2CA1671-FBI (parking)- SF-Renewal - JOTFOC (REDACTED).pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2CA1671

Agency Name: DEPARTMENT OF JUSTICE - FEDERAL BUREAU OF

INVESTIGATION

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

The General Services Administration currently leases 160 parking spaces at 355 MCALLISTER STREET, San Francisco, CA under lease number GS-09B-LCA03282 for the DEPARTMENT OF JUSTICE - FEDERAL BUREAU OF INVESTIGATION. The current lease has a rental rate of $3,000.00 per space per year and expires 10/31/2024. 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.

This requirement is to add two five-year renewal options. The first renewal option will be 4 years firm and one soft, the second renewal option will be 5 years soft. The estimated cost of the first option is $305 per space per month ($3,660.00 per space per year) for an annual cost of $585,600.00. The estimated cost of the second option is $350 per space per month ($4,200.00 per space per year) for an annual cost of $672,000.00. The total contract value of these options is estimated to be $6,288,000.00.

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.

N/A- No replication and relocation cost- Parking Lease

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 10/04/2023 for 10 days. There were no responses to the SAM notice.

In addition, GSA conducted market research using existing GSA leases. Lease number LCA03236 which was executed 7/2022 and Lease number LCA03473 which was executed 10/2019.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

An analysis of the market in San Francisco, CA showed the parking rate within the delineated area ranges from $300.00-$529.66 per parking space, as identified via most recent parking leases and the incumbent's expression of interest.

No potential alternatives were identified for this requirement.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On 07/28/2023, GSA conducted market research using Leases LCA03236 and LCA03473, as these were the most recent parking leases awarded in the area. In addition, GSA placed a notice conforming to GSAR 570.402-2 on SAM on 10/04/2023. The incumbent Lessor’s expression of interest indicated that the rate would be an average of $305.00 per space per month for the first renewal option and $350.00 per space per month for the second renewal option.

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

Address Source Estimated Full Service Rental Rate

355 MCALLISTER ST Incumbent $305.00 per space per month (option 1) $350.00/space per month (non-firm term option 2)

376 LARKIN ST REXUS $529.66/space per month

250 CLAY ST REXUS $450.00/space per month

Figure 1: Market Research Comparables

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

The DEPARTMENT OF JUSTICE - FEDERAL BUREAU OF INVESTIGATION 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.

City & County of San Francisco (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_____________________

Pedro Zepeda, 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______________________

Jose Chaires, Leasing Specialist

CONCUR: ____________________________Date______________________ Geneva Lee, Area Manager

____________________________Date______________________ Pedro Zepeda, Branch Chief

____________________________Date______________________ Jessica L. Escobedo R9 Leasing Advocate for Competition

____________________________Date______________________ Pamela Collins, Director Real Estate Acquisition Division

___________________________Date______________________ Indrek Aasmaa R9 Assistant Regional Counsel

___________________________Date______________________ Amanda Sweeney Deputy Regional Commissioner

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