#### SPACE ACQUISITION GUIDELINES (Revised 01/2004)

***1. APPLICABILITY***

This document provides general guidance in the acquisition of office,
storage and special purpose space. This document is intended to provide
guidance only.

***2. BACKGROUND***

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 real property space acquisition process is to be conducted following
the best commercial business practices, in a fair and equitable manner,
while complying with all applicable regulations.

***3. GUIDELINES***

The following procedures are designed to assist in identifying the best
business practices and to promote reasonable competitive access to the
FAA's real property business, by the private sector. Competition has
been recognized as beneficial in providing the Government with cost
effective advantageous solutions. The FAA will acquire space
competitively whenever practical and reasonable. However, competition
may not always be practical. Single source is addressed where
appropriate.

***4. REQUEST*** (Revised 10/2003)

The process for the acquisition of real property interests can be
initiated informally such as a request for market information, potential
costs, and availability. If costs are involved in the procurement, 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. At present, formal certification is normally
provided by means of a Procurement Request (PR). A memo or other form of
documentation can be used as a formal request as long as an approved
certifying official, at the discretion of the Real Estate Contracting
Officer (RECO) certifies the document. (Revised 10/2003)

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(s) awarded.

***5. REQUIREMENTS and PLANNING*** (Revised 10/2003)

Requirements received from the customer may be general in nature or can
be very specific. The RECO and the requesting service should discuss the
request to ensure consideration of special requirements and the
appropriate delineated area. 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 conforms 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. (Revised 10/2003)

Repeated leasing actions in the same market area offer several options.
These options may include a separate leasing action, a competitive
consolidation at a new location or consolidation in an existing leased
location. When the FAA is currently leasing space, in or near the
delineated area, consideration should be given to the advantages, both
economically and programmatic of collocation. 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 near
airports outside the central business area. The authority to lease space
should primarily be used within 5 miles of an airport in order to
preclude competing with other Federal agencies, which typically locate
in downtown or suburban locations. Also, requirements such as prospectus
submissions to Congress still apply for lease actions above an
established threshold. Accordingly, any lease action totaling over
25,000 square feet or outside of 5 miles of an airport should be
discussed with Headquarters, Real Estate Policy Branch. (Revised
10/2003)

On requests for renewal of existing leases, the RECO should determine if
the property continues to meet the FAA's needs without any changes. This
may require an on-site visit. Any changes required in the lease terms
should be negotiated and included in the succeeding lease. (Revised
10/2003)

## Section 5a -- Rural Development Act guidance (Revised 10/2003)

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:]{.underline}

1.) After giving first consideration to rural area, what should the RECO
do?

-   If rural area location is not selected, the RECO must document why
    not. For example the mission or programmatic requirements may
    require an urban location. Document the acquisition file to show the
    consideration given to rural options.

    -   For example, the FAA can consolidate TRACON sites in either an
        urban or rural area. The mission of the program office is
        dependent on having fully operational functions for the TRACON
        site. Therefore, if a rural area does not meet functional needs,
        the RECO has adequate justification to locate in an urban
        location.

        -   The decision to not consider rural area cannot be made
            arbitrarily. The acquisition file must document the
            consideration given to rural areas and provide the data that
            supports the decision to locate in an urban area. The RECO
            can fill out the Checklist for RDA and add this to the
            acquisition file, to meet the documentation requirement.

2.) How do you define rural area?

-   As per Federal Register/Vol. 67, No. 240(Friday, December 13, 2002,
    pg 76820, final rules for the Real Property Policies Update - 41 CFR
    Parts 102-71, et al.) rural area means a city, town, or
    unincorporated area that has a population of 50,000 inhabitants or
    less, other than an urbanized area immediately adjacent to a city,
    town, or unincorporated area that has a population in excess of
    50,000 inhabitants, as specified in the Rural Development Act, as
    amended.

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)? (Revised 10/2003)

-   If an acquisition can be [either]{.underline} urban or rural, then
    the rural location must be given [first]{.underline} consideration.
    If the mission or programmatic requirements and the justification
    state that the space, land and/or other facility be located in an
    urban area, then rural areas would not be selected.

    -   The acquisition file must document the consideration given to
        rural areas and provide the data that supports the decision to
        locate in an urban area.

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?
(Revised 10/2003)

-   When using GSA to acquire new office space and other facilities, our
    requirement to GSA must be clear that first consideration should be
    given to the availability of GSA space, and second consideration to
    rural areas. However if a rural area is not selected, GSA is
    required to document the acquisition file stating the reason for not
    selecting a rural location.

***6. ADVERTISING*** (Revised 10/2003)

The requirement need not be publicly advertised when the RECO determines
that it is not warranted, or reasonable competitive access can be
achieved without advertising. Data from an advertisement or market
survey may be used to determine the competitive range and/or to
pre-­qualify the suitability of real property. Data from a market survey
may be used to determine the need for advertising. (Revised 10/2003)

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. 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. (Revised 10/2003)

The content of the advertisement is at the discretion of the RECO.
(Revised 10/2003)

***7. PROCUREMENT METHOD***

Competition is the preferred method of procurement and 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. 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. Interest may be expressed either orally or in writing.

The single source method of procurement is appropriate when technical
requirements, business practices, or programmatic needs have determined
that a 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. The lease file
should note the reason(s) competition was not used in the acquisition.
Examples might be mission requirements, technically required location,
etc.

***8. MARKET SURVEY*** (Revised 10/2003)

The market survey is the key activity to determine: if space meets, or
can be made to meet the FAA's requirements; the quality of space
offered; general market conditions; comparable prices; neighborhood
environment; availability; and, what will best serve the needs and
mission of the customer. An on-site visit is equally important in both a
competitive and single source acquisitions.

The market survey can be used to determine the competitive range. A
competitive range consists of offers that are likely to qualify for an
award and grouped together by common attributes or specified criteria.

The RECO and a customer representative should inspect those properties
that can meet FAA's requirements and clarify requirements with the
building owners. (Revised 10/2003)

The RECO should advise offerors how offers will be evaluated as to price
(actual dollars vs. discounted), general requirements, special
requirements, quality of the facility, etc. Evaluation criteria can be
used to: a) make a final award, or b) determine those offers that are
within the competitive range. (Revised 10/2003)

Following the 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.

In a single source acquisition a market survey is used to establish the
fair market value. Additionally, the facility can be inspected to insure
it meets all current safety and health requirements.

***9. FIRM-TERM LEASE CONSIDERATION*** (Revised 10/2003)

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. 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]{.underline} 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**.** (Revised 10/2003)

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, without adverse ramifications, because the
lease had an option to renew each year.

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 consistency Regions/Centers should consider
establishing, at least for some interim period, an appropriate level of
firm-term lease review above the RECO. (Revised 10/2003)

**[9a.) Real Estate Firm-Term Considerations:]{.underline}**

1\) How long is the end user prepared to commit, in writing, to stay in
this location? How comfortable does the real estate acquisition team
feel about this time-frame?

2\) Does any savings or benefit obtained in a longer firm-term justify
the potential risk to the FAA?

3\) Can two shorter firm-term periods serve almost the same purpose as
one longer

firm-term period?

4\) Does the firm-term period selected provide the FAA with the
appropriate flexibility?

5\) Is the FAA offering a firm-term lease because of a true market need
or because one offeror has requested a longer firm-term?

6\) Will the firm-term period allow amortization of the cost of
alterations or construction in the rental payments instead of making a
lump-sum payment? (The majority of commercial rental rates include a
square footage allowance for amortizing the cost of initial space
alterations over a specified period.)

**[9b.) Firm-term authority for space leases only:]{.underline}**

*[Regions/Centers:]{.underline}*

1-5 Years Firm-term Usual firm-term period. Most real estate markets can
provide a competitive rental rate with 3 to 5 years firm. Consider using
two or more 1-5 year firm periods instead of a longer initial

firm-term period. *For example, 9 year lease, 3 years firm, with 2
renewal options of 3 years firm for each or 10 year lease, 5 years firm
with renewal option for 5 years firm.*

6-10 Years Firm-term May be needed for new lease construction. Typically
10 years firm is utilized when only lease construction will satisfy the
FAA needs. Again, consider offering two shorter firm-term periods. as
shown in the example above.

*[Regions/Centers with Headquarters Approval:]{.underline}*

11-15 Years Firm-term Usual situation. The real estate market should
clearly indicate that little or no competition will be obtained unless a
firm-term of 11-15 years is offered. Should only use in unusual
situations.

16-20 Years Firm-term Rarely used. Firm-terms of 16-20 years should only
be used for very large (regional office building size, large towers,
etc.) or costly blocks of space. Use of 20 years firm should be rare in
the FAA and used only after careful consideration. Typically, used for a
prospectus level project.

To insure that required prospectus packages and other legal requirements
are appropriately considered, regional requests for firm-term leases
that exceed 10 years require the review and concurrence of the Real
Estate Policy Branch (ASU-140). 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 to insure that
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).
The requests should be no more than 2 pages (exclusive of any
transmittal memo or other attachments) and include the following:

-   Current location, square feet, annual lease costs, including any
    services or unusual features.

