1. (a) Request. Requests for allocation, relinquishment, or modification of space in state-leased and owned facilities under the commission's control shall be made in writing to the commission's director of Facilities Construction and Space Management Division by the agency head or designee of the requesting agency in accordance with Title 1, TAC, Chapter 122, §122.2 of this title (relating to Requests for Allocation, Modification, or Relinquishment of Space in State-Leased or Owned Facilities Under the Commission's Control). Request should be made sufficiently in advance of the desired occupancy date to allow for the procurement of required facilities.
2. (b) Emergency Lease. In certain cases, the commission may advise that it may enter into an emergency lease. In making this determination and in establishing the term of the emergency lease, the commission shall consider the amount and type of space required, the market conditions of the area in which space is needed, the governmental responsibilities of the agency, and the potential impact on the public, and the best interest of the state.
3. (c) Signature. All requests for leased space must be submitted by the requisitioning agency and signed by an authorized official, duly certifying to the availability of funds for the payment of such leased space.

4. (d) Specifications. All requisitions must contain specifications for leased space which shall include but not be limited to information disclosing the following:

   1. (1) the city where the space is to be located;
   2. (2) the type of space required (office, warehouse, laboratory, storage space exceeding 1,000 gross square feet and a combination of those kinds of space);
   3. (3) the minimum number of net usable square feet of space required, setting out separately the specific requirements for work space, and an allowance for interior hallways to effectively utilize this work space. (Please refer to §115.5(d)(5) of this chapter (relating to Leasing from a Private Source) for a description of the evaluation of response to this requirement);
   4. (4) the term of the lease up to a maximum of 10 years. (Please note that Texas Government Code, Title 10, Chapter 2167, §2167.055(c) permits the consideration of an option to renew for additional terms not to exceed 10 years each, as may be considered by the commission in the state's best interests; and the requisition should note, in the area provided, the length of the initial occupancy period requested by the agency); as well as number and length of renewal periods requested (to be by mutual agreement between lessee and lessor unless otherwise requested).
   5. (5) the commission may include in all specifications for space exceeding a two-year initial term, a provision requiring a separate bid price for utility and/or janitorial cost (if an Invitation for Bid establishes that payment for either utility costs and/or janitorial costs) and may allow an escalation clause to be included in the terms and conditions of the lease to cover periodic escalation of full rental costs of the lease, including utility and/or janitorial costs (if applicable) on account of increases in property values, tax and operating expenses, rental rates, labor or wage rates, and/or utility rates. (The rate of the allowable consumer price index escalation is based upon Lessor's responsibility to pay utility and/or janitorial cost, if any.)
   6. (6) if the commission considers it advisable, it may include an option for the commission to purchase the space subject to the legislature's appropriation of funds for the purchase, and such an option shall show the amount that would be accumulated by the state and credited toward the purchase at various periods during the term of the lease, if any, and the purchase price of the property at the beginning of each fiscal biennium during the term of the lease;

   7. (7) the requesting agency shall submit specification requirements concerning location which describe an area not less than the recognized limits of an incorporated city, town, or village, unless the requesting agency:

      1. (A) provides sufficient justification (as determined by the commission) in its requisition to the commission that a restricted area defined by zip code(s) is desired to carry out its responsibilities. In approving such a specification request, the commission shall consider the degree of competition within the described area and requesting agency's reasoning in justifying such a request, and may add to the requested area another zip code or codes, or parts thereof, which are contiguous to the requested area, in order to obtain adequate competition. Unless specifically permitted by the commission, all restricted areas requested must be defined by zip code(s), and in all cases, the requesting agency must provide a current applicable city map outlining the boundaries requested along with the requisition;

         1. (i) once a specification describing location by reference to zip codes, or parts thereof, has been approved by the commission, invitations for bid may be sent to bidders having those zip codes on file with the commission and to any additional potential bidders referenced in the agency request;
         2. (ii) only bids for buildings lying within the area circumscribed by the specification shall be accepted for evaluation; or
      2. (B) provides detailed, written justification to the commission that a more restricted area than that defined in subparagraph (A) of this paragraph is necessary to the effective performance of its essential functions and purposes. In considering such a restrictive specification, the commission shall make every effort to insure that adequate competition is available whenever possible.
   8. (8) as required by Texas Government Code, Title 10, Subtitle D, Chapter 2167, Subchapter C, the requesting agency must certify to the availability of funds appropriated by the legislature to cover all costs of the proposed lease.
   9. (9) Development of needed specifications for submission to the commission should be handled by the requesting agency with the help of the commission, if possible. In no event should the requesting agency allow a prospective bidder to develop or improperly influence the written specifications. Evidence of any such cooperative effort which has the effect of eliminating effective competition and which results in the bidder receiving a lease from the state shall be grounds for seeking to void the lease, removal of the bidder from the bidders' list, and any other remedy available to the state. The commission shall alter or reject any specification it considers unduly restrictive. (See §115.1 of this chapter (relating to Definitions.))
   10. (10) The agency shall estimate its anticipated moving costs from its present leased quarters, if any. Such an estimate shall include only the actual, out-of-pocket cost of moving, relocation of communication equipment and loss of time expenses.

Source Note:The provisions of this §115.3 adopted to be effective November 21, 1999, 24 TexReg 10034.