Business Services
Administrative Services Division (ASD) - Realty Services - GSA Occupancy Agreement |
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- Occupancy Agreement (OA)
- Purpose of the OA
- Content of the OA
- Preparation ofthe OA
- The OA Tool
- Purpose of the OA Tool
- Components of the OA Tool
- Using the OA Tool
- Leased Space Occupancy Agreement (Sample)
- Leased Space Financial Summary (Sample)
This information is from the General Services Administration's
New Pricing Desk Guide.
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The Occupancy Agreement (OA) is a complete, concise statement of the customer agency's financial terms and conditions for occupying GSA-controlled space signed by both parties. This is not a lease, nor is it a document for detailing building rules and regulations.
The document has two parts: (1) the signed agreement and, (2) a financial summary. The financial summary provides a preview of the customer agency's Rent bill and summarizes all the lump sum payments associated with the requirement. It also presents a recapitulation of the financial terms and conditions of the agreement.
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The purpose of the OA is twofold. First, it documents the evolving requirements of the customer and provides budget and other decision-making information for the requirements development process. Second, it records the final agreed-upon terms and conditions.
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The OA begins with a paragraph which describes the square footage in both usable and rentable terms, parking, type of space, building name, address, city, and state, and the period of the term in months with the commencement date.
The second paragraph references the annual Rent rate per-square-foot as described on the attached Financial Summary and discusses any lump sum payment required if the tenant improvement cost exceeds the amount of the tenant improvement allowance. Annual adjustments for operating costs and real estate tax escalations are also shown here.
The next several paragraphs may or may not be required depending upon the nature of the space provided and the services required.
- A paragraph discussing any joint-use charges with a description of the joint use space, adding annual adjustments for operating costs and real estate tax escalations.
- A paragraph describing any additional or reduced services outside the standards in the FPMR which may be required. This describes the services and frequencies being provided.
- A paragraph describing any forced move costs to relocate another agency.
- A paragraph stating that the space assigned is "Non-Cancelable Space” and that the agency will continue to pay GSA for all out of pocket expenses incurred until expiration of the OA. The old term for this kind of space was "unique agency space."
- Any additional clauses which the agency or GSA may require are added next. These are identified as “Additional,” “Tenant Specific,” and “Ad Hoc” clauses.
- The final paragraph states: “I agree to the initial terms with the understanding modifications will be made over time.” Below that are two signature blocks: one for the tenant agency representative and the other for the GSA representative, both dated.
The Financial Summary
The Financial Summary provides a preview of the customer's Rent bill and summarizes all the lump sum payments associated with this requirement. It also presents a recapitulation of the financial terms and conditions.
The Financial Summary spreadsheet shows Annual Cost and Part-Year Costs including the information shown on the examples that follow this chapter.
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The OA documents requirements as they are developed and as the scope of the project becomes clearer. Of course, the OA document itself can be typed and the Financial Summary calculated by hand. This is particularly true in small actions where the requirements are clear and the tenant agency can be given a reasonably accurate cost projection from the start. In most of these cases, the Financial Summary can be simplified if the tenant agrees.
For larger, more complex actions, both the OA and the Financial Summary become more complicated, and it is necessary to keep the tenant informed of the potential costs at every step. This is where the OA Tool proves beneficial.
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The Occupancy Agreement Tool is a Microsoft AccessTM-based software application designed to assist in the production of an Occupancy Agreement. It was developed by a national team of GSA representatives from Property Management, Property Acquisition and Realty Services (PARS), and Portfolio Management. The team also had agency representatives from the FBI, IRS, USGS, and the Administrative Office of the Courts.
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The purpose of the OA Tool is to automate the process of documenting the mutual understanding between GSA and the tenant agency as to the financial terms, space, tenant improvement, contractual conditions and timing of the tenant's occupancy. The OA Tool houses the database which comprises all versions of the OA developed by a particular region. It also serves as a budgeting and forecasting tool. It can be used for scheduling and planning during the space acquisition process. The OA Tool also assists in requirements development, and contains a menu of GSA-provided services. It automatically generates the OA document itself, including the financial summary page.
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Complete Tracking: The OA Tool tracks the status of the Occupancy Agreement from inception as a proforma through completion as a final signed document. It houses the list of tenant agencies in GSA’s inventory, along with the corresponding bureau codes. It also possesses a database which contains the region's assigned building numbers and their locations.
Tenant Improvement Allowance:The OA Tool identifies the customization tier for each tenant agency. Utilizing the local construction index, it automatically calculates both the general and customization components of the tenant improvement allowances. It also amortizes these allowances to determine an annual square-foot cost which is recorded on the financial summary page. The bill to the agency is based on the actual cost, not the allowance. Therefore, the beginning allowance amount is only an estimate, and an upper limit of what GSA will amortize. The actual cost of the tenant improvement determines the amount included in the Rent.
Security Charges: The OA Tool calculates the security charges associated with an identified building. These charges consist of the Basic Security Charge, Patrol and Response Charge, Building Specific Charges, and Building Specific Amortized Capital Charge, if applicable.
GSA Fee: The OA Tool calculates all components of the fee: Property Management, PARS acquisition, and Indemnification. It also amortizes the PARS component to determine an annual square-foot cost, which is captured on the financial summary page.
Menu of Services: The OA Tool features a menu of GSA-provided services. For those services selected, it automatically calculates the associated costs and identifies them on the OA financial summary page.
Contact List: The OA Tool features the capability of recording contacts associated with the development of the OA.
OA Clauses: The OA Tool database contains the master template of standard, optional and agency-specific clauses. The user has the ability to select the appropriate clauses, as well as create ad-hoc clauses when developing the OA document.
Financial Summary Page: The OA Tool provides an advanced look at a tenant agency's financial obligation to GSA. This summary identifies the rental rate, consisting of the shell and tenant improvement rates, as well as operating costs. Security charges, parking and management fees are also identified separately.
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As each version of the OA Tool is released, a team of trainers will be sent to each region to instruct the individual specialists on the use of the software. An OA Tool Desk Guide has been prepared since the screens have been finalized in Version 2.
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between
INTERNAL REVENUE SERVICE
and
GENERAL SERVICES ADMINISTRATION
INTERNAL REVENUE SERVICE will occupy 10,000 usable (11,500 rentable) square feet of space and 5 structured and 15 surface parking spaces in the (building to be determined), for a period of 120 months commencing on or about 4/1/98.
The INTERNAL REVENUE SERVICE will pay the General Services Administration rent in accordance with the attached page(s). The rental will be adjusted annually for operating cost and real estate tax escalations in accordance with the provisions in the FPMR.
INTERNAL REVENUE SERVICE will pay the General Services Administration additional rent for prorated share of joint use space associated with this location, if any.
Additional/reduced services are shown on the attached Occupancy Agreement Financial Summary.
Additional Clauses:
Due to future plans within (building to be determined), INTERNAL REVENUE SERVICE does not have the right to renew this Occupancy Agreement at the expiration of the term. INTERNAL REVENUE SERVICE will be responsible for all relocation costs upon expiration of the occupancy agreement
Tenant Specific Clauses: None
Ad Hoc Clauses: None
I agree to the initial terms with the understanding modifications will be made over time.
Approved:
___________________________________
Agency Representative Title Date
Approved:
___________________________________
GSA Representative Title Date
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Occupancy Agreement Financial Summary
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Last Modified: December 18, 2007