-   Proposed location or area, square feet, estimated annual lease
    costs, including any services or unusual features and explanation of
    how competition will be obtained.

-   Justification of the need to exceed 10 years firm and how will it
    benefit the FAA.

-   Any additional relevant facts.

-   Attach a memo signed by the customer indicating their intent to
    remain for the firm-term period requested.

-   A signature and date line at the bottom of the transmittal memo for
    concurrence by the Real Estate Policy Branch, (ASU-140)

**[9c.) Other Lease Considerations:]{.underline}**

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.
Additionally, the lease should allow the FAA rights to alter the
premises to suit a new tenant.

**[9d.) Examples Of Clauses For Space Lease Documents:]{.underline}**

***15 year lease, 5 years firm, with termination after 5th year.***

> *"To have and hold the said premises with their appurtenances for the
> term beginning on* January 1, 1990, *through* December 31, 2005,
> *inclusive; subject to termination and renewal rights as may be
> hereinafter set forth. The Government has the right to terminate this
> lease on 120 days notice on or after* December 31, 1995"

***15 year lease, 5 years firm, with termination after 5th year
[OR]{.underline} renewal for 3 years firm with termination after 5th
year.***

> "*To have and hold the said premises with their appurtenances for the
> term beginning on* January 1, 1990, *through* December 31, 2005,
> *inclusive; subject to termination and renewal rights as may be
> hereinafter set forth. The Government has the right to terminate this
> lease on* December 31, 1995, *with 90 days notice. In the event the
> Government elects not to terminate this lease on* December 31, 1995,
> *the Government may terminate this lease on 90 days notice on or
> after* December 31, 1998"

***10. REQUEST FOR OFFER*** (Revised 10/2003)

The offer(s) may be submitted to the RECO informally or formally, at the
RECO's discretion. The offer(s) should reflect all negotiations and be
used to prepare the final lease agreement. (Revised 10/2003)

Those offeror(s) that are likely to be considered for an award should be
asked to provide a set of scaled (1/8", 1/4" and/or CAD) floor plans
which clearly identify the specific area being offered. In addition,
major building features such as corridors, stairwells, restrooms,
elevators, demising walls, columns, windows, and convectors should be
clearly identified in sufficient detail for the specialist to properly
evaluate the space.

***11. NEGOTIATION*** (Revised 10/2003)

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.
(Revised 10/2003)

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. This location should be
within the original delineated area. The kind of item that may not be
appropriate in selecting one offer over another is that one has a more
sophisticated alarm system than the others. The alarm is something that
might be readily installed at the other offered locations and still be
competitive.

Should negotiations not result in an agreement that represents the best
value to the FAA, negotiations may be discontinued and another selection
made from the offers in the competitive range. The RECO, at his/her
discretion, may hold discussions/negotiations with any offeror. (Revised
10/2003)

When the final award is based on solicitation evaluation criteria, the
evaluation criteria should be in writing and the lease file should
indicate how the criteria will be used. Use of the evaluation criteria
should be consistent through out the procurement.

Note: Unsuccessful offerors should be notified as soon as possible after
an award has been made. However, the RECO has full discretion in
disclosing the status of negotiations provided that it does not conflict
with any law or harm the FAA's position. (Revised 10/2003)

The use of "best and final" offers is generally not used in real
property acquisitions. Negotiations may be terminated at anytime by the
RECO. (Revised 10/2003)

# Items for Negotiation:

The following items should be negotiated/discussed with the owners or
owners' authorized representatives:

a\. Measurement of space shall be by the occupiable square feet method
and the square footage offered will be verified.

b\. Correction of deficiencies found during the market survey.

c\. Alterations or modifications, requested by the Government, to be
made by offeror as part of the rent, to include painting walls, repair
or replacement of carpet, electrical and telephone outlets, etc., and
any lump-sum items. Based upon the scaled plans or diagram provided by
the successful offeror, the specialist may develop a scaled drawing of
the space to show partitioning, telephone/electrical outlets, and other
finish details, plus any demolition that may be required. If funds are
available, it may be advantageous to the FAA to pay for some alterations
in a lump-sum manner.

d\. Government hours of operation at the building, if different from
those specified and overtime rates (i.e., HVAC, electricity, etc.), if
needed.

e\. Level and frequency of services and maintenance. Discuss building
standard cleaning provisions, availability of property manager or
maintenance personnel to respond to tenant complaints or complete
necessary repairs, etc. If appropriate, consider incorporating owner's
standard lease language for cleaning, repairs, etc. If building standard
is not sufficient, advise offeror of Government's needs (e.g. cleaning
on daily basis) and state in lease. If the negotiated offer will not
include all required services, the RECO must be certain that the
services can be made available by the FAA through other means. (Revised
10/2003)

f\. Rental including the services, utilities, alterations, and any other
requirements identified in the lease/solicitation.

> 1\) 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.

g\. Base rates for utility and service operating costs, if applicable,
and method of pass through or escalation of operating costs, if
required.

h\. Percentage of occupancy of the building, if the real estate tax is
to be escalated or passed through.

i\. Unit priced items such as electrical and telephone outlets,
partitions, doors, etc., if they will be in the lease.

j.  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: (Revised 10/2003)

-   Building classified for agricultural use, or intended only for
    incidental human occupancy, or occupied by persons for a total of
    less than 2 hours a day,

-   Detached one and two family dwellings that are located in areas
    having a governing acceleration coefficient less than 0.15 (within
    the United States, where A, is less than 0.15 as delineated on Map 4
    of the 1991 "NEHRP Recommended Provisions for the Development of
    Seismic Regulation for New Buildings"),

-   Special structures including, but not limited to: bridges,
    industrial towers and equipment, piers and wharves, and hydraulic
    structures,

-   One-story buildings of steel light frame or wood construction with
    areas less than 3,000 square feet,

-   Fully-rehabilitated buildings which comply with these Standards in
    all four compliance categories (structural, nonstructural,
    geologic/site hazards, and adjacency),

-   Post- benchmark buildings as defined in Table 1, ICSSC RP4, which
    also comply with structural, nonstructural, geologic/site hazards,
    and adjacency compliance categories, unless a higher level of safety
    is required due to the facility mission,

-   Pre-benchmark buildings which have been shown by evaluation to be
    life-safe in all four compliance categories, unless a higher level
    of safety is required due to the facility mission,

-   Buildings constructed for the Federal Government whose detailed
    design was done after the date of the adoption of EO 12699 (January
    5, 1990) and that were designed and constructed in accordance with
    the ICSSC "Guidelines and Procedures for Implementation of the EO on
    Seismic Safety of New Building Construction", (Revised 10/2003)

-   Leased buildings identified below as exempt, or

-   Federally permitted or regulated privately owned buildings on
    Federal land.

    [Leased Facilities]{.underline} - 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]{.underline} of the following apply:

-   The leased space is less then 10,000 square feet,

    [And]{.underline}

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-   The Federal Government Leases less than 50% of the total building
    square footage.

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
standard. The licensed structural engineer will verify that the building
is designed or built (as appropriate) to an acceptable building code or
to a code that is substantially the same (seismically) as an acceptable
model building code (see seismic safety clause for Model Building
Seismic Design Provisions table). The structural engineer's
certification is to be kept with the contract file for the life of the
contract and included in the close-out file. An acceptance document from
the lessor for the building itself does not take the place of the
required certification.

If no seismically conforming space is available, otherwise acceptable
space with the best seismic resistance can be leased. An effort is to be
made to move the office at the earliest point to a seismic safe
building. If the RECO is unable to locate a building which is seismic
safe then it should be noted in the file the action to be taken by the
RECO (i.e., "No seismically safe buildings are available and unable to
get interest in new construction for this office. Will periodically
review building availability in the area to determine options for
improving seismic safety for this office."). (Revised 10/2003)

Buildings that have been determined to be exempt by the RECO based upon
the above exemptions, should complete the form "Certification Of Seismic
Compliance" as follows: a) Fill in the date, b) Complete the first line
that identifies the building, c) Complete the section at the bottom that
starts with "FAA Use" (i.e., less than 10,000 sf and less than 50% of
building, building not occupied, etc.) d) Sign in space provided for CO.
This form when completed by the RECO is to be retained in the
appropriate file.

