Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations 23169

(e) * * *

Type 2 diabetes (also known as Type

II diabetes mellitus or adult-onset

diabetes)

* * * * *

[FR Doc. 01–11569 Filed 5–7–01; 8:45 am]

BILLING CODE 8320–01–P

GENERAL SERVICES

ADMINISTRATION

41 CFR Parts 101–20, 101–21, and 102–

85

RIN 3090–AG33

Pricing Policy for Occupancy in GSA

Space

AGENCY: Office of Business Performance,

Public Buildings Service.

ACTION: Interim rule.

SUMMARY: The General Services

Administration (GSA) is revising the

Federal Property Management

Regulations (FPMR) by moving coverage

of GSA’s Rent program into the Federal

Management Regulation (FMR). A crossreference is added to the FPMR to direct

readers to the coverage in the FMR. The

FMR is written in plain language to

provide agencies with updated

regulatory material that is easy to read

and understand. This interim rule

establishes the pricing policy guidance

for Occupancy Agreements between

GSA and customer agencies. It also

governs intra-governmental pricing of

space and services.

DATES: Effective Date: May 8, 2001.

Comment Date: Comments should be

submitted on or before July 9, 2001 to

be considered in the formulation of a

final rule.

ADDRESSES: Written comments should

be submitted to: Mr. Michael Hopkins,

Regulatory Secretariat (MVRS), Office of

Governmentwide Policy, General

Services Administration, 1800 F Street,

NW., Washington, DC 20405.

E-mail comments submitted over the

Internet should be addressed to

RIN.3090–AG33@gsa.gov.

FOR FURTHER INFORMATION CONTACT: Mr.

Ronald Kendall, Office of Portfolio

Management, General Services

Administration, at 202–501–0638, or

Internet e-mail at ron.kendall@gsa.gov.

SUPPLEMENTARY INFORMATION:

A. Background

This interim rule changes the

methods by which GSA-controlled

space is identified and measured,

eliminates the specific physical

description of the components of

standard level alterations, and

substitutes budget guidance for

alterations, providing customer agencies

flexibility in designing space to meet

their mission needs.

The recommendations are being

implemented to improve GSA’s overall

management of real property assets and

the level of service and choices

provided to its customer agencies.

As a result of the principles outlined

in this rule:

(1) Federal agencies will have greater

choice in using GSA to meet space

needs;

(2) GSA will remain available to

provide the benefits of centralized

services desired by its customers; and

(3) GSA’s relationship with its

customers will more closely

approximate landlord/customer

relationships typical in the private

sector, providing incentives to

economize and speed program delivery.

The FMR, which replaces the FPMR,

contains a refined and streamlined set of

policies and regulatory requirements

related to managing property and

administrative services. Non-regulatory

materials, such as guidance, procedures,

and standards currently found in the

FPMR, and new non-regulatory

materials may become available in

separate documents, such as customer

guides.

B. Executive Order 12866

GSA has determined that this interim

rule is a significant regulatory action for

the purposes of Executive Order 12866

of September 30, 1993.

C. Regulatory Flexibility Act

The interim rule is not expected to

have a significant economic impact on

a substantial number of small entities

within the meaning of the Regulatory

Flexibility Act, 5 U.S.C. 601, et seq.

D. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because this interim rule does

not impose recordkeeping or

information collection requirements, or

the collection of information from

offerors, contractors, or members of the

public which require the approval of the

Office of Management and Budget

(OMB) under 44 U.S.C. 3501, et seq.

E. Small Business Regulatory

Enforcement Fairness Act

This interim rule is also exempt from

congressional review prescribed under 5

U.S.C. 801 since it relates solely to

agency management and personnel.

F. Administrative Procedures Act

GSA finds good cause to make this

rule effective upon publication of this

document in the Federal Register under

the Administrative Procedure Act (APA)

(5 U.S.C. 553(d). This interim final rule

does not impose any additional

responsibilities on entities in the private

sector. Instead, its purpose is to improve

asset management practices that affect

only Federal agencies that occupy real

property owned or controlled by GSA.

List of Subjects in 41 CFR Parts 101–20,

101–21, and 102–85

Federal buildings and facilities,

Government property and management.

For the reasons set forth in the

preamble, 41 CFR parts 101–20, 101–21,

and 102–85 are amended to read as

follows:

CHAPTER 101—[AMENDED]

PART 101–20—MANAGEMENT OF

BUILDINGS AND GROUNDS

1. The authority citation for part 101–

20 continues to read as follows:

Authority: Sec. 205(c), 63 Stat. 390; 40

U.S.C. 486(c).

§ 101–20.102 [Amended]

2. Amend § 101–20.102 by removing

and reserving paragraph (e).

3. Part 101–21 is revised to read as

follows:

PART 101–21—FEDERAL BUILDINGS

FUND

Authority: 40 U.S.C. 486(c); 40 U.S.C.

490(j) (The Federal Property and

Administrative Services Act of 1949, as

amended, Sec. 205(c) and 210(j), 63 Stat. 390

and 86 Stat. 219; (40 U.S.C. 486(c) and 40

U.S.C. 490(j), respectively).

§ 101–21.000 Cross-reference to the

Federal Management Regulation (FMR) (41

CFR chapter 102, parts 102–1 through 102–

220.)

For information previously contained

in this part, see FMR part 85 (41 CFR

part 102–85).

CHAPTER 102—[AMENDED]

4. Part 102–85 is added to subchapter

C to read as follows:

PART 102–85—PRICING POLICY FOR

OCCUPANCY IN GSA SPACE

Subpart A—Pricing Policy—General

Sec.

102–85.5 By what authority is the pricing

policy in this part prescribed?

102–85.10 What is the scope of this part?

102–85.15 What are the basic policies for

charging Rent for space and services?

102–85.20 What does an Occupancy

Agreement (OA) do?

102–85.25 What is the basic principle

governing OAs?

23170 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations

102–85.30 Are there special rules for

certain Federal customers?

102–85.35 What definitions apply to this

part?

102–85.40 What are the major components

of the pricing policy?

Subpart B—Occupancy Agreement

102–85.45 When is an Occupancy

Agreement required?

102–85.50 When does availability of

funding have to be certified?

102–85.55 What are the terms and

conditions included in an OA?

102–85.60 Who can execute an OA?

102–85.65 How does an OA obligate the

customer agency?

102–85.70 Are the standard OA terms

appropriate for non-cancelable space?

102–85.75 When can space assignments be

terminated?

102–85.80 Who is financially responsible

for expenses resulting from tenant nonperformance?

102–85.85 What if a customer agency

participates in a consolidation?

Subpart C—Tenant Improvement Allowance

102–85.90 What is a tenant improvement

allowance?

