The Department of Central Services is statutorily charged with the responsibility for assigning all space in state owned and non-state owned facilities, authorizing the amount of space to be acquired by state agencies, and executing all leasing contracts on behalf of state agencies. The Director of the Department of Central Services has delegated these responsibilities to the State Leasing Office.

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What services does the State Leasing Office provide to agencies?

The State Leasing Office provides general assistance to state agencies in all aspects of the acquisition of real property, to include such areas as guidance or preparation of various leasing forms, negotiations with property owners, and space planning. Further, all leasing contracts are awarded to vendors by the State Leasing Office.

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How can a leasing form be obtained?

Go to State Leasing on the Department of Central Services Website, then to State Leasing Forms.

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What is the first step to lease any type of new or additional space (office, warehouse, storage, hangar, group home, etc.)?

The agency must submit a Space Request (DCS/LEASING - FORM 189-A) to the State Leasing Office. [NOTE: An agency is restricted from looking for space until the square footage authorization has been made by DCS.]

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Can an agency lease space without going through DCS if the annual rent will be less than $25,000 per year?

No. The Department of Central Services must authorize all leases for space, regardless of size and dollar value. Leasing of real property is not under the Central Purchasing Act, therefore Central Purchasing procedures and dollar limits are not applicable.

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Can an agency locate new space, and then submit a Space Request?

No. A Space Request must be approved by DCS prior to an agency seeking new space. Ref: OAC 580-60-1-6.

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How much space is an agency allocated?

Generally, the base formula for space allocation to an agency is 150 square feet per FTE. For special space needs (e.g. conference room, file cabinets, storage, etc.), additional square footage may be allocated if the space meets the criteria defined in OAC 580:60-1-4(d).

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How much space is allocated to each employee?

Although the agency is authorized 150 square feet per FTE, the square footage is an entitlement to the agency. An individual is not entitled to a specific amount of square footage.

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Does the agency get additional square footage if it needs/wants private offices?

No additional square footage is allowed for the purpose of providing for private office space. Further, no private office within the total amount of space allowable to the agency can exceed 300 square feet.

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When is an agency required to advertise for new space?

If the agency is authorized space that exceeds 2,500 square feet, advertisement is mandatory. Advertising may also be required if DCS determines it would be in the best interest of the agency for spaces less than 2,500 square feet. The agency will be advised of this requirement.

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Can the agency use a broker to locate space?

No. After the agency is authorized by DCS to obtain new/additional space, the agency can deal only with a building owner, building manager, or primary listing broker of a property. Ref: OAC 580:60-1-6 (b).

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What is the rental ceiling?

The ceiling established by DCS is the maximum rental consideration to be made for non-state owned facilities. It is not to be interpreted as the standard rate, only as the maximum annual rate per square foot. Until further notice, the Department of Central Services’ statewide rental ceiling shall be based on the following:

Full service lease: (includes all utilities and 5 day per week janitorial services): The rental ceiling will be reduced by 25 cents per day for each day that the janitorial services provided by the vendor are below 5 days per week. (maximum deduction of $1.25/SF)

Net lease: (excludes utilities and/or janitorial services 5 days per week): The cost to the agency for utilities not provided in the lease rate must be added to the base rental rate to determine the total rental expenses for the space. The rental ceiling will also be reduced by 25 cents per day for each day that the janitorial services are below the 5-day per week standard (maximum deduction of $1.25/per SF). If the total cost exceeds the rental ceiling, the base rent must be decreased accordingly.

The Director of the Department of Central Services will consider exceptions to the above rental ceiling on a case-by-case basis.

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Can an agency pay to remodel space?

No. The State cannot legally make permanent improvements to private property (e.g. electrical, lighting, etc.). All construction/renovation costs are the responsibility of the property owner. If an agency requires an improvement after initial occupancy, contact the State Leasing Office for guidance.

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Does space have to meet A.D.A. requirements?

Yes, to the degree of compliance determined necessary by the agency. Consult the State Leasing office or your agency ADA officer for guidance.

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Who does the fire inspection and who is responsible for requesting the inspection?

