[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR102-85.140]

[Page 294]
 
           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. 102-85.140  How are changes in Rent reflected in OAs?

    (a) If Rent changes in ways that are identified in the OA, then no 
change to the OA is required. Typically, OAs state that certain 
components of Rent are subject to annual escalation; e.g., operating 
expenses, real estate taxes, parking charges, the basic security charge, 
and building-specific security operating and amortized capital expenses 
which do not entail a change in service level. Also, in Federally-owned 
space, OAs state that the shell rent is re-marked to market every five 
years. In leased space, the OA will identify any programmed changes in 
the lease contract rent (such as pre-set increases or steps in the 
contract rent rate) that will translate into a change in the customer 
agency's Rent. Changes in Rent specified in OAs will serve as notice to 
agencies of future Rent changes for budgeting purposes. For a discussion 
of budgeting for Rent, see Sec. 102-85.160.
    (b) Changes to Rent other than those identified in paragraph (a) of 
this section typically require an amended OA. There are many events that 
might occasion a change in Rent, and an amended OA, such as:
    (1) An agency expands or contracts at an existing location;
    (2) PBS agrees to fund additional tenant improvements that are then 
amortized over the remaining OA term, or over an extended OA term;
    (3) Upon physical re-measurement, the true square footage of the 
space assignment is found to be different from the square footage of 
record;
    (4) The amount of joint use space in the building changes;
    (5) The level of building-specific security services changes; or
    (6) PBS undertakes new capital expenditures for new or enhanced 
security countermeasures.