ARO Broker SOW (DRAFT 12_19_2025).pdf

U.S. Securities and Exchange Commission Office of Building Operations

Construction and Leasing Branch Tenant Representation Lease Broker Services

C-1 BACKGROUND

a. The mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors, maintain fair and orderly, and efficient markets, and facilitate capital formation. The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. The Construction and Leasing Branch, Office of Security and Building Operations, is responsible for SEC lease acquisition and administration to house the activities supporting the SEC’s mission.

b. Per the Memorandum of Understanding (MOU) between the General Services Administration (GSA) and the SEC effective August 1, 2011, unless otherwise agreed, GSA performs lease acquisition services and administers all new SEC Leases on behalf of the SEC after the MOU effective date. SEC remains responsible for administration of current SEC leases, including any necessary extensions of current SEC leases. As part of this process, the SEC may require short-term extensions of remaining SEC leases.

C-2 REQUIREMENT

a. The Securities and Exchange Commission (SEC) may require Broker Service representation to extend its current Atlanta Regional Office (ARO) lease located at 950 East Paces Ferry Road NE, Atlanta, GA with a lease expiration date of 11/21/2026.

b. The General Services Administration (GSA) will undertake a lease procurement action on behalf of the SEC, for the SEC’s ARO regional office space requirement, following expiration of the current lease. As the existing lease contract expires in less than one year, GSA has advised the SEC that a lease extension of current SEC lease for ARO would be necessary, and in the best interest of the Government, to avoid a lapse of the current lease contract, thereby averting a holdover situation at that location.

c. GSA will prepare a schedule with an anticipated lease commencement or occupancy date for the SEC’s replacement ARO lease. Based upon GSA’s plans and schedule for this requirement, the SEC will require a lease extension for its current ARO lease, which must align with GSA’s schedule. The SEC will provide any applicable schedules, and schedule changes to the Contractor as may become readily available.

C-3 SCOPE

a. Broker Contractor will be responsible for negotiating a fair market lease extension rate and terms for the current ARO Lease. The SEC’s goal is to retain the existing terms and conditions of the lease to the maximum extent.

b. The lease extension SLA (Supplemental Lease Agreement) shall include a term of up to 5 years, unless a replacement lease with the incumbent lessor is secured sooner.

c. Contractor shall rely on its past experience and real estate expertise to provide SEC with various options and strategies for obtaining the best lease extension rate and terms. Contractor shall maximize efficiency and economies gained by conducting the GSA new long-term lease requirement in performing services under this SEC lease extension requirement to include avoiding potentially conflicting broker views of SEC requirements being expressed to the market by GSA and the SEC.

d. Prior to commencing work, Contractor shall conduct a project kick-off meeting with the SEC COR and designated SEC project team to confirm the lease extension requirements.

e. Contractor shall provide market comparables to the SEC to enable the SEC to determine if the negotiated extension rate is in line with recently negotiated lease extension rates or is otherwise fair and reasonable. Such market comps shall include, but not be limited to, rental rates per BOMA (Building Owners Management Association) usable square foot for comparable space in the market, adjusted as necessary; evaluation of Lessor’s building operating expenses;

and comparison to cost of services included in the existing rental. In addition, subject to SEC approval, the Contractor shall provide the SEC with negotiation objectives prior to commencing Lease negotiations with Lessor.

f. The Contractor shall initiate and conduct negotiation of lease terms with the Lessor. The SEC Contracting Officer or other SEC representatives shall be present at all Lease negotiations between Contractor and Lessor either in person or via conference call. The Contractor shall provide to the COR a written record of all lease discussions and negotiations. Documentation provided is to include mathematical calculations supporting the final commission, commission credit, rental rate, and other results of all discussions.

g. The Contractor will be responsible for drafting and submitting to the COR in both Microsoft Word softcopy and hard copy form a Supplemental Lease Agreement (SLA) to document the agreed upon terms and rates for the lease extension for SEC’s review and signature. The Contractor shall incorporate SEC’s comments and shall obtain COR written approval of the SLA prior to sending the documents to Lessor for review and signature.

C-4 PROJECT SCHEDULE

Contractor shall deliver to the SEC Contracting Officer’s Representative (COR) a soft copy of the project schedule in Microsoft Office Format not later than 20 working days after contract award. The SEC will provide any GSA procurement schedule changes to the Contractor as it becomes readily available to the COR. The Contractor shall be responsible for updating and electronically distributing the updated project schedule to the COR when there are significant changes and minimally on a monthly basis.

C-5 PERIOD OF PERFORMANCE:

The period of performance shall begin at Contract award and end upon the Government’s execution of the Atlanta Regional Office lease extension SLA.

C-6 COMPENSATION

a. Where the Contractor would be entitled by common business practice to receive a real estate commission or any form of payment from a Broker, Lessor, or other party, for work performed under this Contract, the Contractor shall negotiate the commission, with the Broker, Lessor, or other party via separate agreement to which the SEC will not be a party. The SEC shall not be responsible for the payment of commissions due the Contractor should the Broker, Lessor, or other party fail to properly pay the commission. In addition, the Contractor shall agree to forego a percentage of any commission that it is entitled to receive in connection with the lease extension. This amount shall be specifically set forth within the Contract and Supplemental Lease Agreement. The resulting total dollar value of the foregone commission (the Commission Credit) shall be applied in equal monthly amounts against rental payments due under the terms of the lease extension or as the SEC may direct.

b. In order to implement contractor compensation, a baseline contract value for the lease extension(s) will be established and set forth in the Contract to include an incentivized commission sliding scale.