0TN2115 Redacted JOTFOC.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Renewal Lease

U.S. General Services Administration

GSA Region 4

Leasing: Blue Ridge West

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0TN2115

Agency Name: (

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

The General Services Administration currently leases 10,415 ABOA/11,206 rentable square feet (RSF) of office space at under lease number GS-04P-LTN60105 for the The current lease expires 12/14/2024. Approval is requested to negotiate a renewal lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a Renewal lease are detailed in GSAR 570.401: Renewal.

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

(INCLUDING ESTIMATED VALUE).

submitted a continuing need letter on June 30, 2023, for 11,206 rentable square feet of office and related space. To satisfy mission requirements to the facility must remain in place to serve the geographic area served by this office, while the agency determines their long-term, national housing strategy.

This requirement is for 10,415 ABOA/11,206 RSF of space for a 5-year term to commence on 12/15/2024.

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 is: NORTH – Hwy 381;

SOUTH – Hwy 11E to West Main Street to Interstate 26; EAST – Interstate 26 to Hwy 381; WEST – Hwy 381 to Hwy 11E . 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(b)(1). In accordance with GSAR 570.402(b)(1), use of the sole source authority is appropriate where no other potential acceptable spaces are identified.

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. There are currently no comparable locations that are available to meet the agency’s space requirements and needs. The advertisement placed on October 25, 2024, for 21 days, yielded no respondents.

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 July 31, 2024, for 5 days. In addition, PBS 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 surveys conducted by PBS in Johnson City, TN using CoStar showed the rental rate within the delineated area ranges from $ - $ per RSF.

Therefore, the proposed rental rate for this renewal lease of $ /RSF, is within the current market range for this submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-4 allows for negotiation with the incumbent Lessor when the contracting officer does not identify any potential acceptable locations through the advertisement or a market survey.

On August 6, 2024, PBS conducted market research using CoStar and LoopNet and identified 0 potentially acceptable locations (0 plus the incumbent) that might meet the agency’s square footage needs of approximately 11,000 RSF within the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov on July 31, 2024. No expressions of interest were received for this advertisement.

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

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

*space information used solely for market rate data

Figure 1: Market Research Comparables

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

Maintaining current housing allows for no interruption in their mission to The Lessor’s rental rates are within the market range for the

Johnson City, TN area.

It is in the best interest of the Government to enter into negotiations with the current Lessor for this leasing action. The current location is immediately available and is already constructed to meet the agency’s needs without disruption. This procurement strategy will ensure the Government will meet the agency’s housing requirements.

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

ACQUISITION.

Incumbent lessor has expressed interest in retaining the agency in their space.

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 systematic barriers to competition. GSA is working diligently with the to determine their long-term lease strategy for this location. 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 any unnecessary 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 renewal lease of 11,206 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.

11/25/2024

X Tyrekca Miller Tyrekca Miller Lease Contracting Officer Signed by: TYREKCA MILLER

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 11/25/2024

X Jolita Carter Jolita Carter Leasing Specialist Signed by: JOLITA CARTER

Concurred by:

11/25/2024

X Shontise Mangham Shontise Mangham Branch Chief Signed by: General Services Administration

Concurred by:

11/26/2024

X Heather Driskell Heather Driskell Lease Acquisition Officer Signed by: HEATHER DRISKELL

Concurred by:

11/26/2024

X for Gregory Trimble Sabina A. Sims Leasing Director Signed by: General Services Administration

Concurred by:

X Courtney Debord Competition Advocate

Approved by:

X Jeffrey M. Smith Regional Commissioner