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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER: GS-118-80512

PROJECT NUMBER: BVA2346

Agency Name: Department of Defense

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED.

The General Services Administration currently leases 53,651 BOMA Rentable Square Feet (BRSF) of office space at Crystal Gateway 4, 1213 Jefferson Davis Highway, Arlington, VA, under lease number GS-1 18-80512 for the Department of Defensô - Joint Strike Fighter Program Office (JSFPO). The current lease expired on October 31, 200g.

JSFPO's mission is to develop and define next generation strike aircraft weapon systems for the U.S. Navy, U.S. Air Force, U.S. Marines, and eight (S) allied U.S. Nations. The JSFPO program must ensure and secure efficient communications across all of its integrated project teams, share access to classified materials, and secure information technology infrastructure and equipment. The agency has approximately 4,000 BOASF of SCIF space, a highly specialized LAN room with a 1O-ton supplementãl HVRC system, extensive specialized and secure telecommunications, and cabling equipment at Crystal Gateway 4.

Approval is requested to negotiate a ten (10) year succeeding lease with termination rights after seven (7) years with the incumbent lessor without full and open competition for continued occupancy at this leased location.

2, DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED.

This requirement is for 53,651 BRSF of space for a term of ten (10) years, with termination rights after seven (7) years with a commencement date of November 1.

2008. The estimated annual cost of this lease is $41.00 per BOMA rentable square feet per year for an annual cost of $2,199,691 .00 and a total contract value of $21 ,996,910.00 over ten (10) years. The delineated area is within the Northern Virginia area bounded by lnterstate 395 to the North, Virginia Route 233 to the East, Virginiá Route 120 to the South, and lnterstate 39S to the West.

3. IDENTIFICATION OF STATUTORY AUTHORITY.

41 U.S.C. 253(c) (1): Only one responsible source and no other supplies or services will satisfy agency requirements.

4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED.

GSAM 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. GSA placed an advertisement on the Federal Business Opportunities Web site (febizopps.gov) on April 1,2009, and received two (2) responses.

The incumbent lessor's expression of interest indicated that the rate would be $41.00 per BRSF. The other party that expressed interest quoted a rate of $34.40 per BRSF.

Award to other than the incumbent lessor would require relocation of the entire requirement and would cause the JSFPO to incur move and replication costs that would not be recovered through competition.

The cost of the physical move of furniture and equipment is estimated at $4.OO/BRSF or $214,604.00. Additionally, the cost to replicate DoD's highly secure telecommunications system in any other building is estimated by DoD to be 55,454,073.00 (the telecommunications equipment would cost $4,795,939.00 and the cabling for voice and data totals $658,134.00). Finally, DoD would need to replace their AudioA/isual equipment and build-out a secure LAN room with Uninterrupted Power Supply electrical equipment which would not be part of the standard Tier 2Tl allowance and is expected to total $1 ,685,105.00.

ln conclusion, the cost of relocating JSFPO using the rate proposed by the other offeror that expressed interest exceeds the cost of remaining at Crystal Gateway 4. The savings to the Government to remain at Crystal Gateway 4 is $3,812,816. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, negotiating a succeeding lease with the incumbent lessor is appropriate and in the Government's best interest.

Cost-benefit Analysis Acquisition of 53,651 Rentable Square Feet (RSF)

Ten-Year Analvsis:

Present Location Alternate Location

Total Rent (BRSF rate) $21,9e6,91 0.00 ($41 .00) $ 1 8,455,9 44.00 ($34.40) Cost of phvsical move $0.00 $214.604.00 Voice & Data move $0.00 $5,454,073.00 Duplication of Reimbursable Work Authorization (RWA) alterations

$0.00 $1,685,105.00

Total Cost $21,996,910.00 $25,809,726.00

5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL.

ln March 2009, Studley, lnc. conducted a market survey and identified five (5) potentially acceptable locations (four (4) plus the incumbent) that might meet the agency's needs within the delineated area. The five buildings were as follows:

1) Crystal Plaza 6 (2221 S. Clark Street) is owned by Vornado, which is the same ownership as the incumbent building;

2) Two Potomac Yards (2733 Crystal Drive) had approximately 63,000 RSF vacant, but the space is non-contiguous, located on floors 1, 3, and 8;

3) Potomac Gateway North (2900 Crystal Drive) is a newly renovated 168,000 RSF building, which DoD would occupy more than 25% of, which is not allowable under DOD's AT/FP security guidelines on a new lease;

4) Potomac Gateway South (2800 Crystal Drive) is a soon to be renovated 168,000 RSF building, which DoD would occupy more than 25o/o of, which is not allowable under DOD's AT/FP security guidelines; and

5) Crystal Gateway 4, which is the incumbent building.

ln addition, an advertisement was placed in Fedbizopps on April 1,2009. GSA received only two (2) responses, which are.

6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND

REASONABLE.

ln accordance with FederalAcquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines by certifying this document that the anticipated cost to the Government of $21 ,996,910.00 ($41 .00/BRSF) is fair and reasonable.

