JOTFOC LNJ24052 Redacted 3-29-24.pdf

U.S. GENERAL SERVICES ADMINISTRATION

GSA REGION 02

LEASING DIVISION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOTFOC)

LEASE NUMBER: LNJ24052

PROJECT NUMBER: 1NJ2214

AGENCY: Occupational Safety and Health Administration (OSHA) CITY/ STATE: Hasbrouck Heights, NJ

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED

U.S. General Services Administration currently leases 4,584ABOA/5,638 rentable square feet (RSF) of office space at 500 Route 17 South, Hasbrouck Heights, NJ under lease number LNJ24052 for the Department of Labor, Occupational Safety and Health Administration (OSHA). The Lease expires July 26, 2024. Approval is requested to negotiate a renewal with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The current annual rate is $26.32 per RSF. The Government’s intent is to renew at the same rate with continued CPI increase.

The market range for the area is $23.31-$29.26 per RSF. The Government will not award a renewal above the market range.

It has been determined that adding a five (5) year renewal option will allow the agency to continue it’s mission in the needed area of Hasbrouck Heights, NJ.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING ESTIMATED VALUE)

The requirement is for 5,638 RSF of office space for a five (5) year term, to commence July 27, 2024, to July 26, 2029. The current space is already built out and satisfies OSHA’s continuing mission requirements.

The estimated cost of this lease renewal is the existing rate of $26.32 per rentable square foot per year for an annual cost of $148,393.57 and a total term value of $752,087.02 (shown below in Cost-Benefit Analysis: Section 7).

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 570.402, 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 OSHA to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $49,493.00. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs that are estimated to be $424,686.24.

The Current space is already built out and satisfies OSHA’s continuing mission requirements. Special requirements of OSHA include 305 RSF of laboratory space, 597 RSF Special Space, 305 RSF Conference and training together with office support space and office space. Duplication of such requirements in a new location would be a significant cost burden for the Government.

The overall cost of relocating OSHA using the Bullseye target rate in our cost benefit analysis is $1,269.740.98. The anticipated cost savings of staying in place to the Government is $517,654.00.

A cost benefit analysis (See Exhibit – A), was completed following the procedures set forth in GSAR 570.402-5.

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, Market research was completed on August 17, 2022 via CoStar (See attached Exhibit – D) and an advertisement through SAM.Gov on September 7, 2022 through September 22, 2022, to identify any potential sites that could possibly meet OSHA’s needs. The SAM.GOV Advertisement yielded two (2), responses one from the incumbent at 500 Route 17, Hasbrouck Heights, NJ for a full service price of $28.60 per RSF and from the public 777 Terrace Avenue, Hasbrouck Heights, NJ at $31.90 per RSF.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

In accordance with Federal Acquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines, by certifying this document, that the rental rate of $26.32 per square foot for a fully serviced lease is considered fair and reasonable due to the additional cost of relocating, moving, voice and data together with tenant improvements, not being recoverable costs to the Government.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS:

COST-BENEFIT ANALYSIS

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.

Exhibit A (attached) compares the cost of staying in place at the current location at the current rent with the cost of relocating to a new location at the Bullseye rate. The overarching savings to the Government when remaining in place is an estimated total of $517,653.96.

7A). DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS:

COST-BENEFIT ANALYSIS FROM PROPERTIES ATTAINED FROM SAM

ADVERTISEMENT

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.

BRW Consulting, LLC responded to the SAM advertisement with the above-mentioned property located at 777 Terrace Avenue in Hasbrouck Heights. They also provided a listing in the current building as the incumbent with a square footage of 4,400 ABOA square feet. 777 Terrace Avenue was removed from consideration after a Cost Benefit Analysis conducted by the Leasing Specialist determined that there would be no cost savings to the Government. The alternate space offered by the incumbent at 500 Route 17 South was removed from consideration because the space was insufficient to meet the minimum square footage of the range of the advertisement.

Exhibit A-1 (attached) compares the cost of staying in place at the current location at the current rent with the cost of relocating to 777 Terrace Avenue. The overarching savings to the Government when remaining in place is an estimated total of $710,552.

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

The leased space is in good condition. OSHA is not requiring any additional square footage and they do not require any space alterations or updates.

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

ACQUISITION

BRW Consulting, LLC provided the following properties:

1. 777 Terrace Ave, Hasbrouck Heights, NJ 07604…cost benefit determined that this location was not economically advantageous to the Government

2. 500 Rt. 17, Hasbrouck Heights, NJ 07604…suite offered did not have sufficient square footage to meet requirement

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

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

The proposed lease renewal will help OSHA to continue it’s mission in the required location of Hasbrouck Hts, NJ.

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 renewal of 5,638 RSF is in the Government’s best interest and that this Justification is accurate and complete to the best of the Lease Contracting Officer’s knowledge and belief.

Alanna Fitzpatrick, Lease Contracting Officer Date

12. TECHNICAL REQUIREMENTS PERSONNEL 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.

Eric Steck, Realty Specialist Date