(a) Acquire alterations through a modification to an existing lease if you meet all the following conditions:
(1) The alterations fall in the general scope of the lease. Consider whether the work can be regarded as fairly and reasonably an inseparable part of the lease requirement originally contracted for.
(2) The lessor is willing to perform the proposed alterations at a fair and reasonable price.
(3) It is in the Government’s interest to acquire the alterations from the lessor.
(b) If proposed alterations are outside the general scope of the existing lease, decide whether to acquire the alterations through either:
(1) A supplemental lease agreement, justified and approved under 570.502-1.
(2) Government performance or a separate contract. The lease must first provide the Government with the right to perform alterations to the leased space.