102–85.95 Who pays for the TI allowance?

102–85.100 How does a customer agency

pay for tenant improvements?

102–85.105 How does an agency pay for

customer alterations that exceed the TI

allowance?

102–85.110 Can the allowance amount be

changed?

Subpart D—Rent Charges

102–85.115 How is the Rent determined?

102–85.120 What is ‘‘shell Rent’’?

102–85.125 What alternate methods may be

used to establish Rent in Federally

owned space?

102–85.130 How are exemptions from Rent

granted?

102–85.135 What if space and services are

provided by other executive agencies?

102–85.140 How are changes in Rent

reflected in OAs?

102–85.145 When are customer agencies

responsible for Rent charges?

102–85.150 How will Rent charges be

reflected on the customer agency’s Rent

bill?

102–85.155 What does a customer agency

do if it does not agree with a Rent bill?

102–85.160 How does a customer agency

know how much to budget for Rent?

Subpart E—Standard Levels of Service

102–85.165 What are standard levels of

service?

102–85.170 Can flexitime and other

alternative work schedules cost the

customer agency more?

102–85.175 Are the standard level services

for cleaning, mechanical operation, and

maintenance identified in an OA?

102–85.180 Can there be other standard

services?

102–85.185 Can space be exempted from

the standard levels of service?

102–85.190 Can GSA Rent be adjusted

when standard levels of service are

performed by other customer agencies?

Subpart F—Special Services

102–85.195 Does GSA provide special

services?

Subpart G—Continued Occupancy,

Relocation and Forced Moves

102–85.200 Can customer agencies

continue occupancy of space or must

they relocate at the end of an OA?

102–85.205 What happens if a customer

agency continues occupancy after the

expiration of an OA?

102–85.210 What if a customer agency has

to relocate?

102–85.215 What if another customer

agency forces a GSA customer to move?

102–85.220 Can a customer agency forced

to relocate waive the reimbursements?

102–85.225 What are the funding

responsibilities for relocations resulting

from emergencies?

Authority: 40 U.S.C. 486(c).

Subpart A—Pricing Policy—General

§ 102–85.5 By what authority is the pricing

policy in this part prescribed?

(a) General authority is granted in the

Federal Property and Administrative

Services Act of 1949, as amended, Sec.

205(c) and 210(j), 63 Stat. 390 and 86

Stat. 219; (40 U.S.C. 486(c) and 40

U.S.C. 490(j), respectively).

(b) This part implements the

applicable provisions of Federal law,

including, but not limited to, the:

(1) Federal Property and

Administrative Services Act of 1949, 63

Stat. 377, as amended;

(2) Act of July 1, 1898 (40 U.S.C. 285);

(3) Act of April 28, 1902 (40 U.S.C.

19);

(4) Act of August 27, 1935 (40 U.S.C.

304c);

(5) Public Buildings Act of 1959, as

amended (40 U.S.C. 601–619);

(6) Public Buildings Amendments of

1972, Pub. L. 92–313, (86 Stat. 219);

(7) Rural Development Act of 1972,

Pub. L. 92–419, (86 Stat. 674);

(8) Reorganization Plan No. 18 of 1950

(40 U.S.C. 490 note);

(9) Title VIII of the Civil Rights Act of

1968 (42 U.S.C. 3601 et seq.);

(10) National Environmental Policy

Act of 1969, as amended (42 U.S.C. 4321

et seq.);

(11) Intergovernmental Cooperation

Act of 1968 and the Federal Urban Land

Use Act (42 U.S.C. 4201–4244; 40 U.S.C.

531–535);

(12) Public Buildings Cooperative Use

Act of 1976, as amended (40 U.S.C.

490(a)(16)–(19), 601a and 612a);

(13) Public Buildings Amendments of

1988, Pub. L. 100–678, (102 Stat. 4049);

(14) National Historic Preservation

Act of 1966 as amended (16 U.S.C. 461

et seq.);

(15) Executive Order 12072 of August

16, 1978 (43 FR 36869);

(16) Executive Order 12411 of March

29, 1983 (48 FR 13391);

(17) Executive Order 12512 of April

29, 1985 (50 FR 18453);

(18) Executive Order 13005 of May 21,

1996 (61 FR 26069); and

(19) Executive Order 13006 of May 21,

1996 (61 FR 26071).

§ 102–85.10 What is the scope of this part?

(a) This part describes GSA policy

and principles for the assignment and

occupancy of space under its control

and the rights and obligations of GSA

and the customer agencies that request

or occupy such space pursuant to GSA

Occupancy Agreements (OA).

(b) Space managed by agencies under

delegation of authority from GSA is

subject to the provisions of this part.

(c) This part is not applicable to:

(1) Licenses, permits or leases with

non-Federal entities under the Public

Buildings Cooperative Use Act (40

U.S.C. 490(a)(16–19)); or

(2) The disposal of surplus lease space

under section 210(h)(2) of the Federal

Property and Administrative Services

Act of 1949, as amended (40 U.S.C.

490(h)(2)).

§ 102–85.15 What are the basic policies for

charging Rent for space and services?

(a) GSA will charge for space and

services furnished by GSA (unless

otherwise exempted by the

Administrator of General Services) a

Rent charge which will approximate

commercial charges for comparable

space and services. Rent for all

assignments for GSA-controlled space

will be priced according to the

principles of the pricing policy in this

part. These principles are reflected in

the following elements of GSA Rent

charges:

(1) ‘‘Shell’’ Rent based on

approximate commercial charges for

comparable space and services for

Federally owned space (accomplished

using appraisal procedures);

(2) Rent based on actual cost of the

lease, including the costs (if any) of

services not provided by the lessor, plus

a GSA fee;

(3) Amortization of any tenant

improvement allowance used;

(4) Any applicable real estate taxes,

operating costs, parking, security and

joint use fees; and

(5) For certain projects involving new

construction or major renovation of

Federally-owned buildings, a return on

investment pricing approach if an

appraisal-determined rental value does

not provide a minimum return (OMB

discount rate for calculating the present

value of yearly costs plus 2%) on the

cost of the prospective capital

Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations 23171

investment. Each specific use of Return

on Investment (ROI) pricing must be

approved by OMB and duly recorded in

an Occupancy Agreement (OA) with the

customer agency. Once the ROI

methodology is employed to establish

Rent for a capital investment, the ROI

method must be retained for the

duration of the OA term.

(b) Special services not included in

the standard levels of service may be

provided by GSA on a reimbursable

basis. GSA may also furnish alterations

on a reimbursable basis in buildings

where GSA is responsible for alterations

only.

