Pricing Policy Clarifications/Modifications FY 04
Pricing Desk Guide Companion Document
October 1, 2004
Summary of Changes
The Pricing Desk Guide Companion Document is deleted in its entirety with no replacement issued. This document is being deleted because it is out of date.
How Does this Impact You?
GSA’s Pricing Policy is contained in the 3rd Edition of the Pricing Desk Guide, supplemented by Pricing Policy Clarifications and Modifications.
Operating Costs & Extra Services
August 16, 2004
Summary of changes
This policy clarification replaces Pricing Desk Guide Section 3.2.3 on Operating Costs and Section 3.2.7 on Extra Services in their entirety. The clarification addresses standard and above standard building services including utilities, maintenance and daytime or after hours janitorial service, and billing options available for above standard services.
How does this impact you?
Standard services are included in Rent. Above standard services are reimbursable expenses. Customers may not pay for above standard services with their Rent account (OMB Object Class 23.1)
Click on the following link to access Clarification #15
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Antenna Site Pricing
August 16, 2004
Summary of changes
This policy clarification replaces Pricing Desk Guide Section 7.5 in its entirety.
The clarification was initiated based on the results of the Antenna Pricing Study commissioned by the Office of Real Property Asset Management. The majority of antenna sites used by federal agencies/contractors on government owned property will be priced based on the Antenna Pricing Study. Antenna charges set by the study will be escalated annually at the beginning of the fiscal year using the OMB inflation factor. Antenna charges may be determined by appraisal in those cases where market rent is estimated to exceed the established annual charge by 50% or more.
How does this impact you?
The fiscal year 2005 antenna charge for owned property, determined by the study, is $1,500 per device or $125 per month. In a few markets nationwide, antenna charges may be set based on an appraisal. The appropriate GSA Regional Office can provide information on antenna charges set based on an appraisal.
Click on the following link to access Pricing Policy Clarification #14
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Application of the Tenant Improvement Allowances
August 16, 2004
Summary of changes
This policy modification replaces Pricing Desk Guide Sections 2.3.3 and 2.3.5 in their entirety. In addition, the policy modification incorporates and replaces pricing policy clarification #9 on Office Hoteling Leases.
The policy modification addresses methods available to set the tenant improvement allowance, changing or appealing an agency customization tier, when GSA provides a tenant improvement allowance and provides guidance on implementation of OMB Circular A-11, Appendix B.
How does this impact you?
The policy modification addresses when you should expect a tenant improvement allowance and when a Reimbursable Work Authorization (RWA) will be require for build-out of tenant improvements.
The policy modification explains the impact of OMB Circular A-11, Appendix B on agency’s ability to amortize inherently governmental tenant improvements in Rent. Inherently governmental tenant improvements are features or enhancements that are built or added for the government’s unique needs or special purposes. They must be funded via RWA. OMB Circular A-11, Appendix B will have the most pronounced impact on law enforcement agencies.
Click on the following link to access Policy Modification #13
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Rent Appeals
July 12, 2004
Summary of changes
This policy clarification replaces Pricing Desk Guide Section 6.3 in its entirety. The clarification explains the informal and formal appeal process for government owned and leased space. The clarification defines what Rent may be appealed in government owned and leased space, under what conditions an appeal may be filed and what support is necessary to demonstrate that the market rental value differs from the assessed charge.
How does this impact you?
Outlines customers right to appeal Rent charges established by GSA in owned and leased space.
Click on the following link to access Policy Clarification #12
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Return on Investment Pricing
June 21, 2004
Summary of changes
The ROI pricing policy modification replaces Pricing Desk Guide Section 7.2 in its entirety. ROI pricing is a secondary means of pricing space in the PBS-owned inventory. ROI pricing allows PBS to recover its capital investment in property where it is infeasible to appraise the Fair Annual Rental because there are no market comparables or the appraisal generated rate does not provide for Rent that meets PBS’s minimum return objectives.
ROI Pricing is most often used for new construction or substantial building renovation projects. The Office of Management and Budget (OMB) has granted GSA new authority, under certain circumstances, to convert existing property from appraisal based to ROI pricing.
How does this impact you?
The shell rental rate for ROI priced buildings is fixed for the term of the OA. Your OA will indicate if the building is priced based on ROI. All Border Stations are priced by ROI pricing and a few courthouses nationwide. ROI pricing is not applicable to leased space. General use federal buildings are typically not priced by ROI.
Click on the following link to access Policy Modification #11
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Federal and Leased Standard OA Clause 2e
October 1, 2003
Summary of changes
The policy on rent commencement is clarified in Federal and Leased Standard OA Clause 2E. For Rent to commence, the space must be substantially complete in accordance with the general construction contract documents and operationally functional. Operationally functional means that the building systems included in the general construction contract must function and GSA-provided building-specific safety and security features must be operational. Related space that is necessary for a Tenant to function due to workflow adjacencies must be complete before Rent commences.
How does this impact you?
The Standard OA Clause that addresses Rent commencement outlines when the tenant’s obligation to pay rent for space governed by the OA commences.
Click on the following link to access Policy Clarification #10
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Last Reviewed 12/23/2008