Business Office

Affiliated departments and school


Procurement Act

Effective July 1, 2003 - Threshold Amounts Effective July 1, 2010

Leases of Real Property

Requirements

Leases for real property must be awarded based on a Request for Information process except in any of the following circumstances: 1) if the property is less than 10,000 square feet, 2) rent is less than $100,000 per year, 3) duration of lease is less than one year and cannot be renewed, 4) specialized space available at only one location, 5) renewal or extension of a lease in effect prior to July 1, 1998 and a written determination by the Chief Procurement Officer that the renewal or extension is beneficial is submitted to the Procurement Policy Board and no objection is received within 30 days.

Notice of Request for Information for a real property lease must be advertised in an electronic Procurement Bulletin and a general circulation community newspaper for at least 14 days.

With certain limited exceptions, the term of a lease for real property cannot exceed 10 years and must include a termination option in favor of the University after no more than 5 years.

Leases must include a termination clause that provides for cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.

Department Considerations

If a Request for Information must be used for the intended lease of real property, the Department must include along with its request (Requisition/EOS Request) the following information: 1) type of property to be leased, 2) proposed uses of the property, 3) duration of the lease, 4) preferred location of the property, and 5) general description of the configuration desired.

Department should be aware that failure to provide sufficient information with the purchase request will result in additional delay in handling the transaction while the necessary information is being gathered.

If the lowest qualified respondent by price is not selected, the Department must provide a letter explaining the rationale for not selecting the lower priced bidder(s) in consideration of the fact that a summary of such explanation must be published in an electronic Procurement Bulletin.

All units must contact University Office of Capital Programs and Real Estate Services (UOCP & RES) before initiating any real property lease.



University of Illinois at Urbana-Champaign
Business Office
School of Chemical Sciences
340 Noyes Lab
MC-712 Box D-3
600 South Mathews Ave.
Urbana, IL 61801
Hours:
Monday thru Friday
8:00 a.m. to 4:30 p.m.
Please send comments and suggestions to:
scs-procreimb [at] scs [dot] illinois [dot] edu


For accounting and grants questions, contact
scsgrants [at] scs [dot] illinois [dot] edu