3AZ0263 Justification Succeeding Lease ICE Rio Rico AZ_12.04.2025_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 (7PR)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3AZ0263

Agency Name: Immigration & Customs Enforcement (ICE)

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

The General Services Administration currently leases 28,213 ABOA/29,513 rentable square feet (RSF) of warehouse and office space at Ice Building - Rio Rico, 41 Paseo De Yucatán, Rio Rico, AZ 85648-2806, under lease number GS-09P-LAZ02392 for ICE. This space is currently occupied by two agencies: DHS Immigration & Customs Enforcement (ICE): 23,393 ABOA / 24,152 RSF and Fish & Wildlife: 4,820 ABOA / 5,361 RSF. Fish & Wildlife will be relocating under Project 4AZ0277 and will subsequently operate under a separate lease agreement. The current lease expires 6/22/26. 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).

ICE submitted a continuing need letter on 07/31/2023 for 24,152 RSF of office and related space. To satisfy ICE’s mission requirements, the facility must be in Rio Rico, AZ.

This requirement is for 23,393 ABOA/24,152 RSF of space for , to commence on 6/23/26. 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:

● Rio Rico, AZ City limits.

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 02/18/2025 to 03/15/2025 and the market research conducted on 07/10/2025. 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 2/18/2025 for 25 days. In addition, GSA Lease Contracting Officer, conducted market research using CoStar and outreach to local brokers. Received one expression of interest from the incumbent lessor.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by GSA Lease Contracting Officer, in Rio Rico, AZ and Nogales, AZ, the closest office comps available for Rio Rico, AZ, showed the rental rate within and out of the delineated area ranges from Sources for market rental rates include the CoStar database and the informational quote from the incumbent.

Therefore, the proposed rental rates for this succeeding lease of is within the current market range for this submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-5 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.

On 07/10/2025, GSA Lease Contracting Officer, conducted another market research using CoStar, LoopNet and identified needs within the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 2/18/25.

The incumbent Lessor’s expression of interest did not include a proposed lease rate. On 07/02/2025, GSA Lease Contracting Officer received an informational quote from the incumbent for .

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

Figure 1: Market Research Comparables

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

All would have to be replicated if the agency were to move.

Past performance documentation and LAM reports were reviewed and deemed satisfactory. All deficiencies were cured.

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

ACQUISITION.

41 Paseo De Yucatan (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.

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 29,513 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_____________________

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

14. REVIEW, CONCURRENCE, AND APPROVAL.

Concurred by:

___________________________________________________ Date______________________

Reviewed by:

Approved by:

___________ _______________________________________ Date______________________