[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR102-85.155]

[Page 289]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
               CHAPTER 102--FEDERAL MANAGEMENT REGULATION
 
PART 102-85--PRICING POLICY FOR OCCUPANCY IN GSA SPACE--Table of Contents
 
                         Subpart D--Rent Charges
 
Sec. 102-85.155  What does a customer agency do if it does not agree with a 
Rent bill?

    (a) If a customer agency does not agree with the way GSA has 
determined its Rent obligation (e.g., the agency does not agree with 
GSA's space classification, appraised Rent, or the allocation of space), 
the agency may appeal its Rent bill to GSA.
    (b) GSA will not increase or otherwise change Rent for any 
assignment, except as agreed in an OA, in the case of errors, or when 
the OA is amended. However, customer agencies may at any time request a 
regional review of the measurement, classification, service levels 
provided, or charges assessed that pertain to the space assignment 
without resorting to formal procedures. Such requests do not constitute 
appeals and should be directed to the appropriate GSA Regional 
Administrator.
    (c) If a customer agency still wants to pursue a formal appeal of 
Rent charges, they may do so, but with the following limitations:
    (1) Terms, including rates, to which the parties agree in an OA are 
not appealable;
    (2) In leased space, the contract rent passed through from the 
underlying lease cannot be appealed;
    (3) In GSA-owned space, when the fully-serviced shell Rent is 
established through appraisal, the appraised rate must exceed comparable 
commercial square foot rates by 20 percent. When shell Rent in owned 
space is established on the basis of ROI at the inception of an OA, and 
the customer agency executes the OA, then the ROI rate cannot later be 
appealed. Other components of Rent that are established on the basis of 
actual cost--eg., amortization of TIs and building specific security 
charges--also cannot be appealed.
    (4) Additionally, the customer agency is required to compare its 
assigned space with other space in the surrounding community that:
    (i) Is available in similar size block of space in a comparable 
location;
    (ii) Is comparable in quality to the space provided by GSA;
    (iii) Provides similar service levels as part of the charges;
    (iv) Contains similar contractual terms, conditions, and escalations 
clauses; and
    (v) Represents a lease transaction completed at a similar point in 
time.
    (5) Data from at least three comparable locations will be necessary 
to demonstrate a market trend sufficient to warrant revising an 
appraised Rent charge.
    (d) A customer agency filing an appeal for a particular location or 
building must develop documentation supporting the appeal and file the 
appeal with the appropriate Regional Administrator. The GSA regional 
office will verify all pertinent information and documentation 
supporting the appeal. The GSA Regional Administrator will accept or 
deny the appeal and will notify the appealing agency of his or her 
ruling.
    (e) A further appeal may be filed by the customer agency's 
headquarters level officials with the Commissioner, Public Buildings 
Service, if equitable resolution has not been obtained from the initial 
appeal. A head of a customer agency may further appeal to the 
Administrator of the General Services. Documentation of the procedures 
followed for prior resolution must accompany an appeal to the 
Administrator. Decisions made by the Administrator are final.
    (f) Adjustments of Rent resulting from reviews and appeals will be 
effective in the month that the agency submitted a properly documented 
appeal. Adjustments in Rent made under this section remain in effect for 
the remainder of the 5-year period in which the charges cited in the OA 
were applicable.