(c) The financial terms and conditions

under which GSA assigns, and a

customer agency occupies, each block of

GSA-controlled space, shall be

documented in a written OA.

§ 102–85.20 What does an Occupancy

Agreement (OA) do?

An OA defines GSA’s relationship

with each customer agency and:

(a) Establishes specific financial

terms, provisions, rights, and

obligations of GSA and its customer for

each space assignment;

(b) Minimizes exposure to future

unknown costs for both GSA and

customer agencies;

(c) Stabilizes Rent payments to the

extent reasonable and desired by

customers; and

(d) Allows tailoring of space and

related services to meet customer

agency needs.

§ 102–85.25 What is the basic principle

governing OAs?

The basic principle governing OAs is

to adopt the private sector practice of

capturing in a written document the

business terms to which GSA and a

customer agency agree concerning

individual space assignments.

§ 102–85.30 Are there special rules for

certain Federal customers?

Yes, in lieu of OAs, GSA is able to

enter into agreements with customer

agencies that reflect the parties

particular needs. For example, the space

and services provided to the U.S. House

of Representatives and the U.S. Senate

are governed by existing memoranda of

agreement (MOA). When there are

conflicts between the provisions of this

part and MOAs, the MOAs prevail.

§ 102–85.35 What definitions apply to this

part?

The following definitions apply to

this part:

Accept space or acceptance of space

means a commitment from an agency to

occupy specified GSA-controlled space.

Agency-controlled and/or operated

space means:

(1) Space that is owned, leased, or

otherwise controlled or operated by

Federal agencies under any authority

other than the Federal Property and

Administrative Services Act of 1949, as

amended; and

(2) it also includes agency-acquired

space for which acquisition authority

has been delegated or otherwise granted

to the agency by GSA. It does not

include space covered by an OA.

Assign or assignment is defined in the

definition for space assignment.

Building shell means the complete

enveloping structure, the base-building

systems, and the finished common areas

(building common and floor common)

of a building that bound the tenant

areas.

Customer agency means any

department, agency, or independent

establishment in the Federal

Government, including any whollyowned corporation; any executive

agency or any establishment in the

legislative or judicial branch of the

Government (except the Senate, the

House of Representatives, and the

Architect of the Capitol, and any

activities under his direction).

Emergency relocation is a customer

move that results from an extraordinary

event such as a fire, natural disaster, or

immediate threat to the health and

safety of occupants that renders a

current space assignment unusable and

requires that it be vacated, permanently

or temporarily.

Federal Buildings Fund means the

fund into which Rent charges and other

revenues are deposited, and collections

cited in section 210(j) of the Federal

Property and Administrative Services

Act of 1949, as amended (U.S.C. 490(j)),

and from which monies are available for

expenditures for real property

management and related activities in

such amounts as are specified in annual

appropriations acts without regard to

fiscal year limitations.

Federally controlled space means

workspace for which the United States

Government has a right of occupancy by

ownership, by lease, or by any other

means, such as by contract, barter,

license, easement, permit, requisition,

or condemnation. Such workspace

excludes space owned or leased by

private sector entities performing work

on Government contracts.

Federally owned space means space,

the title to which is vested in the United

States Government or which will vest

automatically according to an existing

agreement.

Forced move means the involuntary

physical relocation, from one space

assignment to another, of a customer

agency housed in GSA-controlled space

initiated by another customer agency or

by GSA, before the expiration of a lease

or an OA term. (See also the definition

of GSA-initiated move.)

General use space means all types of

space other than ‘‘warehouse,’’

‘‘parking,’’ or ‘‘unique’’ space, as

defined elsewhere in this part.

Examples of general use space are:

(1) Office and office-related space

such as file areas, libraries, meeting

rooms, computer rooms, mail rooms,

training and conference, automated data

processing operations, courtrooms, and

judicial chambers; and

(2) Storage space that contains

different quality and finishes from

general use space, but that is within a

building where predominantly general

use space is located.

GSA-controlled space means

Federally controlled space under the

custody or control of GSA. It includes

space for which GSA has delegated

operational, maintenance, or protection

authority to the customer agency.

GSA-delegated space (or GSA

delegated building) means GSAcontrolled space for which GSA has

delegated operational, maintenance or

protection authority to the customer

agency.

GSA-initiated move means any

relocation action in GSA-controlled

space that:

(1) Is involuntary to the customer

agency and required to be effective prior

to the expiration of an effective OA, or

in the case of leased space, prior to the

expiration of the lease; or

(2) Is an emergency relocation

initiated by GSA.

Initial space alteration (ISA). See

definition of ‘‘tenant improvement.’’

Initial space layout means the specific

placement of workstations, furniture

and equipment within new space

assignments.

Inventory means a summary or

itemized list of the real property, and

associated descriptive information, that

is under the control of a Federal agency.

Joint-use space means common space

within a Federally controlled facility,

not specifically assigned to any one

agency, and available for use by

multiple agencies, such as cafeterias,

auditoriums, conference rooms, credit

unions, visitor parking spaces, snack

bars, certain wellness/physical fitness

facilities, and child care centers.

Leased space means space for which

the United States Government has a

right of use and occupancy by virtue of

having acquired a leasehold interest.

Non-cancelable space means space

that, due to its layout, design, location,

23172 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations

or other characteristics, is unlikely to be

needed by another GSA customer

agency. Typical conditions that might

cause space to be defined as noncancelable are:

(1) Special space construction

features;

(2) Lack of any realistic Federal need

for the space other than by the

requesting agency; and

(3) Remote location or unusual term

(short or long) desired by the agency.

Occupancy Agreement (OA) means a

written agreement descriptive of the

financial terms and conditions under

which GSA assigns, and a customer

agency occupies, the GSA-controlled

space identified therein.

Parking or parking space means

surface land, structures, or areas within

structures designed and designated for

the purpose of parking vehicles.

Personnel means the peak number of

persons to be housed during a single

shift, regardless of how many

workstations are provided for them. In

addition to permanent employees of the

agency, personnel includes temporaries,

part-time, seasonal, and contractual

employees, budgeted vacancies, and

employees of other agencies and

organizations who are housed in a space

assignment.

Portfolio leases mean long term or

‘‘master’’ leases, usually negotiated to

house several agencies whose

individual term requirements differ

from the terms of the underlying GSA

lease with the lessor, and from each

other. These may also be leases housing

single agencies, but which entail for

GSA responsibilities (burdens and

benefits) which mimic an ownership

position, or equity rights, even though

no equity interest or ownership liability

exists. An example of the latter would

be long term renewal options on a lease

which, in order to enjoy, involve

substantial capital outlays by GSA to

improve the building infrastructure. In

both these cases, GSA is assuming risks

or capital expenditures outside of the

conventions of single transactions or

occupancies. Accordingly, for a

portfolio lease, it is not appropriate

merely to pass through to the customer

agency(ies) the rental rate of the

underlying GSA lease. Portfolio leases

are treated for pricing purposes as

owned space, with Rent set by

appraisal.

