2MD0425 JOFOC 4.30 Redacted.pdf

Justification for Other Than Full and Open Competition, Renewal

U.S General Services Administration

GSA Region 3

South Branch, Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Project Number: 2MD0425

Agency Name:

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED

The ( currently occupies 22,500 ABOA SF (23,850 RSF yielding 900 SF ABOA General Office Space, 600 ABOA SF Storage Space, and 21,00 ABOA SF

Warehouse space), plus 50,000 SF of outside storage space that is concrete paved, fenced, and secured) at the Energy Petroleum Co. building on 950 Principio Furnace Rd, Perryville MD under Lease

LMD12164, which expires on 12/07/2024. There are two five (5) year renewal options available in the current Lease. On 6/15/2022, the agency requested to extend their term at the current lease under their existing requirements. GSA plans to exercise one of the existing five (5) year renewals with the required

180-day notice to the lessor, and the renewal will have 180-day termination notice to the lessor.

Approval is requested to exercise a renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a renewal are 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 worked with the in finalizing their requirements. The agency identified a continuing need of

22,500 ABOA SF (23,850 RSF) in Perryville, MD. The lease contains two existing, unevaluated five (5) year renewal options with termination rights of one hundred eighty (180) days. Notice to exercise the first renewal option must be given to the Lessor one hundred eighty (180) days prior to the lease expiration.

There is no vacant Federal Space Available.

The current rental rate is $ The rental rate for the renewal is as follows:

Firm Term:

$ ($ /RSF rounded shell rent + $ /RSF rounded operating) x 23,850 RSF = $

(Approximate Annual Rent) / 12 months = $ (rounded) x 6 months = $ (Firm Term

Rent)

Non-Firm Term:

DocuSign Envelope ID: 0650C35E-B8A0-411A-8660-03BCF5B4BBC5

$ ($ /RSF rounded shell rent + $ /RSF rounded operating) x 23,850 RSF = $

(Approximate Annual Rent) / 12 months = $ (rounded) x 54 months = $ (Non-Firm

Term Rent)

Total Contract Value = $

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 570.401. In accordance with GSAR

570.401, exercising a renewal option is appropriate if the existing or proposed rental rates are determined to be fair and reasonable by reviewing current market information.

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 to incur move and replication costs, estimated to be $ that would not be recovered through competition.

Additionally, this allows the Government to make use of existing tenant improvements and avoid replication costs of $

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.401. This analysis demonstrates an aggregate cost saving to the Government of $ by remaining in place. The cost of relocating using the low-cost quote exceeds the cost of remaining with the incumbent at 950

Principio Ct, Perryville MD. It would not be economically feasible to relocate the agency to a new location and exercising a lease renewal will protect occupancy and allow the agency to continue their mission without disruption.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, the GSA Leasing Specialist placed an advertisement on the

Contracting Opportunities domain of SAM.gov on 10/24/2023 for ten (10) days. No expressions of interest were received. 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.

Market research was done was conducted by the Leasing Specialist on 12/21/23 for the Perryville, MD area. Currently, there are no spaces available within the delineated area. Thus, the area was expanded into Havre de Grace, MD to bring in more competition. The fully serviced rate within the area averages around $ /RSF.

The proposed renewal rate of $ /RSF is below average based on the market research that was conducted. When factoring in move and replication costs in as well, it makes the renewal more favorable to the Government. This will also allow for the agency to continue their mission without disruption.

DocuSign Envelope ID: 0650C35E-B8A0-411A-8660-03BCF5B4BBC5