[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: 41CFR102-85.200]

[Page 291]
 
           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 G--Continued Occupancy, Relocation and Forced Moves
 
Sec. 102-85.200  Can customer agencies continue occupancy of space or 
must they relocate at the end of an OA?


    The answer is contingent upon whether the customer agency is in 
Federally owned or leased space.
    (a) Unless stated otherwise in the OA, a customer agency within a 
GSA controlled, Federally owned building has automatic occupancy rights 
at the end of the OA term for occupied space. However, a new OA must be 
negotiated.
    (b) In leased space, the OA generally reflects the provisions of the 
underlying lease and will specify whether or not renewal options are 
available. If the OA does not include a renewal option, customer 
agencies should assume relocation would be necessary upon OA expiration, 
and budget for it. Further, renewal options are not, in themselves, a 
guarantee of continued occupancy at that location. In some cases, the 
renewal rate is substantially above market or the option was not part of 
the initial price evaluation for the occupancy. In such cases, GSA may 
be required to run a competition for the replacement lease, and a 
relocation may ensue. Nonetheless, it is also possible that GSA may 
execute a succeeding lease with the incumbent lessor, in which case 
there is no move.
    (c) GSA and customer agencies should initiate discussions at least 
18-20 months in advance of OA expiration to address an action for the 
replacement or continued occupancy of the existing space assignment. 
This allows both agencies time to budget for the work and the cost.