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“LEASE EXTENSION” JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER: L08PL00469

DELEGATED PROJECT NO. DUT04325-003

LEASE LOCATION: 450 North Main St, Monticello, UT AGENCY NAME: Bureau of Land Management (BLM)

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED.

The BLM currently leases and occupies a total of 10,362 rentable square feet (RSF), consisting of 6,135 RSF of office space; 4,227 RSF of warehouse space; and 35,000 SF of wareyard space located at 450 North Main St, Monticello, UT under BLM’s delegated lease authority, for the operation of BLM’s Monticello Field Office (MFO). The current lease expires on 7/6/2024. Delegated authority is requested to enter into a lease amendment with the current landlord, without full and open competition, to extend the lease Term an additional sixty (60) months, twelve (12) months firm, ending July 6, 2029.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED.

The requirement is for a lease amendment to extend the Term five years at the BLM MFO. The lease amendment will be effective on 7/7/2024 and will provide for the continued occupancy of 10,362 RSF of office and related space for operation of the MFO.

The estimated rent for the extended Term is $179,573.46 per year. The total contract value, not including estimated annual CPI or real estate tax adjustments pursuant to the terms of the current Lease, is approximately $897,867.30.

3. IDENTIFICATION OF STATUTORY AUTHORITY.

41 U.S.C. §3304, Use of noncompetitive procedures; and GSAM 570.405, Lease Extensions.

4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED.

GSAM 570.405. Subsection (a): applies to extension of the Term of a lease to provide for continued occupancy on a short-term basis; and subsection (c): FAR 6.302-1 permits contracting without providing for full and open competition when the property or services needed by the agency are available from only one responsible source and no other type of property or services will satisfy the needs of the agency. 41 U.S. Code §3304, subsection (a)(1): the property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.

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

On September 14, 2021 the BLM, National Operations Center (NOC) duly published a pre-solicitation notice in BETA SAM in accordance with the provisions of GSAM 570.402-2. No responses were received from qualified sources. The incumbent lessor expressed an interest in entering into a lease extension.

6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE.

In accordance with FAR 6.303-2(b)(7), the Contracting Officer determined by certifying this document that the anticipated cost to the Government of $17.33/RSF/Yr is fair and reasonable, as further explained below.

7. DESCRIPTION OF MARKET SURVEY CONDUCTED.

BLM staff conducted a preliminary market analysis, including federally-owned and leased facilities, within the subject area to determine the availability of comparable and more economical sites, and was unable to identify any sites in the survey area that could accommodate this requirement.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

L08PL00469

Based upon the survey, it was determined that the annual rental range for similar space is between $18.00/RSF/Yr and $24.00/RSF/Yr. Therefore, the estimated annual rental rate of $17.33/RSF/Yr represents a rate lower than the market range for the area.

As reflected in Paragraph 5, a pre-solicitation notice was published pursuant to GSAM Section 570.402-2.

There are no qualified sources who meet BLM’s requirements. The current lessor expressed an interest in entering into a lease extension.

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

With the current lack of suitable facilities available and the estimated time frame for submitting the ASR to GSA, the time remaining on the current Lease will not be adequate to obtain a new lease. The current space continues to meet the needs of the MFO. Approval of the proposed lease extension will provide BLM with the continuous operations of the MFO to provide services to the public while providing flexibility through a right to terminate clause after the expiration of the first 12 months of the extended Term.

Cost Benefit Analysis Results:

Cost of Alternate Space for 5 years $ 898,011.95 Moving Costs for Telecom and Data $ 23,314.50 Moving Costs for Physical Move $ 28,495.50 Tenant Improvement Allowance (5 yr amortization) $ 352,308.00 RWA for above TI Allowance Cost $ 518,100.00 Total Costs Expected for Alternate Location $ 1,820,229.95

Cost of Existing Space for 5 years $ 897,867.30 Moving Costs for Telecom and Data $ 0.00 Moving Costs for Physical Move $ 0.00 Tenant Improvement Allowance $ 0.00 RWA for above TI Allowance cost $ 0.00 Total Costs Expected for Existing Location $ 897,867.30

Minimum Savings to the Government to Remain in Current Facility $ 922,362.65

9. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUSITION.

Zero (0) interested parties responded to the SAM advertisement, other than the current lessor.

10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION IN A FUTURE

PROCUREMENT FOR THIS SPACE REQUIREMENT.

Full and open competition will be undertaken by GSA upon receipt of BLM’s ASR.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

L08PL00469

11. CERTIFICATIONS AND APPROVAL.

The Contracting Officer certifies that the information provided in this requested justification is accurate to the best of his/her knowledge and belief, and believes award of the requested lease extension without full and open competition is valid and in the Government’s best interest.

Prepared by: _______________________________ Date _____________ Nick Gilida Realty Specialist

Concurred by: _______________________________ Date _____________ Gayle Emrich Lease Contracting Officer

Nick Gilida 12/22/2021

12/27/2021

GAYLE

EMRICH

Digitally signed by GAYLE

EMRICH

Date: 2021.12.27 09:47:07 -07'00'