The Realty Specialist may not have the expertise in determining which of
two (2) (or more) buildings, that are not fully compliant with FAA's
standard, are the most seismically resistant. In making these
determinations the FAA may need to contract for the assistance of a
license structural engineer. At the time of this writing (11/97), the
FAA currently has a contract with Sverdrup Corporation, Contract No.
DTFA01-93-D-00006 that can provide the needed expertise. Funding will be
required to use the contract. For further information contact ASU-300.
Additionally, GSA's Region 9 in San Francisco is willing to provide
seismic structural engineering assistance to FAA Realty Specialists by
utilizing a Reimbursable Work Authorization (RWA). For further
information regarding GSA assistance, please contact Catherine K. Lee on
(415) 522-3188 or Bela Palfalvi on (415) 522-3183 of GSA Region 9.
(Revised 10/2003)

[New Construction for Seismic Safety]{.underline} - This clause applies
to construction of new buildings to be leased for FAA occupancy,
construction of new buildings built with Federal assistance, and
construction of new buildings and additions to existing buildings where
FAA is responsible for regulating the structural safety of said
buildings. This clause does not apply to assistance provided for
emergency work or for assistance essential to save lives and protect
property and public health and safety performed pursuant to sections
402, 403, 502 and 503 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Stafford Act), 42 U.S.C. 5170a, 5170b, 5192
and 5193, or for temporary housing assistance programs and individual
and family grants performed pursuant to Sections 408 and 411 of the
Stafford Act, 42 U.S.C 5174 and 5178.

k\. Discuss how energy and water conservation is or can be achieved
(E.O. 12902 &

FAA-STD-033).

l\. Offerors should be advised that a valid occupancy permit will be
required at the time the space is inspected for acceptance. The permit
will serve as evidence of conformance with local codes and ordinances.
If the local jurisdiction does not issue occupancy permits or the permit
is very old to the point of having no value, then the offerors shall
complete and sign the Safety and Environmental Certification Checklist.
The RECO may fill out the checklist and sign in place of the offeror.
The above requirement is to insure that FAA personnel are housed in safe
space and should a problem arise, the condition of the building/facility
has been documented. (Revised 10/2003)

m\. Testing for asbestos, polychlorinated biphenyl's (PCB's), hazardous
waste operations, radon, and clean air and water are not required.
However, should the RECO be concerned about safety or environmental
aspects of the offered space, a test may be requested from the offeror
at no cost to the FAA, prior to further consideration. Failure to
provide requested test information in a timely fashion can be grounds
for excluding the offered space from further consideration. (Revised
10/2003)

n\. Disability accessibility requirements (41 CFR 101-19.6, App. A). The
FAA is required to comply with the Uniform Federal Accessibility
Standards \[http://www.access-board.gov\] (April 1, 1988, or latest
version) in leased space and all applicable federal, state and local
accessibility laws and regulations. (Revised 09/2000)

o.  Recycling should take place where State and/or local law or code
    requires recycling programs. Lessor should be encouraged to
    establish a recycling program if it is economically feasible, if not
    mandated by code or law (E.O. 12873).

p\. The Government is to make all payments through the use of Electronic
Funds Transfer Payment (EFT) (P.L. 104-134). See Section D., Real Estate
Asset Management, for guidance.

q\. Under Airport Improvement Program (AIP) grant agreements, airports
are required to provide space or land at no cost for the FAA to
construct at its cost facilities for air traffic, navigation, weather
reporting and communication activities. As leases begin to expire or new
requirements for a covered activity are identified, Regional Logistics
Divisions should advise airport sponsors that the FAA intends to assert
its rights for cost free space and land in accordance with the attached
guidance document, "Criteria for Rent-Free Space". See Appendix A,
Rent-Free Guidance. (Added 06/1999)

In a single source acquisition all items may be discussed, as above.

r.  FAA Facility Security Management (updated 8/2003) (Revised 10/2003)

[FAA will comply with FAA Orders 1600.69, Facility Security Management
Program,]{.underline} 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)

-   RECOs are encouraged to schedule a meeting between the moving Line
    of Business (LOB) and the SSE. This should occur as soon as the RECO
    learns the LOB is moving

-   Review client security planning and budgeting

-   Support development of the screening information request (SIR) /
    solicitation for offers (SFO) security requirements (Facility and
    Personnel)

-   Provide security consultation during market survey when required

-   Provide, review, and comment of lessor's proposal of security
    requirements to include examination of lessor\'s recommended
    alternatives and/or plans

-   Provide recommendations to facility manager when the Security Order
    is not met

-   Provide support to facility manager in formulating requests for
    exception to security policy prior to lease. (Formal FAA memorandum
    to AIN-100)

-   Provide security technical support to if required during
    negotiations

-   Provide support for Facility acceptance from the lessor

-   SSE will conduct facility security assessment after occupancy.

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 as needed in completion of the 1600-77 by the LOB
tenant organization for submission to the FAA SSE. The SSE will
determine the risk level and possible exemptions for each type of
position and so advise the RECO and the LOB.

During negotiations and prior to lease award the RECO needs to ensure
that the lessor understands the requirement for the security
investigations and takes time to review the prescribed lease clause and
lease performance expectations. The types of positions required to meet
the terms of the lease should be confirmed with the lessor during
negotiations.

The prescribed standard clause, Security Screening of Persons or
Individuals Employed or Hired by Lessor/Contractor (April 2003),
Attachment A, used in all new leases where the lessor, or person(s) and
individual(s) employed or hired by the lessor will perform work or
provide services in or upon the premises leased by the Government.

The RECO will coordinate with the FAA SSE to obtain the following
personnel security information forms for non-exempt positions:

> a\. FD-258, FBI Fingerprint Card
>
> b\. SF 85P, Questionnaire for Public Trust Position
>
> c\. DOT Form 1681, Card/Credential Application

The RECO will send the forms to the lessor with instructions that they
are to be completed within ten (10) calendar days after acceptance and
execution of the lease. The completed forms are to be returned to the
FAA SSE or other designated Government representative in a sealed
envelope containing a memorandum identifying the name of the lessor,
address and FAA lease contract number of the premises leased, and list
the full names (alphabetically), social security numbers, date and place
of birth (city, state or country), and position title of all person(s)
or individual(s) employed or to be hired by the lessor to perform work
or provide services in or upon the leased premises for both exempted and
non-exempted positions. Non-exempt positions will require some or all of
the forms above for investigative screening by the FAA SSE. The
operating office or LOB tenant organization occupying the FAA leased
premises will be responsible for funding the costs for security
screenings for all persons or individuals employed or hired by the
lessor, with the exception of fingerprinting. The lessor will be
responsible for all expenses associated with fingerprinting any
person(s) or individual(s) employed or to be hired by the lessor.

The FAA SSE will conduct the security screening investigation for those
persons and individuals identified and employed by the lessor. The FAA
SSE will notify the lessor (through the designated Government
representative) of any individuals determined to be unsuitable for
access to the leased premises. The lessor will be required to
immediately remove any unsuitable persons or individuals from the leased
premises and not permit the individual to perform any work or provide
any services under the terms of the lease.

For [new leases]{.underline} the FAA shall request, upon lease award,
the lessor to provide the required information prior to FAA occupying
the leased premises. The lessor will be directed to notify within ten
(10) calendar days the designated FAA representative of any persons or
individuals newly hired during the term of the lease. Newly hired
persons or individuals employed by the Lessor will not be permitted
access to perform work or provide services in or upon the premises until
the FAA SSE has determined the individual to be suitable for access.

For all [existing premises]{.underline} leased by the FAA, a prescribed
alternative clause, [Security Screening of Persons or Individuals
Employed or Hired by Lessor/Contractor (Alternate) (Oct
2001)](http://fast.faa.gov/realestate/SPACE/SecScreen.htm) will be
incorporated into the lease through a supplemental agreement, or can be
used in a superceding lease for lease renewals. The Lessor will be
requested to provide within ten (10) calendar days the required
information for all persons and/or individuals employed or hired to
perform work or provide services in or upon the leased premises. The
alternate clause differs from the standard clause primarily to allow
individuals, who are employed by the lessor and currently performing
services under the lease, to continue those services up to thirty (30)
days after award of the security clause provisions, provided they submit
the required investigative forms to the designated Government
representative in a timely manner. The prescribed clause will be added
to an existing lease as soon as practical or upon lease renewal, or when
other lease amendments are made.

The FAA SSE will determine if any person or individual employed or hired
by the lessor is exempted from the investigative screening. Any person
exempted shall be escorted at all times in or upon the leased premises
by FAA personnel located on-site or by an individual or person employed
or hired by the lessor, who has been properly investigated, favorably
adjudicated, and authorized to escort exempted individuals. The lessor
shall provide to the designated Government representative the full names
(alphabetically), social security numbers, and date and place of birth
(city, state or country) of all exempted personnel to be escorted while
performing work or services in or upon the leased premises.

Foreign Nationals: All persons or individuals employed or to be hired by
the lessor to perform work or provide services in or upon the leased
premises shall be a citizen of the United States of America, or an alien
who has been lawfully admitted for permanent residence as evidenced by
Alien Registration Receipt Card Form I-151, or who presents other
evidence from the United States Immigration and Naturalization Service
that employment will not affect his/her immigration status. Aliens and
foreign nationals who perform work or provide services under the terms
of the lease must meet the following conditions in accordance with FAA
Order 1600.72, chapter 4, paragraph 407:

> a\. Must have resided within the United States for three (3)
> consecutive years of the last five (5) years unless a waiver of this
> requirement is requested and approved in accordance with the
> requirements stated in FAA Order 1600.72, chapter 4, paragraph
> 409(b)(3);
>
> b\. A risk or sensitivity level designation has been completed for the
> position; and
>
> c\. The appropriate security screening has been conducted.

