2MD0297_-_Executed_Justification_for_Other_Than_Full_and_Open_Competition.pdf

U.S. GENERAL SERVICES ADMINISTRATION

NATIONAL CAPITAL REGION

PUBLIC BUILDINGS SERVICE

Estimated Contract Value: $14,002,333.33

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED:

Project Number: 2MD0297 Project Title: Justice Data Center - Lease Extension Lease Number: GS-11B-01855

The Department of Justice (DOJ) occupies approximately 96,016 BOMA Rentable Square Feet (BRSF) of flex space at 1151 Seven Locks Road in Rockville, MD under Lease No. GS-11B-01855, which expires on July 15, 2015. The space houses a large data center with office and storage space. DOJ has a continuing need to remain in place to allow time for a consolidation of this space into existing Department of Justice facilities throughout the country. Accordingly, GSA is seeking authority to negotiate a lease extension for approximately 96,016 BRSF of flex space for up to 50 months.

2. DESCRIPTION OF SUPPLIES OF SERVICES REQUIRED:

DOJ currently occupies 96,016 BOMA Rentable Square Feet (BRSF), yielding 93,761 BOMA Office Usable Square Feet (BOUSF) of flex space at 1151 Seven Locks Road in Rockville, MD under Lease No. GS-11B-01855, which expires on July 15, 2015.

DOJ has a need to extend the lease to allow adequate time for the planning, renovations and occupancy for the agency’s Office of Chief Information Officer (DOJ- OCIO) division into existing DOJ data centers around the country. In an effort to optimize existing owned space and accommodate the agency’s future IT infrastructure, the agency has identified three existing locations in which to renovate and consolidate all of its data centers. The existing data center at 1151 Seven Locks Road under Lease No. GS-11B-01855 has been identified as one of the data centers that will be consolidated into one of the three locations around the country. The IT infrastructure migration program is expected to begin as early as May 2016 and will take approximately 18-24 months to complete with the consolidation to be fully completed by the end of fiscal year 2019. As a result, GSA will seek to extend the lease for 96,016 BRSF of flex space and related space for up to 50 months (September 31, 2019) to allow time for the relocation of this data center to one of the three identified locations.

Project No. 2MD0297 – DOJ-JMD Lease Extension – Justice Data Center

Accordingly, authority is requested to extend Lease No. GS-11B-01855 for 96,016 BRSF of flex space and related space for up to 50 months. The estimated total contract value of this extension is $14,002,333.33 ($35.00 x 96,016 BRSF / 12 months X 50 months).

3. IDENTIFICATION OF STATUTORY AUTHORITY:

Section 41 U.S.C. 3304(a)(1). Only one responsible source, and no other supplies or services will satisfy agency requirements.

4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED:

GSAM 570.405 provides authority for lease extensions on a short term basis without providing for full and open competition when the property or services needed by the agency are available from only one responsible source and no other type of property or services will satisfy the needs of the agency. GSAM 570.405(c)(3) provides that this authority is applicable when the Government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date. In this situation, GSA has the need to extend the current lease in order to establish an expiration date that will allow time for efficient planning and consolidation of this data center into existing DOJ data centers around the country.

5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS

PRACTICABLE:

In accordance with GSAM 505.202(b)(2)(ii), it is not appropriate or reasonable to publish an advance notice for supplemental lease agreements of real property involving lease extensions under the circumstances defined in GSAM 570.405.

6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND

REASONABLE:

In accordance with FAR 6.303-2(a)(7), the Contracting Officer has determined, by certifying this document, that the anticipated annual cost to the Government of $3,360,560.00 ($35.00 BRSF) for an extension for up to 50 months is determined to be fair and reasonable. While the anticipated rental rate is on the high end of the rental range set forth in the market survey below, the data center is highly specialized with advanced technological systems that command rental rates on the high end of the range that are not typical for flex space in Suburban Maryland. However, every effort will be made by the Contracting Officer to negotiate the lowest possible rental rate for the required space.

Project No. 2MD0297 – DOJ-JMD Lease Extension – Justice Data Center

7. DESCRIPTION OF THE MARKET SURVEY CONDUCTED:

On March 12, 2015, market research was conducted by utilizing COSTAR looking at flex spaces in Montgomery County, MD that could satisfy this requirement. The market research identified two (2) locations in this area that could meet the minimum square footage requirement of 96,016 BRSF. Unfortunately in both locations, the rental rates were not advertised. Therefore, research was conducted looking for flex space within the Montgomery County, MD with a minimum square footage of 20,000 RSF that if combined, could meet the current square footage requirement of 96,016 RSF. The market research identified eight (8) potential buildings that could satisfy the requirement. The advertised rental range for the buildings identified was $8.00 - $26.50/BRSF Triple Net (NNN) with the average rental rate of $14.58/BRSF NNN.

Additionally, since the current lease is fully serviced, net of utilities, the estimated cost for taxes, operating costs and insurance of approximately $14.00/BRSF (based on the expenses at the current location), increasing the rental range from $22.00 to $40.50/BRSF Full Service with an average rental rate of $28.58/BRSF Full Service.

8. OTHER FACTORS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

None

9. LIST OF SOURCES THAT EXPRESSED AN INTEREST IN THE ACQUISITION:

Not Applicable

10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION:

Normally, procurement actions are handled competitively in accordance with established agency policy. However, in this instance GSA’s requirement is to remain at 1151 Seven Locks Road for up to 50 months. At the end of this extension term, it is anticipated that DOJ will relocate to existing leased space or to federally owned space.