2TX1244 JOTFOC Redacted (final).pdf

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 7

PBS Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Project Number: 2TX1244

Agency Name: DHS Immigration & Customs Enforcement (ICE)

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

The General Services Administration currently leases 13,843 ABOA SF/15,919 rentable square feet (RSF) of office space, along with 53 parking spaces, at 500 E Mann Road, Laredo, TX, under lease number LTX17365 for DHS Immigration & Customs Enforcement (ICE). The current lease expires September 8, 2026. 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).

ICE signed a Client Project Agreement with GSA on January 22, 2024, to signify its continuing need for 15,919 RSF of office and related space. To satisfy the ICE mission requirements, the facility must be in Laredo, TX.

This requirement is for 13,843 ABOA/15,919 RSF of space for a term of 15 years with 10 years firm to commence on September 9, 2026. The delineated area is as follows:

North: West Del Mar Boulevard East: Bartlett Avenue South: E. Calton Road West: Interstate 35

There is no vacant Federal Space available.

Based on the incumbent lessor’s expression of interest, the estimated cost of this lease is an average of $ per RSF per year for an annual cost of $ and a total contract value of $ .1 These estimates are subject to final negotiations.

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

1 The average rental rate of per RSF reflects the average of the incumbent lessor’s expression of interest, which offered $ per RSF in years 1-5, $ per RSF in years 6-10, and $ per RSF in years 11-15.

Project No. 2TX1244 Page 2 of 4 Revised 10-23-2023

570.402, 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.

Per the requirements of GSAR 570.402-4, no potentially acceptable locations were identified through the presolicitation notice posted to sam.gov from 12/10/2024 to 01/03/2025. In instances where the Contracting Officer does not identify any potential acceptable locations, GSA may conduct a sole source procurement and negotiate directly with the present Lessor.

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 from December 10, 2024, through January 3, 2025.

GSA received only one expression of interest, which came from the representative for the incumbent location at 500 E. Mann Road.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by GSA’s broker partner Public Properties in the Laredo, TX, market showed prevailing rental rates range from $ -$ per RSF.

Therefore, the proposed rental rates for this succeeding lease of $ per RSF in years 1-5, $ per RSF in years 6-10, and $ per RSF in years 11-15 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 570.402-4 allows for negotiation with the incumbent Lessor when no potential acceptable locations could be identified through the advertisement or market survey.

On 11/13/2024, Public Properties conducted market research using the CoStar database and communication with local brokers and identified one (1) potentially acceptable location (incumbent lessor) that meets the agency’s needs within the delineated area. PBS posted a presolicitation notice conforming to GSAR 570.402-2 on the Contract Opportunities module of the SAM.gov website on 12/10/2024, and the only Expression of Interest (EOI) received in response to the presolicitation notice was from the incumbent lessor. The incumbent Lessor’s expression of interest indicated that the rate would be an average of $ per RSF.

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

Address Source Asking Full-Service Rental Rate

500 E. Mann Road (incumbent lessor)

EOI Yrs 1-5: $ Yrs 6-10: $ Yrs 11-15: $

Figure 1: Market Research Comparables

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

None.

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

ACQUISITION.

500 E. Mann Road (incumbent lessor)

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.

11. Prepared by.

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 Timothy Mazzucca, Broker Contractor (Public Properties LLC)

12. 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 15,919 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_____________________ Michael J. Noye, Lease Contracting Officer

13. 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

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14. REVIEW, CONCURRENCE, AND APPROVAL.

Concurred by:

__________ Date______________________ Jan Trevino, Leasing Director

Reviewed by:

_____________ Date______________________ Angel Leal, 7L Legal Counsel

Concurred by:

______________ Date______________________

Competition Advocate

Approved by:

______________ Date______________________

HCA (Regional Commissioner)