2NV0188 - SSA Henderson Renewal Option JOTFOC Redacted.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2NV0188

Agency Name: Social Security Administration (“SSA”)

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

The General Services Administration currently leases 14,387 ABOA/16,545 rentable square feet (RSF) of office space at 10416 S Eastern Ave, Henderson, NV under lease number GS-09B-LNV01450 for the Social Security

Administration (“SSA”). The current lease has a rental rate of per RSF per year and expires October 31, 2025. Approval is requested to negotiate renewal options with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a renewal option is 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 has confirmed the need for renewal options at this leased location.

This requirement is for 14,387 ABOA/16,545 RSF of space for two five-year renewal terms to commence on

November 1, 2025. The estimated cost of this renewal terms is per RSF 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. In accordance with FAR 6.302-1, 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 SSA to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be .

Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . This would include duplication of specialized use of space which include but not limited to a data communications room with 24/7 Heating, Ventilation, and Air Conditioning (HVAC), a private interview room, and an interactive video tele-training room. Security measures for the space include but are not limited to security screening, a guard desk, video surveillance system (VSS) with uninterruptible power supply, video management system (VMS), multiple cameras throughout the facility, for VSS equipment, intrusion detection system (IDS), physical access control system (PACS), interactive distance learning equipment (IDL) which includes 1.2-meter satellite dish and roof access, and integrated receiver decoder (IRD).

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 Lease Contracting Officer placed an advertisement on SAM on

November 9, 2022, for 20 days.

In addition, GSA conducted market research using CoStar.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

An analysis of the market in Henderson, NV showed the rental rate within the delineated area ranges from

- per RSF per CoStar Availability Report.

Although the quoted rate of per RSF is higher than the market range, the higher rate is justified as fair and reasonable by the below savings demonstrated from the following cost-benefit analysis:

Low quote of alternate space for 5 years (16,545 RSF x /RSF x 10 years)

Tenant improvement costs*

Moving costs for furniture and telecommunications

Total costs estimated for alternate location

Cost of current space for five years (16,545 RSF x /RSF x 10 years)

Tenant improvement costs

Moving costs for furniture

Moving costs for telecommunications

Total costs estimated for current location

Estimated savings to the Government to remain in current location

Therefore, the proposed rental rates for this renewal option lease of /RSF are deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

In November 8,2022, GSA conducted market research using CoStar and identified three potentially acceptable locations (four plus the incumbent) that might meet the agency’s needs within the delineated area. Potentially acceptable locations were determined based on the space being advertised meeting the square foot requirement, the space being continuous, all on one floor, and located within the delineated. In addition, PBS placed an advertisement conforming to GSAR 570.402-2 on SAM.gov on November 9, 2022. One expression of interest was received; however, the space being offered was not located within the delineated area and the interested