Change Number: Change 171 GSAR Case 2019-G503
Effective Date: 10/12/2023

Subpart 570.3 - Acquisition Procedures for Leasehold Interests in Real Property Over the Simplified Lease Acquisition Threshold

Subpart 570.3 - Acquisition Procedures for Leasehold Interests in Real Property Over the Simplified Lease Acquisition Threshold

570.301 Market survey.

Conduct a market survey to identify potential sources. Use information available in GSA or from other sources to identify locations capable of meeting the Government’s requirements.

570.302 Description of requirements.

(a)  The description of requirements depends on the nature of the space the agency needs and the market available to satisfy that need.

(b)  The description of requirements must include all the following:

(1)  A statement of the purpose of the lease.

(2)  Functional, performance, or physical requirements.

(3)  Any special requirements.

(4)  The delivery schedule.

(c)  The description must promote full and open competition. Include restrictive provisions or conditions only to the extent necessary to satisfy the agency’s needs or as authorized by law.

570.303 Solicitation for offers.

570.303-1 Preparing the SFO.

The SFO forms the basis for the lease negotiation process and becomes part of the lease. Document each SFO in writing or electronically. Include the information necessary to enable prospective offerors to prepare proposals. Each SFO, at a minimum, must:

(a)  Describe the Government’s requirements.

(b)  State the method the Government will use to measure space.

(c)  Explain how to structure offers.

(d)  Specify a date, time, and place for submission of offers.

(e)  Explain how the Government will evaluate offers.

(f)  Describe the source selection procedures the Government will use.

(g)  Include a statement outlining the information the Government may disclose in debriefings.

(h)  Include appropriate forms prescribed in 570.8.

(i)  Include sustainable design requirements.

570.303-2 Issuing the SFO.

Release the SFO to all prospective offerors at the same time. The SFO may be released electronically.

570.303-3 Late offers, modifications of offers, and withdrawals of offers.

Follow the procedures in FAR 15.208.

570.303-4 Changes to SFOs.

(a)  If the Government’s requirements change, either before or after receipt of proposals, issue an amendment. Document the amendment using the same method as for the SFO, written or electronic.

(b)  If time is critical, you may provide information on SFO amendments orally.

(1)  Make a record of the information provided.

(2)  Provide, or attempt to provide, the notice to all offerors or prospective offerors on the same day.

(3)  Promptly confirm the information provided orally in a written amendment.

(c)  Distribute an amendment as follows:

(1)  If before the proposal due date, send the amendment to all prospective offerors who were sent a copy of the SFO.

(2)  If after proposal receipt, send the amendment to each offeror who submitted a proposal.

(d)  If an amendment is so substantial that it requires a complete revision of the SFO, cancel the SFO, readvertise if required by 570.106, and issue a new SFO.

(e)  If there are changes to the Government’s requirements for amount of space, delineated area, occupancy date, and/or other major aspects of the requirements, the contracting officer shall consider whether there is a need to readvertise, and to document the file accordingly.

570.304 General source selection procedures.

(a)  These procedures apply to acquisitions of leasehold interests except if the contracting officer uses one of the following:

(1)  Simplified lease acquisition procedures authorized by 570.2.

(2)  Two-phase design-build selection procedures authorized by 570.105-2.

(b)  The contracting officer is designated as the source selection official unless the HCA appoints another individual for a particular leasing action or group of leasing actions.

(c) In a trade off procurement, the contracting officer must include price or cost to the Government, past performance, the planned participation of small disadvantaged business concerns in performance of the contract, and other factors as required by FAR 15.304 as evaluation factors. The contracting officer may include other evaluation factors as needed.

(d) The evaluation factors and significant subfactors must comply with FAR 15.304 and either one of the following:

(1) FAR 15.101-1 if the contracting officer will use the tradeoff process.

(2) FAR 15.101-2 if the contracting officer will use the lowest price technically acceptable source selection process.

570.305 Two-phase design-build selection procedures.

(a)  These procedures apply to acquisitions of leasehold interests if the contracting officer uses the two-phase design-build selection procedures authorized by 570.105-2. Follow FAR 36.3.

