1CA2799 - Redacted JOTFOC.pdf

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Renewal of Lease - Fresno, CA
Solicitation number
1CA2799
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This document is a Justification for Other Than Full and Open Competition (JOTFOC) for GSA Lease Contract Number GS-09P-03273 for office space located at 855 M Street, Fresno, CA. The current lease for 11,878 ABOA/13,360 RSF expires on 10/31/24 and GSA is seeking approval to negotiate two 5-year renewal options with the incumbent lessor, Fresno CA I FGF, LLC, without full and open competition. The estimated cost of the first renewal option is $REDACTED per RSF per year, and the second option is $REDACTED per RSF per year, for a total contract value of approximately $REDACTED. GSA's market research identified 5 potentially acceptable alternative locations, but determined it is in the Government's best interest to remain at the current location to avoid relocation costs of approximately $REDACTED and to utilize the existing tenant improvements valued at $REDACTED. The GSA Lease Contracting Officer has determined the proposed rental rates are fair and reasonable.

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U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1CA2799

Agency Name: U.S. Immigration and Customs Enforcement (ICE)

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

The General Services Administration currently leases 11,878 ABOA/13,360 rentable square feet (RSF) of office space at 855 M Street, Fresno, CA under lease number GS-09-03273 for ICE. The current lease has a rental rate of REDACTED per RSF per year and expires 10/31/24. Approval is requested to negotiate two renewal options with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a renewal option is detailed in GSAR 570.401:

Renewal Options.

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

(INCLUDING ESTIMATED VALUE).

GSA has confirmed the need for renewal options at this leased location.

This requirement is to add two five-year renewal options. The estimated cost of the first option is REDACTED per RSF per year for an annual cost of REDACTED. The estimated cost of the second option is REDACTED per RSF per year for an annual cost of REDACTED. The total contract value of these options is estimated to be REDACTED.

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, 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 ICE to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be REDACTED. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of REDACTED. Current space includes, but is not limited to, private offices, large training/conference room, private locker rooms and restrooms, interview rooms, secure weapons storage and fitness/weight room.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, the GSA Lease Contracting Officer placed a notice in the System for Award Management, Contracting Opportunities (SAM) on 11/7/23 for 10 days. There were no responses to the SAM notice.

In addition, GSA conducted market research using CoStar/Loopnet to locate alternative locations.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating ICE using the low cost estimate exceeds the cost of remaining at 855 M Street, Fresno, CA.

The total savings to the Government is REDACTED.

Therefore, the proposed rental rates for this renewal of REDACTED /RSF for the first renewal and REDACTED /RSF for the second renewal (average of REDACTED /RSF over 10 years) 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.

On 12/12/23, GSA conducted market research using CoStar and LoopNet and identified 5 potentially acceptable locations (6 plus the incumbent) that might meet the agency’s needs within the delineated area. In addition, GSA placed a notice conforming to GSAR 570.402-2 on SAM.gov on 11/7/23. The incumbent Lessor’s expression of interest indicated that the rate would be REDACTED per RSF for the first option and REDACTED per RSF for the second renewal option.

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

Address Source [EOI/CoStar, etc.] Estimated Full Service Rental Rate

855 M. St., Fresno, CA EOI REDACTED

REDACTED

2314 Mariposa St., Fresno, CA CoStar REDACTED

REDACTED

1570 E Nees Ave., Fresno, CA CoStar REDACTED

REDACTED

2721 Ventura St., Fresno, CA Loopnet REDACTED

REDACTED

7335 N Palm Bluffs Ave., Fresno, CA

Loopnet REDACTED

REDACTED

7575 N Fresno St., Fresno, CA Loopnet REDACTED

REDACTED

*escalated REDACTED yearly for estimated second option rate ^adjusted for market based operating rent of REDACTED/RSF.

Figure 1: Market Research Comparables

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

ICE is satisfied with the leased space and the GSA Lease Administration Manager confirmed the Lessor is responsive. There are no documented fire protection and life safety deficiencies for the location. There have been no previous renewal options added to this lease and there is no increase in square footage.

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

ACQUISITION.

Fresno CA I FGF, LLC (incumbent)

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

There are no systemic barriers to competition. If the agency has a continuing need for space upon lease expiration, GSA will follow all authorities, regulations and policies applicable to lease acquisition. Should there be remaining useful life in the Government’s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

Additionally, objective scrutiny will be given to the customer agency’s mission and security requirements (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the addition of two renewal options 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.

_________ REDACTED _______________ Date_______1/24/26______________

Susan Baghdikian, 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.

_________ REDACTED ___________ Date_____1/24/26_________

Eric Johnson, Leasing Specialist

CONCUR:

_____ REDACTED ________Date______1/24/26_______ Peter Zepeda, Branch Chief

________ REDACTED __________Date_____1/26/26________

Jessica L. Escobedo R9 Leasing Advocate for Competition

_________ REDACTED _________Date______1/31/26________ Pamela Collins, Director Real Estate Acquisition Division

________ REDACTED _________Date_________1/31/26______ Jordan Baker, Reviewing Attorney

R9 Assistant Regional Counsel

_______ REDACTED _________Date________2/2/26____ Amanda Sweeney

Deputy Regional Commissioner

APPROVED: _______ REDACTED _________Date_________2/2/26_________ Dan R. Brown, HCA Regional Commissioner Public Buildings Service Pacific Rim Region

File details come from the government source that posted it. Updated .