0CO2477_Redacted.pdf

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 8

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0CO2477

Agency Name: USGS

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

The General Services Administration (GSA) currently leases 21,673 ABOA / 29,170 rentable square feet (RSF) of office and warehouse space (27,670 RSF of office space and 1,500 RSF of warehouse space) for USGS at Marine Street Sciences Building, 3215 Marine St Boulder, CO 80303-1287 under lease number LCO14945. The current lease expires September 30, 2025. This action is for a succeeding lease via the exercise of an unevaluated 5-year renewal option outlined in paragraph 1.05 of lease amendment 3 with the incumbent Lessor without full and open competition for continued occupancy at this leased location.

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

(INCLUDING ESTIMATED VALUE).

This requirement is for 21,673 ABOA / 29,170 RSF of space (27,670 RSF office and 1,500 RSF warehouse) for a five (5) year non-firm term to commence on October 1, 2025. The estimated cost of this lease is $ (includes $ for the office space, $ for the warehouse space, and operating costs), per RSF per year for an annual cost of $ and a total contract value of $ The delineated area (DA) is the city limits of Boulder, CO.

There is no vacant Federal Space available.

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. This statutory authority is implemented through GSAR 570.402. In accordance with GSAR 570.402, use of this authority is appropriate where, among other things, the Contracting Officer does not identify any potential acceptable locations through the advertisement and the market survey.

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

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

This proposed renewal action was advertised via a pre-solicitation notice that was placed on the Contracting Opportunities domain of SAM.gov on January 5, 2024, for five days. As discussed further in section 7 below, no expressions of interest were received. GSA conducted market research using CoStar and two parties were advertising buildings with the correct joint space type (office and warehouse) to accommodate USGS. One building did not meet the size requirement to accommodate USGS. The other building will require build-out and move costs, which will not be economically advantageous for USGS and may jeopardize the requirement for delivery of the space by October 1, 2025. Award to other than the incumbent Lessor would require relocation of the entire requirement and would cause USGS to incur move and replication costs such as buildout that would not be expected to be recovered through competition. As a result, the properties were determined not to be potential acceptable locations. The incumbent Lessor’s space already meets the size and buildout requirements, and the space is ready for occupancy on the needed date. The advertisement and market research results demonstrate that the incumbent lessor is uniquely qualified to meet USGS’s requirements.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402-2, GSA placed a pre-solicitation notice on the Contracting Opportunities domain of SAM.gov on January 5, 2024, for five days. In addition, GSA conducted market research using CoStar.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by GSA for Boulder showed fully serviced rental rates within the delineated area ranging for the market $ - $ per RSF for warehouse space and $ - $ per RSF for office space. There is one listing that could meet the size requirement and has warehouse and office space. This research was based on CoStar data.

The fully serviced rental rate for the renewal negotiated at the time of lease amendment 3 was signed is approximately $ (includes $ for the office space, $ for the warehouse space, and operating costs), for a 5-year non-firm term subject only to GSA’s right to terminate after 90 days prior notice. This differs from the amount calculated in the acquisition plan as the acquisition plan did not use the blended rate. The fully serviced rate for the one building that could meet the size requirements is $ As stated in section 4, the build-out and move costs jeopardizes any potential savings gained from the reduced rent. As a result, the incumbent Lessor’s rate, as compared to the market range, demonstrates that the anticipated cost of renewal is fair and reasonable.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On October 17, 2023, GSA conducted market research using CoStar and identified one acceptable location. It was determined that the one location that could meet the space requirement would require significant build-out and move costs. In addition, GSA posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on January 5, 2024. No expressions of interest (EOIs) were received.

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

The GSA LAM reported that the incumbent Lessor has been responsive to tenant service tickets and maintains the property in good working order.

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

ACQUISITION.

No EOIs were received.

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

There are no systemic barriers to competition. If the agency has a continuing need for space upon lease expiration, GSA will follow all authorities, regulations, and policies applicable to lease acquisition. If there is remaining useful life in the Government’s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

Additionally, objective scrutiny will be given to the customer agency’s mission and security requirements (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.

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 succeeding lease of 27,670 RSF via the exercise of an unevaluated 5-year renewal option 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_____________________ Angela Scurlock, Lease Contracting Officer

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.

Date______________________ Michael Condon, Leasing Specialist

13. LEGALLY SUFFICIENT

Robert Schlattman, R8 Office of Regional Counsel

14. CONCURRENCE

G.W. Emge, R8 Competition Advocate

15. APPROVAL

Tanisha Palermo, R8 Regional Commissioner & HCA