Russellville CBOC JOFOC _ Final signed.pdf

Revised 12-06-2022

Justification for Other Than Full and Open Competition, Succeeding Lease

Department of Veterans Affairs

Veteran Health Administration

NCO 16

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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

The Veterans Heath Administration (VHA) currently leases 9,986 ABOA / 10,485 rentable square feet (RSF) of clinical medical space at 3106 West 2nd Court, Russellville, AR under lease number VA256R0910 for the Russellville CBOC. The current lease expires August 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).

VHA submitted a continuing need letter January 30, 2025, for 10,485 rentable square feet of clinical medical and related space. To satisfy the VHA mission requirements, the facility must be within the delineated area of North, Parkway Drive; East, Interstate 40; South, Skyline Drive (State 326/331); West, Hilltop Drive.

There is no vacant Federal Space available.

This requirement is for 9,986 ABOA/10,485 RSF of space for a 10-year term to commence on September 1, 2025. The estimated cost of this lease is $44.25 per RSF per year fully serviced and $28.06 per RSF, unserviced for an annual cost of $463,961.25 and a total contract value of $4,639,612.50 which includes a tenant improvement amount of $0.

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: Succeeding Leases. In accordance with GSAR 570.402, use of the sole source authority is appropriate where the lease contracting officer does not identify any potential acceptable locations through advertisement and market research, or 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.

The VHA Lease Contracting Officer did not identify any potential acceptable locations through the advertisement or survey of the market. Section 5 and 7 of this justification describes efforts to locate alternative sources. Therefore, in accordance with GSAR 570.402-4: No Potential Acceptable Locations, a cost benefit analysis is not required.

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 VHA Lease Contracting Officer placed an advertisement on the SAM.gov on January 30, 2025, for 30 days with 1 response, being the incumbent. In addition, market research was conducted using Loopnet.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the Lease Contracting Officer in Russellville, AR showed the rental rate within the delineated area ranges from $10.00-$18.00 per/RSF unserviced.

Therefore, although the anticipated rental rate for this succeeding lease is higher than the market research at $28.06 per/RSF unserviced it is deemed fair and reasonable by the VHA Lease Contracting Office due to the existing medical build out. The Government cannot expect to recover the cost of build out and moving to a new location.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On January 30, 2025, market research was conducted using Loopnet and identified 0 potentially acceptable locations that might meet the agency’s needs within the delineated area. In addition, the VHA Lease Contracting Officer posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on January 30, 2025. The incumbent Lessor’s expression of interest indicated that the rate would be $28.06 per RSF unserviced.

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

Address Source [EOI/CoStar, etc.] Asking Unserviced Rental Rate

3106 West 2nd Court, Russellville, AR [incumbent]

Sources Sought $28.06

2005 North Arkansas Ave, Russellville, AR 72802

LoopNet

Could not meet minimum SF requirement. Provided to establish the market range.

$12.00

3209 Main Place, Russellville, AR 72801 LoopNet

Could not meet minimum SF requirement. Provided to establish the market.

$10.00

5359 W Ash St, Pottsville, AR 72858 LoopNet

Outside of delineated area.

Provided to establish the market.

$18.00

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

The incumbent lessor’s performance under the current lease has been acceptable and the building has been maintained and in good condition.

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

ACQUISITION.

SI PROPERTY INVESTMENTS

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 VHA Lease Contracting Officer certifies that the award of a succeeding lease of 10,485 RSF is in the Government’s best interest and that this Justification is accurate and complete to the best of the VHA Lease Contracting Officer’s knowledge and belief.

__________________________________________ Date _____________________ Joycellyn, Williams, 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 ______________________ Jeffrey, Weaver, Preparer

13. Approvals in accordance with FAR 6.304.

a. One Level Above the Lease Contracting Officer (required when the anticipated value of the succeeding lease is above SLAT and exceeds $750K total contract value): I certify the justification meets requirements for other than full and open competition.

JEFFREY WEAVER Digitally signed by JEFFREY WEAVER Date: 2025.07.08 16:16:42 -05'00'

JOYCELLYN WILLIAMS

Digitally signed by JOYCELLYN

WILLIAMS

Date: 2025.07.09 11:54:56 -05'00'

Tanya, Warden Date Branch Chief

b. VA HCA for Leasing Review and Approval (required when the anticipated value of the succeeding lease is above the SLAT and exceeds $750K total contract value): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

John D. Thomas Date Associate Executive Director Office of Real Property Office of Construction and Facilities Management

TANYA

WARDEN

Digitally signed by

TANYA WARDEN

Date: 2025.07.10 09:20:15 -05'00'