Redacted JOFOC Succeeding FBI 2KS0144 final.pdf

Revised 05-20-2021

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 06

FBI

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2KS0144

Agency Name: Federal Bureau of Investigations

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

The General Services Administration currently leases 3,771 ABOA/4,148 rentable square feet (RSF) of of f ice space at 515 S. Kansas Avenue, Topeka, KS under lease number GS-06P-LKS90081 for the Federal Bureau of Investigations (FBI). The current lease expires 11/30/2025. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

(INCLUDING ESTIMATED VALUE).

The FBI submitted a request to expand its Topeka KS of f ice to GSA on September 2, 2021, which was for an expansion of 2,629 ABOA SF. Due to insuf f icient funds for the expansion the FBI changed the request to a Succeeding lease, no change in square footage.

This requirement is for 3,771 ABOA/4,148 RSF of space for a 15-year term, 10-year f irm, to commence 12/01/2025. The estimated cost of this lease is $19.75 per rentable square feet per year for an annual cost of $81,923.00 and a total contract value of $1,228,845.00. The delineated area is the Central Business District of Topeka KS. 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. In accordance with GSAR 570.402, use of the sole source authority is appropriate where it is determined that award to any other of feror 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 the FBI to incur move and replication costs that would not be recovered through competition. Move costs are estimated to be $9,194.44. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $1,117,364.00. A cost-benef it analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating the FBI using the low-cost quote exceeds the cost of remaining at 515 S. Kansas Avenue, Topeka, KS. The total savings to the Government is $1,347,319.00.

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 April 2, 2024, for 14 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 in Topeka, KS showed the rental rate within the delineated area ranges f rom $18.00 - $27.00 per RSF according to the CoStar report for the CBD of Topeka, KS.

Therefore, the proposed rental rates for this succeeding lease of $19.75 per RSF, are deemed fair and reasonable by the GSA Lease Contracting Of f icer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

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

On April 2, 2024, PBS conducted market research using CoStar and identif ied 9 potentially acceptable locations (8 plus the incumbent) that might meet the agency’s needs within the delineated area. All spaces listed below in Figure 1 are listed as having a minimum of 3,771 SF of space on the second f loor or above within the Central Business District of Topeka, KS. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on April 2, 2024. The only expression of interest received was f rom the incumbent Lessor, indicating that the rate would be $19.75 per RSF.

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/RSF

515 S. Kansas Avenue Expression of Interest (Incumbent)

$19.75

120 SE 6th Ave CoStar $18.00

220 SE 6th Ave CoStar $25.00

107 SW 6th Ave CoStar $24.00

100 SE 9th St CoStar $23.00

424 S Kansas Ave CoStar $23.00

534 S Kansas Ave CoStar $25.00

823 SE Quincy St CoStar $27.00

1035 SE Quincy St CoStar $18.90

Figure 1: Market Research Comparables

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

The incumbent lessor’s performance has been very good. The agency and COR attest that the space has been well maintained and in good condition.

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

ACQUISITION.

N/A

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for suf f icient time to conduct a full and open procurement. The Government will consider the time and cost of moving f rom the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the ef fort to continuously encourage competition when practicable.

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 succeeding lease of $19.75 per 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_____________________ Gayle S. Dunning, 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______________________ L. Elaine Henderson, Leasing Specialist