2IL0429 JOTFOC__Redacted.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Superseding Lease

U.S. General Services Administration

GSA Region 5

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2IL0429

Agency Name:

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

The General Services Administration currently leases 58,996.00 ABOA / 68,199.00 rentable square feet

(RSF) of office space at 175 West Jackson Boulevard, Chicago, IL under lease number GS-05-

LIL19221 for the . The current lease expires March 6, 2027. Approval is requested to negotiate a superseding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a superseding lease are detailed in GSAR 570.402 & GSAR 570.404: Superseding Leases.

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

(INCLUDING ESTIMATED VALUE).

submitted a continuing need letter on July 27, 2024, for 68,199.00 rentable square feet of office and related space.

This requirement is for 58,996.00 ABOA / 68,199.00 RSF of space for a 15-year term to commence on 03/07/2027. The estimated cost of this lease is $ for an average annual cost of The delineated area is:

North: Wacker Drive South: Van Buren East: State Street West: Wacker Drive.

There is no vacant Federal Space available.

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 570.402 & 570.404. In accordance with GSAR 570.402 & GSAR 570.404, use of the sole source authority is appropriate where 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 incur move and replication costs that would not be recovered through competition. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of .

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. That cost benefit analysis is attached to this document. The cost of relocating using the next lowest cost quoted expression of interest exceeds the cost of remaining at 175 West Jackson Boulevard. The total savings to the Government is

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 Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on August 19, 2024, 21 days. The Lease Contracting Officer received calls from broker’s that represented buildings at:

• 525 West Van Buren

• 55 East Monroe

• 135 S. LaSalle Building

These brokers did not think they could offer a rate that would be competitive and were not interested in competing in the lease procurement.

The Lease Contracting Officer also sent the advertisement to the following Government Services brokers:

• Charles Dilks, Colliers

• Howard Traul, JLL

• Paul Hood, CBRE

These brokers were not interested in pursuing the lease procurement as they did not think they could submit an offer that would compete with the existing tenant improvements already built at 175 West Jackson. Further, these brokers commented that 175 W. Jackson has some of the lowest rates in the Chicago CBD.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by PBS in CHICAGO, IL showed the fully serviced rental rate without tenant improvements within the delineated area ranges from

Further, research shows that the Incumbent at 175 Jackson has some of the lowest quoted rates in downtown Chicago and would likely be lower than any other offers submitted if this procurement was competed. The Incumbent’s expression of interest also included two years of free rent and a tenant improvement credit.

Therefore, rental rates in the expression of interest rental rates for this superseding lease 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.

GSAR 570.402-5 allows for negotiation with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition.

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.

See GSAM 506.304(d) and (e) for appropriate signature threshold levels.

If Senior Procurement Executive (SPE) approval is required, must include signatures from Regional Contracting [Leasing] Director, Regional Counsel, and Head of Contracting Activity (HCA). Use of a separate signature page is required.

Note that the threshold for SPE approval is based on aggregate contract value; therefore, it is possible that SPE approval may be required for actions below the prospectus threshold.

Concurred by

Approved by