The standard clause and alternate clause prescriptions include language
for aliens and foreign nationals employed or hired by the lessor.

The lessor will have an ongoing requirement to advise the RECO, or the
designated Government representative, of changes to the
lessor/contractor list (new employees or terminated employees), as well
as submission of quarterly updates to the list, and ongoing follow-up on
security determinations on employees. The RECO must coordinate with the
SSE, the LOB tenant and the lessor on an ongoing basis. The RECO should,
whenever possible, delegate day to day management of the contractor
security program at a leased facility to a responsible on-site
representative.

When others contract for services (e.g., janitorial, construction,
maintenance, etc) separately for FAA leased premises, personnel security
investigations shall also be conducted. It is the responsibility of the
Contracting Officer (CO) for that service contract to coordinate with
the SSE and LOB tenant organization regarding contractor screenings. In
accordance with FAA Order 1600.72, paragraph 204, the operating office
or LOB tenant organization occupying the FAA-leased space will be
responsible for funding the costs for security screenings for all person
or individuals employed or hired by the lessor.

If FAA occupies GSA controlled leased space, the designated FAA
representative will request GSA to include the prescribed FAA security
clause in the GSA lease requirements. GSA will be responsible for
conducting the security investigations on any person or individual
employed or hired by the GSA lessor to perform work or provide services
in or upon premises occupied by FAA personnel. Funding for security
screenings in GSA controlled space are covered under the GSA rental
costs, unless FAA requires a higher level of security than the standard
established by the GSA Building Security Committee, or if current FAA
occupancy agreements with GSA require something different than the
standard established.

***12. EVALUATION OF OFFERS*** (Revised 10/2003)

a\. When selection factors are used to make the final award or to
determine the competitive range group, they must always be evaluated
against written evaluation criteria.

b\. The RECO should review the offer(s) and make a selection that will
represent the optimum solution to the FAA. While price need not be the
primary factor, it must be considered and addressed in the lease file.
(Revised 10/2003)

c\. Price evaluation can be in actual (undiscounted) dollars. For
evaluation of total cost, the annual per square foot price should
include the estimated cost of any required services, utilities, or lump
sum items not included in the rental. Estimated or negotiated escalation
costs should be included, if applicable. In complex offers or with
offers with longer lease, terms it may be more advantageous to evaluate
in discounted (present value) dollars. Whatever method used, it must be
consistent with all offerors throughout the lease acquisition process.
Leases without any escalation should be considered, when possible.

d\. The RECO must review the List of Parties Excluded from Federal
Procurement or Nonprocurement Programs (Debarred Bidders List) to
determine that the proposed successful offeror is not listed. (Revised
10/2003)

e\. The customer should be advised as soon as possible of the
recommendation for award.

In a non-competitive space acquisition the Debarred Bidders List should
be reviewed. The offer analyzed to ensure it conforms with negotiations.

***13. FAIR MARKET VALUE DETERMINATION*** (Revised 10/2003)

Appraisals are not required. However, if an appraisal is not obtained
the RECO should use market data to evaluate the price and document the
lease file to demonstrate that the proposed contract rental represents a
fair price to the FAA. This applies to competitive and non-competitive
space acquisitions. (Revised 10/2003)

Market data used to determine fair and reasonable rental, generally,
should consist of comparing at least three (3) similar leased locations
in the same general area with appropriate adjustments for differences. A
formal appraisal should be considered when the requirements or building
are unique and/or obtaining market data is difficult or requires special
skills.

***14. AWARD*** (Revised 10/2003)

a\. The RECO should make any necessary changes or additions to the
proposed lease based upon the negotiations and/or offer. (Revised
10/2003)

b\. The lessor must provide required information to participate in the
EFT payment process in which rental payments will be electronically
transferred to the bank account of the lessor or payee.

c\. An appropriate number of the original lease should be sent to the
successful offeror. (The R ECO should ensure that the number of lease
documents with original signatures is sufficient to meet the FAA's
needs.) The offeror must sign all originals, (initialing each page of
the lease is optional) and return them for signature by the REC O. 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 sign all originals, which now becomes the
lease. After the RECO signs the lease, at least one executed lease must
be sent to the lessor. (Revised 10/2003)

d\. The RECO should ensure that all information is entered into the real
property database. (Revised 10/2003)

e\. Legal review of lease contracts is recommended where deviation from
standard clauses is made. Legal review is required on purchases. The
Department of Justice rules on condemnation and title requirements must
be followed.

This section applies to competitive and non-competitive space
acquisitions.

***15. INSPECTION AND ACCEPTANCE*** (Revised 10/2003)

a\. 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. The inspection may be delegated to a knowledgeable FAA
employee. (Revised 10/2003)

b\. Acceptance may be provided in writing or verbally with any
discrepancies or unfinished items noted in the lease file. In most cases
discrepancies will be agreed to in writing by the FAA and the lessor.

c\. If the space is not ready for occupancy on the previously
established date or occupancy takes place sooner than previously
planned, the lease should be amended to reflect the actual commencement
the date and rental amount.

d\. Deficiencies, often referred to as "punch list items," i.e.,
touch-up paint, missing outlet covers, etc., needed not prevent
acceptance of space and commencement of rent; however, firm dates for
correction must be set. A follow-up inspection should be scheduled to be
sure that the work is completed. The results of the follow-up inspection
should be documented in the file. Note: When large deficiencies remain
it is often advantageous to delay acceptance until they are completed.
Delay of acceptance has been found to provide an incentive to the
building owner to quickly complete punch list items.

e\. If ratios of tenant finish items are used, a count of these items
should be made. Rent should be adjusted up or down to reflect the actual
count of unit price items in accordance with the lease.

f\. The Prompt Payment Act does not apply to the FAA however; the FAA
should make payments within 30 days after acceptance of space,
alterations, or improvements or as provided in the contract. As
determined by the RECO, the FAA may apply late payment interest to
payments made within the scope of real property contracting actions.
(Revised 10/2003)

This section applies to competitive and non-competitive space
acquisitions.

***16. DOCUMENTATION*** (Revised 10/2003)

Sufficient documentation shall be developed to explain and justify the
acquisition action taken. These documents shall be retained in the
applicable lease acquisition file.

Required:

1\) Fair Market Value determination or appraisal

> A. Must show how the fair market value was determined
>
> BGive the addresses of the comparable subjects used to determine the
> fair market value.

2\) Negotiation records

> A. Should show all discussions relating to reaching a final agreement
> with the lessor/offerors.

3\) Summary of actions with record of determination for selected offer.

> A. This is a historical document to show business judgment. Should
> show a clear line of reasoning from start of process to final action
> taken.
>
> B. Should show selection criteria and how it was used.
>
> C. If single source, should indicate reason for not utilizing
> competition.
>
> D. Should provide general explanation for overall leasing action.

4\) Contract with all amendments

> A. Should contain primary lease document.
>
> B. Modifications and/or attachments relating to lease agreement.
>
> C. Supplemental Agreements.

5\) Facility drawings (as appropriate)

> A. Drawing of the as-built space.
>
> B. Drawing showing parking and other exterior items.

6\) Signed or authorized request and certification of funding

> A. Normally a PR

7\) Copies of other offers (as appropriate)

8\) EFT information

A.  Generally, the Vendor/Miscellaneous Payment Information Form or

B.  Information relating to a waiver of EFT.

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9.  Seismic Safety

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A.  Completed "Certification of Seismic Compliance\"

B.  Any required documentation

Optional:

10\) Market survey sheet for each location visited

> A. Market survey form provides guidelines for analysis of each
> location. If this form is not used narrative information should be
> provided in the summary of actions.

11\) Photo of each location visited

> A. Photos have been found to provide useful information once the
> market survey is completed. Photos can also be used to enhance the
> recommendation made to the requesting service. Generally, photos are
> taken of the exterior, highlighting defects or enhancements however;
> photos need not be limited to the exterior. (Revised 10/2003)

12\) Offerors cost information

> A. This will provide a cost breakdown.
>
> B. The breakdown may include, basic rental, water, power, gas, taxes,
> janitorial, supplies, etc.

13\) Facility drawings in CAD‑CAM format

> A. Many lessors now have building information in CAD-CAM format; the
> RECO's may find this format more useful than regular drawings.
> (Revised 10/2003)

This section applies to competitive and non-competitive space
acquisitions.

***17. ALTERATIONS AND IMPROVEMENTS*** (Revised 10/2003)

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. Unusual payment methods should be reviewed for
legal sufficiency. (Revised 10/2003)

Alterations:

a\. First consideration should be given to lessor provided 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.

b\. Required 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 formal appraisal, market data, and cost to
build publications (Marshall and Swift, BOMA, etc.,), detailed review of
the lessor's estimates, and estimate by the government, etc. (Revised
10/2003)

c\. Alterations under an existing lease generally are considered single
source and do not require competition. Payment for lessor provided
alterations may be through an adjustment in the annual lease payment or
lump sum.

d\. As appropriate, obtain a waiver of restoration from the lessor.

