3OH0401 JOFOC - Executed_Redacted.pdf

Revised Nov 2023

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region 05 Leasing

Real Estate Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3OH0401

Agency Name:

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

The General Services Administration currently leases 10,389.00 ABOA/11,607.00 rentable square feet (RSF) of office space at LORAIN OH , 221 W 5TH ST, LORAIN, OH under lease number LOH18175 for the . The current lease expires March 31, 2024. A succeeding lease procurement for new lease LOH00918 to replace the current lease is in the final stages of negotiation, however the procurement has encountered delays due to lessor responsiveness during negotiations. We also anticipate agency delays in getting to review and sign the award OA in a timely manner. As a result, the new lease has an estimated award and effective date of 08/31/2024.

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 5 months to commence on April 1, 2024.

This extension will also include a special provision that will allow us to terminate the current lease as soon as the new lease is ready for award. The estimated cost of this lease extension is per rentable square feet per year for an annual 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.

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

DocuSign Envelope ID: 99AC73E8-1D76-4218-A848-8E95082517F6

Revised Nov 2023

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.

There were delays in getting agency approvals and requirements throughout the procurement process, necessitating a short term extension. Award to other than the current Lessor would require relocation of the entire requirement and would cause to incur move and replication costs that would not be recovered through competition. This allows the Government to make use of existing tenant improvements, avoiding replication costs of . This includes a supplemental HVAC system for a server and LAN equipment, Roxbury windows, electronic security systems, furniture requirements, interview stations and conference rooms that provide acoustic privacy, as well as all of the security requirements associated with an FSL II building.

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.

Recent market research conducted by the Lease Contracting Officer in LORAIN, OH showed the rental rate within the market area ranges from to for shell and operating rent. These rates do not include TI and BSAC replication costs that would be required at an alternative facility.

Therefore, the anticipated rental rates for this lease extension of $ per RSF, are within 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.

On February 28, 2024 market research was conducted using CoStar. The market research showed the rental rate within the market area ranges from $ to $ .The CoStar report included 4 buildings within the delineated area, 1 of which appeared capable of meeting the agency’s requirements.

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

Remaining at the current location under a 5 month extension avoids a holdover and allows the Government to continue operations without disruption. On February 29, 2024, LAM confirmed there have been no additional issues with the building that have developed since the last inspection report.

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.

DocuSign Envelope ID: 99AC73E8-1D76-4218-A848-8E95082517F6