JOTFOC_Tulsa_2OK016.pdf

2OK0163/DHS USSS/Tulsa, Oklahoma

Justification For Other Than Full And Open Competition PAGE 1 OF 4 Last Revised 2/7/13

U.S. General Services Administration

GSA Region 7

Leasing Division

Justification for Other than Full and Open Competition

Lease Number: GS-07B-14910

Project Number: 2OK0163

Agency Name: DHS United States Secret Service (DHS USSS)

1. Identification and Description of Action Being Approved:

The General Services Administration currently leases 4,114 rentable square feet (RSF) of office space at , Tulsa, Oklahoma under lease number GS-07B-14910 for the DHS USSS. The current lease expires September 11, 2015. Approval is requested to negotiate a succeeding lease with the incumbent lessor without full and open competition for continued occupancy at this lease location.

2. Description of Supplies or Services Required:

DHS USSS submitted a continuing need letter on January 24, 2014, for 4,114 rentable square feet of office and related space.

This requirement is for 4,114 RSF of space for a 5 year firm, 10 year total term to commence on September 12, 2015. The estimated annual cost of this lease is $15.57/BOMA RSF per year for an annual cost of $64,054.98 and a total contract value of $640,549.80.

The delineated area is Tulsa Central Business District.

3. Identification of Statutory Authority:

41 U.S.C. 253(c) (1): Only one responsible source and no other supplies or services will satisfy agency requirements

4. Demonstration that the Acquisition Requires use of the Authority Cited:

GSAM 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. The incumbent lessor's expression of interest indicated that the rate would be $15.57/RSF. Market research conducted indicated that the lowest cost quoted a rate of $10.50/RSF.

Award to other than the current Lessor would require relocation of the entire requirement and would cause DHS USSS to incur move and replication costs that would not be recovered through competition. Several costs would be incurred to replicate the following items included by not limited to etc. That would all have to be replicated if they were to move. Replication and moving costs for DHS USSS are estimated to cost ), not including amortization costs, fees, and other indirect costs to the Government such as human resources spent managing construction of the replication of the tenant and improvements.

Justification For Other Than Full And Open Competition PAGE 2 OF 4 Last Revised 2/7/13

Cost Benefit Analysis

Acquisition of 3,577 ANSI/BOMA Office Area (ABOA) Square Feet 10 Year (Full Term) Analysis:

Present Location

Tulsa, OK

Alternate Location

Tulsa, OK 7

10 -Year Total Rent / Annual ABOA rate

$640,549.80 / $17.91 (rounded)

$429,507.80 / $12.08 (rounded)

New amortized tenant improvements

Total Interest payments of tenant improvements amortized at over 5 yrs.

Cost of physical move.

Voice and data move.

Duplication of Reimbursable Work Authorization (RWA) alterations (above agency customization tier)

Total 10-year cost/annual ABOA rate (no escalations included) $640,549.80 / $17.91 (rounded)

$991,672.95 / $27.88 (rounded)

Full Term lease savings $351,123.15

The cost of relocating DHS USSS using the low cost quote exceeds the cost of remaining at The savings to the Government is $351,123.15. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition.

Therefore, the Government intends to negotiate a succeeding lease and remain at its current location.

Justification For Other Than Full And Open Competition PAGE 3 OF 4 Last Revised 2/7/13

5. Description of Efforts to Solicit as Many Offers as Practical:

In March 2015, GSA conducted a market research and identified 14 potentially acceptable locations (13 plus the incumbent) that might meet the agency's needs within the delineated area.

6. Demonstration that the Anticipated Cost will be Fair and Reasonable:

In accordance with Federal Acquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines by certifying this document that the anticipated cost to the Government of [(dollar figure]/RSF for the entire requirement is fair and reasonable.

Recent market research conducted by GSA showed the rental rate within the delineated area ranges from $10.50 - $18.00 per RSF.

7. Description of the Market Survey Conducted:

On March 24, 2015, GSA conducted market research that identified the following 14 locations including the incumbent:

Market Data for the Area

Address

Asking Full Service Rental Rate:

$/RSF

6 114 E 5 th St $17.60

8 110 W 7th St S $15.50

9 321 S Boston Ave $15.00

12 317 S Main St $13.00

13 515 S Main St $18.00

14 525 S Main St $12.00

* Location used for comparison in CBA, Section 4. above.

8. Other Facts Supporting the use of Other Than Full and Open Competition:

Not Applicable.

9. List of Sources that Expressed an Interest in the Acquisition:

10. Statement of Actions to Overcome Barriers to Competition:

Not Applicable.

Justification For Other Than Full And Open Competition PAGE 4 OF 4 Last Revised 2/7/13

4/24/2015

X

CONTRACTING OFFICER CERTIFICATION

By signature on this justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of a succeeding lease of [amount of space] RSF is in the Government's best interest and that this Justification is accurate and complete to the best of my knowledge and belief.

4/24/2015

X

11. TECHNICAL REQUIREMENTS PERSONNEL CERTIFICATION

I certify that by signature on this Justification for Other than Full and Open Competition, the supporting data used to form the basis of this Justification is accurate and complete to the best of my knowledge and belief.

FAR Part 6.303 requires that information on which the Justification is based be certified as complete and accurate by the technical or requirements personnel. FAR Part 6.304 specifies that the justification must be approved in writing by a specified designee (position title from FAR used above) based on TCV. No additional guidance is included in GSAM Part 506.3. *Regional practice requires concurrence by the Leasing Director and Legal Counsel where TCV>$650,000, by the RC where TCV>$12.5M and by all lower level approvers.

M=Million NAR=Net Annual Rent (Annual Rent less Operating) TCV=Total Contract Value HCA=Head of Procuring Activity SPE=Senior Procurement Executive