Predominant use means the use to

which the greatest portion of a location

is put. Predominant use is determined

by the Public Buildings Service (PBS),

GSA, and will typically result in the

designation of a location as one of four

types of space—General Use,

Warehouse, Unique, or Parking—even

though some smaller portions of the

space may be used for one or more of

the other types of uses.

Rent means the amounts charged by

GSA for space and related services to

the customer agencies with tenancy in

GSA-controlled space. The word ‘‘Rent’’

is capitalized to differentiate it from the

contract ‘‘rent’’ that GSA pays lessors.

Rentable square footage means the

amount of space as defined in ‘‘Building

Owners and Managers Association

(BOMA)/American National Standards

Institute (ANSI) Standard Z65.1–1996.’’

The BOMA/ANSI standard also defines

‘‘gross,’’ ‘‘office area,’’ ‘‘floor common,’’

and ‘‘building common’’ areas. Any

references to these terms in this part

refer to the BOMA/ANSI standard

definitions. This standard has been

adopted in accordance with GSA’s

interest in conforming its practices to

nationally recognized industry

standards to the extent possible.

Note to the Definition of Rentable Square

Footage: Rentable square footage generally

includes square footage of areas occupied by

customers plus a prorated share of floor

common areas such as elevator lobbies,

building corridors, public restrooms, utility

closets, and machine rooms. Rentable square

footage also includes a prorated share of

building common areas located throughout

the building. Examples of building common

space include ground floor entrance lobby,

enclosed atrium, loading dock, and mail

room.

Request for space or space request

means a written or electronically

submitted document or an oral request,

within which an agency’s space needs

are summarized. A request for space is

requisite for development of an OA.

Thus, it must be submitted to GSA by

a duly authorized official of the

customer agency, and it must be

accompanied by documentation of the

customer agency’s ability to fund

payment of required Rent charges.

Return on Investment (ROI) pricing is

one possible methodology used to

establish a Rent rate for certain owned

space. Typically, ROI pricing is a Rent

rate that ensures GSA a reasonable

return on its cost to acquire and

improve the asset. ROI pricing may be

used where no other comparable

commercial space is available or no

other appraisal method would be

appropriate. It may also be used in cases

in which an appraisal-based rental rate

will not meet GSA’s minimum return

requirements for the planned level of

investment.

Security fees mean Rent charges for

building services provided by GSA’s

Federal Protective Service. Security fees

are comprised of basic and building

specific charges.

(a) A basic security fee is assessed in

all PBS-controlled properties where the

Federal Protective Service (FPS)

provides security services. The rate is

set annually on a per-square-foot basis.

The charge includes the following

services:

(1) General law enforcement on PBScontrolled property;

(2) Physical security assessments;

(3) Crime prevention and awareness

training;

(4) Advice and assistance to building

security committees;

(5) Intelligence sharing program;

(6) Criminal investigation;

(7) Assistance and coordination in

Occupancy Emergency Plan

development;

(8) Coordination of mobilization and

response to terrorist threat or civil

disturbance;

(9) Program administration for

security guard contracts; and

(10) Megacenter operations for

monitoring building perimeter alarms

and dispatching appropriate law

enforcement response.

(b) The building specific security

charge is comprised of two elements:

Operating expenses and amortized

capital costs. Building specific charges,

whether operating expenses or capital

costs, are distributed overall federal

users by building or facility in direct

proportion to each customer agency’s

percentage of federal occupancy. As

with joint use charges, the distribution

of building-specific charges among

customer agencies is not re-adjusted for

vacancy.

Space means a defined area within a

building and/or parcel of land. (Personal

property and furniture are not

included.)

Space allocation standard (SAS)

means a standard agreed upon by GSA

and a customer agency, written in terms

that permit nationwide or regional

application, that is used as a basis for

establishing that agency’s space

requirements. An SAS may describe

special GSA and customer agency

funding responsibilities, although such

responsibilities will be covered in OAs

for space assignments. An SAS may also

be developed between GSA and

customer agencies on a regional level to

standardize or simplify transactions,

provided that the terms of a regional

SAS are consistent with the terms of

that agency’s national SAS and the

terms of this part.

Space assignment or assignments

means a transaction between GSA and

a customer agency that results in a

customer agency’s right to occupy

certain GSA-controlled space, usually in

return for customer agency payment(s)

Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations 23173

to GSA for use of the space. Space

assignment rights, obligations, and

responsibilities not covered in this part,

or in the customer guides, are

formalized in an OA.

Space planning means the process of

using recognized professional

techniques of planning, layout and

interior design to determine the best

internal location and the most efficient

configuration for satisfying agency space

needs.

Space program of requirements means

a summary statement of an agency’s

space needs. These requirements will

generally include information about

location, square footage, construction

requirements, and duration of the

agency’s space need. They may be

identified in any format mutually

agreeable to GSA and the agency.

Special space means space which has

unusual architectural/construction

features, requires the installation of

special equipment, or requires

disproportionately high or low costs to

construct, maintain and/or operate as

compared to office or storage space.

Special space generally refers to space

which has construction features,

finishes, services, utilities, or other

additional costs beyond those specified

in the customer general allowance (e.g.,

courtrooms, laboratories).

Standard level of service. See § 102–

85.165 for the definition of standard

level of service.

Telecommunications means

electronic processing of information,

either voice or data or both, over a wide

variety of media, (e.g., copper wire,

microwave, fiber optics, radio

frequencies), between individuals or

offices within a building (e.g., local area

networks), between buildings, and

between cities.

Tenant improvement (TI) means a

finished component of an interior block

of space. Tenant improvements

represent additions to or alterations of

the building shell that adapt the

workspace to the specific uses of the

customer. If made at initial occupancy,

the TIs are known as initial space

alterations or ISAs.

Tenant improvement (TI) allowance

means the dollar amount, including

design, labor, materials, contractor costs

(if contractors are used), management,

and inspection, that GSA will spend to

construct, alter, and finish space for

customer occupancy (excluding

personal property and furniture, which

are customer agency responsibilities) at

initial occupancy. The dollar amounts

for the allowances are different for each

agency and bureau to accommodate

agencies’ different mission needs. The

dollar amounts also may vary by

locations reflecting different costs in

different markets. The PBS bill will only

reflect the actual amount the customers

spend, not the allowance. The amount

of the TI allowance is determined by

GSA. Agencies can request that GSA

revise the TI allowance amount by

project or categorically for an entire

bureau. The cost of replacement of

tenant improvements is borne by the

customer agency.

