Negotiating on Federal Leased Opportunities
GSA leases space in diverse locations when leasing is the best solution for meeting federal space needs. More than 50 percent of GSA leases are for 10,000 square feet or less, so owners do not have to be corporate giants to compete for lease contracts.
The following briefly explains how private property owners and managers can compete for lease contracts. It outlines the types of space GSA ordinarily leases, the lease terms and conditions, how to offer space to GSA, how GSA awards leases, and where to find additional information.
Scope of GSA Leasing
GSA leases space including offices, laboratories, warehouses, clinics, and border stations for most federal agencies in cities, suburbs, and rural areas throughout the United States and its territories.
GSA leases space in a wide range of sizes, locations, and terms to meet the requirements of federal agencies. A Solicitation for Offers (SFO) is submitted by potential landlords. The Solicitation for Offers is a proposal to lease space indicating the type and amount of space needed and the conditions of the lease. The solicitation also gives detailed information on how to submit a proposal, contact name and address, and the deadline by which it must be received by the GSA regional office. Each Solicitation for Offers for a new lease differs in its requirements.
Initial alterations to prepare space for occupancy differ according to the needs of the tenant agency. In some cases, new construction is solicited. This “lease construction” process is used for new construction and for procurements requiring significant design work. In normal circumstances, new construction is in areas of high visibility and community impact, with procurements requiring significant design work. This process is what the federal government utilizes to procure “build-to-suit” space. In addition to new construction, this includes the adaptive reuse of existing buildings, “full gut” rehabilitation replacement of envelope, mechanical systems, ceiling, service cores, etc.) and minor renovations. The program involves a process of submittal and evaluation where potential candidates are selected on factors that can include the quality of the site and facility design as well as the quality of the offeror.
Lease terms vary based on the agency’s requirements and market conditions, though they can be as long as 20 years.
Offering Space to GSA
There are three ways to find requirements for space.
SAM.gov provides information on contract opportunities with the federal government as well as pre-solicitation notices, solicitation notices, award notices, and sole source notices.
Automated Advanced Acquisition Program (AAAP)
Offer your space for lease through AAAP.
Requirement Specific Acquisition Program (RSAP)
Offerors can use RSAP to tailer initial offers.
Requirements for space are advertised on the Contract Opportunities page on SAM.gov, or you can go to Automated Advanced Acquisition Program (AAAP) or Requirement Specific Acquisition Program (RSAP). Space requirements less than 10,000 square feet are usually acquired by a more informal canvassing and contacts with potential offerors. Property managers or owners interested in offering space to GSA for lease are encouraged to contact the appropriate regional office.
Submitting a Proposal
Each Solicitation for Offers to lease space indicates the type and amount of space needed and the conditions of the lease. The solicitation also gives detailed information on how to submit a proposal, contact name and address, and the deadline by which it must be received by the GSA regional office.
Lease Awards and Payments
GSA solicits offers on a competitive basis, negotiates with offerors, and, for most acquisitions, and makes awards to the lowest priced acceptable offer. Some solicitations also consider trade-offs between price and other factors. Typically, for acquisitions greater than 10,000 square feet, the award is based on a building rate and a specific allowance for the build out of the tenant space. Once the award is made, the final cost of the build out is negotiated, based on the design drawings of the tenant’s space. After acceptance of the space, GSA begins monthly rent payments in arrears.