JULY 2005
If suitable
alternative. With adequate time, the ACO can
Cost Benefit Analysis (CBA).
alternate locations are available, the ACO must
promote competition. The method for accom-
determine whether an award for space at an
plishing this is essentially the same as for the
alternate location would result in substantial
procurement of a new lease.
Sources of Market Information. The ACO
relocation and duplication costs that VA could
not expect to recover through competition. The
should devote extra care to this step so that the
ACO should determine this by completing a
marketplace understands that the VA is ready,
CBA, not to be confused with the BCA used to
willing, and able to relocate. Please refer to
determine the method of acquisition described in
Section 4 of this Design Guide for a list of
Section 4. A CBA is required for all succeeding
valuable sources of information.
leases. [See GSAR 570.402-5]. To complete
one, the ACO should take the following steps:
Identify the Delineated Area. Depending on
the age of the original lease, the market service
Relocation Cost Estimates. The ACO
area may have changed since the original lease
obtains an estimate of the costs that will be
was executed. Use this opportunity to re-
incurred by the Government if it relocates to
evaluate the delineated area which the Using
an alternate location. Such relocation costs
Service finds acceptable. Ensure that new
include moving, reconnecting computers
developments and projects that have been
and communications systems, reinstalling or
completed since the original lease was procured
duplicating special fixtures that are owned
are included in the delineated area, if
by VA, and purchasing new stationery and
appropriate.
business cards. Engineering Service or a
Placing an
Advertise the Requirement.
comparable service should be consulted
when preparing this cost estimate
advertisement remains a very good way of
increasing market awareness of VA' space
s
Calculate Total Occupancy Costs. For
requirements and letting all potential Offerors
each alternate location, as well as the
have an opportunity to compete. Unlike an
presently leased location, the ACO
advertisement for a new requirement, the
calculates the total estimated occupancy
succeeding lease advertisement should set forth
cost. These calculated costs are based
the expiration date of the present lease, as well
upon prices gathered during the market
as a statement advising prospective lessors that
survey and prices obtained from informa-
the total cost of relocating will be considered by
tional quotations of prospective lessors.
VA when selecting the best offer. For space
Ideally, each informational quote is obtained
requirements greater than 10,000 USF adver-
in writing. Whether an informational quote is
tising the requirement is mandatory pursuant to
obtained verbally or in writing, the following
GSAR Section 570.106 and 505.101(c). Please
information, as a minimum, must be
refer to Section 4 of this Design Guide for
obtained:
additional information.
Conduct Market Survey. A succeeding lease
The name and address of the prospective
Lessor,
is a new lease. Consequently, GSAR Section
570.402-3 requires a market survey.
The
The name of the prospective Lessor'
s
procedures for conducting a market survey are
representative who issued the quote,
detailed in Section 4.
The address of the location cited,
Competitive Determination. After completing
The price quote and the services included
the market survey, the ACO determines whether
in the quoted price,
any suitable alternative locations are available. If
none is available, then the ACO prepares a
The name of the VA employee soliciting
JOTFOC to negotiate directly with the present
the quote, and
Lessor in accordance with FAR Subpart 6.3 and
The date on which the quote was solicited.
GSAR Section 570.402-4. The efforts to identify
suitable alternative locations must be docu-
Determine
Viability
of
Relocating.
mented and retained in the succeeding lease
Compare the total occupancy cost for a
file.
succeeding lease at the current location with
the sum of the relocation cost and the total
VA DESIGN GUIDE
LEASE BASED OUTPATIENT CLINICS
SECTION 9-11
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