1MA2182 Brockton MA Redacted JOTFOC.pdf

Revised 10-23-2023

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1MA2182

Agency Name: Social Security Administration

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

The General Services Administration currently leases 12,500 ABOA SF / 13,500 rentable square feet (RSF) of office space at 30 Christy’s Drive, Brockton, MA under lease number GS-01P-LMA00416 for the Social Security Administration (SSA). The current lease expires July 17, 2025. 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).

SSA submitted a continuing need letter on May 9, 2023, for 12,500 ABOA SF of office and related space, with no reserved parking. To satisfy the SSA mission requirements, the space must meet the following additional requirements:

Space must be located in a prime commercial office district with attractive surroundings with a prevalence of modern design and/or tasteful rehabilitation in modern use.

Space shall be located in a professional office setting and not within close proximity to railroad tracks or power transmission lines.

Space should not be located near establishments where firearms sold/discharged.

Space must be easily accessible by public:

o Visible or easily located from a primary or secondary street.

o If on high-traffic roadway or multi-lane thoroughfare, traffic signals within two blocks to provide safe access.

o Public transportation routes/stops (if available in the area) within a walkable ¼ mile of the building.

o Adequate parking at reasonable market rates within two blocks.

Subleases are not acceptable.

Space configuration shall be conducive to an efficient layout. Consideration for an efficient layout will include, but not be limited to the following: size and location of interior fire (support) walls, size and number of columns, column placement, bay depths, window size and placement, convector size and placement, electrical and telephone accessibility, and angles, curves or offsets that will result in an inefficient use of space.

The following space configurations will not be considered: Space with atriums or other areas interrupting contiguous space, extremely long or narrow runs of space (more than twice as long as wide), irregularly shaped space configurations or other unusual building features adversely affecting usage.

Basement/sub-ground space will not be accepted. Space must be on the ground floor or above.

Space must be level and not utilize interior ramps to resolve changes in grade.

Contiguous space on one floor or, if on more than one floor then be located on no more than two adjacent floors.

Mechanical rooms/service areas should not be accessed through the space.

Columns must be at least 20 feet apart (center to center) and 20 feet from any interior wall.

Separate visitor and employee restrooms are required.

If employee rest rooms are in a common area, they must be secured either by a key or cipher lock for tenant access only.

If space offered is above ground level, at least two (2) accessible elevators will be required.

This requirement is for 12,500 ABOA SF / 13,500 RSF of space for a 10-year, 5-year firm term to commence on July 18, 2025. The estimated cost of this lease is per year for an annual cost of and a total contract value of . The delineated area is the city limits of Brockton, MA. 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. 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 SSA 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 . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating SSA using the low cost quote exceeds the cost of remaining at 30 Christy’s Drive, Brockton, MA. Remaining at the current location results in a total savings to the Government of over the 10 year term of the lease. The cost benefit analysis is attached to this Justification.

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 20, 2024, for 27 days. In addition, GLS Plus Broker Contractor, CBRE, conducted market research using CoStar and LoopNet, and direct contact with local brokers, landlords, developers to identify potential locations.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Market research conducted by CBRE in Brockton, MA showed the asking rental rate within the delineated area ranges from to on a NNN basis. The market research is based on CoStar and LoopNet data obtained on May 10, 2024. Adjusting the NNN rates to align with GSA’s requirements for a full service lease, the shell would range from to . The increase over the advertised NNN rates reflects the addition of property taxes ( - ), which are not included in NNN rates, as well as above-market costs such as warm-lit shell requirements ( -

) and Energy Star ( - ). Additionally, NNN rates do not include operating costs, which would range from to for a fully serviced lease inclusive of the Government’s janitorial requirements. The resulting market range for shell and operating is to

Therefore, the proposed rental rates for this succeeding lease of , 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 May 10, 2024, CBRE conducted market research using CoStar and LoopNet and identified 5 potentially acceptable locations (4 plus the incumbent) that might meet the agency’s needs within the delineated area.

The available alternative properties were primarily retail strip mall locations that would need to be converted for SSA use. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on May 7, 2024. The incumbent Lessor’s expression of interest did not include an asking rate, but based on conversations with , representative for the incumbent ownership, the incumbent is considering annual increases within the typical market range of

. The current rental rate is for shell and operating, and the expected rate for the new lease based on initial conversations with the incumbent is . The incumbent was the only party to respond to the ad, but based on the market research described above, the lowest priced alternative location that could potentially meet the requirements is with an asking rate of NNN. As noted in section 10 above, the NNN asking rate adjusts to shell and operating for a total of for shell and operating.

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

Address Source Asking Full Service

Rental Rate 30 Christy’s Drive

Brockton, MA Incumbent EOI Full Service

Market Research (EOI not submitted) Withheld

Market Research (EOI not submitted)

NNN

(EOI not submitted)

NNN

(EOI not submitted) Withheld

Figure 1: Market Research Comparables

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

The incumbent location meets the agency’s needs without requiring any additional tenant improvement work.

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

ACQUISITION.

, Incumbent Lessr – 30 Christy’s Drive, Brockton, MA

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 award of a succeeding lease of 12,500 ABOA SF 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_____________________ , 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______________________ CBRE, Inc.