Review of NASA's Solicitation for the Leasing of Office Space in the Houston, Texas, Area

A review was conducted of a National Aeronautics and Space Administration (NASA) request for proposal (RFP) for leasing of office space near the Johnson Space Center for use by an agency of the Department of Agriculture. Observations concerned the conditions and requirements placed on prospective lessors by the RFP, including the length of the proposal, the inflexibility of Government standard forms, and the requirement to bid a firm price for a basic term of 1 year with four successive 1-year renewal options and expansion options. A concern was the Government's failure to allow escalator clauses. The RFP incorporated standard forms and schedules used by the General Services Administration (GSA). GSA routinely obtains office space for 3-year and 5-year terms at firm prices. The terms of this solicitation reflect funding constraints and uncertain future needs, and quotes received by NASA were within the range received by GSA in a market survey. A panel working on proposed changes in GSA leasing procedures tentatively recommended that there should be an annual escalator provision and that forms should be simplified.