Procurement and Management of Leased Real Property

PURPOSE: This rule establishes the Office of Administration as the agency of authority and responsibility for procuring and managing leased real property, and establishes uniform procedures for procuring and managing leased real property. (1) As used in this regulation— (A) “Agency” means any organizational unit of state government, with the exception of the General Assembly, elected officials, the judiciary, Missouri Department of Conversation, Missouri Department of Transportation, institutions of higher education, and bodies corporate and politic; (B) “Leased premises” means the property being or to be leased; (C) “Lessor” means the landlord, owner, or agent of the owner of the leased premises; (D) “Lessee” means the state of Missouri; (E) “Tenant/using agency” means the organizational unit of state government which occupies the leased premises; (F) “Premises” means all land, buildings, and equipment furnished as part of the property leased to the state; (G) “Request for Proposal (RFP)” means a document describing the particular specifications the facility must comply with and the terms and conditions of the contract; and (H) “Lease” means the documents formalizing and binding the lessor and the lessee. Contract documents include the signed request for proposal, any amendments thereto, and the countersigned award page. (2) The Commissioner of Administration is the exclusive representative of the state of Missouri in all real estate leasing transactions except as otherwise provided in this chapter. Neither the tenant/using agency nor any individual, organization or group, other than the Commissioner of Administration, shall have authority to obligate the state of Missouri in real estate leasing transactions in any form. (3) The tenant/using agency has primary responsibility for managing the day-to-day operation of the leased premises, but has no authority to waive or modify provisions of the bid specifications or the terms and conditions of the lease. The tenant/using agency shall provide the Commissioner of Administration with written documentation of any problems, complaints, or concerns that are contrary to the terms and conditions of the lease. (4) The Commissioner of Administration may establish and maintain written guidelines to implement these regulations governing the leasing of real property. The guidelines may include, but not be limited to: (A) Procedures and documents for identifying the amount and type of real property needed; (B) Procedures and documents for procuring leased premises; and (C) Procedures and documents for administering the contracts. (5) All acquisitions of leased property, including both newly executed leases and the extensions of existing leases after all renewal options have expired, will be procured through competitive proposals, unless the Commissioner of Administration deems it to be in the best interest of the state to negotiate a particular procurement. (6) For each lease, the Commissioner of Administration, in conjunction with the tenant/using agency, may develop a Request for Proposal (RFP) for the property to be acquired. (7) The Commissioner of Administration may suspend from bidding on state leases any individual or organization who— (A) Materially fails to comply with the provisions of an award from the state or a lease agreement with the state; (B) Submits false or misleading information in response to an RFP; (C) Takes actions that are intended to inhibit or prevent the operation of an open, competitive bid or proposal process; or (D) Acts in a manner contrary to sound or ethical business practice, or in a manner deemed by the Commissioner of Administration to be detrimental to state leasing practice. (8) The Commissioner of Administration may require any bidder/lessor to submit a surety document payable to the state of Missouri to insure compliance with the RFP and/or lease. (9) The Commissioner of Administration will conduct an evaluation of all proposals in accordance with the RFP, if applicable. (10) The decision to award a lease to a lessor will be based upon the lowest and best proposal received in accordance with the terms of the RFP, if applicable. (A) No individual, agency, or organization other than the Commissioner of Administration may obligate the state of Missouri in the procurement of leased real property. (B) The Commissioner of Administration reserves the right to reject any and all proposals, and may waive any minor informality or irregularity in a proposal. (C) The lessor will be required to comply with all terms and conditions stipulated in the proposal as accepted. (11) The Commissioner of Administration may require the successful bidder/lessor to submit specified documents detailing any renovation and/or construction that is to occur on the premises to insure compliance with the proposal. (12) The Commissioner of Administration may signify that the documents for major construction projects or renovations have FACILITIES MANAGEMENT been reviewed and accepted by issuing a notice to proceed to the successful bidder/lessor. (13) In order for any lease of real property to obligate the state of Missouri, the lease must be signed by the Commissioner of Administration or the director of the Division of Facilities Management, Design and Construction, or one of their designees. (14) The rights and obligations of the lessor and the lessee will be as specified in the lease. (15) The tenant/using agency will be responsible for the day-today operations of the rental facility. (16) The Commissioner of Administration has the authority to make a one- (1-) time lump-sum payment to a lessor for improvements to a leased facility under the following conditions: (A) The improvements would provide a direct benefit to the operations of the state’s programs but are not covered by the lease, such as maintenance, upkeep, or repair of the facility; (B) The amount paid by the Commissioner of Administration for the construction of the improvements is no more than the reasonable cost to construct the improvements; and (C) The remaining term of the lease, including the lessee’s options to renew, exceeds twelve (12) months. A one (1)-time payment may only be made in the last one- (1-) year renewal period of a lease if necessary to meet unforeseen changes in program requirements. (17) Monies to fund all payments due under lease agreements are appropriated annually by the Missouri General Assembly for one (1) fiscal year beginning July 1. No lease shall be binding on the lessee unless and until appropriations have been made by the Missouri General Assembly and, if applicable, funds have been received from the United States government for any payment therefor. This limitation applies to any fiscal year during the initial period and all renewal periods. (18) All leases entered into by the Office of Administration will prohibit carrying a firearm or other weapon readily capable of lethal use into the leased premises, subject to the exceptions set forth in 1 CSR 35-1.050. AUTHORITY: sections 8.110 and 8.320, RSMo 2016, and sections 34.030 and 37.005, RSMo Supp. 2017.* Original rule filed April 15, 1998, effective Nov. 30, 1998. Emergency amendment filed Oct. 9, 2003, effective Oct. 19, 2003, expired April 15, 2004. Amended: Filed Oct. 9, 2003, effective April 30, 2004. Amended: Filed Oct. 27, 2005, effective April 30, 2006. Amended: Filed Nov. 30, 2018, effective July 30, 2019. *Original authority: 8.110, RSMo 1939, amended 1949, 1957, 1965, 1995, 2007, 2014; 8.320, RSMo 1958, amended 1965, 2014; 34.030, RSMo 1939, amended 1945, 2017; and 37.005, RSMo 1973, amended 1983, 1986, 1987, 1991, 1996, 1997, 2006, 2008, 2010, 2011, 2012, 2017.