2TX1273 - JUSTIFICATION_Redacted.pdf

Revised 10-23-2023

U.S. General Services Administration

GSA Region 7

Leasing Division (7PR)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2TX1273

Agency Name: Federal Bureau of Investigation

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

The General Services Administration currently leases 13,478 ABOA/15,500 rentable square feet (RSF) of office space at 2801 Network Boulevard, Frisco, TX under lease number GS-07P-LTX17376 for the Federal Bureau of Investigation (FBI). The current lease expires 3/15/26. 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).

FBI submitted a continuing need letter on 8/2/23 for 15,500 rentable square feet of office and related space.

This requirement is for 13,478 ABOA/15,500 RSF of space for a 7-year; 3-year firm term to commence on 3/16/26. The estimated cost of this lease is per rentable square feet per year for an annual cost of follows:

North: Start at intersection of Legacy Drive and Eldorado Parkway (point of origin), travel eastbound on Eldorado Parkway to Custer Road.

East: Eldorado Parkway and Custer Road, travel Southbound on Custer Road to Sam Rayburn Tollway.

South: Custer Road and Sam Rayburn Tollway, travel westbound on Sam Rayburn Tollway to Legacy Drive.

West: Sam Rayburn Tollway and Legacy Drive, travel northbound on Legacy Drive to intersection with Eldorado Parkway (point of origin).

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.

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 the FBI 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 A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating the FBI using the low-cost quote exceeds the cost of remaining at 2801 Network Boulevard. The total savings to the Government is $1

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 pre-solicitation notice on the Contracting Opportunities domain of SAM.gov on 2/14/24, for 16 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 Frisco; 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 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 3/1/24.

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 pre-solicitation 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 nine (9) potentially acceptable locations (eight (8) plus the incumbent) that might meet the agency’s needs within the delineated area. However, PBS posted a pre-solicitation notice conforming to GSAR 570.402-2 on the Contract Opportunities module of the SAM.gov website on 2/14/24, and the only Expression of Interest (EOI) received in response to the pre-solicitation 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

2801 Network Boulevard EOI

3800 Gaylord Parkway CoStar

3201 Dallas Parkway CoStar

5844 John Hickman Parkway CoStar

7460 Warren Parkway CoStar

7330 Stonebrook Parkway CoStar $

3010 Gaylord Parkway CoStar

6801 Gaylord Parkway CoStar

3011 Internet Boulevard CoStar

Figure 1: Market Research Comparable

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

The most recent property inspection showed the space to be well maintained and in good condition and that the current Lessor is very responsive.

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

ACQUISITION.

2801 Network Boulevard (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. 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 15,500 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_____________________ Kelly Krumm, 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______________________ Edward “Teddy” Seifert, GSA Broker Contractor

Project Number: 2TX1273 City, State: Frisco, TX Estimated Net Annual

REVIEW, CONCURRENCE, AND APPROVAL

Joel Torres, Project Manager

Jan Trevino, Leasing Director

Erin Hufstetler, R7 Legal Counsel

Charlie Hart, Competition Advocate

Giancarlo Brizzi HCA, Regional Commissioner