[Federal Register Volume 60, Number 74 (Tuesday, April 18, 1995)]
[Rules and Regulations]
[Pages 19362-19363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9356]



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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 552 and 570

[APD 2800.12A CHGE 60]
RIN-AF66


General Services Administration Acquisition Regulation; Leasing 
Real Property

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to modify the Proposals for Adjustment clause to 
reflect the statutory increase in the threshold for submission of cost 
or pricing data from $100,000 to $500,000; to reflect the current small 
business size standard in the definition of small business; to 
eliminate requirements for obtaining appraisals in connection with the 
acquisition of leasehold interests in real property; to reflect the new 
statutory threshold of $500,000 for submission of cost or pricing data 
and to make other editorial changes for clarity; to reflect the 
elimination of requirements for appraisals and to eliminate reference 
to automatic renewal clauses which are no longer used; to reflect the 
new statutory threshold of $500,000 for submission of cost or pricing 
data; and to remove the requirement for Forms 387, Analysis of Value 
Statement, 3516, Solicitation Provisions, 3517, General Clauses, and 
3518, Representations and Certifications. GSA is deleting all forms 
which contain solicitation provisions and/or contract clauses from the 
regulation. The regulation will continue to prescribe solicitation 
provisions and/or contract clauses which are to be included in 
solicitations or contracts.

EFFECTIVE DATE: April 18, 1995.

FOR FURTHER INFORMATION CONTACT:
Tom Wiznowski, Office of GSA Acquisition Policy, (202) 501-1224.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule implements section 1251 of the Federal Acquisition 
Streamlining Act (FASA), Pub. L. 103-355, October 13, 1994 as it 
applies to the acquisition of leasehold interests in real property. 
Section 1251, among other things, increased the threshold for 
submission of cost or pricing data from $100,000 to $500,000 for 
civilian agencies. The increase in the threshold was effective upon 
enactment. FASA also provides that prime contracts entered into on or 
before the effective date of enactment of FASA shall be amended, 
without requiring consideration, to reflect the increased threshold 
upon the request of a contractor.
    This rule also implements one of the recommendations made by a GSA 
process re-engineering team for improving the process for acquiring 
leasehold interests in real property. The reengineering team 
recommended that the requirement for obtaining appraisals in connection 
with certain leases of real property be eliminated. This rule 
eliminates the requirement for appraisals but provides for the use of a 
market survey or an appraisal to establish a basis for use of the 
market price exemption from the requirement for obtaining certified 
cost or pricing data.

B. Executive Order 12866

    This rule was submitted to the Office of Management and Budget 
under Executive Order 12866.

C. Regulatory Flexibility Act

    The General Services Administration certifies that this final rule 
will not have a significant economic impact on a substantial number of 
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.) because most leases of real property awarded to small entities 
are awarded on a competitive basis or on the basis of an established 
market price and the requirement for certified cost or pricing data do 
not apply. The elimination of the requirement for obtaining an 
appraisal in certain circumstances when acquiring a leasehold interest 
will have no impact on small entities offering to lease space to the 
Government. Therefore, a final regulatory flexibility analysis was not 
prepared.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the GSAR do not impose recordkeeping information collection 
requirements or collection of information from offerors, 
[[Page 19363]] contractors, or members of the public which require the 
approval of OMB under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Parts 552 and 570

    Government Procurement.

    Accordingly, 48 CFR Parts 552 and 570 are amended as follows:
    1. The authority citation for 48 CFR Parts 552 and 570 continues to 
read as follows:

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

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


552.270--20  [Amended]

    2. Section 552.270-20 is amended by revising the date of the clause 
to read ``APR 1995'', by revising in paragraph (b) the figure 
``$25,000'' to read ``$100,000'', and by revising in paragraphs (c) 
introductory text and (c)(2) the figure ``$100,000'' to read 
``$500,000''.

PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY


570.102  [Amended]

    3. Section 570.102 is amended by revising in the definition of 
``Small business'' the figure ``$10 million'' to read ``$15 million''.
    4. Section 570.208-3 is removed.
    5. Section 570.304-5 is revised to read as follows:


570.304-5  Negotiations and award.

    Offers should be evaluated in accordance with the solicitation. The 
contracting officer should evaluate the price using cost or price 
analysis and document the lease file to demonstrate that the proposed 
rental represents a fair market price. In cases where the total cost 
exceeds $500,000 cost or pricing data must be obtained unless the 
requirement is waived or one of the exemptions at (FAR) 48 CFR 15.804-2 
applies. The market price exemption from submission of cost or pricing 
data may be applied to proposed leases where there is evidence that the 
price is based on an established market price for similar space leased 
to the general public. A market survey and/or appraisal conducted in 
accordance with accepted real property appraisal procedures may be used 
as evidence to establish the market price. An acceptable small business 
subcontracting plan must be provided if the lease will exceed $500,000, 
unless the lease will be awarded to a small business concern. 
Negotiations, if applicable, should be conducted in accordance with 
570.205. For leases expected to exceed $100,000, a Certificate of 
Procurement Integrity must be provided to the proposed successful 
offeror for completion and submission before award. The contracting 
officer should review the List of Parties Excluded from Procurement or 
Nonprocurement Programs, to ensure the proposed awardee is eligible to 
receive the award and is otherwise responsible before awarding the 
lease.


570.501  [Amended]

    6. Section 570.501 is amended by removing paragraphs (d) and (e).


570.602-2  [Amended]

    7. Section 570.602-2 is amended by revising in paragraph (c)(3) the 
figure ``$100,000'' to read ``$500,000''.


570.802  [Amended]

    8. Section 570.802 is amended by removing paragraphs (c), (e), (f), 
and (g) and by redesignating paragraph (d) as (c).

    Dated: March 27, 1995.
Ida M. Ustad,
Associate Administrator for Acquisition Policy.
[FR Doc. 95-9356 Filed 4-17-95; 8:45 am]
BILLING CODE 6820-61-M