LEASING REAL PROPERTY
Sections
7.03.05 Delegation of Authority
7.03.01
PURPOSE
This subchapter states guidelines for leasing real property.
7.03.02
SCOPE
This subchapter applies to all organizational units at NIST-Gaithersburg
and NIST-Boulder.
7.03.03
REFERENCES
--DAO 217-1, Real Property Management
--DAO 217-7, Space Management and Utilization
--OMB Circular A-104, Cost Analysis for Decision to Lease
--NIST Administrative Manual Subchapter 7.02, Maintenance, Modifications,
and Improvements - Facilities Management
--NIST Administrative Manual Subchapter 7.08, Space Management
--National Energy Conservation Act of 1978, Title V, Part 3, Section
548
--Federal Property Management Regulations (FPMR), Subpart 101-19.6
7.03.04
POLICY
NIST is subject to specific regulations and limitations which include:
a. Subject to advance approvals outlined in Section 7.03.08, the acquisition of real property by lease from private interests may be undertaken only if: (1) it can be justified as being essential for the conduct of new or expanded programs or for increased efficiency or economy of operations; (2) the need cannot be satisfied through better utilization of existing property; and (3) a GSA survey of all federal property available in the same area reveals that no such property will serve the purpose (DAO 217-1).
b. For limitation on the amount that can be spent and the nature of alterations, improvements, and repairs to rented premises, see Subchapter 7.02.
c. Air-conditioning units, electric fans, etc. may not be installed on premises leased by GSA for use by NIST without prior clearance from that agency. The Plant Division will obtain the required clearances.
d. Housing and other community facilities, if required, must be available on a nonsegregated basis in the community.
e. In leasing space, appropriate preference must be given to buildings which use solar heating or cooling equipment or other renewable energy sources (Title V, Part 3, Section 548, National Energy Conservation Act of 1978).
f. Consideration must be given to the requirements of Federal Property Management Regulations (FPMR) Subpart 101-19.6, Accommodations for the Physically Handicapped. NIST ensures, whenever possible, that physically handicapped persons have ready access to and use of leased buildings occupied by the organizational units.
g. The acquisition and utilization of leased space must be accomplished
in accordance with DAO 217-7, Space Management and Utilization, and Subchapter
7.08.
7.03.05
DELEGATION OF AUTHORITY
a. NIST has legislative authority to rent field sites and laboratory,
office, and warehouse space (15 U.S.C. 278e).
b. The Director for Administration and Chief Financial Officer
(DA/CFO) is authorized to approve requests from the organizational units
for the acquisition of leased real property, act on behalf of NIST in securing
leased property, and manage the assignment and utilization of such property.
7.03.06
RESPONSIBILITIES
a. The DA/CFO: (1) ensures that there is a justifiable
basis for the leasing of real property; (2) obtains Department and other
agency approval as required; (3) allocates leased space to and recalls
leased space from major organizational units; and (4) monitors the utilization
of leased space, reallocating or otherwise disposing of such property as
necessary (see Subchapter 7.08).
b. Responsibilities of the organizational units regarding the
utilization of leased space are defined in Subchapter 7.08.
7.03.07
CRITERIA
The following criteria apply in all lease transactions:
a. The Plant Division (at Boulder, the Engineering, Maintenance, Safety, and Support Division) must be consulted on all building technical problems.
b. Before proposing the leasing of property, an appraisal of existing space and facilities will be made by the DA/CFO to determine whether the need can be met through the reassignment of space.
c. The possibility of obtaining suitable rent-free or nominal rent space through state or local governments should be explored.
d. Short-term needs will be met through leasing. If the continued need for property is uncertain, it will be leased for a period long enough to establish whether it will be needed on a continuing basis.
e. If the rental cost for the property based on the projected need will exceed the purchase price, plans should be made for its purchase, bearing in mind that prior Congressional approval must be obtained through the budget process. The Budget cycle will inject approximately an 18-month lead time from the time the decision to buy is made until the funds are appropriated. OMB Circular A-104 prescribes comparative cost analysis to determine whether general purpose real property should be leased or purchased, if construction or market value is $500,000 or more.
f. Under no circumstances should NIST personnel contact a property
owner regarding leasing property unless specific approval of the DA/CFO
has been obtained.
7.03.08
APPROVALS REQUIRED
a. No real property will be leased or purchased without prior
written approval of the DA/CFO. This applies to land or buildings,
private or government, for which a contract or permit for use without charge
is to be negotiated. The DA/CFO will obtain required clearances from
the Department's Office of Administrative Services, which serves as liaison
with GSA.
b. Requests for approval must be made by a memorandum from the OU Director to the DA/CFO stating whether acquisition will be by lease, use permit, or other means and include a sufficient description of the size and location of the property, the purpose for which the property is required, and the anticipated duration of the need. Requests are to be submitted through the Plant Division (at Boulder, through the Engineering, Maintenance, Safety, and Support Division). Standard Form 81, Request for Space, together with a list of personnel by grade and a space layout must accompany the request. The form will be prepared in cooperation with the Plant Division (at Boulder, the Engineering, Maintenance, Safety, and Support Division).
c. A property which is justified for one purpose may not be used subsequently for some other purpose, and the period of occupancy may not be extended beyond the period covered by the initial approval without obtaining prior additional approval from the DA/CFO).
d. The fact that the property may appear as an item in a budget
estimate does not in itself constitute an approval by the DA/CFO and the
foregoing procedure for approval must be followed.
7.03.09
COST ALLOCATION
a. Institute Overhead - All leases of real property that will
be used to conduct NIST programs which would normally be housed in facilities
owned by NIST if the space were available will be charged to Institute
overhead cost centers established for this purpose. Utilities and
communications costs will also be charged to Institute overhead.
b. Direct Funding
(1) If rents and utility costs were budgeted under a specific appropriation, the costs will then be charged to a cost center financed by that appropriation.
(2) Leases of real property for the conduct of specific technical programs will be charged directly to the benefiting program. Utilities, communications, and other costs related to the program being conducted at the site will be charged as a program cost.