(a) Scope of work. Prepare a scope of work for each alteration project.
(b) Independent Government estimate. Obtain an independent Government estimate for each alteration project, including changes to existing alteration agreements with the lessor.
(c) Request for proposal.
(1) Provide the scope of work to the lessor, including any plans and specifications, and request a proposal. Indicate in the request for proposal if the Government will make progress payments and provide for retainage, when appropriate.
(2) Request sufficient cost or price information to permit a price analysis.
(d) Audits. If you require cost or pricing data and the alteration project will exceed $500,000, request an audit.
(e) Proposal evaluation.
(1) Determine if the proposal meets the Government’s requirements.
(2) Analyze price or cost. At a minimum, compare the proposed cost to the independent estimate and, if applicable, any audit received.
(3) Analyze profit following FAR 15.404-4.
(4) Document your analysis under this paragraph and the resulting negotiation objectives.
(f) Price negotiations.
(1) Exercise sound judgment. You may make reasonable compromises as necessary.
(2) The negotiated price should provide the lessor with the greatest incentive for efficient and economical performance.
(3) Document negotiations in the contract file.
(g) Award. Use GSA Form 276, Supplemental Lease Agreement. If the modification does not exceed the simplified acquisition threshold, you may use GSA Form 300, Order for Supplies or Services. Reference the lease on the form.
(h) Inspection and payment. Do not make final payment for alterations until the work is:
(1) Inspected by a qualified Government employee or independent Government contractor.
(2) Confirmed as completed in a satisfactory manner.