Unique space means space for which

there is no commercial market

comparable (e.g., border stations).

Warehouse or warehouse space means

space contained in a structure primarily

intended for the housing of files,

records, equipment, or other personal

property, and is not primarily intended

for housing personnel and office

operations. Warehouse space generally

is designed and constructed to lower

specifications than office buildings,

with features such as exposed ceilings,

unfinished perimeter and few dividing

partitions. Warehouse space also is

usually heated to a lesser degree but not

air-conditioned, and is cleaned to lesser

standards than office space.

Workspace means Federally

controlled space in buildings and

structures (permanent, semi-permanent,

or temporary) that provides an

acceptable environment for the

performance of agency mission

requirements by employees or by other

persons occupying it.

§ 102–85.40 What are the major

components of the pricing policy?

The major components of the pricing

policy are:

(a) An OA between a customer agency

and GSA;

(b) Tenant improvement allowance;

and

(c) The establishment of Rent the

agency pays to GSA based on the OA

for:

(1) Leased space, a pass-through to the

customer agency of the underlying GSA

lease contract costs, and a PBS fee; or

(2) GSA-owned space, Rent

determined by appraisal.

Subpart B—Occupancy Agreement

§ 102–85.45 When is an Occupancy

Agreement required?

An Occupancy Agreement (OA) is

required for each customer agency’s

space assignment. The OA must be

agreed to by GSA and the customer

agency prior to GSA’s commitment of

funds for occupancy and formal

assignment of space.

§ 102–85.50 When does availability of

funding have to be certified?

The customer agency must sign an OA

prior to GSA’s making any major

contractual commitments associated

with the space request. Typically, this

should occur at the earliest possible

opportunity-i.e., when funds become

available. However, in no event shall

certification occur later than just prior

to the award of the contract to a design

architect in the case of Federal

construction or renovation in Federally

owned space or prior to the award of a

lease. This serves as a customer agency’s

funding commitment unless

certification is provided on another

document.

§ 102–85.55 What are the terms and

conditions included in an OA?

The terms and conditions are

modeled after commercial practice.

They are intended to reflect a full

mutual understanding of the financial

terms and agreement of the parties. The

OA describes the actual space and

services to be provided and all

associated actual costs to the customer

during the term of occupancy. The OA

does not include any general provisions

or terms contained in this part. OAs

typically describe the following,

depending on whether the space is

leased or Federally owned:

(a) Assigned square footage;

(b) Shell Rent and term of occupancy;

(c) Amortized amount of customer

allowance used;

(d) Operating costs and escalations;

(e) One time charges; e.g., lump sum

payments by the customer;

(f) Real estate tax and escalations;

(g) Parking and escalations;

(h) Additional/reduced services;

(i) Security services and associated

Rent;

(j) Joint use space and associated

Rent;

(k) PBS fee;

(l) Customer rights and provisions for

occupancy after OA expiration;

(m) Cancellation provisions if

different from this part or the customer

service guides;

(n) Any special circumstances

associated with the occupancy, such as

environmental responsibilities, unusual

use restrictions, or agreements with

local authorities;

(o) Emergency relocations;

(p) Clauses specific to the agreement;

(q) Other Rent, e.g., charges for

antenna sites, land;

(r) Agency standard clauses; and

(s) General clauses defining the

obligations of both parties.

23174 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations

§ 102–85.60 Who can execute an OA?

Authorized GSA and customer agency

officials who can commit or obligate the

funds of their respective agencies can

execute an OA. Higher level signatories

may be appropriate from both agencies

for space assignments in owned or

leased space, that are unusual in size,

location, duration, public interest, or

other factors. Each agency decides its

appropriate signatory level.

§ 102–85.65 How does an OA obligate the

customer agency?

An OA obligates the executing

customer agency to fund the currentyear Rent obligation owed GSA, as well

as to reimburse GSA for any other bona

fide obligations that GSA may have

incurred on behalf of the customer

agency. Although the OA is an

interagency agreement, memorializing

the understanding of GSA and its

customer agency, the OA may not be

construed as obligating future year

customer agency funds until they are

legally available. A multi-year OA

commitment assumes the customer

agency will seek the necessary funding

through budget and appropriations

processes.

§ 102–85.70 Are the standard OA terms

appropriate for non-cancelable space?

Yes, most of the standard terms apply;

however, the right to cancel upon a 4-

month (120 day) notice is not available.

See § 102–85.35 for the definition of

non-cancelable space.

§ 102–85.75 When can space assignments

be terminated?

(a) Customer agencies can terminate

any space assignments, except those

designated as non-cancelable, with the

following stipulations:

(1) The agency must give GSA written

notice at least four months prior to

termination.

(2) The agency is responsible for

reimbursing GSA for the unpaid balance

of the cost of tenant improvements,

generally prior to GSA releasing the

agency from the space assignment. In

the event the customer agency received

a rent concession (e.g., free rent) at the

inception of the assignment as part of

the consideration for the entire lease

term, then the amount of the concession

applicable to the remaining term must

be repaid to GSA.

(3) If the space to be vacated is ready

for occupancy by another customer and

marketable, GSA accepts the

termination of assignment.

(4) If the agency has vacated all of the

space and removed all personal

property and equipment from the space

by the cancellation date in the written

notice, the agency will be released

effective that date from further Rent

payments.

(5) An agency may terminate a GSA

space assignment with less than a fourmonth advance written notice to GSA,

if:

(i) Either GSA or the terminating

agency has identified another agency

customer for the assigned space and that

substitute agency wants and is able to

fully assume the Rent payments due

from the terminating agency; and

(ii) The terminating agency continues

to pay Rent until the new agency starts

paying Rent.

(b) GSA can terminate space

assignments according to GSA

regulations for emergency or forced

moves.

(c) OAs terminate automatically at

expiration.

§ 102–85.80 Who is financially responsible

for expenses resulting from tenant nonperformance?

The customer agencies are financially

responsible for expenses incurred by the

Government as a result of any failure on

their part to fulfill a commitment

outlined in an OA or other written

agreements in advance of, or in addition

to, the OA. Customer agencies are also

financially responsible for revised

design costs and any additional costs

resulting from changes to space

requirements or space layouts made by

the agency after a lease, alteration,

design, or construction contract has

been awarded by GSA.

§ 102–85.85 What if a customer agency

participates in a consolidation?

If an agency agrees to participate in a

consolidation upon expiration of an OA,

the relocation expenses will be

addressed in the new OA negotiated by

GSA and the customer agency. The

customer agency generally pays such

costs.

