JOFOC_for_LVA02379-_FBO_Posting.pdf

GENERAL SERVICES ADMINISTRATION

South Branch, Real Estate Acquisition Division

Justification for Other than Full and Open Competition Project #0VA2326

Department of Labor Newport News, VA

1. Nature and/or description of the action being approved.

This action is a five year, three year firm term lease renewal of LVA02339.

2. Description of the supplies or services required to meet the agency’s needs (including estimated value).

The Department of Labor (DOL) currently occupies a total of 6,727 ANSI/BOMA Office Area square feet (ABOA SF), or 7,467 rentable square feet (RSF) of office and related space at 11860 Merchants Walk, Newport News, VA. The space is comprised of 6,364 ABOA SF for the Office of Administrative Law Judges (OALJ) and 363 ABOA SF for the Wage and Hour Division (WHD). The original ten year, five year firm term lease was for the OALJ only; the WHD suite was added to the lease in 2009 via SLA. This expansion was the only previous sole source action completed at this location. The current lease expiration date is April 26, 2013, and the current annual rent is $138,158.22, or approximately $18.50 per RSF.

Both the WHD and OALJ have identified a long term need to remain at this location. The existing lease meets all of the agencies’ needs, and they do not foresee any expansions or reductions in the near future. The only space modification required is carpet replacement within the OALJ suite.

Two (2) unevaluated five-year renewal options currently exist within the lease, but the government has determined that the rental rates are at the high end of the market at $21.36 per RSF and $23.17 per RSF, respectively. GSA therefore negotiated the cost of these two renewal options down, and plans to exercise the first option.

The new negotiated total annual rent for the first renewal option is $145,606.50, or $19.50 per RSF. This represents only a 5.4% increase over the current rental rate. Over the five year term, the annual rent equates to an aggregate value of $728,032.50.

3. Identification of the statutory authority 41 U.S.C. 253 (c) (1) and FAR 6.302-1. 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 use of the authority cited.

In accordance with 41 U.S.C. 253 (c) (1), the agency’s minimum needs can only be satisfied by unique supplies or services available from only one responsible source and no other type of property or services will satisfy the needs of the agency.

Based on the completion of the attached cost-benefit analysis, remaining in place for a five year term represents an aggregate cost savings of $333,839.13 to the government.

5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable

A CoStar search was conducted within the delineated area on July 11, 2012.

Five properties were located that appeared to meet the minimum needs of the two DOL agencies. See attached market research report for additional information.

An advertisement for space was not placed, in accordance with the Leasing Desk Guide Chapter 9. Specifically, advertising is not required because the space is less than 10,000 RSF.

A physical market survey was not conducted, as based on the initial information gathered from an internet market survey, remaining in place represents a significant cost savings to the government.

6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The anticipated cost of this action is fair and reasonable based on current market conditions. The annual rental rent for the first renewal option is $145,606.50, or $19.50 per RSF. See attached market research report for additional details.

7. Description of the market research conducted

See attached market research report.

8. Other facts supporting the use of other than full and open competition

The current space meets all of the agencies’ needs. The past performance of the incumbent lessor is exceptional, as evidenced by the most recent Tenant Satisfaction Survey results in 2011. Specifically, 90% of the lease occupants were overall satisfied with the space and property management. The local GSA Property Manager provided very positive feedback as well, stating that any issues are resolved promptly and adequately. The only space modification required is carpet replacement within the OALJ suite. The downtown location of the office is ideal in meeting the DOL’s needs.

9. List of any sources that expressed in writing an interest in the acquisition

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

10. Statement of actions the agency may take to remove or overcome any barriers to competition

Competitive procedures will not be used for this procurement, as remaining in place represents a clear cost benefit to the government. After the expiration of this five year renewal term, the market will be re-evaluated in order to determine if exercising the second renewal option is justified.

Contracting Officer’s certification

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared by:

[REDACTED] 3PRSC Date Lease Contracting Officer

Concurred by

[REDACTED] 3PRSC Date Realty Supervisor

Concurred by

[REDACTED] 3PRS Date Real Estate Acquisition Branch Chief

Approved by:

[REDACTED] Date Competition Advocate