0WA2333_Redacted JOTFOC_Navy Fife.pdf

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Sole Source Award Notice for GS-10P-LWA00414, Fife, WA - Solicitation 0WA2333
Solicitation number
0WA2333
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This document summarizes the justification for a sole source award of a federal lease contract. The General Services Administration intends to negotiate a succeeding lease with the incumbent lessor to remain at the agency's current location in Fife, Washington. The lease requirements are for warehouse space within a delineated area. The agency placed advertisements conforming to regulations on July 30, 2021 and April 12, 2022, but only received expressions of interest from the incumbent lessor. Relocating outside the delineated area would result in estimated relocation costs of $XXX and replication costs of $XXX. Market research identified rental rates in the area ranging from $9.12 to $14.51 per rentable square foot, and the proposed rate of $12.60 per square foot from the incumbent is deemed fair and reasonable.

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Chapter 5, Paragraph 9, Subparagraph 1, “if no potentially acceptable locations are identified through advertisement and market research, a cost benefit analysis is unnecessary”. Per FAR 6.302-1(a)(2), when only one source is identified that satisfies requirements, full and open competition need not be provided for.

GSA placed an advertisement conforming to GSAM 570.402-2 on SAM.gov on July 30, 2021 for 7 days, and again on April 12, 2022 for 10 days. No expressions of interest, other than from the Incumbent Lessor, were received in response to the advertisement. The Incumbent Lessor’s expression of interest indicated a Year 1 fully serviced rent of $ with 2% escalation per year for 10 years.

Award to other than the current Lessor would require relocation of the entire requirement outside of the justified delineated area and would cause the Navy to incur move costs estimated at $ and replication costs estimated at $ . Relocating outside of the delineated area would impact the ability of the agency to effectively meet its mission requirements. Therefore, the Government intends to negotiate a succeeding lease and remain at its current location.

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 (LCO) placed an advertisement on the Contracting Opportunities domain of SAM.gov on July 30, 2021 for 7 days. There were no submitted responses to this advertisement, and only one phone call from a local WA broker inquiring as to who the tenant would be for this requirement. On April 12, 2022, the GSA Broker placed another advertisement on SAM.gov for 10 days. Three different inquiries were received in response to the ad, none of which provided a specific building or space for consideration. The GSA Broker answered each of the entities’ questions, but never received follow-up communication or expressions of interest.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

The GSA Broker provided market research and warehouse rental rate comparisons in Fife, WA within the delineated area, based on recent lease transactions and advertised rates. These full-service rates range from $9.12 to $14.51 per rentable square foot.

Therefore, the proposed fully serviced rental rate for this succeeding lease of $12.60/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.

The GSA LCO posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on July 30, 2021, with responses due on August 6, 2021. No written responses were received. From February to April of 2022, the GSA Broker conducted market research and made inquiries to contacts in the local industrial markets, which identified 2 potentially acceptable locations that could meet the agency’s requirements within the delineated area. These locations did not provide expressions of interest in response to the second advertisement placed on April 12, 2022.

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

N/A

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

ACQUISITION.

No expressions of interest were received other than from the incumbent Lessor of the current location at 4512 70th Ave. E, Fife, WA.

File details come from the government source that posted it. Updated .