The user agency is responsible for requesting the inspection from the State Fire Marshal or the applicable City Fire Marshal.

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Who does the asbestos inspection and who is responsible for requesting the inspection?

The user agency is responsible for contacting the State Department of Labor to request an inspection.

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Can an agency renew a lease on the same terms and conditions at the end of last option period if the Lessor failed to provide 6-month notification of intent to change the lease?

Refer to the existing Lease Agreement. If it requires such notification, and the Lessor failed to comply, please contact the State Leasing Office for further instruction.

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What documentation is required for a lease renewal?

1. A current Certificate of Insurance. The Certificate Holder should be: Department of Central Services, Attn.: Administrator of State Leasing, PO Box 53187, Oklahoma City, OK, 73152. The Certificate of Insurance can be obtained by the agency directly from the insurance company or the insurance company's contact name and phone number.

2. Certified documentation of Lessor’s payment of current Ad Valorem taxes from the County Treasurer. (Lease term starting after March 31st, documentation of full payment; lease term starting before March 31st, documentation of first ½ of payment). The tax documentation can be obtained by the agency directly from the applicable county treasurer or the agency may require the vendor to provide it.

3. Lease Renewal Agreement (DCS289-D), signed and dated by authorized agency personnel and Lessor.

4. Purchase Order in pending status, with “LSG” as the origin code and a valid budget.

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What happens if the owner wants a rate increase, but an agency still has options to renew?

The owner is legally bound by the terms and conditions of the Lease Agreement and cannot increase the rent until the expiration of the last option year.

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What happens if the owner wants to terminate the lease, but the agency still has options to renew?

A lease is a legally binding contract, therefore the agency is legally entitled to occupy the space until the end of the last option period.

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If the building being leased is sold, what action should be taken?

The agency must use a Change of Lessor Form (DCS/LEASING - FORM 289-F) to make a change in a property ownership. Reference DCS 289-F for instructions and required documentation.

(1) The lease agreement follows the ownership of the building; therefore, the new owner must comply with the terms and conditions of the Lease Agreement;
(2) When property is sold, it will be necessary to initiate a new Purchase Order in pending status, with “LSG” as the origin code.
Reference must be made to the previous PO within the Line Comments, with the following statement: “The State’s purchasing system requires a new Purchase Order when a change of ownership in the property occurs in order to make rental payments to the new vendor. All terms and conditions of PO#____ shall remain in full force and effect. New Purchase Order to cover __________ through ________.” (Note: The dates listed in the term should indicate only the remaining months left on the current contract period for which payments will be made to the new vendor.)

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Can an agency purchase or lease-purchase a building?

An agency must have specific statutory authorization to purchase or lease-purchase real property.

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When can a lease be renewed via a Change Order, versus using a Renewal Lease Agreement?

A Renewal Lease Agreement form will not be required if the following conditions exist:

1. There are any options remaining to renew the existing lease for another year,
and all terms and conditions remain the same unless a change occurred via a legal alteration to the lease which was authorized by DCS.

2. A vendor was required, yet failed, to give the agency 6 months notification of changes to the Lease at the end of the last option period.

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What documentation is required for a renewal lease via Change Order?

1. Existing Purchase Order in pending status showing the Change Order to increase the funding for the new term.
In Line Comments, indicate the option year and contract period as in the following: “Exercising the of options to renew. Contract period for through .”
If the lease is being renewed via a Change Order because the vendor failed to give 6-months notice, use the following:
“Exercising an option to renew in accordance with the terms and conditions of the Lease Agreement. Contract period for ____ through _____.”

2. Verification of payment of current ad valorem taxes on the leased property. This can be obtained by the agency directly from the applicable County Treasurer’s office, or the agency may require the property owner to obtain this documentation.

3. Current Certificate of Insurance. The Certificate Holder should be: Department of Central Services, Attn: Administrator of State Leasing, PO Box 53187, Oklahoma City, OK, 73152. The Certificate of Insurance can be obtained by the agency directly from the insurance company or the agency may require the vendor to provide it. Refer to the current Certificate for the insurance company’s contact and name and phone number.

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Last Modified on 11/02/2011