Subpart C—Tenant Improvement

Allowance

§ 102–85.90 What is a tenant improvement

allowance?

A tenant improvement (TI) allowance

enables the customer agency to design,

configure and build out space to support

its program operations. It is based on

local market construction costs and the

specific bureau’s historical use of space.

(See also the definition at § 102–85.35.)

§ 102–85.95 Who pays for the TI

allowance?

The customer agency pays for the

amount of the tenant improvement

allowance actually used.

§ 102–85.100 How does a customer

agency pay for tenant improvements?

To pay for the installation of tenant

improvements, the customer agency

may spend an amount not to exceed the

tenant allowance. The amount spent by

the customer agency for TIs is amortized

over a period of time specified in the

OA, not to exceed the useful life of the

improvements. This amortization

payment is in addition to the shell rent

and services.

§ 102–85.105 How does an agency pay for

customer alterations that exceed the TI

allowance?

Amounts exceeding the TI allowance

are paid in a one-time lump sum and are

not amortized over the term of the

occupancy. The agency certifies lump

sum funds are available prior to GSA

proceeding with the work.

§ 102–85.110 Can the allowance amount

be changed?

The GSA schedule of allowances for

new assignments is adjusted annually

for design and construction cost

changes. As the need arises, GSA may

adjust an agency or bureau’s TI

allowance. GSA may also adjust a TI

allowance for a specific project, if

conditions warrant. This decision is

solely GSA’s. In addition, the customer

agency may waive any part or all of its

customization allowance in the case of

a new space assignment. In the case of

backfill space (also known as relet

space), the customer agency can also

waive any part or all of the tenant

general allowance, if the customer

agency will use the existing tenant

improvements, with or without

modifications.

Subpart D—Rent Charges

§ 102–85.115 How is the Rent determined?

Unless an exemption is granted under

the authority of the Administrator of

General Services, the Rent charged

approximates commercial charges for

comparable space and space-related

services as follows:

(a) Generally, Rent for Federally

owned space provided by GSA is based

on market appraisals of fully serviced

rental values for the predominant use to

which space in a building is put; e.g.,

general use, warehouse use, and parking

use. In cases where market appraisals

are not practical; e.g., in cases involving

unique space or when market

comparables are not available, GSA may

establish Rent on the basis of alternate

commercial practices. See the

discussion of alternate valuation

methods in § 102–85.125. Amortization

of tenant improvements, parking fees,

and security charges are calculated

Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations 23175

separately and added to the appraised

shell Rent to establish the Rent charge.

Customer agencies also pay for a pro

rata share of joint use space.

(b) Generally, Rent for space leased by

GSA is based on the actual cost of the

lease, including the costs (if any) of

services not provided by the lessor, plus

a GSA fee, and security charges and

parking (if not in the lease).

(1) The Rent is based on the terms and

conditions of the OA, starting with the

shell Rent.

(2) In addition to the shell Rent, the

Rent includes amortization of TI

allowances used, real estate taxes,

operating costs, extra services, parking,

GSA fee for its services, and charges for

security, joint-use, and other applicable

rental charges (e.g., antenna site, land,

wareyard).

§ 102–85.120 What is shell Rent?

Shell Rent is that portion of GSA Rent

charged for the building envelope and

land. (See § 102–85.35 for the definition

of building shell.)

§ 102–85.125 What alternate methods may

be used to establish Rent in Federallyowned space?

Alternate methods of establishing

Rent are based on private sector models.

They include, but are not limited to:

(a) Return on investment (ROI)

approach or a similar cost recovery

method used when market comparables

are not available and/or GSA must

‘‘build to suit’’ to fulfill customer

agency requirements; e.g., border

stations; and

(b) Rent schedules for the right to use

rooftops and other floor areas not

suitable for workspace; e.g., antenna

sites and signage.

§ 102–85.130 How are exemptions from

Rent granted?

Exemptions from Rent are rare.

However, the Administrator of General

Services may exempt any GSA customer

from Rent after a determination that

application of Rent would not be

feasible or practical. Customer agency

requests for exemptions must be

addressed to the Administrator of

General Services and submitted in

accordance with GSA Order PBS 4210.1,

‘‘Rent Exemption Procedures,’’ dated

December 20, 1991, or in accordance

with any superseding GSA order. A

copy of the order may be obtained from

the Office of Portfolio Management,

General Services Administration, 1800 F

Street, NW., Washington, DC 20405.

§ 102–85.135 What if space and services

are provided by other executive agencies?

Any executive agency other than GSA

providing space and services is

authorized to charge the occupant for

the space and services at rates approved

by the Administrator of General

Services and the Director of the Office

of Management and Budget. If space and

services are of the type provided by the

Administrator of General Services, the

executive agency providing the space

and services must credit the monies

derived from any fees or charges to the

appropriation or fund initially charged

for providing the space or services, as

prescribed by Subsection 210(k) of the

Federal Property and Administrative

Services Act of 1949, as amended (40

U.S.C. 490(k)).

§ 102–85.140 How are changes in Rent

reflected in OAs?

(a) If Rent changes in ways that are

identified in the OA, then no change to

the OA is required. Typically, OAs state

that certain components of Rent are

subject to annual escalation; e.g.,

operating expenses, real estate taxes,

parking charges, the basic security

charge, and building-specific security

operating and amortized capital

expenses which do not entail a change

in service level. Also, in Federallyowned space, OAs state that the shell

rent is re-marked to market every five

years. In leased space, the OA will

identify any programmed changes in the

lease contract rent (such as pre-set

increases or steps in the contract rent

rate) that will translate into a change in

the customer agency’s Rent. Changes in

Rent specified in OAs will serve as

notice to agencies of future Rent

changes for budgeting purposes. For a

discussion of budgeting for Rent, see

§ 102–85.160.

(b) Changes to Rent other than those

identified in paragraph (a) of this

section typically require an amended

OA. There are many events that might

occasion a change in Rent, and an

amended OA, such as:

(1) An agency expands or contracts at

an existing location;

(2) PBS agrees to fund additional

tenant improvements that are then

amortized over the remaining OA term,

or over an extended OA term;

(3) Upon physical re-measurement,

the true square footage of the space

assignment is found to be different from

the square footage of record;

(4) The amount of joint use space in

the building changes;

(5) The level of building-specific

security services changes; or

(6) PBS undertakes new capital

expenditures for new or enhanced

security countermeasures.

§ 102–85.145 When are customer agencies

responsible for Rent charges?

(a) When a customer agency occupies

cancelable space, it is responsible for

Rent charges until:

(1) The date of release specified in the

OA, or until the date space is actually

vacated, whichever occurs later; or

(2) Four months after having provided

GSA written notice of release; or

(3) The date space is actually vacated,

whenever occupancy extends beyond

the date agreed upon under either

paragraph (a)(1) or (2) of this section.

