3CA1744_ARC_Mission_Viejo_JOTFOC Redacted (2).pdf

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region 9 Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3CA1744

Agency Name: Armed Forces Recruiting (AFR)

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

The General Services Administration currently leases 10,644 ABOA/12,044 rentable square feet (RSF) of office space at 27401 Los Altos, Mission Viejo, CA, under lease number LCA02777 for the Armed Forces Recruiting (AFR). The current lease expired January 19, 2024. Holdovers were processed effective through May 31, 2024. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease extensions.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS (INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for 7 months full 6 months firm to commence on January 20, 2024 to allow time to complete the long term procurement Project 8CA3390. The estimated cost of this lease extension is per rentable square feet per year full service for a monthly cost of and a total contract value of .

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 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.

x The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy

The government encounters unexpected delays outside of its control in acquiring replacement space

The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date

The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties

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 during the extension period.

The 7-month full 6-month firm term lease extension will provide the time needed to complete the improvements and accept the space for the long term procurement (Project 8CA3390). This long-term project was delayed due to the additional time the agency required in order to develop the DID plans and the landlord’s phasing of the construction of the tenant improvements while the agency continued to occupy the space.

Award to other than the current Lessor would require relocation of the entire requirement and would cause Armed Forces Recruiting to incur move and replication costs that would not be recovered through competition.

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Market research on the Mission Viejo, California submarket was conducted by the Leasing Specialist utilizing recent CoStar and CBRE market data. While CoStar general market data indicated an average annual market rental rate of $ per RSF full service for 4 and 5 Star buildings, there were no spaces listed that provided a range of current market rates of comparable spaces. However, based on CBRE market data, the annual rental rates for this submarket ranged from $ /RSF full service to $ /RSF full service.

Therefore, the anticipated annual rental rate for this lease extension of $ per RSF full service is slightly below the 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.

In February 2024, market research was conducted using CoStar and a broker with CBRE familiar with this submarket. Mission Viejo is a small submarket in the larger Orange County market with rates trending higher than the larger Orange County market. Vacancy has decreased over the past 12 months creating limited availability of spaces of 5,000 square feet and above. Rental rates have remained stable over the past year with no new construction coming online. The market research showed the rental rate within the market area ranges from $ per RSF full service to $ per RSF full service.

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

Remaining at the current location under a 7 month extension avoids a holdover and allows the Government to continue operations without disruption.

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

ACQUISITION.

N/A

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 lease extension of 7 months for LCA02777 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_____________________

Clara Lee, 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______________________

Kathleen Dunlap, Leasing Specialist

Link: Signature Pages for JOTFOCs based on FAR 6.304 thresholds