Section 12-8-400.14 - PROHIBITED PROVISIONS Inclusion of provisions pertaining to the following shall be prohibited unless it is determined that exclusion of such provisions is either not practicable or not advantageous to the State for the specific lease request in the opinion of the RPM Division Director and such deviation is approved by PPRB:
(1)Escalations: Escalation clauses decrease exposure to Lessor of future increases in operational costs which are beyond their control; however, the inclusion of such clauses increases exposure to Lessee of such costs and create budget uncertainty for agencies and departments. Offerors may propose graduated rates over the Lease term in anticipation of future increases in operational costs, but shall not include escalation clauses in proposals. RLP's shall not request escalation provisions and proposals which include, or are contingent upon inclusion of escalation provisions shall be deemed non-responsive. (2)Expense Stops: Expense stops limit exposure to Lessor of future increases in operational costs which are beyond their control; however, the inclusion of such stops lead to unlimited exposure to Lessee of such costs and create budget uncertainty for agencies and departments. Offerors may propose graduated rates over the Lease term in anticipation of future increases in operational costs, but shall not include expense stops in proposals. RLP's shall not request expense stops and proposals which include, or are contingent upon inclusion of expense stops shall be deemed non-responsive.(3)Tenant Improvement Allowances: Allowances limit exposure to Lessor to a fixed amount to make renovations to proposed space to suit the needs of the Lessee; however, such amounts are often insufficient to address all requirements identified by agency or department in the RLP. Offerors shall be required to include any costs to bring their space into compliance with all requirements identified by agency or department in the RLP in their Base Rent proposal. 12 Miss. Code. R. 8-400.14