3DC0613_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_or_SLAT-level_Memo_to_File_and_Supporting_Documentation_Approved_JOTFOC_7_26_2024 (Redacted)_Redacted.pdf

Justification for Other Than Full and Open Competition, Extension Lease

U.S. General Services Administration

GSA Region 11 – National Capital Region (NCR)

Office of Real Estate Delivery / Lease Execution Division / Public Building Services

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3DC0613

LEASE NUMBER: LDC02211

AGENCY NAME: National Transportation Safety Board (NTSB) ADDRESS: 470/490 L’Enfant Plaza, SW, Washington, DC

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

The General Services Administration (GSA) currently leases 163,538 rentable square feet (RSF), yielding 138,523 ANSI BOMA Office Area (ABOA) square feet (SF) of office, special and related space located at 470/490 L’Enfant Plaza, SW, Washington, DC, under lease number LDC02211 for the National Transportation Safety Board (NTSB). GSA also leases 15,977 RSF, yielding 13,936 ABOA SF of special space under lease number LDC02210 for the NTSB. The current leases expire on November 30, 2025.

Approval is requested to negotiate a 30-month (24-month firm) term 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 (48 C.F.R. 570.405): Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

GSA is in the process of conducting a procurement to consolidate two leases (LDC02211 and LDC0210) into one long-term lease using full and open competition under Prospectus Number PDC-02-WA23 and project number 0DC2413. The Prospectus was submitted to Congress on October 13, 2022. The Senate Committee on Environment and Public Works adopted the Prospectus on November 29, 2022; House approval is still pending. Additionally, the agency encountered delays in securing funding for its Program of Requirements (POR), which caused a delay in the development of the requirement. The anticipated occupancy date under the new/replacing lease action is now November 2027. Therefore, the Government will seek an extension for continued occupancy at the existing lease under LDC02211 to allow sufficient time to receive full Congressional approval of the Prospectus, for the agency to work with the OMB to budget for move and replication costs, conduct a full and open competition procurement for a long-term prospectus consolidation new/replacing lease, build out and move to the new space, and decommission the existing space. In consequence, GSA and NTSB have determined that an extension with the incumbent lessor for continued occupancy under lease number LDC02211 is required.

Authorization is being requested to negotiate a lease extension with the incumbent lessor without competition for extension of the current lease for 163,538 rentable square feet (RSF) / 138,523 ABOA of office space for 30-months (24-months firm term) to commence on December 1, 2025 through May 31, 2028 with termination rights effective December 1, 2027. The estimated cost of this lease extension is

Following the proposed extension period this lease will terminate.

Docusign Envelope ID: 24838C58-6AD4-438D-9FE4-5D0612C2424A

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.

☐ 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

X 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.

GSAM 570.405 (c)(2) allows for the extension of an expiring lease when the Government encounters unexpected delays outside of its control in acquiring replacement space.

The anticipated occupancy date under the new/replacing consolidation procurement is November 2027.

The current procurement schedule demonstrates that an extension of 30 months with 24 months firm is reasonable and lines up with the currently anticipated occupancy date allowing for a decommissioning period after moving out of the existing space. The soft term of 6 months will give the Government the flexibility to properly decommission the existing space.

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 lease extensions.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

On June 6, 2024, market research was conducted in Washington, DC, and showed that the rental rate within the delineated area ranges from per RSF, with an average rental rate of per RSF, fully serviced.

Therefore, the anticipated rental rate for this lease extension of up to per RSF, fully serviced, is within the current market range for this market and is deemed fair and reasonable by the GSA Lease Contracting Officer in accordance with FAR 6.303-2(b)(7). The Lease Contracting Officer will make best efforts to negotiate a lower rate.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On June 6, 2024, market research was conducted using CoStar in Washington, DC. The market research identified 23 potentially acceptable locations, including the incumbent, within the delineated area. Only 8 of the buildings identified in the market research provided asking rates and those buildings are listed in Figure 1 below. The buildings that did not provide asking rental rates have been omitted from Figure 1. The market research showed asking rental rates within the market ranges from per RSF, with an average asking rental rate of per RSF, fully serviced.

See Figure 1 below for the results of the market research, including the incumbent.

Figure 1: Market Research Comparables Address Source Asking Full Service

Rental Rate

470/490 L'Enfant Plz SW, Washington, DC (incumbent location)

CoStar

600 E St NW, Washington, DC CoStar

20 Massachusetts Ave NW, Washington, DC CoStar

1875 Pennsylvania Ave NW, Washington, DC CoStar

810 1st St NE, Washington, DC CoStar

840 1st St NE, Washington, DC CoStar

1441 L St NW, Washington, DC CoStar

1200 19th St NW, Washington, DC CoStar

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

Remaining at the current location under a 30-month extension (24 months firm) avoids a holdover and allows the Government to continue operations without disruption. Award to other than the current Lessor would require relocation of the entire requirement, unreasonably disrupting NTSB’s mission by causing them to move twice within a short time period and incur move and replication costs that would not be recovered through competition. It would be cost prohibitive to move and replicate their operations to a new location. GSA will use interim authority associated with PDC-02-WA23 for this extension.

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.

The long term lease for NTSB will be procured using full and open competition. Upon expiration of this extension, GSA anticipates no further lease action for this location..

CONTRACTING OFFICER CERTIFICATION AND PREPARER’S

TECHNICAL CERTIFICATION

CUSTOMER: National Transportation Safety Board (NTSB)

PROJECT NUMBER: 3DC0613

LEASE NUMBER: LDC02211

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 30 months (24 months firm) for 163,538 RSF to POTOMAC CREEK ASSOCIATES, LLC 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.

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_____________________ Kevin M. Terry, Lease Contracting Officer

CONCURRENCE:

Concurred by:

_______________________________________ Date______________________ Glenn Harvey Director, Lease Execution Division

Concurred by:

_______________________________________ Date______________________ Marisol Medina Lease Acquisition Officer (LAO), NCR

Concurred by:

_______________________________________ Date______________________ Office of Regional Counsel

Docusign Envelope ID: 24838C58-6AD4-438D-9FE4-5D0612C2424A

7/25/2024

7/25/2024

7/25/2024

Concurred by:

_______________________________________ Date______________________ Miranda Webster Acting Director, Office of Real Estate Delivery

Concurred by:

_______________________________________ Date______________________ Michael Spriggs Competition Advocate

Approved by:

_______________________________________ Date______________________ Melanie Gilbert Regional Commissioner for PBS, NCR

Docusign Envelope ID: 24838C58-6AD4-438D-9FE4-5D0612C2424A

7/25/2024