[Federal Register Volume 60, Number 74 (Tuesday, April 18, 1995)]
[Rules and Regulations]
[Pages 19362-19363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9356]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 552 and 570
[APD 2800.12A CHGE 60]
RIN-AF66
General Services Administration Acquisition Regulation; Leasing
Real Property
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Final rule.
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SUMMARY: The General Services Administration Acquisition Regulation
(GSAR) is amended to modify the Proposals for Adjustment clause to
reflect the statutory increase in the threshold for submission of cost
or pricing data from $100,000 to $500,000; to reflect the current small
business size standard in the definition of small business; to
eliminate requirements for obtaining appraisals in connection with the
acquisition of leasehold interests in real property; to reflect the new
statutory threshold of $500,000 for submission of cost or pricing data
and to make other editorial changes for clarity; to reflect the
elimination of requirements for appraisals and to eliminate reference
to automatic renewal clauses which are no longer used; to reflect the
new statutory threshold of $500,000 for submission of cost or pricing
data; and to remove the requirement for Forms 387, Analysis of Value
Statement, 3516, Solicitation Provisions, 3517, General Clauses, and
3518, Representations and Certifications. GSA is deleting all forms
which contain solicitation provisions and/or contract clauses from the
regulation. The regulation will continue to prescribe solicitation
provisions and/or contract clauses which are to be included in
solicitations or contracts.
EFFECTIVE DATE: April 18, 1995.
FOR FURTHER INFORMATION CONTACT:
Tom Wiznowski, Office of GSA Acquisition Policy, (202) 501-1224.
SUPPLEMENTARY INFORMATION:
A. Background
This rule implements section 1251 of the Federal Acquisition
Streamlining Act (FASA), Pub. L. 103-355, October 13, 1994 as it
applies to the acquisition of leasehold interests in real property.
Section 1251, among other things, increased the threshold for
submission of cost or pricing data from $100,000 to $500,000 for
civilian agencies. The increase in the threshold was effective upon
enactment. FASA also provides that prime contracts entered into on or
before the effective date of enactment of FASA shall be amended,
without requiring consideration, to reflect the increased threshold
upon the request of a contractor.
This rule also implements one of the recommendations made by a GSA
process re-engineering team for improving the process for acquiring
leasehold interests in real property. The reengineering team
recommended that the requirement for obtaining appraisals in connection
with certain leases of real property be eliminated. This rule
eliminates the requirement for appraisals but provides for the use of a
market survey or an appraisal to establish a basis for use of the
market price exemption from the requirement for obtaining certified
cost or pricing data.
B. Executive Order 12866
This rule was submitted to the Office of Management and Budget
under Executive Order 12866.
C. Regulatory Flexibility Act
The General Services Administration certifies that this final rule
will not have a significant economic impact on a substantial number of
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.) because most leases of real property awarded to small entities
are awarded on a competitive basis or on the basis of an established
market price and the requirement for certified cost or pricing data do
not apply. The elimination of the requirement for obtaining an
appraisal in certain circumstances when acquiring a leasehold interest
will have no impact on small entities offering to lease space to the
Government. Therefore, a final regulatory flexibility analysis was not
prepared.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the GSAR do not impose recordkeeping information collection
requirements or collection of information from offerors,
[[Page 19363]] contractors, or members of the public which require the
approval of OMB under 44 U.S.C. 3501 et seq.
List of Subjects in 48 CFR Parts 552 and 570
Government Procurement.
Accordingly, 48 CFR Parts 552 and 570 are amended as follows:
1. The authority citation for 48 CFR Parts 552 and 570 continues to
read as follows:
Authority: 40 U.S.C. 486(c).
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
552.270--20 [Amended]
2. Section 552.270-20 is amended by revising the date of the clause
to read ``APR 1995'', by revising in paragraph (b) the figure
``$25,000'' to read ``$100,000'', and by revising in paragraphs (c)
introductory text and (c)(2) the figure ``$100,000'' to read
``$500,000''.
PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY
570.102 [Amended]
3. Section 570.102 is amended by revising in the definition of
``Small business'' the figure ``$10 million'' to read ``$15 million''.
4. Section 570.208-3 is removed.
5. Section 570.304-5 is revised to read as follows:
570.304-5 Negotiations and award.
Offers should be evaluated in accordance with the solicitation. The
contracting officer should evaluate the price using cost or price
analysis and document the lease file to demonstrate that the proposed
rental represents a fair market price. In cases where the total cost
exceeds $500,000 cost or pricing data must be obtained unless the
requirement is waived or one of the exemptions at (FAR) 48 CFR 15.804-2
applies. The market price exemption from submission of cost or pricing
data may be applied to proposed leases where there is evidence that the
price is based on an established market price for similar space leased
to the general public. A market survey and/or appraisal conducted in
accordance with accepted real property appraisal procedures may be used
as evidence to establish the market price. An acceptable small business
subcontracting plan must be provided if the lease will exceed $500,000,
unless the lease will be awarded to a small business concern.
Negotiations, if applicable, should be conducted in accordance with
570.205. For leases expected to exceed $100,000, a Certificate of
Procurement Integrity must be provided to the proposed successful
offeror for completion and submission before award. The contracting
officer should review the List of Parties Excluded from Procurement or
Nonprocurement Programs, to ensure the proposed awardee is eligible to
receive the award and is otherwise responsible before awarding the
lease.
570.501 [Amended]
6. Section 570.501 is amended by removing paragraphs (d) and (e).
570.602-2 [Amended]
7. Section 570.602-2 is amended by revising in paragraph (c)(3) the
figure ``$100,000'' to read ``$500,000''.
570.802 [Amended]
8. Section 570.802 is amended by removing paragraphs (c), (e), (f),
and (g) and by redesignating paragraph (d) as (c).
Dated: March 27, 1995.
Ida M. Ustad,
Associate Administrator for Acquisition Policy.
[FR Doc. 95-9356 Filed 4-17-95; 8:45 am]
BILLING CODE 6820-61-M
