Bidding on a Defense Contract? Have Your Real Estate Plan Ready

When preparing a defense contract proposal, companies spend considerable time on staffing, technical capabilities, and pricing. But there is another practical question worth addressing early: Where will your team work if you win?

For contractors entering a new market or expanding to support an award, securing space can create a timing challenge. Signing a lease before the award may mean taking on expenses prematurely. Waiting until afterward can leave little time to find a location, negotiate terms, and prepare for occupancy.

Planning during the proposal stage can help bridge that gap and support the government's assessment of your readiness to perform.

Federal acquisition rules recognize that contractors may need to obtain facilities to fulfill a contract. In explaining the production capability portion of a defense preaward survey, DFARS 253.209-1 expressly includes a contractor's:

"possession of, or the ability to acquire, the necessary facilities, material, equipment, and labor."

That language recognizes the ability to secure appropriate space as part of the assessment, alongside facilities a contractor already has.

At The Mapa Group, contractors have asked us to prepare letters they can include with their proposals to help demonstrate that a facilities plan is in place.

Depending on the opportunity, our support can include identifying suitable office or flex space, reviewing availability and occupancy timing, and preparing a facilities support letter tailored to the contractor's requirements. That letter can describe the space being considered, the anticipated schedule, and the steps needed to move forward.

The level of documentation should match the pursuit. A preliminary letter can document planning, while some situations call for a more concrete arrangement. FAR 9.104-3 requires contracting officers to see evidence that a bidder can obtain the resources it needs. For years the rule added that such evidence normally consists of a commitment or explicit arrangement in place at the time of award. The Department of War's 2026 FAR overhaul deviation dropped that sentence but kept the requirement itself, so a firmer arrangement remains the stronger position. Whether a particular letter or arrangement is sufficient depends on the solicitation and the contracting officer's requirements.

Where appropriate, we can also help negotiate a lease contingent on contract award or work toward having a lease ready for signature once the award is confirmed, subject to landlord agreement and negotiated terms. These approaches can create a clearer path to occupancy while accounting for uncertainty during the bidding process.

Starting early also creates time to address the details that determine whether a property fits the contract's needs: proximity to the government customer, staffing levels, parking, buildout needs, and specialized infrastructure or security requirements. Each can affect cost and timing, making them valuable considerations during proposal development.