0IN2176_JOTFOC redacted_.pdf

JOTFOC 0IN2176

U.S. GENERAL SERVICES ADMINISTRATION

GSA REGION 5

REAL ESTATE DIVISION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

TOTAL CONTRACT VALUE:

INDIANAPOLIS, INDIANA

PROJECT NUMBER: 0IN2176

AGENCY NAME:

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

The General Services Administration currently leases 38,982 ABOA SF/44,412 Rentable Square Feet (RSF) of office space at 10 W. Market St., Indianapolis, IN under lease number GS-05B-LIN18311 for the

. The current lease expires December 15, 2021. Approval is requested to exercise an Option to Renew contained in the lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location for a period of four years, 18 months firm.

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

(INCLUDING ESTIMATED VALUE).

has a continuing need to occupy the subject space to meet its mission requirements while it evaluates and procures space to meet its long-term needs. There is no vacant Federal Space available to meet the requirements.

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

COMPETITION TO EXERCISE A UNILATERAL RIGHT TO RENEW.

General Services Acquisition Regulation (GSAR) Part 570.102 defines a lease renewal (option) as

“the right, but not the obligation of the Government to continue a lease upon specified terms and conditions, including lease term and rent.”

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

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

The Government requires the space to continue the agency’s mission. The current space meets or exceeds the Government standards for quality performance (GSAM Part 517.207)

It is in the best interest of the Government to remain at the current location by exercising its unilateral right to continue this lease at the specified terms and conditions contained in the Option to Renew, including lease term and rent. Only One Source (41 USC 253 c.1.) can meet the Government’s need.

A cost-benefit analysis was completed following the procedures set forth in GSAM 570.104 and FAR 6.302-1(a)(ii)(A), which demonstrates that relocation would require substantial duplication of cost that is not expected to be recovered through competition. The following chart summarizes this conclusion:

Existing/Competitive Properties

10 W. Market St., Indianapolis, IN

Indianapolis, IN

Savings Associated with Staying in Place

Rent Payments Over Term

Tenant Improvement Amortization

Lump Sum Tenant Improvements

Move Costs

Rent in Old Location during Relocation

Aggregate Total Cost/Savings Associated with Staying in Place

1Please note that the data base, considered to be very reliable, was used to determine competitive rents for the lowest cost alternative as no parties responded to the advertisement.

The total cost savings associated with staying in place to allow time for a follow-on competitive action is determined to be .

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 an advertisement on the Contracting Opportunities domain of SAM.gov on August 2, 2021 for 21 business days. No responses were received to the advertisement. In addition, PBS conducted market research using Data and data to determine competitive rates in the Central Business Area of Indianapolis.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by in Indianapolis showed the rental rate within the delineated area ranges from $23.00 to $26.00 per RSF.

Therefore, the proposed rental rates for the term contained in the option to renew of are within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer.

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

The Lessor of the subject property has performed its obligations under the existing lease and has no outstanding inspection report corrections required. (GSAM 517.207)

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

ACQUISITION.

No sources other than the incumbent lessor responded in writing expressing 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.

In advance of the existing lease contract’s expiration, considerations have been given to allow for sufficient time to conduct a full and open procurement. GSA has tasked a broker to begin a procurement work for Indianapolis. The Government has considered 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 exercise the option to stay at the existing building or undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements 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. The Government has initiated actions to pursue a competitive lease action for the USAO space requirement.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the exercise of the unilateral Option to Renew for 44,412 RSF for a term of four years, 18 months firm is fair and reasonable and 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.

Mark Alan Montgomery, Lease Contracting Officer Date

9/17/2021

Reviewed and c red by:

Katrina Trimble, Justice Team CDT Manager Date

Lease Policy and Program Branch (5P2RB) Date

Real Estate Division Director (5P2CC) Date

Regional Counsel (5L) Date

APPROVED BY:

Regional Competition Advocate (5P2PQ) Date

9/17/2021

9/22/2021

9/22/2021