(b) When a customer agency releases

non-cancelable space, it is responsible

for all attributable Rent and other space

charges until the OA expires. This

responsibility is mitigated to the extent

that GSA is able to assign the space to

another user or dispose of it. (See § 102–

85.65 How does an OA obligate the

customer agency?)

(c) When a customer agency commits

to occupy space in an OA or other

binding document, but never occupies

that space, that agency is responsible

for:

(1) Non-cancelable space: Rent

payments due for the space until the OA

expires, unless GSA can mitigate; or

(2) All other space: Either GSA’s

space charges for 4 months plus the cost

of tenant improvements or GSA’s actual

costs, whichever is less.

§ 102–85.150 How will Rent charges be

reflected on the customer agency’s Rent

bill?

Rent charges are billed monthly, in

arrears, based on an annual rate which

is divided by 12. Billing commences the

first month in which the agency

occupies the space for more than half of

the month, and ends in the last month

the agency occupies the space.

§ 102–85.155 What does a customer

agency do if it does not agree with a Rent

bill?

(a) If a customer agency does not agree

with the way GSA has determined its

Rent obligation (e.g., the agency does

not agree with GSA’s space

classification, appraised Rent, or the

allocation of space), the agency may

appeal its Rent bill to GSA.

(b) GSA will not increase or otherwise

change Rent for any assignment, except

as agreed in an OA, in the case of errors,

or when the OA is amended. However,

customer agencies may at any time

request a regional review of the

measurement, classification, service

levels provided, or charges assessed that

pertain to the space assignment without

resorting to formal procedures. Such

requests do not constitute appeals and

should be directed to the appropriate

GSA Regional Administrator.

23176 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations

(c) If a customer agency still wants to

pursue a formal appeal of Rent charges,

they may do so, but with the following

limitations:

(1) Terms, including rates, to which

the parties agree in an OA are not

appealable;

(2) In leased space, the contract rent

passed through from the underlying

lease cannot be appealed;

(3) In GSA-owned space, when the

fully-serviced shell Rent is established

through appraisal, the appraised rate

must exceed comparable commercial

square foot rates by 20 percent. When

shell Rent in owned space is established

on the basis of ROI at the inception of

an OA, and the customer agency

executes the OA, then the ROI rate

cannot later be appealed. Other

components of Rent that are established

on the basis of actual cost—eg.,

amortization of TIs and building

specific security charges—also cannot

be appealed.

(4) Additionally, the customer agency

is required to compare its assigned

space with other space in the

surrounding community that:

(i) Is available in similar size block of

space in a comparable location;

(ii) Is comparable in quality to the

space provided by GSA;

(iii) Provides similar service levels as

part of the charges;

(iv) Contains similar contractual

terms, conditions, and escalations

clauses; and

(v) Represents a lease transaction

completed at a similar point in time.

(5) Data from at least three

comparable locations will be necessary

to demonstrate a market trend sufficient

to warrant revising an appraised Rent

charge.

(d) A customer agency filing an

appeal for a particular location or

building must develop documentation

supporting the appeal and file the

appeal with the appropriate Regional

Administrator. The GSA regional office

will verify all pertinent information and

documentation supporting the appeal.

The GSA Regional Administrator will

accept or deny the appeal and will

notify the appealing agency of his or her

ruling.

(e) A further appeal may be filed by

the customer agency’s headquarters

level officials with the Commissioner,

Public Buildings Service, if equitable

resolution has not been obtained from

the initial appeal. A head of a customer

agency may further appeal to the

Administrator of the General Services.

Documentation of the procedures

followed for prior resolution must

accompany an appeal to the

Administrator. Decisions made by the

Administrator are final.

(f) Adjustments of Rent resulting from

reviews and appeals will be effective in

the month that the agency submitted a

properly documented appeal.

Adjustments in Rent made under this

section remain in effect for the

remainder of the 5-year period in which

the charges cited in the OA were

applicable.

§ 102–85.160 How does a customer

agency know how much to budget for

Rent?

GSA normally provides customer

agencies an estimate of Rent increases

approximately 2 months prior to the

agencies’ Office of Management and

Budget (OMB) submission for the fiscal

year in which GSA will charge Rent.

This gives the affected customer

agencies an opportunity to budget for an

increase or decrease. However, GSA

must obtain the concurrence of OMB for

such changes prior to notifying

customer agencies. In the event GSA is

unable to provide timely notice of a

future Rent increase, customer agencies

are nonetheless obligated to pay the

increased Rent amount. For existing

assignments in owned buildings, GSA

charges for fully serviced shell Rent, in

aggregate, shall not exceed the bureau

level budget estimates provided to the

customer agencies annually. This

provision does not apply to:

(a) New assignments;

(b) Changes in current assignments;

(c) Leased space;

(d) New tenant improvement

amortization;

(e) Building specific security costs;

and

(f) New amortization of capital

expenditures under ROI pricing due to

changes in scope of proposed projects or

repair and/or replacement of building

components

Subpart E—Standard Levels of Service

§ 102–85.165 What are standard levels of

service?

(a) The standard levels of service

covered by GSA Rent are comparable to

those furnished in commercial practice.

They are based on the effort required to

service the customer agency’s space for

a 5-day week (Monday to Friday), oneshift regular work schedule. GSA will

provide adequate building startup

services, before the beginning of the

customer’s regular one-shift work

schedule, and shutdown services after

the end of this schedule.

(b) Without additional charge, GSA

customers may use their assigned space

and supporting automatic elevator

systems, lights and small office and

business machines including personal

computers on an incidental basis, unless

specified otherwise in the OA.

§ 102–85.170 Can flexitime and other

alternative work schedules cost the

customer agency more?

Yes, GSA customers who extend their

regular work schedule by a system of

flexible hours shall reimburse GSA for

its approximate cost of the additional

services required.

§ 102–85.175 Are the standard level

services for cleaning, mechanical

operation, and maintenance identified in an

OA?

Unless specified otherwise in the OA,

standard level services for cleaning,

mechanical operation, and maintenance

shall be provided in accordance with

the GSA standard level of services as

defined in § 102–85.165, and in the PBS

Customer Guide to Real Property. A

copy of the guide may be obtained from

the General Services Administration,

Office of Business Performance (PX),

1800 F Street, NW., Washington, DC

20405.

§ 102–85.180 Can there be other standard

services?

GSA may provide additional services

to its customers at the levels and times

deemed by the Administrator of General

Services to be necessary for efficient

operations and proper servicing of space

under the assignment responsibility of

GSA.

