2NY0862 Renewal JOFOC Redacted Final.pdf

Justification for Other Than Full and Open Competition, Renewal

U.S. General Services Administration

GSA Region 2

PBS - Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2NY0862

Agency Name: Social Security Administration (SSA)

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

The General Services Administration currently leases 15,103 ABOA/17,138 rentable square feet (RSF) of office space plus 2 structured parking spaces at 220 E 161st Street, Bronx, NY under lease number GS-02B-LNY23848 for the Social Security Administration (SSA). The current lease expires March 31, 2024. Approval is requested to negotiate a five (5) year unevaluated renewal with the incumbent Lessor, without full and open competition, for continued occupancy at this leased location. The procedures for pursuing a renewal option 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).

This requirement is for 15,103 ABOA/17,138 RSF of space plus 2 structured parking spaces for a five (5) year, three (3) year firm term, that if exercised, would commence on April 1, 2024. The current lease has been effective since April 1, 2014 and has not been previously extended or renewed. A new/replacing competitive procurement was commenced by GSA, however, in July, 2022, the client asked that the project be put on hold due to changing requirements. To date, the client has not provided updated requirements for GSA to restart the competitive lease procurement. The addition of this renewal option would allow the Government to protect the agency’s occupancy and provide sufficient time for the agency to develop a long term housing plan and for GSA to conduct a competitive lease procurement.

The current rental rate is per RSF per year inclusive of two parking spaces, fully serviced. This rental rate includes Tenant Improvement (TI) of per RSF per year, which terminates at the end of the current lease term.

The anticipated cost of this lease is per RSF per year inclusive of two parking spaces, fully serviced. The annual cost totals 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 570.401. In accordance with GSAR 570.401, use of the sole source authority is appropriate where 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 and furniture costs are estimated to be and respectively. Additionally, this allows the Government to make use of existing tenant improvements and Building Specific Amortized Capital (BSAC), avoiding replication costs of . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating SSA using the low cost quote exceeds the cost of remaining at 220 East 161st Street. The total savings to the Government is . See attached Cost Benefit Analysis.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402, the GSA Leasing Specialist placed an advertisement on the Contracting Opportunities domain of SAM.gov on December 6, 2022 for 7 days. GSA received no responses to its advertisement. In addition, PBS conducted market research using the CoStar report.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by PBS in Bronx, NY showed the rental rate within the delineated area ranges from to per RSF, when adjusted for a fully serviced rental rate. The market data was collected from CoStar, which is representative of long firm terms, typically between 5 and 10 years. See attached CoStar Report. Considering the short-term nature of the proposed renewal option, the anticipated rental rate, which is below the current market range for this submarket, is considered fair and reasonable to the Government by the GSA Lease Contracting Officer. Nonetheless, the Lease Contracting Officer plans to negotiate the rental rate with the incumbent Lessor.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-5 allows for negotiation with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition.

On October 25, 2022, PBS conducted market research using CoStar and identified 4 potentially acceptable locations (3 plus the incumbent) that might meet the agency’s needs within the delineated area.

See Figure 1 below for the results of the market research and SAM.gov advertisement, including the incumbent.

Address Source [EOI/CoStar, etc.] Asking Full Service Rental Rate

220 East 161st Street Incumbent

512 Bergen Avenue CoStar/JLL

1780-1790 Grand Concourse Plaza CoStar

350 E Fordham Road CoStar/JLL

Figure 1: Market Research Comparables

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

According to the GSA Lease Management Specialist, the current Lessor’s past performance is satisfactory.

9. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION.

None

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

The competitive procurement to replace this lease will recommence upon receiving the agency's updated finalized requirements.

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 an unevaluated renewal of 17,138 RSF 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.

__________________________________________________ Date_____________________ Lease Contracting Officer (2PRM)

12. PREPARER’S TECHNICAL CERTIFICATION.

I certify that the supporting data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief.

___________________________________________________ Date______________________ Leasing Specialist (2PRM)

13. CONCURRED BY:

___________________________________________________ Date______________________

Branch Chief Leasing Division (2PRM)

___________________________________________________ Date______________________

Lease Acquisition Officer Leasing Division (2PR)

___________________________________________________ Date______________________

Leasing Director Leasing Division (2PR)

14. REVIEWED BY:

___________________________________________________ Date______________________

Senior Assistant Regional Counsel (2L)

15. APPROVED BY:

___________________________________________________ Date______________________

Competition Advocate (2P)