(b)  The SFO must include all the following information:

(1)  The Scope of Work.

(2)  The evaluation factors and subfactors to be used in evaluating phase-one proposals and their relative importance.

(3)  The maximum number of offerors to be selected to submit competitive proposals in phase-two.

(4)  The evaluation factors, including cost or price, and subfactors to be used in evaluating phase-two proposals and selecting the successful offeror, and their relative importance.

(c)  The following procedures apply to phase-one evaluation factors:

(1)  Phase one factors include:

(i)  Specialized experience and technical competence.

(ii)  Capability to perform.

(iii)  Past performance of the offeror’s team (including architect-engineer and construction members of the team).

(iv)  The planned participation of small disadvantaged business concerns in performance of the contract.

(v)  Other appropriate factors, such as site or location.

(2)  The contracting officer shall not require offerors to submit detailed design information or cost or price information in phase one. The contracting officer shall not use cost related or price related evaluation factors.

(d)  The contracting officer shall set the maximum number of offerors to be selected for phase-two to not exceed five unless the contracting officer determines that a number greater than five is both:

(1)  In the government’s interest.

(2)  Consistent with the purpose and objectives of the two-phase selection process.

(e)  In phase-two, require detailed technical and price proposals. Evaluate the proposals using the procedures in 570.306.

570.306 Evaluating offers.

(a)  The contracting officer must evaluate offers solely in accordance with the factors and subfactors stated in the SFO.

(b)  Evaluate prices and document the lease file to demonstrate that the proposed contract price is fair and reasonable. The contracting officer must review the elements of the offeror’s proposed rent to analyze whether the individual elements are realistic and reflect the offeror’s clear understanding of the work to be performed. The contracting officer must discuss any inconsistencies with the offeror. If the offeror refuses to support or make any changes to the rent proposed, consider the risk to the Government prior to making any lease award.

(c)  Evaluate past performance on previous lease projects in accordance with 515.305 and FAR 15.305(a)(2). Obtain information through:

(1)  Questionnaires tailored to the circumstances of the acquisition;

(2)  Interviews with program managers or contracting officers;

(3)  Other sources; or

(4) Past performance information collected under FAR 42.15 and available through the Contractor Performance Assessment Reporting System at​, or successor system.

(d) The contracting officer may obtain information to evaluate an offeror’s past performance on subcontracting plan goals and small disadvantaged business participation, monetary targets, and notifications under FAR 19.1202-4(b) from the following sources:

(1)  The Small Business Administration;

(2)  Information on prior contracts from contracting officers and administrative contracting officers;

(3)  Offeror’s references; and

(4) Past performance information collected under FAR 42.15 and available through PPIRS.

(e)  Document the evaluation of award factors other than price listed in the solicitation. The file must include the basis for evaluation, an analysis of each offer, and a summary of findings.

(f)  Also see the requirements in 570.108, 570.109 and 570.111.

570.307 Negotiations.

(a) Follow the procedures in FAR 15.306 and 15.307 for exchanges (including clarifications, communications, negotiations, discussions, and revisions).

(b)  Place a written record of all exchanges in the lease file.

(c) Provide prompt written notice to any offeror excluded from the competitive range or otherwise eliminated from the competition in accordance with FAR 15.503(a).

570.308 Award.

(a)  Make award to the responsible offeror whose proposal represents the best value after evaluation in accordance with the factors and subfactors in the SFO.

(b)  Make award in writing and in the timeframe specified in the SFO.

(1)  If the contracting officer cannot make an award in that time, request in writing from each offeror an extension of the acceptance period through a specific date.

(2)  If time is critical, the contracting officer may request the extensions orally. The contracting officer must make a record of the request and confirm it promptly in writing.

(c) Notify unsuccessful offerors in writing or electronically in accordance with FAR 15.501 and 15.503(b).

(d)  The source selection authority may reject all proposals received in response to an SFO, if doing so is in the best interest of the Government.

570.309 Debriefings.

The procedures of FAR 15.505 and 15.506 apply to leasing actions.