Redacted - _Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC).pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2HI0141

Agency Name: Small Business Administration (SBA) & (

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

The General Services Administration currently leases 7,537 ABOA/8,668 (RSF) of office space at under lease number LHI02379 for the SBA and The current lease has a fully serviced rental rate of $ per RSF per year and expires June 19, 2025. Approval is requested to negotiate one renewal option 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 a renewal option(s) at this leased location. GSA and the agency have determined that a 5-year renewal option is the best path forward. This will allow the SBA and to continue its mission at the current location while long range planning will determine the future space needs at this location.

This requirement is to add one five-year renewal option. The estimated cost of this lease is $ per RSF per year 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. 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 SBA/ to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $ Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $

Items that would have to be replicated include

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402-5, the GSA Lease Contracting Officer placed a notice in the System for Award Management, Contracting Opportunities (SAM) on March 1, 2024, for 10 days. No responses were received.

In addition, GSA conducted market research using CoStar to identify potential alternative locations.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Based on CoStar, an analysis of the market in Honolulu, HI showed a fully-serviced rental rate (parking included) within the delineated area ranges from $ – $ per RSF. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating SBA and using the low-cost estimate exceeds the cost of remaining at The total savings to the Government is $

Therefore, the proposed rental rates for this renewal of $ per RSF for the renewal is within the current market range for this submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On February 23, 2024, GSA conducted market research using CoStar and identified 6 potentially acceptable locations (5 plus the incumbent) that might meet the agency’s needs within the delineated area. The 5 alternate buildings are located in downtown Honolulu within the delineated area with at least 8,668 ABOA available for rent. In addition, GSA placed a notice conforming to GSAR 570.402-2 on SAM on March 1, 2024. The incumbent Lessor’s expression of interest indicated that the fully serviced rate would be $ per RSF.

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

Address Source [EOI/CoStar, etc.]

Estimated Full- Service Rental Rate

500 Ala Moana Blvd Waterfront Plaza, LLC EOI $

745 Fort Street Topa Financial Center CoStar $

733 Bishop St. Mikai Tower CoStar $

999 Bishop Street First Hawaiian Center CoStar $

737 Bishop St. Mauka Tower CoStar $

220 S King St. Central Pacific Plaza CoStar $

* $ per RSF added to advertised rate to account for operating costs per Costar submarket report.

**$ – $ per RSF added to account for parking rent for 9 spaces. Rate varies depending on advertised parking rates for each specific building.

Figure 1: Market Research Comparable

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

The SBA and are 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 and there is no increase in square footage.

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

ACQUISITION.

Entity Name (incumbent)

Waterfront Plaza, LLC

Other Entity Names - if applicable

N/A

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 second renewal option 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_____________________ Guadalupe Flores Lease Contracting Officer and 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______________________ Specialist

Date_____________________ rea Manager

_Date______________________ o

R9 Leasing Advocate for Competition

_Date______________________ Director

Real Estate Acquisition Division

R9 Assistant Regional Counsel

Deputy Regional Commissioner

APPROVED:

Regional Commissioner Public Buildings Service Pacific Rim Region