1HI2095 JOTFOC_Redacted.pdf

Revised 10-23-2023

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1HI2095

Agency Name: FEMA/NATIONAL PREPAREDNESS DIVISION

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

The General Services Administration (GSA) currently leases 60,986 ABOA/60,986 rentable square feet (RSF) of warehouse and office space at JMD BUILDING, 99-1269 IWAENA ST, AIEA, HI under lease number LHI03102 for the FEMA/NATIONAL PREPAREDNESS DIVISION. The current lease expires 10/23/2024. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full lease for the 24,550 square feet of wareyard located across the street at 99-1260 IWAENA ST, AIEA, HI. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO M

(INCLUDING ESTIMATED VALUE).

FEMA/NATIONAL PREPAREDNESS DIVISION submitted a continuing need letter on 04/10/2023 for 60,986 rentable square feet of warehouse, office and related space and 24,550 square feet of wareyard space. To satisfy the FEMA/NATIONAL PREPAREDNESS DIVISION mission requirements, the facility must have approximately 25,000 SF of wareyard space available within 2,700 feet of the warehouse.

This requirement is 55,960 RSF of warehouse, 5,026 RSF of office and 24,550 square feet of wareyard space for a 10-year term to commence on 10/24/2024. The estimated cost of this lease is an annual cost of $ and a total contract value of $ .

The delineated area is:

North: Keaiwa Heiau State Recreation Area South: Highway H1 East: Highway H3 West: Kaahele Street

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 offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition.

4.

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 FEMA/NATIONAL PREPAREDNESS DIVISION 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 $ . The agency requires

. A cost-benefit analysis was not completed following the procedures set forth in GSAR

570.402-4 as the Contracting Officer was not able to locate any acceptable locations that could meet the requirements.

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 4/7/2024 for 15 days. In addition, Cushman & Wakefield conducted market research using CoStar and LoopNet and did not locate any properties within the delineated area that could meet the requirements.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by PBS and Cushman and Wakefield in Aiea, HI showed the rental rate within the delineated area ranges from $ to $ per RSF for office space, $ to $ per RSF for warehouse space, and $ to $ per SF for wareyard space according to CoStar and LoopNet comparables.

Therefore, the proposed rental rates for this succeeding lease of $ /RSF for office space, /RSF for warehouse space, and $ /SF for the wareyard, is within or below the current market range for this submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-4 allows for negotiation with the incumbent Lessor when the Contracting Officer did not identify any potential acceptable locations through the SAM presolicitation notice.

On 2/22/2024, Cushman & Wakefield conducted market research using CoStar and LoopNet and did not e delineated area. Furthermore, a pre-solicitation notice was posted conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 4/7/2024. Only 1 expression of interest was received from the incumbent Lessor who indicated that the rate would be /RSF for office space, $ /RSF for warehouse space, and $ /SF for the wareyard.

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

______________________________ Date______________________

Indrek Aasmaa R9 Assistant Regional Counsel

APPROVED:

_____________________________ Date______________________

Dan R. Brown, HCA Regional Commissioner Public Buildings Service Pacific Rim Region