§ 570.602-2 - Procedures.

(a) Scope of work. A scope of work must be prepared for all alteration projects.

(b) Independent Government estimate. An independent Government estimate must be prepared for all alteration projects, including changes to alteration agreements with lessors.

(c) Request for proposal. (1) The lessor must be provided with a scope of work, including any plans and specifications which have been developed, and should be requested to submit a proposal. The request for proposal should indicate whether progress payments will be made and provide for retainage, when appropriate.

(2) The proposal must be requested to be submitted in such detail that a cost or price analysis can be made.

(3) The requirements for the submission of cost or pricing data outlined in FAR 15.403-4, 15.403-5, and 15.406-2 apply to alteration projects over $500,000. The procedural requirements at FAR 15.403-5 must be followed when requesting cost and pricing data. Exceptions or waivers to submission of cost or pricing data must be processed in accordance with the requirements of FAR 15.403-1. If the lease does not include the clauses at FAR 52.215-10 and 52.215-12 or the clauses at FAR 52.215-11 and 52.215-13, the modification to the lease for the alterations must add the clauses at FAR 52.215-11 and 52.215-13 if cost and pricing data is submitted.

(d) Audits. Unless the cost or pricing data requirement is exempt or waived in accordance with FAR 15.403-1, an audit must be requested for negotiated alteration projects which are not competed as a part of the lease and exceed $500,000.

(e) Evaluation of proposals. The contracting officer shall:

(1) Determine whether the proposal will meet the Government's requirements;

(2) Analyze cost as compared to the independent estimate and the audit;

(3) Analyze profit in accordance with FAR 15.404-4 if the project exceeds $100,000; and

(4) Document analysis leading to negotiation objectives developed from paragraphs (e) (1) through (3) of this section.

(f) Price negotiations. (1) The contracting officer is responsible for exercising sound judgment and may make reasonable compromises as necessary.

(2) The negotiated price should provide the lessor with the greatest incentive for efficient and economical performance.

(3) Negotiations must be documented in accordance with FAR 15.406-3.

(g) Award. Alterations may be procured using the GSA Form 276, Supplemental Lease Agreement, or the GSA Form 300, Order for Supplies or Services (alteration project of $100,000 or less) provided a reference is made to the lease.

(h) Inspection and payment. Final payment for alterations must not be made until the work is:

(1) Inspected by a qualified Government employee or independent Government contractor; and

(2) Certified as completed in a satisfactory manner.