REDACTED Justification for Other Than Full and Open Competition (1).pdf

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region 9 Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2CA1526

Agency Name: IRS, SSA, , FDA

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

The General Services Administration currently leases 264 ABOA/264 rentable square feet (RSF) of storage space and 61 official parking spaces at City Center West Garage, 1250 Martin Luther King Jr.

Way, Oakland, CA 94612 under lease number LCA03169 for the IRS, SSA, , FDA, and . The current lease expires December 31, 2024. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for 36 months (3 years) to commence on January 1, 2025. The extension requirement consists of 57 parking spaces, as ICE no longer needs to lease spaces. The spaces must be within 1/4 mile proximity to the Ronald V. Dellums Federal Building and US Courthouse.

The estimated cost of this lease extension is $ per reserved parking space per year for 43 reserved parking spaces ($ per year), $ per unreserved parking space per year for 14 (4 reduced from the existing lease) unreserved parking spaces ($ per year), and $ per rentable square feet per year for 264 RSF of storage space ($ per year), totaling 57 parking spaces and 264 RSF of storage space, for an annual cost of $ and a total contract value of

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 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.

☐ The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy

☒ The government encounters unexpected delays outside of its control in acquiring replacement space

☐ The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date

☐ The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties

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 during the three year extension period. The agencies (IRS, SSA, and FDA) confirmed a need for space. The reason for the unexpected delay is because GSA was unable to anticipate that none of the alternative parking locations were willing to enter long term leases and that none of them met agency requirements. GSA contacted representatives from multiple parking locations within the delineated area, including 525 15th St., 1800 San Pablo Ave., 219 Jefferson St., 1260 MLK Jr. Way, 1721 Webster St., 475 14th St., and 550 10th St., and these alternate locations are only willing to lease space on a month-to- month or one year basis. The month-to-month limitation for alternative lease space prevents GSA from entering a long term lease with any of these alternative locations. In addition, there were no alternative locations that met the requirements for both reserved spaces and 24/7 access. Therefore, remaining at the existing location is in the Government’s best interest as the Government had no practicable alternative to the current location.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the Lease Contracting Officer in Oakland, CA showed the parking rental rate within the market area ranges from $ per space per year ($ per month) to $ per space per year ($ per month). Additional market research shows that the industrial rental rate (comparable for storage space) within this market area ranges from $ per RSF to $ per RSF, as identified via CoStar Market Reports. However, only the incumbent is able to meet the agencies’ requirements for both reserved spaces and 24/7 access.

Therefore, the anticipated rental rates of $ per RSF for storage space, $ per reserved parking space, and $ per unreserved parking space, 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 November 1, 2024, market research was conducted using independent market outreach and CoStar.

The market research showed the parking rental rate within the market area ranges, as detailed in Section

6. There were no alternative locations that met the requirements for both reserved spaces and 24/7 access.

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

Remaining at the current location under a 36 month extension avoids a holdover and allows the Government to continue operations without disruption. A shorter term lease extension would not be practicable as none of the alternative lease locations met the agency requirements or were willing to enter a long term lease, so a 36-month extension is needed to provide enough time to find a long term solution.

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

ACQUISITION.

N/A

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

BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

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 lease extension of 36 months for LCA03169 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_____________________

Pedro Zepeda, Lease Contracting Officer / Branch Chief

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______________________

Mason Decker, Leasing Specialist

CONCUR: ____ _________Date______________________ Alistair Whatley, Acting Area Manager

____ ___________Date______________________ Jessica L. Escobedo R9 Leasing Advocate for Competition

___ __________Date______________________ Katrin Dronskiy, Acting Director Real Estate Acquisition Division

___ ___Date______________________ Aaron Zambrano, R9 Assistant Regional Counsel

___ ______Date______________________ Amanda Sweeney Deputy Regional Commissioner

APPROVED: _____ ________Date______________________ Dan R. Brown, Head of the Contracting Activity Regional Commissioner Public Buildings Service Pacific Rim Region