 
Govt Owned: ___ Leased: ______
Lessor: ________________________
Tel: ( ) -
 
It is requested that:
Vendor name:
Address:
Tel: ( ) -
Furnish the Government the following described services at the lowest applicable rate during the fiscal year ending September 30, ____, and continuing thereafter until further notice, subject to the necessary appropriation being made by Congress each year.
Description of Services:
Service requirements:
 
 
 
 
PROVISIONS
1. NONRECURRING CHARGE:
Not Applicable.
Applicable. There is hereby added to the utilities rate a nonrefundable, nonrecurring charge for the initiation of power to be paid by the Government in an amount not to exceed
$________________.
(10/96)
2. OFFICIALS NOT TO BENEFIT
No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this contract, or to any benefit arising from it. However, this clause does not apply to this contract to the extent that this contract is made with a corporation for the corporation's general benefit. (10/96)
3. COVENANT AGAINST CONTINGENT FEES
The Contractor warrants that no person or agency has been employed or retained to solicit...