JULY 2005
SOLICITATION FOR OFFERS
OUTPATIENT CLINIC
SFO NO. V101-183R-xxx-xxx-xx
[INSERT LOCATION OF FACILITY]
EXHIBIT II
PROPERTY MANAGEMENT AGREEMENT (PMA)
OUTPATIENT CLINIC
[insert location]
LEASE NO. V101-183R-xxx-xxx-xx
1. COMMENCEMENT DATE AND MANAGEMENT FEE:
The date of commencement for this Property Management Agreement (PMA) shall coincide with the initial
term date of Lease No. V101-183R-xxx-xxx-xx, as determined by the initial lease document or
subsequent supplemental lease agreement.
The Government agrees to pay to the Lessor as part of the rental payment a Management Fee (as
specified on GSA Form 1217, Lessor's Annual Cost Statement, Line 32). This fee is for the management
of all operation expenses, maintenance, repair and reserves for replacement of the leased premises (as
specified in Section 1 and Line 30 of Section II of GSA Form 1217), beginning upon VA occupancy of the
leased premises. The totals on Lines 27 and 30 on GSA Form 1217 shall reflect the annual costs to
operate and maintain the leased premises. The Government's payment of the Management Fee in return
for the operations and maintenance services provided by the Lessor and/or his designated property
management firm shall remain in force for the length of the lease term, including all renewal options.
2. GENERAL MAINTENANCE OBLIGATION:
The Lessor is solely responsible for the maintenance and repair of the leased premises as well as any and
all Lessor improvements erected on the leased premises, and those items listed in Schedule B (See
Paragraph 8.2, Maintenance by Lessor, of the Solicitation for exclusions). The Lessor, at its own expense,
shall at all times protect, preserve, maintain, and repair the leased premises, together with any and all
improvements located thereon (excluding equipment furnished and installed by the Government,
sterilizers, and washer/sanitizers), and shall keep the same in good order and condition. The Lessor shall
exercise due diligence at all times in the protection of the leased premises, together with any and all
improvements located thereon, against damage or destruction by fire and other causes.
3. MAINTENANCE, CAPITAL REPAIR, AND REPLACEMENT:
Upon the Government's acceptance of leased premises, the Lessor shall immediately establish a Funded
Maintenance Account (FMA) in an interest-bearing account, in a financial institution approved by the
Government, and begin to make payments into the FMA in such form and pursuant to such terms as the
Government may require.
The Lessor's obligations with respect to the leased premises shall be in effect and enforceable during the
lease term, including all renewal options. The Lessor shall initially place a sum equivalent to twenty-
five percent (25%) of the Annual Reserve Grand Total from the FMA Worksheet into the Funded
Maintenance Account. Thereafter, the Lessor shall continue to make quarterly payments, at the rate of $
per quarter, into the FMA, as defined in Paragraph 4 of this Property Management
Agreement. [The quarterly payment of $
is determined by taking the Annual Reserve
Grand Total from the FMA Worksheet
[(Line 71 on Exhibit I) ($
) and dividing that figure by 4]. The FMA shall be held in trust
for the Government for the sole purpose of providing yearly operations funding to maintain the leased
premises and to pay for capital repairs and replacements as detailed in this Agreement and as set forth
elsewhere in the lease agreement. The Lessor is required to maintain the funds in the FMA as reflected
above and as defined in Paragraph 4 of this PMA.
Part II Schedule A Page 6 of 9
Lessor __________ Gov't. __________
__________ of __________ Pages
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