[Improvements:]{.underline}

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 restricted as provided in decision
by the Comptroller General (B-239520, 8/16/90).

a\. As in the case of alterations it is advantageous to have the lessor
provide the improvements. However, this may not be the case in all
improvements. Generally, the lessor should be considered first if the
improvement connects to an existing lessor owned structure or could have
some impact on existing lessor owned facilities. In any decision
concerning FAA provided improvements consideration must be given to
disposal and/or restoration costs, estimated life, maintenance, increase
in the value of the leased premises, etc.

b\. Improvements often are of no value when removed from a building
(i.e., electrical components, etc.). Accordingly, improvements should be
evaluated using best business practices.

c\. Improvements 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 formal appraisal, market data, and cost to
build publications (Marshall and Swift, BOMA, etc.,), detailed review of
the lessor's estimates, and estimate by the government, etc. (Revised
10/2003)

d\. Improvements under an existing lease generally are considered single
source and do not require competition. Payment for lessor provided
improvements may be through an adjustment in the annual lease payment or
lump sum.

e\. ~(Added\ 11/2000)~ Under the current FAA Reauthorization Act of
2000, (Section 712. General Facilities and Personnel Authority), the FAA
has authority to make permanent improvements to FAA leased properties
under the following conditions:

> *e1.) Authority:*

\"(5) Improvements on Leased Properties - The Administrator may make
improvements to real property leased for no or nominal consideration for
an air navigation facility, regardless of whether the cost of making
improvements exceeds the cost of leasing the real property, if the
following conditions are met:

> \"(A) the improvements primarily benefit the Government;
>
> \"(B) the improvements are essential for accomplishment of the mission
> of the Federal Aviation Administration; and
>
> \"(C) the interest of the United States Government in the improvements
> is protected.\"

The FAA often requires the need to make permanent improvements to leased
air-navigation facilities. This may result from new mission requirements
or changes in the current mission. This includes buildings as well as
other structures, i.e. fences, gates, etc. These permanent improvements
can take the form of expansion of a building or an upgrading of a
building/structure. Some examples of types of permanent improvements the
FAA requires are: 1.) to meet OSHA/fire safety standards, 2.) to enhance
HVAC because of new electronic equipment, 3.) energy efficiency, 4.)
electrical upgrade for new equipment, and 5.) security. It should be
noted that this list only includes a few examples.

This authority should be used after the RECO has made every effort to
have the lessor complete the improvement(s). If the lessor is unwilling
or unable to provide the means to complete the improvements, then the
FAA can exercise this authority for those leased facilities, which we
are paying rent-free or nominal rent (see definitions below). Further if
a lessor refuses to make improvements, the RECO should send a
Supplemental Lease Agreement (SLA) to the lessor outlining the scope of
work being performed by the FAA. It should be noted that the lessor
should continue to maintain the improvements made by the FAA. (Revised
10/2003)

The following is an example using this authority; the FAA has a
rent-free lease agreement for an ATCT that requires an upgrade to the
roof. The RECO should first ask the lessor to complete the work. However
if the lessor is unable or refuses to fix the roof, the RECO would work
with the customer: 1.) to document in the lease contract a note stating
the use of authority meets all the above conditions; 2.) to send an SLA
to the lessor outlining the work to be performed; and 3.) to contract
through the procurement office a vendor to make the necessary repairs to
the roof. If the RECO is required to financially account for the
improvement(s), guidance relating to the capitalization of improvements
for financial accountability can be found under the real property
management guidance section of the AMS/FAST
(http://fast.faa.gov/realestate/Managemt/M-manage.htm).

*e2.) Facilities covered under this authority:*

This authority applies to the air navigation facilities as listed below
where the FAA pays no or nominal rent.

ATCT - Airport Traffic Control Tower

AFSS - Automated Flight Service Station

CERAP - Combined Center Radar Approach Control

CWOS - Contract Weather Observation Station

FIFO - Flight Inspection Field Office

FSS - Flight Service Station

POCC - Prototype Operational Control Center

RAPCON - Radar Approach Control

> TRACON - Terminal Approach Radar Control

Any other FAA organization whose mission is to maintain systems and
equipment used for air traffic control operations, air navigation,
weather reporting, or communication activities may be considered covered
under this authority. Please inquire with ASU-140 for those facilities
not listed but may be considered covered under this authority.

### *e3.) Definitions:*

> Rent-free - The FAA receives at no cost the right to occupy a leased
> facility via lease agreement.
>
> Nominal Rent - Nominal rent is defined as applied to rent depends on
> the facts in each case, but generally it denotes a consideration
> wholly unrelated to the actual or fair market value of the leased
> premises, such as \$1 per annum, or \$1 per annum together with the
> obligation to repair and maintain the premises to pay taxes assessed
> against the property.

***18. RENEWALS*** (Revised 10/2003)

Space lease renewals may be done non-competitively. The FAA will,
through market research, insure that renewals at an existing location
are at fair annual rent. However, relocation to acquire a better value
is always an option, at the discretion of the RECO. While cost to
relocate should be considered it need not be the primary consideration
for renewal. (Revised 10/2003)

Care should be taken when renewing a lease to ensure that all new
requirements and new regulations (e.g., seismic safety, energy
conservation, fire safety, etc.) are incorporated in the new lease
agreement.

***19. DOCUMENTS*** (Revised 10/2003)

The following documents/formats are provided to assist in space leasing
actions.

a\. FAA Small Lease - The small lease consists of clauses derived from
the standard Space Lease and Attachment A. The small lease document does
not provide all of the protections associated with housing personnel for
long periods of time or clauses designed to contractually protect the
FAA. This should be used for small blocks of space, typically
approximately 3,000 square feet or less, or short term (i.e.,
approximately 1 year). Additional clauses may be added as determined by
the RECO.

(Revised 01/2004)

b\. FAA Standard Space Lease - This document is generally suitable for
existing buildings with non-complex requirements. On large, complex, or
new construction the GSA lease package should be considered for use. The
standard space lease may consist of the following documents: (Revised
01/2004)

-   Space Lease Form- Mandatory

-   Attachment A - Mandatory

-   Certification of Seismic Compliance -- Mandatory

-   Vendor/Miscellaneous Payment Information Form - Mandatory

-   Space Solitication Information - Optional

-   Lessors Annual Cost Statement with instructions - Optional

-   Proposal To Lease Space - Optional

    c\. 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 -- Optional (Revised
    01/2004)

    d\. Rural Development Act Checklist - Check appropriate reason for
    not considering location in rural area. However if the RECO would
    like concurrence from the program office, they can get the program
    office to sign the checklist when site selection is based upon
    program needs. (Revised 01/2004)

e\. Space Lease Clause Matrix - This document lists dated space lease
clauses with legend and prescription on appropriate use. See legend for
definition of mandatory, recommended and optional. (Revised 01/2004)

f\. Safety and Environmental Checklist - This form should be used when
the local municipality does not provide occupancy permits. In those
situations that the FAA is unable to obtain a completed form from the
lessor/offeror the RECO may complete the form for the lease file
however, in this situation the FAA has assumed the responsibility for
accuracy. RECO\'s may use this form in any space leasing action.
(Revised 01/2004)

g\. Space Action Summary - This document provides a format in which to
document the rational for an award. -- Optional (Revised 01/2004)

h\. Space Market Survey - This document provides a format in which to
document information obtained at each location visited during a market
survey. -- Optional (Revised 01/2004)

i\. Space Requirements Questionnaire - The purpose of this questionnaire
is to gather as much information as possible at the beginning of the
space planning process -- Optional. (Revised 01/2004)

j\. Supplemental Lease Form (SLA) -- This document is used for adding
supplemental lease agreements to existing lease form -- Optional
(Revised 01/2004)

***20. SHORT-TERM CONFERENCE AND MEETING SPACE***

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.

If the cost of the conference space is within the limits of cardholders
purchasing authority, see AMS Section 3.2.2.5. If the cost of the space
exceeds the limits of a cardholder you should check with the appropriate
Logistics Division to determine local procedures. The space should not
be utilized until an authorized person with procurement authority has
approved the transaction and finalized the agreement.

**21. APPENDIX A: RENT-FREE GUIDANCE** (Revised 04/2002)

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?

-   The language indicates that we should only be paying for the cost of
    the space, i.e. maintenance, utilities, services and expenses and
    not the profits. The airport sponsor should provide a breakout of
    all the cost prior to final agreement on the contract.

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-   The FAA is not prohibited from negotiating a rent-free agreement
    with the airport sponsors.

