JOTFOC Final 250623 Redacted 3CO0737.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 8

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3CO0737

Agency Name: ANIMAL AND PLANT HEALTH INSPECTION SERVICE

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

The General Services Administration currently leases 50,559 ANSI/BOMA (ABOA)/50,559 Rentable Square Feet (RSF) of office space at 4101 La Porte Ave, Fort Collins, CO under lease number LCO14016 for the Animal and Plant Health Inspection Service (APHIS). The current lease expires December 20, 2026. 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).

APHIS submitted a continuing need letter December 16, 2023, for 50,559 RSF of office and related space. The continuing need documentation contained no special requirements regarding location.

This requirement is for 50,559 ABOA/50,559 RSF of space for a 20-year term to commence December 20, 2026. The estimated full-service rate for this lease is $57.02 per RSF per year for an annual cost of $2,882,874.18 for the firm term of the lease. The estimated full-service rate for the non-firm term is $62.72 per RSF. The total contract value is estimated to be $59,098,524.10. The delineated area is as follows:

North - Bringham Hill Road

East - S Overland Trail

South - Dixon Canyon Road

West - County Road 23

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 any party other than the current Lessor would require relocation of the entire requirement and would cause APHIS to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $10 per ABOA SF, or $505,590 (IGE). Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of an estimated $14,300,904 (IGE). This space is filled with highly-specialized labs that allow the agency to research invasive species. Numerous labs are capable of duplicating environments from rainforests to frigid climates and everything in between so they can observe plants and animals in their natural habitats. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating APHIS using the low-cost quote exceeds the cost of remaining at this location. The total savings to the Government is estimated to be $34,844,208 (IGE).

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 March 18, 2025 for 22 days. In addition, Carpenter/Robbins Commercial Real Estate, Inc. conducted market research using CoStar.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent review of CoStar’s advertised rental rates in Fort Collins, CO showed full-service rental rates within the delineated area ranges from $49.71-$64.32 per RSF. CoStar report was referenced.

Therefore, the proposed rental rates for this succeeding lease of $43.50/RSF for years 1-10 and $45.50/RSF for years 11-15, do not exceed the current market range for this submarket and are 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 April 10, 2025, Carpenter/Robbins conducted market research using Co-Star and there were no properties identified within the Agency’s specified delineated area with space available to meet the Agency’s requirements. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on March 18, 2025. The incumbent Lessor’s expression of interest indicated that the rate would be $43.50/RSF for years 1-10 and $45.50/RSF for years 11-15 per RSF. No other qualified interested parties responded to the notice.

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

Figure 1: Market Research Comparables

Address Source [EOI/CoStar, etc.] Asking Full Service

Rental Rate (1st Year)

4101 LA PORTE AVE EOI $43.50/RSF

Fort Collins, 4 and 5 star properties CoStar $38.19/RSF plus Taxes, Ins, OpExp

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.

The agency reports no tenant improvements are needed at the current location.

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

ACQUISITION.

CBRE as representative of EVERITT KEENAN ASSOCIATES V, LLC, owner of 4101 Laporte Avenue, Fort Collins, CO 80521

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 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 50,559 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_____________________ Mark Pearce, 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______________________ Timothy Pavek, Broker Contractor Carpenter/Robbins Commercial Real Estate, Inc.

13. REVIEW, CONCURRENCE AND APPROVAL.

Legally Sufficient:

__________________________________________________ Date_____________________ Anne McDermott, Regional Counsel

Concurred By:

G.W. Emge, Regional Competition Advocate

G.W. Emge, HCA (PBS Regional Commissioner)