1CA2630-JOTFOC-Redacted.pdf

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region 09

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1CA2630

Agency Name:

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

The General Services Administration currently leases 19,200 ABOA/19,200 rentable square feet (RSF) of office space at 16160 Stagg Street, Van Nuys, CA 90046 under lease number GS-09B-01366 for the The current lease expires January 31, 2021. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location.

The procedures for pursuing a lease extension is detailed in GSAR 570.405: Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

submitted a continuing need letter on January 14, 2021 for 19,200 rentable square feet of office and related space to allow time to complete the construction of the new long term space. The delay was due to the City not providing an appointment for the electrical meter installation in a timely manner. The City delays are due to the current Covid-19 pandemic.

This requirement is for 19,200 ABOA/19,200 RSF of space for a 5 month term to commence on February 1, 2021. 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 the city of Van Nuys. 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. In accordance with FAR 6.302-1 and GSAR 570.405, it is determined that award to any other 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 the to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be . Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . If the Agency must relocate, the following costly buildout must be replicated

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

GSAR 570.106(d) exempts short term lease extensions described in GSAR 570.405 from the requirement to publicize lease acquisitions.

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 Van Nuys, CA showed the rental rate within the delineated area ranges from to per RSF. The sources of market data include reports from CoStar and LoopNet.

Therefore, the proposed rental rates for this lease extension of /RSF are within the current market range for this submarket and are 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.

On 1/13/2021, PBS conducted market research using LoopNet and identified 4 potential locations (3 plus the incumbent) that might meet the agency’s needs within the delineated area. Three buildings identified in the city limits of Van Nuys offer industrial space that range from 11,000 to 24,000 square feet. The building located at 7800 Haskell Ave. offers 24,000 square feet. The agency’s requirement is for 19,200 RSF. The remaining two industrial buildings offer less than 19,200 square feet and are unable to meet the minimum current space needs. The incumbent Lessor’s building meets the current requirements;

therefore, it is the only building that is acceptable. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF.

See Figure 1 below for the results of the market research, including the incumbent.

Address Source [EOI/CoStar, etc.] Asking Rental Rate

16160 Stagg St., Van Nuys, CA

[incumbent]

Quote from Lessor SF/YR

5661 Sepulveda Blvd., Van Nuys, CA LoopNet SF/YR

14751-14761 Califa St., Van Nuys, CA LoopNet /SF/YR

7800 Haskell Ave., Van Nuys, CA LoopNet /SF/YR

Figure 1: Market Research Comparables

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

An annual inspection was conducted for the Agency with no deficiencies noted during the inspection cycle. The Agency remains satisfied with the incumbent Lessor’s past and current performance and the facilities level of service provided by the maintenance and janitorial staff.

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

ACQUISITION.

The incumbent expressed interest in this acquisition.

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.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a lease extension of 19,200 RSF is in the Government’s best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

_ __________________________ Date_____________________

Rocio Carbajal, Lease Contracting Officer

12. PREPARER’S TECHNICAL CERTIFICATION.

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

__ _________________________ Date______________________

Angie Nguyen, Leasing Specialist