0DE2032_FBI_Wilmington_JOFOC_redacted final.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 3

Public Buildings Service Real Estate Acquisition Division (PBS READ)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0DE2032

Agency Name: Federal Bureau of Investigation (FBI)

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

The General Services Administration currently leases 14,960 ABOA SF/18,511 rentable square feet (RSF) of office space at the WSFS Bank Center, 500 Delaware Avenue, Wilmington, DE 19801 under lease number GS-03B-LDE08357 for the Federal Bureau of Investigation (FBI). The current lease expires August 25, 2026. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

(INCLUDING ESTIMATED VALUE).

FBI submitted a continuing need letter on April 19, 2024 for 18,511 Rentable Square Feet (RSF) of office and related space. To satisfy FBI mission requirements, the facility must not be within 400’ of Federal Public Defender, Immigration and Customs Enforcement, Probation, or Internal Revenue Service offices, as the facility serves as an FBI

This requirement is for 14,960 ABOA SF/18,511 RSF of space for a 5-year, 3-year firm term, and 1, 5-year renewal option to commence on August 26, 2026. A flexible term is desired as the

. The estimated cost of this lease is per Rentable Square Feet per year for an annual cost of and a total contract value of . The delineated area includes the Central Business District (CBD) of Wilmington, DE and surrounding areas. No tenant improvement work is required at the incumbent location.

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 the sole source authority is appropriate where it is determined that award to any other offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition.

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

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

It is in the best interest of the Government to remain at the current location. Award to other than the current Lessor would require relocation of the entire requirement and would cause FBI to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be

. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . These existing tenant improvements include

. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating FBI using the low cost quote exceeds the cost of remaining at 500 Delaware Avenue. The total estimated savings to the Government is

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, the GSA Lease Contracting Officer placed a Pre-Solicitation Notice on the Contracting Opportunities domain of SAM.gov on October 4, 2024 for 14 days. In addition, PBS and the national broker contractor, , conducted market research using CoStar. One Expression of Interest (EOI) was received from the incumbent location. No other EOIs were received.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS and in Wilmington, DE showed the rental rate within the delineated area ranges from to per RSF, according to CoStar and market data.

Therefore, the proposed rental rates for this succeeding lease of /RSF, are within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer.

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.

On August 30, 2024, PBS conducted market research using CoStar and identified 9 potentially acceptable locations (8 plus the incumbent) that might meet the agency’s needs within the delineated area. Two buildings ( ) did not meet FBI’s requirements for

. Furthermore, other than the incumbent, none of the remaining 6 buildings met s.

In addition, PBS posted a Pre-Solicitation Notice conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on October 4, 2024. The incumbent Lessor’s Expression of Interest did not include . No other parties submitted Expressions of Interest in response to the Pre-Solicitation Notice.

See Figure 1 below for the results of the market research and SAM.gov notice, including the incumbent.

Additional information is included in the market research memo filed in Tab 2C in GREX.

Address Source [EOI/CoStar, etc.] Asking Full Service Rental Rate

, Wilmington, DE 19801

/RSF1

, Wilmington, DE 19801 CoStar /RSF

, Wilmington, DE 19801 CoStar /RSF

, Wilmington, DE 19801 CoStar Withheld

, Wilmington, DE 19801 CoStar Withheld

, Wilmington, DE 19801 CoStar Withheld

, Wilmington, DE 19801 CoStar Withheld

, Wilmington, DE 19801 CoStar Withheld

, Wilmington, DE 19801 CoStar /RSF

Figure 1: Market Research Comparables

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

FBI and the GSA Field Office have indicated that the performance of the incumbent Lessor has been satisfactory. , and the Lessor promptly addresses issues as they arise. When operations and maintenance issues arose in the past, the Lessor has been quick to satisfactorily remediate issues. There are no known issues with the building’s envelope, HVAC, roof, lighting, and plumbing systems, and the building appears to be fully compliant with ABAAS requirements. Finally, there are no major fire and life safety issues at the current building.

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

ACQUISITION.

WSFS Bank Center, 500 Delaware Avenue, Wilmington, DE (Incumbent)

No other source expressed in writing an interest in the acquisition.

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

More information is included in the Market Research Memo.

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. Should there be 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 18,511 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_____________________ , Lease Contracting Officer

Broker Team Supervisor and Acting Real Estate Division South Branch Chief

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______________________ Leasing Specialist

Concurred by:

___________________________________________________ Date______________________ , Acting Real Estate Division Director

, Regional Counsel

Approved by:

, Acting Regional Competition Advocate

, Acting PBS Regional Commissioner