2TX1258_2_Justification_for_Other_Than_Full_and_Open_Competition_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

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2TX1258

Agency Name: Internal Revenue Service (IRS)

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

The General Services Administration currently leases 12,656 ABOA/ 14,511 rentable square feet (RSF) of office space at 1101 E Hackberry Avenue in McAllen, TX under lease number GS-07P-LTX16484 for the Internal Revenue Service (IRS). The current lease expires 10/31/2025. 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).

The IRS submitted a continuing need letter on 4/20/2023 for 14,511 rentable square feet of office and related space. To satisfy the IRS mission requirements, the facility must be located on one (1) contiguous floor and the design of the space must be conducive to an efficient layout and provide for good space utilization.

This requirement is for 12,656 ABOA/14,511 RSF of space for a 10-year total; 5-year firm term to commence on 11/1/2025. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of .

The delineated area is as follows:

North: W Pecan Blvd East: N Jackson Rd South: Highway 83 West: N Col Rowe Blvd

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 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 4/16/2024 to 5/7/2024. 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 570.402-2, the GSA Lease Contracting Officer placed a presolicitation notice on the Contracting Opportunities domain of SAM.gov on 4/16/2025, for 21 days. In addition, Public Properties, GSA’s Broker Contractor, conducted market research using the CoStar database and outreach to both local and national 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 in McAllen, TX showed the rental rate within the delineated area ranges from per RSF. Sources for market rental rates include the CoStar database and communications with local brokers.

Therefore, the proposed rental rates for this succeeding lease of per RSF is within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer. The informational quote from the incumbent was provided via email on 5/7/2024.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-4 allows for negotiation with the incumbent Lessor when the contracting officer does not identify any potential acceptable locations through the presolicitation notice or the market survey.

On 2/8/24, Public Properties conducted market research using the CoStar database and communication with local brokers and identified one (1) potentially acceptable location (incumbent lessor) that might meet 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 4/16/2024, and the only Expression of Interest (EOI) received in response to the presolicitation notice was from the incumbent lessor.

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

1101 Hackberry Avenue [incumbent] EOI

Figure 1: Market Research Comparables

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

The most recent property inspection showed the leased space to be well maintained and good condition. There are no reported deficiencies for past performance.

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

ACQUISITION.

1101 Hackberry Avenue (incumbent)

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.

___________________________________________________ Date______________________ Edward Seifert, Broker Contractor

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 14,511 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 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 _______________________________ Misbawu TK Abdulai, Project Manager

14. REVIEW, CONCURRENCE, AND APPROVAL

Concurred by:

Jan Trevino, Leasing Director

Reviewed by:

Dixon Merkt, 7L Legal Counsel

Concurred by:

Charlie Hart, Competition Advocate

Approved by:

Giancarlo Brizzi, HCA (Regional Commissioner)