2NY0837 JOFOC - Redacted.pdf

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region 2 Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2NY0837

Agency Name: DRUG ENFORCEMENT ADMINISTRATION

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

The General Services Administration currently leases 10,085 ABOA/12,670 rentable square feet (RSF) of office space plus 35 structured parking spaces at 140 Grand Street, White Plains, NY under lease number LNY23920 for the Drug Enforcement Administration (DEA). The current lease expires August 31, 2022. 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. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING ESTIMATED VALUE).

The Government requires an extension of the current lease for six (6) months, one (1) month firm to commence on September 1, 2022. 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

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 during the extension period.

The agency occupying the leased space was scheduled to move into other Federally controlled space,

(b) (5)

(b) (5) (b) (5) but encountered unexpected delays in preparing the new space for occupancy. This delay is caused by the telecommunication provider, which the agency contracts directly. The agency cannot occupy the new space without the telecommunication lines that must be connected to the security system in order to secure the new leased space. Award to other than the current Lessor would require relocation of the entire requirement and would cause DEA 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 the White Plains, NY area showed the rental rate within the market area ranges from to per RSF, when adjusted for fully serviced rental rates.

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 August 26, 2022, market research was conducted using Costar and Bullseye Reports. See attached.

The market research showed the rental rate within the market area ranges from to per RSF, when adjusted for fully serviced rental rates, not inclusive of parking. The market data collected from Costar is representative of long lease terms, typically between 5 to 10 years. Furthermore, the Bullseye Report showed the target rate of per RSF. The average structured parking rate is per space per month or per RSF for 35 parking spaces and the adjusted target rate inclusive of parking is per RSF. Considering the short-term nature of this extension, negotiating an extension at the current rental rate would be favorable to the Government.

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

Remaining at the current location under a six (6) month extension avoids a holdover and allows the Government to continue operations without disruption.

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 sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from 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 to 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

(b) (5) (b) (5)

(b) (5)

(b) (5) (b) (5)

(b) (5)

(b) (5

(b) (5

(b) (5) favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

11. CONTRACTING OFFICER CERTIFICATION.

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 6 months for LNY23920 is in the Government’s best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

Lease Contracting Officer (2PRM)

12. APPROVED BY:

Leasing Supervisor (2PRM)

13. REVIEWED BY:

Senior Assistant Regional Counsel (2L)

(b) (6)

(b) (6)

(b) (6)