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-   The FAA should be able to negotiate below market rate as stated in
    the language. When a lease expires for a covered activity, the FAA
    should expect to be able to negotiate below market rates with
    sponsors. For example if a lease expires at a rental rate of \$30 a
    square foot, then the FAA should try to negotiate below this amount.
    It may be inferred from the appropriation language on negotiations
    to achieve below market rates, however the language does not require
    the airport sponsor to negotiate below market rates or even market
    rates.

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?

-   It should be noted that the FAA will try to appeal for the removal
    of Section 335 from the appropriation act next year. Yet the FAA was
    unsuccessful this year in appealing for the removal of Section 335
    prior to the passing of the act. Thus most likely the language will
    not be appealed prior to 2003.

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-   Depending upon each lease contract, the RECO will ultimately make
    the decision on which term is in the best interest of the
    government. If you have leases that would be better to negotiate on
    a yearly basis then it would be recommended to negotiate those
    leases for a one-year term. However with the current situation, the
    FAA will be better off negotiating a lease term of five years or
    less with the following contingency statement in the lease
    agreement:

> * The FAA reserves the right to renegotiate the rental rate to
> reflect no-cost space if the Appropriation Language Section 335 (FAA
> FY 2002 Appropriations Act) is repealed during the term of the lease
> and the FAA rent-free guidance is re-implemented. In that event, the
> lessor would be required to provide rent-free space for the fiscal
> year that Section 335 was repealed (or that a rent-free provision was
> enacted) and the remaining years of the lease, and in subsequent
> leases.*

3.  Does this include all leased space, such as tower cabs, equipment
    rooms and FSS space?

This language applies to all the covered activities included in the
guidance:

ATCT - Airport Traffic Control Tower

CERAP - Combined Center Radar Approach Control

CWOS - Contract Weather Observation Station

FSS - Flight Service Station

RAPCON - Radar Approach Control

TRACON - Terminal Approach Radar Control

Most likely the sponsors will not be providing space rent-free in the
above facilities. However this does not prohibit them from agreeing to
negotiate a rent-free agreement.

4.  Does the language apply to both old lease renewals and new lease
    negotiations?

-   This language applies to all existing lease renewals and new leases
    after October 1, 2000.

##  22. APPENDIX B: ADMINISTRATIVE SPACE STANDARD GUIDANCE (Revised 10/2003)

**I. [GENERAL: ]{.underline}**(Revised 10/2003)

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). (Revised 10/2003)

# 

**II. [APPLICABILITY:]{.underline}**

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:]{.underline}**

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:

    ‑ If the space is on a single tenancy floor, compute the inside
    gross area by measuring between the inside finish of permanent
    exterior building walls or from the face of convectors (pipes or
    other wall‑hung fixtures) if the convector occupies at least 50
    percent of the length of exterior walls.

    ‑ If the space is on a multiple tenancy floor, measure from the
    exterior building walls as above and to the room side finish of
    fixed corridor and shaft walls or the center of tenant‑separating
    partitions.

    In either case, make no deductions for columns and projections
    enclosing the structural elements of the building and deduct the
    following from the gross area including these enclosing walls:

    a\. Toilets and lounges

    b\. Stairwells

    c\. Elevators and escalator shafts

    d\. Building equipment and service areas

    e\. Entrance and elevator lobbies

    f\. Stacks and shafts and

    g\. Corridors in place or required by local codes and ordinances.

8.  **Office Space -** Space which provides an environment suitable for
    an office operation. There are two categories of office space:
    primary office space and support space (see definitions for
    Administrative Primary Office Space and Administrative Support Space
    for further details). Typical office standard space is constructed
    with the following finishes: carpet, lights, ceiling, HVAC and
    painted finished walls.

9.  **Operating (Technical) Space -** Operating (technical) space is
    defined as space required to house the installation or operation of
    air traffic control and/or air navigation equipment, research and
    development laboratories and other project-related spaces.

10. **Originating Office -** This may be either the using office or an
    office in the organizational or supervisory line with responsibility
    for obtaining space for the using office. This office develops space
    requirements and prepares a request for the space with sufficient
    information for development and validation of the requirements.

11. **Non-Office Personnel -** Personnel assigned to operational or
    other space should not count towards the administrative space
    utilization standard.

12. **Personnel** - means the peak number of persons to be housed by a
    LOB/SO during a single 8-hour shift, regardless of how many
    workstations are provided for them. In addition to permanent
    employees of the agency, personnel include temporary, part-time,
    seasonal, and approved contractual employees and budgeted vacancies.
    Regional or Field offices should also include detailees from other
    Regions, Headquarters and/or non-DOT agencies. Headquarter offices
    should include detailees from the Regions and/or non-DOT agencies
    but not from other Headquarter offices. Employees of other LOB/SO
    who are housed in the space (i.e. Integrated Product Teams, etc.)
    are also included in the personnel total.

13. **Special Space -** Special space means unique
    architectural/construction features, requiring the installation of
    special equipment or requires additional monies above the standard
    office space to construct, maintain and/or operate as compared to
    office and storage space.

14. **Storage Space -** Space that is not constructed to office type
    standards and is only suitable for storage purposes. Space generally
    consisting of concrete, woodblock, or unfinished floors, bare block
    or brick interior walls; unfinished ceiling; and similar
    construction containing minimal lighting and heating. Supply rooms,
    storerooms, file rooms and warehouse areas that are not finished to
    office standards are classified as storage space.

15. **Telecommuting -** (Work-at-home) Home-based workers who bring work
    to their home, eliminating the need to commute to the work site.

16. **Telecommuting Centers -** (Satellite Office) Alternative work site
    located closer to employees\' homes that provide all office
    services. May be used on a full-time or part-time basis by those who
    want to shorten their commute but can not work from home, or by
    telecommuters as a support site for copying, faxing, etc.

17. **Types of Space -** There are three (3) types of space occupied by
    FAA: 1) FAA owned, 2) FAA leased, and 3) GSA controlled space.

**IV. [UTILIZATION SPACE STANDARD:]{.underline}**

The average utilization rate for all administrative space occupied by
FAA LOB and SO will be 152.5 occupiable square feet per person (osf). A
person is the following type of employees: permanent, temporary,
part-time, seasonal employees and approved FAA contractors. Any
exemptions to this administrative space standard are defined in Section
VI, Exemptions to the Administrative Space Standard below. The 152.5 is
an average per person, however the square footage for any specific
individual may vary up or down from the average.

The administrative space standard is a calculation involving the number
of personnel, the circulation factor, and the following types of space:
all office areas (closed or open), shared workstations, originating
office conference rooms, reception/waiting areas, meeting areas, file
areas, central storage areas, processing areas, and library and
reference areas. Below is the method to calculate the utilization rate
for originating office requirements.

1.  [Administrative Office Space Utilization Rate:]{.underline} The
    average Administrative Office Space utilization should not exceed
    125 square feet per person. The 125 square feet per person is the
    utilization rate for the primary office area. Administrative Office
    space is all office areas where normal operational functions are
    performed by personnel (see Section II, administrative primary
    office space definition). This square footage standard stands
    regardless of the types of furniture options (freestanding, modular
    or systems). Circulation allowances are included in this number.

2.  [Administrative Support Space Percentage:]{.underline} The support
    space should not exceed 22 percent of the primary office space.
    Allowances may be made for those unique functions that require
    additional support space above the primary support factor of 22
    percent. Administrative Support Space should accommodate the
    following areas: reception/waiting areas, meeting areas, file areas,
    central storage areas, processing areas, mail areas, work areas,
    conference rooms not having special buildout, library and reference
    areas and aisles and corridors.

3.  [Total Utilization Rate Formula:]{.underline} The calculation
    formula for the average amount of administrative office and support
    space per person is as follows: 125 sq. ft. + (125 sq. ft. X 22%) =
    an average of 152.5 osf per person

**V. [DEVIATIONS TO THE ADMINISTRATIVE SPACE STANDARD OF 152.5 SQUARE
FEET]{.underline}** (Revised 10/2003)

The originating office must submit a written justification with the
requirements package for any increase in space above the 152.5 square
foot average per person standard to the approving official at the LOB/SO
headquarters office. This written justification must be based upon
mission or unique requirements such as limited space due to building
configuration. The approving headquarters official must also certify
funding availability. See Section VIII for additional details on
funding. The originating office must send the approved waiver with
requirements package to the RECO or to the Mike Monroney Aeronautical
Center (MMAC) Space Manager, AMP-400. The RECO or the space manager
should acknowledge the approved waiver and acquire the additional space,
if available. (Revised 10/2003)

VI\. [EXEMPTIONS TO THE ADMINISTRATIVE SPACE STANDARD:]{.underline}

Below is a list of examples of exempted space types from the
administrative space standard. If an originating office\'s requirements
do not fit any of the exemptions below, the RECO will make a
determination on a case by case basis.

A.  **Special Space** - Space with unique architectural/construction
    features, requiring the installation of special equipment or
    requires additional sums to construct, maintain and/or operate as
    compared to standard office and storage space. Special space
    provides space for an originating office to perform special or
    unique functions such as an engineer requiring a drafting desk,
    which is larger than a typical workstation.

