0CA3262 SSA-RWC LseExtension JOTFOC signed_Redacted.pdf

Justification for Other Than Full and Open Competition

U.S. General Services Administration

GSA Region 9

San Francisco Real Estate Branch

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0CA3321

Agency Name:

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

The General Services Administration currently leases 9,614 ABOA/ 9,824 rentable square feet (RSF) of office space at 601 Allerton Street, 2 nd

Floor, Redwood City, CA 94063 under lease number GS-09B-

LCA01544, for the . The current lease expires January 11, 2021.

Approval is requested to negotiate a 14 month lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a lease extension is detailed in GSAR 570.405: Lease Extensions.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING ESTIMATED VALUE).

The current lease expires January 11, 2021 with an annual rental rate of $35.68/RSF ($350,566.56 per annum). An extension is the only economically sound option for the Government. The estimated annual cost of the lease extension, based on the Lessor’s expression of interest, is /RSF ($ per annum).

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

41 U.S.C. 3304(a)(1): Only one responsible source and no other supplies or services will satisfy agency requirements.

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED.

GSAR 570.405 (c) & FAR 6.302-1 allows for continued occupancy on a short-term basis when the agency occupying the leased space is scheduled to move into other federally controlled space, but encounters unexpected delays in preparing the new space for occupancy.

Extending the lease for a short term of 14 months/ 12 months firm is necessary to protect the

Government’s occupancy until a new, replacing lease is negotiated. If other space were leased through the competitive process, the agency would incur a double move, first to temporary lease space, and then to their permanent suite. A double move would create administrative hardship and interrupt the agency’s operations. Furthermore, the Government would incur additional costs for duplicating the agency’s tenant improvements. It would be economically unsound to incur these costs for such a short period of time.

Although no potentially available properties were found, a cost-benefit analysis, based on market research, was completed following the procedures set forth in GSAR 570.402-6 and is attached to this

Justification (Attachment A). Relocation costs are estimated to be $ . The minimum total savings to the Government is $ . Therefore, the Government intends to negotiate a lease extension and remain at its current location.

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Pursuant to GSAR 570.106 (d), the contracting officer is not required to publicize lease extensions. See section entitled “DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS” below regarding efforts undertaken to maximize sources of solicitation.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE.

Quarterly market reports for the downtown Redwood City, CA submarket showed the rental ranges from

$ -$ /RSF/year, . Market reports from Colliers and CoStar were consulted and supports a midpoint rate of approximately

$ /RSF. These rates do not include reserved parking, nor do they take a hold-over rate into account.

It is commonplace that a tenant with a commercial lease would invoke its hold-over clause. These clauses typically have hold-over rates ranging from % of the rental rate in effect at the time of lease expiration.

Therefore, in accordance with the FAR 6.303-2(a) (7), the Contracting Officer determines by certifying this document, the proposed rental rate for this lease extension of $ /RSF for one year is within the current market range for this submarket, and is deemed fair and reasonable. Reserved Parking for the 2

GOV parking spaces is included in the rental rate.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-5 allows for negotiation with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition.

In November 2020, Carpenter/Robbins Commercial Real Estate, Inc. conducted market research using market reports from Colliers and CoStar, along with comparison to bids received for the long-term lease contract within downtown Redwood City, CA. The Government’s current occupancy is located in downtown Redwood City.

8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION.

The lease expires on January 11, 2021 and it is essential that a short-term extension be secured in a timely manner until actions for a new replacing lease can be completed.

9. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION.

None.

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting

Officer certifies that the award of a lease extension of 9,824 RSF is in the Government’s best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

__________________________________________ Date_____________________

12. PREPARER’S TECHNICAL CERTIFICATION.

I certify that the supporting data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief.

November 5, 2020 ________________________________________ Date: ______________________

Timothy Pavek, Carpenter/Robbins Commercial Real Estate, Inc.

12/08/2020

ATTACHMENT A

COST BENEFIT ANALYSIS RESULTS

Cost of Alternate Space for 14 months (at average rate of $ /RSF)

Moving costs for Telecommunications (estimated at $ /RSF for 9,824 RSF)

Moving costs for Furniture (estimated at $ /RSF for 9,824 RSF)

Tenant Improvements of $ /ABOA for 9,614 ABOA SF, which is $

BSAC Improvement of $ /ABOA for 9,614 ABOA SF, which is $

Total Costs Expected for Alternate Location

Cost of Existing Space for 14 months at $ /RSF/year

Moving costs for Telecommunications (N/A)

Moving costs for Furniture (N/A)

Tenant Improvements (N/A)

BSAC Improvements (N/A)

Total Costs Expected for Current Location

Minimum Savings to the Government to Remain in Current Facility