Recent market surveys conducted by Studley, lnc. in Arlington, VA showed the rental rate within the delineated area ranges from $34.00/BRSF lo $42.41IBRSF. Additionally, a search of the AAAP inventory, conducted in January 2009, identified a market rate range in Crystal City between $29.00/BRSF and $45.00/BRSF.

7. DESCRIPTION OF MARKET SURVEY CONDUCTED.

ln March 2009, Studley, lnc. conducted a market survey that identified the following five

(5) locations including the incumbent:

Crystal Gatewav 4 (1213 Jefferson Davis Hiqhwav) (incumbent Potomac North (2900 Gatewav Drive

Address Askinq Full Service Rental Rate Crvstal Plaza 6 $34.00/BRSF

Two Potomac Yards $42.41lBRSF Potomac Gatewav North $34.40/BRSF Potomac Gateway South $34.40/BRSF

Crvstal Gatewav 4 (incumbent) $41.00/BRSF

8.

None.

9.

Figure 1: Market Survey Comparables

OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN

COMPETITION.

LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUSITION.

I Gateway 4 (1213 Jefferson Davis Hiqhway) (incumbent Potomac Gatewav North (2900 Gatewav Drive

10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION.

Upon expiration of this succeeding lease, if there is a continuing need, GSA anticipates that it will be competitively procured.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of a succeeding lease of 53,651 BRSF to the incumbent lessor at Crystal Gateway 4, is in the Government's best interest and that this justification is accurate and complete to the best of my knowledge and belief.

Date TC Hairston Contracting Officer

12. TECHNICAL REQUIRMENTS PERSONNEL CERTIFICATION

I certify that the supporling data used to form the basis of this justification is complete and accurate to the best of my knowledge and belief.

Realty Specialist

Date

Deputy Director for Lease Acquisition tl Date 8ll/2oo]

Date

//p/t

Kathleen Geisler Acting Director of Real Estate Division

Date Victoria Hartkes Acting Deputy Regional Commissioner

Paula J Regional

/t

Date Baft Bush PBS Regional Commissioner, NCR

Date

Melanie H. Lewis o^t ?A//?

Sharon J. Banks Acting Regional Ad ministration

Date

TO:

GSA DOCUMENT SUMMARY

(lnstructions on Page 3)

7. CONCURRENCES and COMMENTS PRINT NAME It Individuel sign¡ng ¡s rct the princ¡pat.

3 DATE

DUE Page 1 or 2

4. SUBJECT:

OTFO

6. CORRESPONDENCE CONTROL NUMBER

iect Number: 8V42346

Sharon J. Banks

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DOCUMENT

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A WP3PSM

S T.C,Hairston s/41û

B WP4PRP Marc Rappaport rK tA

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s/,, D WP Victoria Haftkes

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8. ACTTON ]. CORRESPONDENCE SYI\4BOt O. TELEPHONE NUMBER 1 PREPARED BY

John Costa z

208-0192 13.NoTE:NUMBERoFSlGNATUREsREQUlREDBYFlNALslGNlNGoFFlclAL>

14 SUMMARY

Name of Agency: DOD lnside NCA Lease Term: 5-year firm and a 5-year option Size: 53,651 BOMA rentable square feet (BRSF)146,927 BOMA office area square feet (BOASF)

Project Summary:

This justification for Other Than Full and Open (OTFO) competition is to procure 53,651 BRSF of office space required in an office building per the continuing requirement request for the Department of Defense (DOD) Joint Strike Fighter Program Office (JSFPO) tenants at Crystal Gateway 4, located at200 12th Street, Arlington, VA. This requirement is for a 5-year firm with a S-year option term.

DOD-JSFPO is not BRAC affected. This requirement will be procured as a sole source acquisition using a National Broker Contract. This action is time sensitive.

John Costa

GENERAL SERVICES ADMINISTRATION

GSA DOCUMENT SUMMARY

(lnstructions on Page 3)

7 CONCURRENCES and COMMENTS PRINT NAME ll lndividuel sign¡ng ¡s r|f.t the pr¡nc¡pal

2of2

6. CORRESPONDENCE CONTROL NUMBER

Number: 8V42346

3 DATE

DUESharon J. Banks

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DOCUMENT

SIGNATURE

(Sign tull name)

COMMENTS

(Use addrtional page if necessary)

Melanie H. Lewis ilÌb

1O TELEPHONE NUMBERB. ACTION OFFICER

208-0192

13 NOTE: NUMBER OF SIGNATURES REQUIRED BY FINAL SIGNING OFFICIAL

Name of Agency: DOD lnside NCA Lease Term: 5-year firm and a S-year option Size: 53,651 BOMA rentable square feet (BRSF)146,927 BOMA office area square feet (BOASF)

Project Summary:

This justification for Other Than Full and Open (OTFO) competition is to procure 53,651 BRSF of office space required in an office building per the continuing requirement request for the Department of Defense (DOD) Joint Strike Fighter Program Office (JSFPO) tenants at Crystal Gateway 4, located at 200 12th Street, Arlington, VA. This requirement is for a 5-year firm with a 5-year option term.

DOD-JSFPO is not BRAC affected. This requirement will be procured as a sole source acquisition using a National Broker Contract. This action is time sensitive.

John Costa

GEN ERAL SERVICES ADMI NISTRATION

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