Examples of special space:

1.  Food Service Areas: Cafeterias, Snack Bars, Mechanical Vending
    Areas, and Private Kitchens.

2.  Laboratories

3.  Libraries with special stacks (shelving) requiring load bearing
    floors (normal floor loading is 80 live load and 20 dead load).

4.  High-density filing areas

5.  Auditoriums

6.  Training classrooms

7.  Automatic Data Processing Rooms - areas having special features such
    as humidity and/or temperature control, raised flooring, and ceiling
    heights exceeding office standards, and extensive power
    requirements.

8.  Computer rooms, telecommunication rooms with special environmental
    requirements

9.  Computer Tape Vaults

10. Conference Rooms with special equipment and/or HVAC

11. Sensitive Compartmentalized Information Facility (SCIF) area

12. Hot Copy Rooms

13. Operating (Technical) space - see section C.

14. Shop type space

15. Light-Industrial type space

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A.  **Storage Space** - Storage space is not constructed to office type
    standards and is only suitable for storage purposes. Space generally
    consisting of concrete, woodblock, or unfinished floors, bare block
    or brick interior walls; unfinished ceiling; and similar
    construction containing minimal lighting and heating including:
    supply rooms, storerooms, and file rooms that are not finished to
    office standards. Storage space is typically located in the basement
    or garage are of a building.

B.  **Operating (Technical) Space** - space required to house the
    installation or operation of air traffic control and/or air
    navigation equipment, research and development laboratories and
    other project-related spaces. Operating (Technical) space tends to
    be the dominant space in a facility whereas administrative is space
    supporting the operating function. Any administrative space
    requirements within operating space are subject to the 152.5 sq. ft.
    baseline.

C.  Small, stand-alone operating field offices (i.e. Airport Field
    Office) that have eight or fewer total personnel should be housed as
    efficiently as possible.

D.  The shape and design (configuration) of a building and its impact on
    space utilization may be considered an exemption. Although the
    originating office should submit to the RECO for review
    documentation to support this factor as an exemption.

**VII. [PLANNING AND DEVELOPING ADMINISTRATIVE SPACE
REQUIREMENTS]{.underline}** (Revised 10/2003)

Prior to acquiring or constructing space, the originating office should
submit their requirements to the acquiring organization , the RECO, in
order to determine their actual space needs. Requirements received from
the originating office may be general or specific in nature. If the
originating office chooses to submit specific requirements, they may
choose the option to fill out the Space Requirements Questionnaire (see
Space Forms, 14) or any other space planning checklist. When planning
and developing their administrative space requirements, the originating
office should use the administrative space standard as a baseline.
Originating office should also remember that when developing
requirements, the space measurement used is occupiable square footage.
For more information on \"occupiable square feet\" see definitions
section III. (Revised 10/2003)

Determine if vacant space is available at other FAA-owned or leased
facilities for these administrative space needs. If the administrative
space requires the construction of a new facility, first determine if
FAA-owned property is available to build this facility on. The order of
priority is to occupy existing a.) FAA-owned space b.) FAA-leased space
c.) GSA controlled space prior to acquiring commercial or privately
owned space. Provide ample notification to the RECO or FAA Space
Management organization during the planning process to assure
availability of space when it is needed (Revised 10/2003)

The RECO can provide assistance to the originating office with filling
out the questionnaire. If FAA or GSA space is not available, or special
program needs dictate otherwise, then commercial or privately owned
space may be acquired. It should be further noted that space
requirements development (through the appropriate local space management
organization) is one of the initial steps to begin the acquisition space
process. Once an originating office submits their requirements, the RECO
can proceed with rest of the acquisition steps listed below. All the
steps listed below are coordinated by the RECO with the originating
office. For example the RECO sets up and attends all market surveys.
Once the acquisition process is over the RECO is authorized to commit
the government to using space. (Revised 10/2003)

Below are list of the steps for the acquisition space process.

1.  Requirements and Planning

2.  Advertising

3.  Procurement Method

4.  Market Survey

5.  Request for Offers

6.  Negotiations

7.  Evaluation of Offers

8.  Award

The above acquisition process varies slightly for space requirements
under 10,000 square feet. For further information on the space
acquisition process please see Space Guidance above.

*[Questions to ask prior to planning and developing
requirements:]{.underline}*

When an originating office is developing their requirements for
administrative space, they should keep the following questions in mind.
They may also work with the RECO in answering the questions together.
(Revised 10/2003)

-   Can a variation from the space standard be justified on the basis of
    mission or unique requirements?

-   Is the planned assignment based on an open floor plan with systems
    furniture, with one workstation per person?

-   Can adjustments be made for workstation sharing, telecommuting,
    hotelling, working in shifts, etc.?

-   How much of existing space buildout can be used? How much space
    planning will be required?

-   Will the building design and shape have an impact on the
    administrative support space percentage?

    *[Space Requirement Questionnaire:]{.underline}*

    After the originating office has considered the above questions,
    they have the option of filling out \"[Space Requirement
    Questionnaire](http://fast.faa.gov/realestate/space/s-att-b.htm)\"
    or any other space planning checklist. The RECO can assist the
    originating office with completing the Questionnaire. By completing
    the attached Questionnaire, the originating office can identify
    their specific requirements to support and justify their space
    needs. Once the originating office finishes the questionnaire, it
    should be forwarded to the acquiring organization for assistance in
    determining their final requirement.

    (Revised 05/2001)

    **VIII. [BUDGET PLANNING FOR ADMINISTRATIVE SPACE
    REQUIREMENTS:]{.underline}**

    When planning for space requirements an originating office should
    always consider the full economic cost of real property. All FAA
    organizations need to remember the importance of budget planning for
    real estate costs when beginning their initial planning of a space
    requirement(s). For all FAA owned and leased space, the originating
    office should prepare a line item budget for all employee space
    needs. ASU-400 prepares all GSA occupied space budget line items.

    Furthermore, the originating office should consider preparing a
    budget line item for furniture (workstation) replacement every
    eight (8) years. The budget planning for space requirements by the
    originating office should also consider the periodic program
    modifications that would result in workspace expansion or
    alterations.

    Suggestions to LOB/SO to consider ways to save money.

-   If an organization\'s current or future year budget proposes new
    programs or initiatives, include the real property implication of
    the programs. The organization should include funding projections
    for associated real property costs as well as the cost of the
    programs.

-   Organizations should budget for space requirements in two phases.
    First, the organization should request a line item in their budget
    for their initial space request. Second, as the organization has
    defined their requirements, selected a site and received an
    estimated cost for buildout above the base lease, the organization
    should budget for a total lump sum amount instead of amortizing the
    entire design and construction cost.

-   Organizations should perform a cost analysis to determine if it is
    more economical to construct a new facility rather than leasing.

    **IX - [GSA CONTROLLED SPACE CLARIFICATION ]{.underline}**

    All GSA controlled space requests must be approved by Headquarters
    (ASU-400) prior to the acquiring organization (i.e. AXX-50) taking
    action on the request. LOBs/SOs must fund any new requests for space
    not previously identified in the GSA rent budget submission.
    LOBs/SOs must submit written mission related justification for any
    additional space requirements in excess of the 152.5 square feet
    baseline. If the request for additional space is approved, the
    LOB/SO must pay for the additional rental cost over the 152.5 square
    feet baseline. Depending on the operations budget in any given
    fiscal year, LOBs/SOs may be charged for existing space that is
    occupied over the 152.5 square feet baseline. This means that if a
    LOB/SO currently has a utilization rate of 170 square feet per
    person, the LOB/SO will have to supplement the GSA rent for 17.5
    square feet per person that they are over the 152.5 square feet
    baseline

    Below are the rent supplementation procedures for GSA controlled
    space:

# SUPPLEMENTATION PROCESS {#supplementation-process .unnumbered}

## COVERED UNDER THE GSA {#covered-under-the-gsa .unnumbered}

### RENT PROGRAM {#rent-program .unnumbered}

**The supplementation process outlined below is applicable to both
regions and headquarters. The utilization rate of 152.5 square feet per
person standard applies to both federal and approved FAA contract
personnel housed in GSA controlled space. In addition, when a LOB or SO
current utilization and future needs are being assessed, the Logistics
Divisions in the regions and the Facilities Management Division at
Headquarters will evaluate a their total square foot usage, including
that occupied by its contractors. Base fund transfers will be the
mechanism utilized to effect changes in rent fund allocations. This
method allows all funding to remain under one accounting
classification.**

**Prior to the supplementation process the region should complete the
following**:

-   Upon receiving a request for additional space from a LOB/SO, the
    region will evaluate the existing space of the LOB/SO. If the LOB/SO
    utilization rate for that location exceeds the 152.5 sq. ft.
    criteria, the feasibility of satisfying the requirement in the
    existing space should be determined.

-   If the requirement can not be satisfied within the existing LOB/SO
    space, the region will determine if the request can be satisfied in
    other existing space (FAA owned or FAA leased, or other GSA assigned
    space)

-   If the requirement can only be satisfied with additional space, the
    LOB/SO may pursue supplementation.

