JULY 2005
SOLICITATION FOR OFFERS
OUTPATIENT CLINIC
SFO NO. V101-183R-xxx-xxx-xx
[INSERT LOCATION OF FACILITY]
any annual decreases for the duration of the lease in the insurance premium established as the base year
premium.
The amount of lump sum payment shall be based upon evidence of insurance policy and payment
submitted by the Lessor to the Contracting Officer. The Government shall be responsible for payment of
any insurance premium increase over the base year only if the proper invoice and evidence of payment is
submitted by the Lessor within 90 calendar days after the date the insurance premium is due from the
Lessor to the insurance company. Base year insurance premium as referred to in this paragraph is the
insurance premium for the first 12-month period coincident with Government occupancy of leased space in
its entirety.
The Government will not pay for any portion of "terrorism insurance" (Terrorism Risk Insurance Act of
2002) obtained by the Lessor.
3.7 OPERATING COSTS
Beginning with the second year of the lease and each year thereafter, the Government shall pay adjusted
rent for changes in costs for cleaning services, supplies, materials, trash removal, landscaping, water,
sewer charges, heating, electricity, and certain administrative expenses attributable to occupancy.
Applicable costs listed on GSA Form 1217, Lessor' Annual Cost Statement, when negotiated and agreed
s
upon, will be used to determine the base rate for operating costs adjustment.
The amount of adjustment will be determined by multiplying the base rate by the percent of change in the
Cost of Living Index. The percent change will be computed by comparing the index figure published in the
month of the lease commencement date with the index figure published in the month which begins each
successive 12-month period. For example, a lease which commences in June of 1995 would use the
index published in June of 1995; and that figure would be compared with the index published in June of
1996, June of 1997, and so on, to determine the percent change. The Cost of Living Index will be
measured by the Department of Labor revised Consumer Price Index for wage earners and clerical
workers, U.S. city average, all items figure (1982 to 1984 = 100) published by the Bureau of Labor
Statistics. Payment will be made with the monthly installment of fixed rent. Rental adjustments will be
effective on the anniversary date of the lease.
If the Government exercises an option to extend the lease term at the same rate as that of the original
term, the option price will be based on the adjustment during the original term. Annual adjustments will
continue.
In the event of any decreases in the Cost of Living Index occurring during the term of the occupancy under
the lease, the rental amount will be reduced accordingly. The amount of such reductions will be
determined in the same manner as increases in rent provided under this paragraph.
The offer shall clearly state whether the rental is firm throughout the term of the lease or if it is subject to
annual adjustment of operating costs as indicated above. If operating costs will be subject to adjustment,
those costs shall be specified on GSA Form 1364, Proposal to Lease Space, contained elsewhere in this
SFO.
The base for the operating cost adjustments will be established during negotiations based upon
the Offeror's Final Cost Proposal, Line 27, of GSA Form 1217, Lessor's Annual Cost Statement.
Part I: Basic Solicitation Requirements Page 24 of 169
Lessor __________ Gov't. __________
__________ of __________ Pages
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