2DE0035_SSA_New_Castle_JOFOC_Redacted.pdf

Revised 10-23-2023

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

Region 3

Public Buildings Service – Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2DE0035

Agency Name: Social Security Administration (SSA)

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

The General Services Administration (GSA) currently leases 30,015 Rentable Square Feet (RSF), yielding 27,842 ANSI/BOMA Off ice Area (ABOA) Square Feet (SF) of of f ice space at Creekwood Off ice Complex III, 920 W Basin Road, New Castle, DE under lease number GS-03P-LDE12223 for the Social Security Administration. The current lease expires November 30, 2025; however, it carries a 60-month renewal option with termination rights on 90 days’ notice. Approval is requested to exercise the renewal option without full and open competition for continued occupancy at this leased location. The procedures for exercising a renewal option are detailed in GSAM 570.401 Renewal options.

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

(INCLUDING ESTIMATED VALUE).

On June 23, 2023, SSA alerted GSA of its desire to exercise the renewal option . The renewal option is for a 5-year term to commence on December 1, 2025. The Government retains its full and partial termination rights during the option period on 90 days’ notice. The cost of the renewal option is per RSF per year for an annual cost of $ and a total contract value of

The delineated area is:

North – Routes 195 and 95 between Routes 1 and 9.

East – Route 9 f rom Route 295 to Hamburg Rd.

South – Hamburg Rd at Route 9 to Route 1.

West – Route 1 f rom Hamburg Rd to Route 95.

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 GSAM 570.401. In accordance with GSAM 570.401, use of the sole source authority is appropriate where it is determined that renewal option is fair and reasonable.

(b) (5)

(b) (5)

(b) (5) (b) (5)

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 the SSA to incur move and replication costs that would not be recovered through competition. Exercising the renewal option permits the SSA to utilize the existing Tenant Improvements while it evaluates a long-term solution for its occupancy in New Castle, DE. As no acceptable alternatives expressed an interest in writing to the Presolicitation Notice, a cost-benef it analysis is not required as set forth in GSAM 570.401.

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 Of f icer placed an advertisement on the Contracting Opportunities domain of SAM.gov on November 2, 2023, for 15 days. In addition, PBS conducted market research using CoStar.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS utilizing CoStar and GSA lease data in New Castle, DE showed the rental rate within the delineated area ranges f rom $ per RSF to $ per RSF.

Therefore, the proposed rental rates for this succeeding lease of $ /RSF, are within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Of f icer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On August 30, 2022, November 28, 2023, and December 14, 2023, PBS conducted market research using CoStar and identif ied one (1) potentially acceptable location (only the incumbent) that might meet the agency’s needs within the delineated area. In addition, PBS posted a Presolicitation Notice on the Contract Opportunities domain of SAM.gov website on November 2, 2023. No party aside f rom the incumbent Lessor expressed an interest in writing.

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

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

Creekwood Off ice Complex III, 920 W Basin Road, New Castle, DE (Incumbent)

Renewal Option $ /RSF

Figure 1: Market Research Comparables

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

The past performance of the current Lessor is satisfactory. Any def iciencies identif ied during inspections are promptly addressed.

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

ACQUISITION.

None, aside f rom the incumbent.

(b) (5) (b) (5)

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 f rom 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 Justif ication for Other than Full and Open Competition, the GSA Lease Contracting Of f icer certif ies that the award of a lease renewal of 30,015 RSF is in the Government’s best interest and that this Justif ication is accurate and complete to the best of the GSA Lease Contracting Of f icer’s knowledge and belief .

__________________________________________________ Date_____________________ Cathleen Ryer, Lease Contracting Of f icer

12. PREPARER’S TECHNICAL CERTIFICATION.

I certify that the supporting data used to form the basis of this Justif ication is complete and accurate to the best of my knowledge and belief .

___________________________________________________ Date______________________ Derek Bond, Leasing Specialist

13. GSAM 506.304(d) and (e) REQUIRED SIGNATURES

Concurred by:

Jessica Herring, Broker Team Supervisor

JoAnn Stewart, South Branch Chief

Renee Domurat, Real Estate Division Director

Reviewed for Legal Suf f iciency by:

Rob Notigan, Acting Regional Counsel

Approved by:

Tom Lyman, Regional Competition Advocate

Approved by:

Joanna Rosato, Acting Regional Administrator