    **[Supplemental Procedures]{.underline}**:

1)  Prepare a memorandum to the Manager of the Facilities Management
    Division, ASU-400outlining the transfer of operational funds from
    the requesting office to the GSA rent account to cover GSA rent
    charges. NOTE: The transfer of F&E funding is not a viable option
    because GSA Rent is funded through operational dollars.

2)  The memo will include justification for the additional space,
    location, and terms of the agreement, requesting office, square
    footage, and the annualized rental amount. For your convenience,
    attached is a sample memorandum.

3)  The transfer of operational funds memorandum will have to be
    processed starting each fiscal year for the duration of the
    requirement. If the commencement date starts during the fiscal year,
    the date should agree with the month and day. Supplementation will
    be effective based on the month and day the space is occupied.

4)  In the last year of the lease, transfer of the operational funds
    memorandum will only cover the months that organization will occupy
    the space.

    Short-Term GSA Space (requirements one year or less)

-   Headquarters Requests. The memorandum transferring funds will then
    be forwarded to the Manager of the Accounting Operations Division,
    AFM-200, to obligate the operational funds.

-   Regional Requests. The requesting organization will prepare the
    memorandum and forward to their Logistics Office. The Realty
    specialist will evaluate the request and provide ASU-400 with the
    appropriate accounting code and copy of the memorandum. After
    review, ASU-400 will forward to AFM-200 to obligate the funds. The
    memorandum should be prepared two weeks prior to obligation.

    Long-Term GSA Space (requirements one year or more)

## ASU-400 will forward the headquarters and/or regional memorandum/request to 

ABU-200 with a courtesy copy to AFM-200 for informational purposes.

-   ABU-200 will request LOB's Headquarters to approve the request to
    transfer the funding.

-   Upon authorization from the Headquarters level, ABU-200 will prepare
    an allowance document to transfer the funds from the requesting
    organization's budget baseline and increase ASU-400 GSA Rent
    baseline. The memorandum should be prepared four weeks prior to
    obligation.

**X. [Frequently Ask Questions (FAQ)]{.underline}** (Revised 10/2003)

Q: How do I determine the administrative space standard for my
organization?

A: The standard is the same for all FAA administrative space, 152.5
square feet per person.

Q: What if my organization does not fit one of the examples of
exemptions? What do I do and whom do I speak with?

A: If you are unsure if the type of space your organization occupies is
exempted from the administrative space standard, you need to contact
your region/center RECO (AXX-50\'s, AMP-1). (Revised 10/2003)

Q: Who decides if my space meets the exemptions or not?

A: The RECO will determine if your space is exempted from the standard.
(Revised 10/2003)

Q: What if my organization needs help to fill out the \"Space
Requirement Questionnaire\"?

A: If you need help filling out the Space Requirement Questionnaire, you
can contact your region/center RECO. The RECO will help you fill out the
form. (Revised 10/2003)

## 23. APPENDIX C: VEHICLE PARKING GUIDANCE (Revised 10/2003)

1\. [Requirements]{.underline}: (Revised 10/2003)

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.

2\. [Parking at GSA-Controlled Buildings]{.underline}:

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.

3\. [Parking at FAA Owned or FAA Leased Buildings]{.underline}

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.

4\. [Allocation of Parking Spaces Available at Facilities]{.underline}:

Accessible parking spaces \[as defined in UFAS and/or ADA\] shall be
provided for FAA employees with disabilities. All visitor 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, firefighting, and other emergency functions (Official
Vehicles)

Government-owned and Government-leased vehicles for general use
(Official Vehicles)

Visitor parking (required number of spaces must take into account the
accessible spaces required by UFAS and/or the ADA Accessibility
Guidelines).

Vanpool/carpool vehicles (State statutes may affect this priority.)

Executive personnel and persons who work unusual hours. Employees who
are periodically called back to work outside their normal duty hours are
considered to be working unusual hours. Employees who periodically or
regularly work second and/or third shifts [are not]{.underline}
considered to be working unusual hours.

Employee-owned vehicles that are routinely used for Government purposes
at least 12 days per month and that qualify for mileage reimbursement
and travel expenses under Government travel regulations

Other employee-owned vehicles

NOTE: ONLY a. AND b. ABOVE WILL BE DESIGNATED AS RESERVED PARKING.

5\. [Electrical Outlets for Engine Block Heaters:]{.underline}

Parking facilities owned or leased by the FAA and located in geographic
areas with sustained low temperatures, zero degrees Fahrenheit or below,
should be equipped with an adequate number of electrical outlets for
official and employee-supplied vehicle engine block heaters. When
electrical outlets for engine block heaters are required by climatic
conditions, all accessible parking spaces will be equipped with
accessible outlets. Electrical outlet installations shall be in
accordance with all applicable codes and ordinances. As a guide for
determining whether electrical outlets for engine block heaters are
required, a survey of local area businesses, private employers, and
other facilities in the area may be undertaken and a decision reached
based on whether the survey shows that electrical outlets are being
provided at the facilities surveyed. This requirement for electric
outlets for engine block heaters does not apply to unattended technical
facilities or those facilities visited only on a periodic basis for
maintenance and/or service.

6\. [Funding]{.underline}

Initial FAA leases should be negotiated so that the rental payment
includes parking costs. When negotiating for FAA leased space, the RECO
should negotiate the best price for both the required square feet of
building space and the required number of parking spaces (for official
Government vehicles and employee vehicles) as determined and justified
by the requiring activity. The lease should clearly document the number
of reserved and unreserved parking spaces that are included in the rent.
If it becomes necessary to install electrical outlets for engine block
heaters at existing leased parking facilities, the RECO should have the
lessor install the electrical outlets and either amortize the
installation costs over the term of the lease or pay for the
installation costs in a lump sum. Payment of the additional utility
costs generated by the use of the electrical outlets will be negotiated
by the RECO as either an increase in rent or as a separate utility
contract. If installation of electrical outlets is necessary at
FAA-owned facilities, funding for the installation should be obtained
through the normal budget process by the parent division of the field
office that will benefit from the installation. At collocated offices
and facilities, a proportional share of the cost to install electrical
outlets should be agreed to by the parent divisions of the collocated
offices and facilities. Where the FAA is getting "Rent Free" Space
(under grant provisions), from an airport sponsor, the parking for
"official Government vehicles" shall also be provided at no cost to the
Government. (Revised 10/2003)

7\. [Responsibilities]{.underline} (Revised 10/2003)

a\. The Manager, Facilities Management Division, at Headquarters is
responsible for determining the adequacy of parking within the FAA
Headquarters buildings and for implementation of all regulations and
requirements. Suitable parking accommodations may be acquired as a
result of new leases or modifications to existing lease agreements,
through new construction contracts, or through contracts with commercial
parking facilities. Funding for parking requirements will be acquired
through the normal budget process.

b\. Regional administrators and center directors are responsible for
overall implementation of this order at the regional, center, and field
facilities under their respective jurisdictions.

c\. Regional division managers are responsible for determining the
adequacy of parking at field facilities that fall within their
operational jurisdictions. When parking accommodations are found to be
inadequate, regional division managers will initiate requests for any
funding needed to correct the parking inadequacies through the normal
budget process. Upon receipt of funds, regional division managers will
initiate requests to the Regional Logistics division managers. Logistics
managers are responsible for acquiring adequate parking accommodations
through new leases or modifications to existing lease agreements,
through new construction contracts, or through contracts with commercial
parking facilities.

d\. The Program Director, Office of Facility Management, at the MMAC, is
responsible for determining the adequacy of parking at the MMAC. When
parking accommodations are found to be inadequate, the Program Director
will initiate requests for any funding needed to correct the parking
inadequacies though the normal budget process. Upon receipt of funds,
the Program Director, Office of Facility Management, will initiate
requests to the Program Director, Office of Acquisition. The Program
Director, Office of Acquisition, at the Mike Monroney Aeronautical
Center (MMAC), is responsible for acquiring adequate parking
accommodations through new leases or modifications to existing lease
agreements, through new construction contracts, or through contracts
with commercial parking facilities. (Revised 10/2003)

e\. The Manager, Logistics Division at the FAA Technical Center, (FAATC)
is responsible for providing adequate parking at the FAATC. Suitable
parking accommodations may be acquired through new leases or
modifications to existing lease agreements, through new construction
contracts, or through contracts with commercial parking facilities.
(Revised 10/2003)

f\. Managers at field facilities are responsible for assigning parking
spaces at their individual facilities in accordance with paragraph four
(4) of this Parking Guidance. Facility managers at collocated facilities
shall confer and agree on the allocation of parking spaces. Facility
managers are also responsible for reporting on the adequacy of parking
accommodations to their respective division managers and ensuring that
electrical outlets for engine block heaters are installed only after
coordination with appropriate offices in accordance with existing
regional procedures.

g\. RECOs are responsible for acquiring the required parking spaces at
the lowest cost. (Revised 10/2003)