2MI0339_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_or_SLAT-level_Memo_to_File_ Redacted 9.4.2024_Redacted.pdf
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- Solicitation number
- 2MI0339
About this file
This document is a Justification for Other Than Full and Open Competition (JOFOC) for a 36-month lease extension at the current leased location for the U.S. Patent and Trademark Office (USPTO) in Detroit, Michigan.
The current lease for 34,470 ABOA/39,640 RSF of office space at Stroh River Place in Detroit expires on June 14, 2025. GSA is requesting approval to negotiate a sole-source lease extension with the incumbent lessor to allow for the acquisition and buildout of a new, smaller lease for USPTO's long-term space requirements. The estimated value of the 36-month lease extension is $[REDACTED] per year, or $[REDACTED] total. Market research indicates the proposed rental rate is fair and reasonable. Remaining at the current location will avoid a costly relocation and allow USPTO to continue operations without disruption while the long-term solution is finalized.
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Text version
Revised Nov 2023
Justification for Other Than Full and Open Competition, Extension
U.S. General Services Administration
GSA Region 05 Leasing
Real Estate Division
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
PROJECT NUMBER: 2MI0339
Agency Name: Commerce Department US Patent and Trademark Office (CD PTO)
1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.
The General Services Administration currently leases 34,470.00 ABOA/39,640.00 rentable square feet (RSF) of office space at STROH RIVER PLACE, 300 RIVER PLACE DR , DETROIT, MI under lease number LMI18691 for the CD PTO. The current lease expires June 14, 2025. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease extensions.
2.
(INCLUDING ESTIMATED VALUE).
The government requires an extension of the current lease for 36 months to commence on June 15, 2025. A follow-on action for a long-term housing solution is expected to start once GSA Planning Manager and USPTO long term requirements expected in April, 2024. The additional time for this lease extension is required to allow for lease acquisition and buildout of a smaller new/replacing lease, with a portion of the long term requirement possibly housed in federal space. The estimated cost of this lease extension is per rentable square feet 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. This statutory authority is implemented through GSAR 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.
The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy
The government encounters unexpected delays outside of its control in acquiring replacement space
The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date
The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties
(b) (4)
(b) (4) (b) (4)
4.
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 during the extension period.
[Insert description of need for extension from 570.405 1 through 4 or other situation supporting extension]. Award to other than the current Lessor would require relocation of the entire requirement and would cause CD PTO to incur move and replication costs that would not be recovered through competition.
5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS
MANY POTENTIAL SOURCES AS IS PRACTICABLE.
In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.
6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE
GOVERNMENT WILL BE FAIR AND REASONABLE.
Recent market research conducted by the Lease Contracting Officer in DETROIT, MI showed the rental rate within the market area ranges from
Therefore, the anticipated rental rates for this lease extension of per RSF, 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.
On March 13, 2024, market research was conducted using . The market research showed the rental rate within the market area ranges from .
8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION.
Remaining at the current location under a 36 month extension avoids a holdover and allows the Government to continue operations without disruption. A follow-on action for a long-term housing solution is expected to start once GSA Planning Manager and USPTO long term requirements expected in April, 2024. The additional time for this lease extension is required to allow for lease acquisition and buildout of a smaller new/replacing lease, with a portion of the long term requirement possibly housed in federal space.
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.
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 Gov 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 cust (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.
11. CONTRACTING OFFICER CERTIFICATION.
(b) (4)
(b) (4)
(b) (5)
(b) (5)
By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a lease extension of 36 months for LMI18691 is best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Offic
________________________ _____ Date_____________________ Mark Montgomery, Lease Con
Reviewed and Concurred by:
Melissa McKenna Date Specialized Leasing Branch Manager
Date
Leasing Policy and Program Branch 5P2RB Date
5P2RB
Shery Wittstock Date Real Estate Division Director
Regional Counsel (5L) Date
Regional Competition Advocate (5P1) Date
Approved by:
Regional Head of Contracting Activity Date
(b) (6)
(b) (6)
(b) (6)
(b) (6)
File details come from the government source that posted it. Updated .