JULY 2005
SOLICITATION FOR OFFERS
OUTPATIENT CLINIC
SFO NO. V101-183R-xxx-xxx-xx
[INSERT LOCATION OF FACILITY]
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30 calendar day after receipt of evidence of payment by the Contracting Officer or the 30 calendar day
after the anniversary date of the lease, whichever is later. If the lease terminates before the end of a tax
year, payment for the tax increase due as a result of this section for the tax year will be prorated based on
the number of days that the Government occupied the space. No increase will be paid, due, or owing
unless all evidence of valuation and payment has been previously submitted to the Contracting Officer.
The Government's payment for its share of real estate taxes shall not include any late charges, interest, or
penalties imposed by the taxing authority as a result of the Lessor's delinquency in paying such taxes or
charges.
In the event of a decrease in taxes from the base year, or in the event of any refund or tax deduction, the
Lessor shall notify the Contracting Officer. The Government shall be entitled to, and shall receive a credit
for, the pro-rata reduction in taxes applicable to the premises encumbered by this lease, regardless of
whether the Government has made a tax payment for that year. The Government's share of the credit will
be determined on the ratio of the net usable square feet occupied by the Government to the total NUSF in
the building and shall be taken as a deduction from the rent. Any credit due the Government after the
expiration or earlier termination of the lease (including, but not limited to, credits resulting from a decrease
in taxes pursuant to a tax credit due the Lessor; a reduction in the tax assessment; or a tax appeal
proceeding for a year of the lease, or portion thereof) shall be made by a lump sum payment to the
Government or as a rental credit to any succeeding lease as determined by the Contracting Officer. The
Lessor shall remit any lump sum payment to the Government within 15 calendar days of payment by the
taxing authority to the Lessor or the Lessor's designee. If the credit due to the Government is not paid by
the due date, interest shall accrue on the late payment at the rate established by the Secretary of the
Treasury under Section 12 of the Contract Disputes Act of 1978 (United States Code 41 USC 611) that is
in effect on the day after the due date. The interest penalty shall accrue daily on the amount of the credit
and shall be compounded in 30-day increments inclusive from the first day after the due date through the
payment date. The Government shall have the right to pursue the outstanding balance of any tax credit
using all such collection methods as are available to the United States to collect debts. Such collection
rights shall survive the expiration of this lease.
The Government shall pay its share of tax increases or shall receive its share of any tax decrease based
on the ratio of the net usable square feet occupied by the Government to the total NUSF in the building.
This percentage shall be subject to adjustment to take into account additions or reductions of the amount
of space as may be contemplated in this lease or amendments hereto.
The Government may direct the Lessor upon reasonable notice to initiate a tax appeal, or the Government
may decide to contest the tax assessment on behalf of the Government and the Lessor or for the
Government alone. The Lessor shall furnish to the Government information necessary for appeal of the
tax assessment in accordance with the filing requirements of the taxing authority. If the Government
decides to contest the tax assessment on its own behalf or on behalf of the Government and the Lessor,
the Lessor shall cooperate and use all reasonable efforts including, but not limited to, affirming the
accuracy of the documents, executing documents required for any legal proceeding, and taking such other
actions as may be required. If the Lessor initiates an appeal on behalf of the Government, the
Government and the Lessor will enter into an agreement to establish a method for sharing expenses and
tax savings.
The percentage of the building occupied by the Government, for purpose of tax adjustments will be
established during negotiations, if necessary.
3.6 INSURANCE ADJUSTMENTS
The Government shall 1) make a single annual lump sum payment to the Lessor for its share based on the
percent of occupancy of any increase in hazard and liability insurance premiums during the lease term
over the amount established as the base year premium, or 2) receive a lump sum payment for its share of
Part I: Basic Solicitation Requirements Page 23 of 169
Lessor __________ Gov't. __________
__________ of __________ Pages
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