3NV0138 - ICE Reno - Redacted Signed JOTFOC.pdf

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3NV0138

Agency Name: U.S. IMMIGRATION & CUSTOMS ENFORCEMENT (“ICE”)

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

The General Services Administration currently leases 31,088 ABOA / 35,692 rentable square feet (“RSF”) of office space together with 38 secure, reserved parking spaces at 6999 Sierra Center Parkway, Reno, Nevada under the lease number GS-09B-LNV02147 (“LNV02147”) for the U.S. Immigration & Customs Enforcement (“ICE”). The current lease has a rental rate of approximately per RSF per year and expires August 4, 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).

ICE submitted a continuing need letter on December 8, 2023 for 35,692 rentable square feet of office and related space.

This requirement is for 31,088 ABOA/35,692 RSF of space for a 15-year term to commence on August 5, 2026. The estimated cost of this lease is per rentable square foot for the 10-year firm term and per rentable square foot for the 5 year soft term. The estimated annual cost of the 10-year firm term is The estimated annual cost of the 5-year soft term is and a total contract value of

The delineated area is North: Delucchi Lane to Airway Drive; East: Longley Lane; South: Longley Lane;

West: Virginia Street. 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 other than the current Lessor would require relocation of the entire requirement and would cause ICE to incur move and

Docusign Envelope ID: 6F49FBCC-77BD-46C6-AB29-A19A5C3364B3 replication costs that would not be recovered through competition. Relocation costs are estimated to be Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of based on the Government’s Independent Government Estimate located in the file. Special use space that would need to be replicated includes a 24/7 LAN room, a physical fitness area, laboratory, enhanced secure storage rooms, an interview/detention room, holding cells, and judicial hearing room. Additionally, ICE requires FSL Level III security measures including an intrusion detection system, alarm system floor windows, passive infrared sensors, duress alarms, shatter resistant windows,and a video surveillance system. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating ICE using the low cost quote exceeds the cost of remaining at 6999 Sierra Center Parkway. The total savings to the Government is

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 July 24, 2024 for 10 days. In addition, on June 26, 2024 PBS conducted market research using CoStar and found 3 comparables.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS in Reno, Nevada showed the rental rate within the delineated area ranges from to per RSF from data taken from CoStar, including applicable adjustments.

Therefore, the proposed rental rate for this succeeding lease of RSF (average rate over 15 year term), 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 April 22, 2024, PBS conducted market research using CoStar and identified 2 potentially acceptable locations (1 plus the incumbent) that might meet the agency’s needs within the delineated area.

is located within the delineated area and has the required available square footage. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on July 24, 2024. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF for the ten year firm, and per RSF for the five year soft term. There were no interested parties that responded to the Pre-solicitation posting.

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

Address Source [EOI/CoStar, etc.] EstimatedFull Service Rental Rate

(Incumbent)

EOI RSF

(Outside Delineated Area)

CoStar /RSF*

*Advertised first year NNN rates adjusted to include RSF CoStar market expenses, warm lit shell upgrade Building Specific Amortized Capital rent. First year rent escalated 3% per year and averaged over the 15 year term.

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

The Lease Administration Manager stated that the incumbent lessor has performed very well, all periodic services have been fulfilled as required in the lease. GSA was also notified that there are no major deficiencies.The lessor promptly responds to all concerns brought forth by the Government.

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

ACQUISITION.

6999 Sierra Center Parkway (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.

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 35,692 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_____________________

Anna Soydova, Lease Contracting Officer

12. PREPARER’S TECHNICAL CERTIFICATION.

8/7/2024

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______________________

Cameron Jones, Leasing Specialist

CONCUR:

____________________________Date______________________ Guadalupe Flores, Branch Chief

________ ___Date______________________ Jessica L. Escobedo R9 Leasing Advocate for Competition

_______ ___Date______________________ Pamela Collins, Director Real Estate Acquisition Division

______ ___Date______________________ Indrek Aasmaa, R9 Assistant Regional Counsel

_______ Date______________________ Amanda Sweeney Deputy Regional Commissioner

APPROVED: _______ _Date______________________ Dan R. Brown, HCA Regional Commissioner Public Buildings Service Pacific Rim Region

Docusign Envelope ID: 6F49FBCC-77BD-46C6-AB29-A19A5C3364B3

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