§ 102–85.185 Can space be exempted from

the standard levels of service

Yes, customer agencies may be

excused from paying for standard

service levels for space assignments

when:

(a) In GSA-delegated space, the

customer agency provides for these

services itself and thus pays Rent minus

charges for these services; or

(b) In rare instances, standard service

levels may be waived by the

Administrator of General Services in

instances where charging for such

standard services would not be feasible

or practical, e.g., in assignments of

limited square footage or functional use.

§ 102–85.190 Can GSA Rent be adjusted

when standard levels of service are

performed by other customer agencies?

Customer agencies that arrange and

pay separately for the costs of standard

level services normally covered by GSA

Rent will receive a Rent credit or other

type of reimbursement by GSA for the

amount GSA would have charged for

such services. The type of

reimbursement is at GSA’s discretion.

The reimbursement is limited to the

amount included for the services in

Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Rules and Regulations 23177

GSA Rent. Approval to perform or

contract for such services must be

obtained in advance by the customer

agency from the appropriate GSA

regional office.

Subpart F—Special Services

§ 102–85.195 Does GSA provide special

services?

Yes, GSA provides special services on

a cost-reimbursable basis:

(a) In GSA-controlled space, GSA may

provide for special services that cannot

be separated from the building or space

costs (inseparable services, such as

utilities, which are not individually

metered). GSA’s estimate of the special

service cost is the basis for the bill

amount. The bill amount for separable

special services is either based on a

previously agreed upon fixed price or

the actual cost, including a fee for GSA’s

services.

(b) GSA can also provide special

services to other Federal agencies in

agency-controlled and operated space

on a cost-reimbursable basis.

Subpart G—Continued Occupancy,

Relocation and Forced Moves

§ 102–85.200 Can customer agencies

continue occupancy of space or must they

relocate at the end of an OA?

The answer is contingent upon

whether the customer agency is in

Federally owned or leased space.

(a) Unless stated otherwise in the OA,

a customer agency within a GSA

controlled, Federally owned building

has automatic occupancy rights at the

end of the OA term for occupied space.

However, a new OA must be negotiated.

(b) In leased space, the OA generally

reflects the provisions of the underlying

lease and will specify whether or not

renewal options are available. If the OA

does not include a renewal option,

customer agencies should assume

relocation would be necessary upon OA

expiration, and budget for it. Further,

renewal options are not, in themselves,

a guarantee of continued occupancy at

that location. In some cases, the renewal

rate is substantially above market or the

option was not part of the initial price

evaluation for the occupancy. In such

cases, GSA may be required to run a

competition for the replacement lease,

and a relocation may ensue.

Nonetheless, it is also possible that GSA

may execute a succeeding lease with the

incumbent lessor, in which case there is

no move.

(c) GSA and customer agencies should

initiate discussions at least 18–20

months in advance of OA expiration to

address an action for the replacement or

continued occupancy of the existing

space assignment. This allows both

agencies time to budget for the work and

the cost.

§ 102–85.205 What happens if a customer

agency continues occupancy after the

expiration of an OA?

A mutual goal of GSA and its

customers is to have current OAs in

place for all space assignments.

However, provisions are necessary to

cover the GSA and customer

relationship if an OA expires prior to

execution of a mutually desired

succeeding agreement. Because the

risks, liabilities, and consequences of a

customer’s continued occupancy

depend on whether the assigned space

is leased or Federally owned, different

provisions in the following table apply:

HOLDOVER TENANCY—CUSTOMER

AGENCY RESPONSIBILITIES IN THE

EVENT OF TENANT DELAY IN

VACATING SPACE

In leased space In federally owned

space

To pay those costs

associated with

lease contract,

GSA fee, and damages/claims, arising

from changes in

GSA contract costs

which are caused

by the tenant’s

delay.

To pay Rent as determined by GSA’s

pricing policy, as

described in this

part, and those

added costs to

GSA (claims, damages, changes,

etc.) resulting from

the tenant-caused

delay.

§ 102–85.210 What if a customer agency

has to relocate?

If the agency or GSA determines

relocation is necessary at the expiration

of an OA for either Federally owned or

leased space, the customer agency is

responsible for all costs associated with

relocation at that time.

§ 102–85.215 What if another customer

agency forces a GSA customer to move?

If a GSA customer agency, or GSA,

forces the relocation of another GSA

customer agency prior to the expiration

of the customer’s OA, the ‘‘forcing’’

agency is responsible:

(a) For all reasonable costs associated

with the relocation of the agency being

‘‘forced’’ to move, including

architectural-engineering design, move

coordination and physical relocation,

telecommunications and ADP

equipment relocation and installation;

(b) To GSA for all of the relocated

agency’s unpaid tenant improvements,

if any; and

(c) To the customer agency for the

undepreciated amount of any lump sum

payment that was already made by the

agency for alterations.

§ 102–85.220 Can a customer agency

forced to relocate waive the

reimbursements?

Yes, a customer agency forced to

relocate can waive some or all of the

reimbursements from the forcing agency

that are prescribed in § 102–85.215.

However, a relocated customer agency

cannot waive the requirement for the

forcing customer agency to reimburse

GSA for unpaid tenant improvements. If

GSA is the ‘‘forcing’’ agency, it is

responsible for the same costs as any

other forcing customer agency.

§ 102–85.225 What are the funding

responsibilities for relocations resulting

from emergencies?

(a) In emergencies, swift remedies,

including the possible relocation of a

customer agency to alternate space, are

required. The remedies may include

requests for funding authorizations from

OMB and Congress. GSA may serve as

the central coordinator of such

remedies.

(b) Funding responsibility will vary

by situation. If a customer agency is

only temporarily displaced from its

space, GSA typically covers the cost of

temporary set-up in a provisional

location. If the agency is obliged to

relocate permanently, an OA will be

prepared which will address all terms of

the occupancy. In such cases, new

tenant improvements will be

constructed which can be amortized

over the life of a new occupancy term,

and a new Rent rate will be developed.

Dated: April 27, 2001.

Thurman M. Davis, Sr.,

Acting Administrator of General Services.

[FR Doc. 01–11390 Filed 5–7–01; 8:45 am]

BILLING CODE 6820–24–P

GENERAL SERVICES

ADMINISTRATION

41 CFR Part 302–11

[FTR Amendment 96]

RIN 3090–AH40

Federal Travel Regulation; Relocation

Income Tax (RIT) Allowance Tax

Tables

AGENCY: Office of Governmentwide

Policy, GSA.

ACTION: Final rule.

SUMMARY: The Federal, State, and Puerto

Rico tax tables for calculating the

relocation income tax (RIT) allowance

must be updated yearly to reflect

changes in Federal, State, and Puerto