2CA1794_REDACTED -Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_or_SLAT-level_Memo_to_File_and_Supporting_Documentation__2_2_2024 (1).pdf

DocuSign Envelope ID: 13A31C6C-9E69-46EB-8AAD-3398A4A96DFE

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2CA1794

Agency Name: SOCIAL SECURITY ADMINISTRATION (SSA)

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

The General Services Administration currently leases 6,854 ABOA/ 7,706 rentable square feet (RSF) of office space at 322 E. Thousand Oaks Blvd., Thousand Oaks, CA 91360 under lease number GS-09B 02167 for the SSA. The current lease has a rental rate of $45.80 per RSF per year and expires 01/30/2026. 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. SSA is in process of evaluating future long term space needs, including what adjustments should be made to office designs and space allocation standards in the post-COVID work environment. Renewal options allow the Government to protect occupancy while this evaluation occurs.

This requirement is to add two five-year renewal options. The estimated cost of the first option is $43.39 per RSF per year for an annual cost of $334,352.55. The estimated cost of the second option is $44.48 per RSF per year for an annual cost of $342,797.57. The total contract value of these options is estimated to be $3,385,750.60.

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 SSA to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $89,556.00. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $488,964.36. The special use space includes an office layout with hearing rooms that were customized during the post award TI process and a large, covered entrance and lobby

DocuSign Envelope ID: 13A31C6C-9E69-46EB-8AAD-3398A4A96DFE with security including a waiting area and several small private conference rooms that would all have to be replicated if they were to move.

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 3/30/23 for 10 days. There were no responses to the notice.

In addition, GSA conducted market research using CoStar.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

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 estimate exceeds the cost of remaining at 322 E. Thousand Oaks Blvd, Los Angeles, CA. The total savings to the Government is estimated to be $362,181.00.

Therefore, the proposed rental rates for this renewal of $43.39/RSF for the first renewal and $44.48/RSF for the second renewal (average of $43.94/RSF over 10 years) 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 12/5/23, GSA conducted market research using CoStar and identified three potentially acceptable locations (two plus the incumbent) that might meet the agency’s needs within the delineated area. Two office buildings are located in the Thousand Oaks sub-market and are potential alternatives due to the available minimum contiguous space of 8,000 RSF. In addition, GSA placed a notice conforming to GSAR 570.402-2 on SAM on 3/30/23. The incumbent Lessor’s expression of interest indicated that the rate would be $43.39 per RSF for the first option and $44.48 per RSF for the second option.

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

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

322 E. Thousand Oaks [incumbent] EOI $43.39/RSF (1st

Option) $44.48/RSF

(2nd Option)

2535 W Hillcrest Dr - Building B* CoStar $39.10/RSF (1st

Option) $45.33/RSF

(2nd Option)

1525 Rancho Conejo Blvd* CoStar $36.70/RSF (1st

Option) $42.54/RSF

(2nd Option)

*$9.70 added to advertised rate to account for operating costs per Costar submarket report. Rate also includes a 3% annual market escalation.

Figure 1: Market Research Comparables DocuSign Envelope ID: 13A31C6C-9E69-46EB-8AAD-3398A4A96DFE

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

The SSA 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.

KS-6 17, 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 award of a renewal options of 7,706 RSF 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.

1/24/2024

__________________________________________________ Date_____________________ Susan Baghdikian, 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.

1/17/2024

___________________________________________________ Date______________________ Mike Phillips, Leasing Specialist

CONCUR:

1/25/2024

____________________________Date______________________ Pedro Zepeda, Branch Chief

1/25/2024

____________________________Date______________________ Jessica L. Escobedo

R9 Leasing Advocate for Competition DocuSign Envelope ID:

13A31C6C-9E69-46EB-8AAD-3398A4A96DFE

1/31/2024

____________________________Date______________________ Pamela Collins, Director

Real Estate Acquisition Division

1/31/2024 ___________________________Date______________________ Jordan Baker

R9 Assistant Regional Counsel

2/2/2024

___________________________Date______________________ Amanda Sweeney

Deputy Regional Commissioner Pacific Rim Region

2/2/2024

APPROVED: ____________________________Date______________________ Dan R.

Brown, HCA Regional Commissioner

Public Buildings Service Pacific Rim Region