2VI0033_JOTFOC_v2 - REDACTED.pdf

Justification for Other Than Full and Open Competition, Succeeding Action

U.S. General Services Administration

GSA Region 2

2PRC Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2VI0033

Agency Name: FBI – Federal Bureau of Investigation -1513

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

The General Services Administration currently leases 5,107 ABOA/5,510 rentable square feet (RSF) of office space at Royal Palm Professional Building 62-3 Estate Thomas, VI 00804 under lease number LVI19204 for the Federal Bureau of Investigation (FBI). The current lease expires April 14, 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 current fully serviced annual rate is $64.03 per RSF. 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 FBI submitted a continuing need letter on August 11, 2022. This requirement is for 5,107 ABOA/ 5,510 RSF of space to negotiate a succeeding lease for a total period of fifteen (15) year term, Ten (10) years firm and Five (5) years soft term

The current annual rent is $352,786.41. The cost of the fully serviced succeeding lease is estimated to be $64.03/RSF. GSA estimates the cost of this succeeding lease to remain at the current fully serviced rental rate of $64.03 per RSF equating to an annual cost of $ 352,786.41 for a total aggregate value of $ 5,485,557.95 for the fifteen (15) years term (inclusive of escalation of the operating rent). 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. In accordance with FAR 6.302-1 and GSAR 570.402, it is determined that award to any other offeror would result in substantial duplication of costs to the Government that are 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. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs.

Unique space requirements that already exist for the FBI at this current location include– All exterior windows must have fragment retention film including forced entry protection such as man bars or security screening, parking facilities must have access-control and be restricted to building tenants, and certain doors require bullet resistance.

The FBI also requires special interview rooms and mantraps. Certain areas require sound masking, and the sound masking system must be programmable and have the capability to accept changes to schedule and sound level. The building must have special security countermeasures including at least 400 feet setback or standoff from a high or low risk facility. Facility must have at least 150 feet of setback or standoff from a gas station or fuel tank. Some rooms are required to be brought up to SCIF (Sensitive Compartmented Information Facility) standards. The current facility meets all of the above criteria and buildout requirements, FSL Level 2 special security requirements and contains a holding cell/ secure area implemented at this location.

Duplication of such requirements in a new location would not only be costly, but also cause interruption to the agency’s mission. Costs are estimated to be $556,005.00, including relocation of telephone, data and moving costs. Relocation costs are estimated to be $1,520,889.00, including the cost of design of construction to meet all FBI requirements (See exhibit B).

A cost benefits analysis (See exhibit – A) was completed following the procedures set forth in GSAR 570.402-5. The total savings to the Government is $2,119,802.00. The cost of relocating FBI using the low-cost quote exceeds the cost of remaining at Royal Palm Professional Building 62-3 Estate Thomas, VI 00804 The total savings to the Government is $2,119,802.00.

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 an advertisement was placed on the Contracting Opportunities domain of SAM.gov on October 18, 2023, for 15 days. In addition, GSA conducted market research using Market Data from local brokers.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

The cost of relocating the FBI exceeds the cost of remaining at their current location at the anticipated rental rate at $64.03 per RSF. The Government would see at total cost savings of $2,119,802.00 over the life of the lease term if the FBI were to stay in place. (See figure below)

The sources of market data shows an average fully serviced rate of $59.29/RSF and a rental range of $52.04 to $66.53 per RSF for Class A/B Buildings. The current lease is fully serviced inclusive of all expenses in a Class A Building. The proposal rental rate for this succeeding is within the market range in the St. Thomas. USVI. The space does contain the necessary special requirements and security measures that are required at FBI facilities.

Therefore, the proposed rent for this succeeding lease of $64.03/RSF is within the current market range for this submarket and it is deemed fair and reasonable by the Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.401 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.

In August l, 2023, market research was conducted and revealed no potential buildings. Two (2) GSA current leases in St. Thomas USVI had been evaluated for comparable market information. The rental rates range from $52.04 to $66.53 per RSF within the St. Thomas U.S. Virgin Islands.

Market asking rental rates do not typically reflect the services included in a fully serviced Government lease. As a result, the market data chart below reflects two (2) current fully serviced rental rates and the incumbent. The resulting average rental range is $59.29 per RSF.

See Figure 1 below for the results of the market research.

Figure 1: Market Research Comparables

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

In June 2021, at the request of the Federal Bureau of Investigation (FBI), a 50 Kilowatts Cummings Generator was installed at the lease location, through a purchase order. The Lessor is responsible for the preventive maintenance of the generator per the manufacturer recommendations and the fueling of the generator. A generator is a required feature for the FBI due to the high-risk zone and vulnerability of Hurricanes in the area.

The Lessor has had an excellent history with GSA. The Lease Administration Manager (LAM) stated that this Lessor is one of the best lessors we have currently in St. Thomas USVI and the Caribbean.

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

ACQUISITION.

No sources other than the incumbent Lessor expressed interest in this procurement.

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 5,510 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_____________________ Alanna Fitzpatrick, 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______________________ Thomas Landron Morales, Leasing Specialist

Concurred By:

___________________________________________________ Date_______________________

Raffaela Battiloro, Lease Acquisition Officer

Jeannette Rios, Leasing Director

Reviewed for Legal Sufficiency By:

Leigh Erin Izzo, Senior Assistant Regional Counsel

Approved By:

____________________________________________________ Date______________________

Warren F Hall Jr, Competition Advocate

Approved By:

____________________________________________________ Date______________________

Michael Gelber, Head of Contracting Activity