1HI2118_JOTFOC_SIGNED_TSA Kahului (Off-Airport)_Redacted.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1HI2118

Agency Name: DHS TRANSPORTATION SECURITY ADMINISTRATION (TSA)

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

The General Services Administration currently leases 8,154 ABOA/8,154 rentable square feet (RSF) of office space at 425 Koloa Street, Kahului, Maui under lease number GS-09P-LHI03125 for the TRANSPORTATION SECURITY ADMINISTRATION (TSA). The current lease has a rental rate of $ per RSF per year and expires 4/21/2025. 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. During initial planning, TSA had wanted to consolidate lease LHI03125 location with lease location LHI02753 as a new/replacing lease action. However, due to budget constraints TSA was not able to commit to a long-term consolidation project. Therefore, GSA agreed to proceed with a medium-term leasing solution of two 5-year renewal options.

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

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 TSA 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 $

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 7/27/2023 for 19 days. There were no responses to the SAM notice.

In addition, GSA conducted market research using CoStar and LoopNet to identify potential locations.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

An analysis of the market in Kahului, Maui showed the rental rate within the delineated area ranges from $ to $ per RSF, as identified via LoopNet and CoStar Market Reports.

No potential alternatives were identified for this requirement so no cost benefit analysis could be completed.

Therefore, the proposed rental rates for the first renewal of $ /RSF and the second renewal of $ /RSF is within 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.

On 7/25/2023, GSA conducted market research using LoopNet and CoStar and identified one potentially acceptable location, the incumbent, that would meet the agency’s needs within the delineated area. In addition, GSA placed a notice conforming to GSAR 570.402-2 on SAM on 8/28/2023. 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 and SAM notice, including the incumbent.

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

425 Koloa Street Incumbent $ /RSF

35 Lunalilo St CoStar $ /RSF*

2200 Main St CoStar $ /RSF*

10 Hoohui Rd CoStar $ /RSF*

*$22.23 added to advertised rate to account for operating costs per CoStar submarket report.

Figure 1: Market Research Comparables

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

The TSA 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.

WATUMULL APEX, 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.

__________________________________________ Date_____________________

Cheryl Nolting, 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______________________

Cheryl Nolting, Leasing Specialist

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CONCUR:

____________________________Date______________________ Guadalupe Flores, Branch Chief

Jessica L. Escobedo R9 Leasing Advocate for Competition

Pamela Collins, Director Real Estate Acquisition Division

___________________________Date______________________ Indrek Aasmaa, Reviewing Attorney

R9 Assistant Regional Counsel

___________________________Date______________________ Amanda Sweeney

Deputy Regional Commissioner Pacific Rim Region

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

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