1AZ2131 JOFOC (Redacted).pdf

DocuSign Envelope ID: 6B5D4EC4-8282-4B67-B661-849D54347C21

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1AZ2131

Agency Name: U.S. Customs & Border Protection (“CBP”), Operations Facilities & Tact Facilities

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

The General Services Administration currently leases 16,843 ANSI BOMA (“ABOA”) / 16,843 rentable square feet (“RSF”) of office and special use space for a border patrol station/detention center with holding cells and sally port of space at 396 N Camino Mercado, Casa Grande, AZ under lease number LAZ98148 for the U.S Customs & Border Protection (“CBP”), Operations Facilities & Tact Facilities. The current lease expires May 14, 2024. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

(INCLUDING ESTIMATED VALUE).

CBP submitted a continuing need letter on June 13, 2022, for 16,843 rentable square feet of detention center and related space. To satisfy CBP mission requirements, the facility must include a sally port, processing area, interview rooms, holding cells, explosive materials storage, armory and equipment storage, fitness room, training rooms, and office and office related spaces.

This requirement is for 16,843 ABOA SF / 16,843 RSF of space for a 15-year term with a one 5-year renewal option to commence on May 15, 2024. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of . The delineated area is as follows:

North: Cottonwood Lane South: Jimmie Kerr Boulevard East: Interstate 10 West: Peart Road

There is no vacant Federal Space available.

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 570.402. In accordance with GSAR 570.402, use of the sole source authority is appropriate where it is determined that award to any other

DocuSign Envelope ID: 6B5D4EC4-8282-4B67-B661-849D54347C21 offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition.

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

By remaining in place, the Government would be able to utilize the existing tenant improvement which includes special use spaces that CBP’s border patrol station requires which include a sally port, processing area, interview rooms, holding cells, explosive materials storage, armory and equipment storage, evidence room, fitness room, locker/shower rooms, training rooms, ADP/LAN room with separate 24/7 HVAC system, and office and office related spaces. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and is attached. The cost of relocating CBP using the low-cost quote exceeds the cost of remaining at 396 N Camino Mercado. The total savings to the Government is estimated to be , a savings.

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 placed an advertisement on the Contracting Opportunities domain of SAM.gov on May 11, 2023, for 20 days. In addition, PBS conducted market research using CoStar to identify potential locations.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS in Casa Grande, Arizona showed for a fully serviced lease (Shell + Operating), rental rates within the delineated area to be per RSF.

The proposed rental rates for this succeeding lease of /RSF is above the current market range for this submarket. However, based on the formal cost benefit analysis that was completed on June 22, 2023, any potential savings in rent savings that may be realized in shell rent would have been lost due to additional costs accrued from replicating existing tenant improvements and costs associated with moving.

Such a move would have increased the overall cost to the Government by an estimated .

Additionally, there are no buildings available within the delineated area that can meet the requirements for this procurement. GSA reached out to the lessor of the lowest priced alternative space; the lessor told GSA that the space has been leased and no longer is available and will not be available for this procurement.

Furthermore, due to the use of space being for a border patrol station/detention center, it will be challenging to find a lessor that would accept the required use of space. Existing tenants, surrounding neighborhood and community may object to the proposed use, and lead to a community controversy.

This possibility substantially decreases the pool of available lessors.

Therefore, the proposed rental rate for this succeeding lease of /RSF is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 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.