2TX1241_2_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_Redacted.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 7

Leasing Division (7PR)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2TX1241

Agency Name: United States Secret Service (USSS)

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

The General Services Administration currently leases 43,338 ABOA/45,774 rentable square feet (RSF) of office space at 125 E John W Carpenter Freeway, Irving, TX 75062 under lease number LTX17200 for the United States Secret Service (USSS). The current lease expires 11/30/2025. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING ESTIMATED VALUE).

USSS submitted a continuing need letter on 1/23/2023 for 45,774 rentable square feet of office and related space. To satisfy the USSS mission requirements, the facility must meet the following requirements:

Offered space must be contiguous on one or more floors.

Offered space shall not be located in close proximity to foreign government offices, as determined by the contracting officer.

Offered space must allow for 24-hour unrestricted access to both the office and parking.

Six (6) structured/secured spaces must be able to accommodate oversized automobiles weighing approximately 10,500 lbs. each.

This requirement is for 43,338 ABOA/45,774 RSF of space for a 17-year term, 15 years firm to commence on 12/1/2025. The estimated cost of this lease is (composite rental rate) per rentable square feet per year for an annual cost of and a total contract value of .

The delineated area is as follows:

North: E on W Northwest Highway

East: S on N Walton Walker Boulevard

South: W on John Carpenter Freeway

West: John Carpenter Freeway to W Northwest Highway

There is no vacant Federal Space available.

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 570.402. In accordance with GSAR 570.402, use of the sole source authority is appropriate where it is determined that award to an offeror other than the present lessor would result in substantial relocation costs or 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 USSS 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 The USSS space requirement includes hardened prisoner processing rooms, hardened evidence storage, hardened defense tactics/firearm and ammo closet, a vault, task force management room with specialized IT, and an Electronic Crimes Task Force Lab. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating USSS using the low cost quote exceeds the cost of remaining at 125 E John W Carpenter Freeway. The total savings to the Government is (See Exhibit A – Formal 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 Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on 8/29/2023 for 22 days. In addition, Public Properties, GSA Broker Contractor, conducted market research using the CoStar database and outreach to local brokers.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by Public Properties, GSA Broker Contractor, in Irving, TX showed the rental rate within the delineated area ranges from to per RSF (Year 1). Sources for market rental rates include the CoStar database and communications with local brokers.

Therefore, the proposed rental rates for this succeeding lease of RSF (composite rental rate), 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.

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 8/14/2023, Public Properties, GSA Broker Contractor, conducted market research using the CoStar database and outreach to local brokers and identified eight (8) potentially acceptable locations (seven (7) plus the incumbent) that might meet the agency’s needs within the delineated area. The buildings included in the table below have available contiguous square footage to meet the requirement – other requirements including parking and security have not been considered for these locations. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 8/29/2023. The incumbent Lessor’s expression of interest indicated that the rate would be /RSF (composite rental rate) per RSF. The interested party (545 E John Carpenter Freeway) that provided the lowest cost quoted a rate of per RSF (shell and operating only) in its expression of interest.

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

125 E John W Carpenter Freeway (incumbent) EOI $

545 E John W Carpenter Freeway EOI $

511 E John Carpenter Freeway CoStar $

400 E Las Colinas Boulevard CoStar

600 E Las Colinas Boulevard CoStar

222 W Las Colinas Boulevard CoStar

5215 N O’Connor Boulevard CoStar

5205 N O'Connor Boulevard CoStar $

Figure 1: Market Research Comparables

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

Past performance documentation and LAM reports were reviewed and deemed satisfactory.

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

ACQUISITION.

125 E John W Carpenter Freeway (incumbent)

545 E John W Carpenter Freeway

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 Government’s tenant improvements, the Government will consider 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 customer agency’s mission and security requirements (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.

Project Number: 2TX1241 City, State: Irving, TX

Estimated Net Annual Rent: $ Estimated Total Contract Value:

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 succeeding lease of 45,774 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_____________________ Don Day, Lease Contracting Officer

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______________________ Sandy Martinez, Project Manager

Concurred by:

Jan Trevino, Leasing Director

LD7 Legal Counsel

Charlie Hart, Competition Advocate

Approved by:

Giancarlo Brizzi, Head of Contracting Activity

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.

*Per GSA Order 5000.4B, legal review is required for “any acquisition action requiring the approval of the Head of the Contracting Activity (HCA) or higher, including but not limited to, justifications for other than full and open competition under FAR Part 6.

M=Million NAR=Net Annual Rent (Annual Rent less Operating) TCV=Total Contract Value

Project Number Agency Date Prepared City State

2TX1241 USSS 9/28/202

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Aggregate Cost Savings associated with Staying in Place

Note: If the aggregate cost savings associated with staying in place is positive and substantial enough based on the LCO's discretion, this CBA is intended to support a JOTFOC based on GSAM

570.104 and FAR 6.302-1(a)(2)(ii)(A). (A) "Substantial duplication of cost to the Government that is not expected to be recovered through competition."

Summary - Current Location - OFFER/ Estimate Summary - Lowest Priced Alternative - OFFER/Estimate

Other Costs Other Costs

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