Redacted JOFOC_Redacted.pdf

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Lease Extension
Solicitation number
1291580210401
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This document is a Justification for Other Than Full and Open Competition for a lease extension. The government requires a 60-month lease extension for approximately 31,016 rentable square feet of office, warehouse, and parking space, commencing on 1/1/2026. The estimated cost is $31.12 per rentable square foot annually, totaling $965,217.92 per year and $4,826,089.60 for the entire contract period. The extension is being pursued under 41 U.S.C. 3304(a)(1) due to unexpected delays in acquiring replacement space, with market research conducted in Bishop, CA showing rental rates ranging from $25.00 to $41.80 fully serviced. The lease contracting officer determined the proposed rate is fair and reasonable, and remaining at the current location will avoid disruption to government operations.

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Justification for Other Than Full and Open Competition, Extension

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: DCA04368-003

Agency Name:

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

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

(INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for 60 months to commence on 1/1/2026.

The estimated cost of this lease extension is $31.12 per rentable square foot, per year, for an annual cost of $965,217.92 and a total contract value of $4,826,089.60.

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 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.

The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy

The government encounters unexpected delays outside of its control in acquiring replacement space

The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date

The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties

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 during the extension period.

The government encounters unexpected delays outside of its control in acquiring replacement space.

Award to other than the current Lessor would require relocation of the entire requirement and would cause the to incur move and replication costs that would not be recovered through competition

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the Lease Contracting Officer in Bishop, CA showed the rental rate within the market area ranges from $25.00 to $41.80 fully serviced.

Therefore, the anticipated rental rates for this lease extension of $31.12 per RSF, are within the current market range for this submarket and are deemed fair and reasonable by the Lease Contracting Officer

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On 08/20/2025, market research was conducted using COSTAR. The market research showed the rental rate within the market area ranges from $25.00 to $41.80 fully serviced.

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

Remaining at the current location under a 60-month extension avoids a holdover and allows the Government to continue operations without disruption.

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

ACQUISITION.

N/A

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any 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.

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