Redacted Justification 3PR0117.pdf

qualified as the space is immediately available and is already constructed to meet the agency’s requirements with no disruption or associated moving costs. The economic benefit to remaining in the space derives from the savings associated with relocation costs, disruption, and initial build out costs, which are not expected to be recovered through a Full and Open Competition.

long term requirements are being finalized and the delivery of the new long term lease will not be completed prior to the current lease’s expiration date therefore, a renewal is requested to support the agency’s missions and protect Government occupancy. The current space has a specialized buildout for both offices, who are currently housed under separate suites.

The is a law enforcement agency, whose office space includes detention cells and armories for both agents and evidence. GSA has the requirements for the long term lease action. It is expected that GSA will conduct a competitive procurement and complete the design and construction of the new space before the end of the proposed lease expiration date under this renewal.

According to the Cost Benefit Analysis (CBA) of the proposed renewal option term, attached hereto, an award to other than the current Lessor would require relocation of the entire requirement and would cause the agency to incur move and replication costs that would not be recovered through competition. The Government will save approximately $76,956.00 by remaining in place.

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, an advertisement was posted on SAM.gov on 3/23/2023 until 3/30/2023 to identify any potential sites that could possibly meet needs. The advertisement yielded no expressions of interest from the public.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENTWILL BE FAIR AND REASONABLE:

Market research was conducted on 3/14/2023 for San Juan, Puerto Rico. The market research revealed an average operating rate of $13.52 per RSF, with a shell range from $11.04 to $36.00 per RSF, resulting in a fully serviced market range from $24.56 to $49.52 per RSF (see attached market research spreadsheet).

Furthermore, the CBA shows a full Tenant Improvement Allowance and Building Specific Amortized Capital (BSAC) Allowance of $1,268,047.55 amortized over two (2) years at interest, resulting in a total Tenant Improvement and BSAC expenditure of $1,376,408.55. The Government would also incur furniture moving costs of approximately $69,350.00 and voice and data moving costs of approximately $55,480.00 and likely one month of double rent during the move, or $57,890.01. This equates to a total estimated cost of $1,559,128.56 if the Government were to move and relocate an already existing office for a temporary period and is therefore not in the best interest of the Government.

The cost of relocating using the lowest market alternative rate of $24.56 per RSF exceeds the cost of remaining at their current location at the anticipated rental rate of per RSF.

The Government would see an estimated total cost savings of approximately $76,956.00 over the renewal term if were to remain in place. The rent at the current location is at the higher end of the market range, largely because of the specialized buildout which includes cells and armories for both agents and evidence, however the proposed rental rate of per RSF is still within the market range and therefore is considered fair and reasonable.

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.

The table below compares the cost of remaining in place at an anticipated rental rate of per RSF with the cost of relocating at the market average rate of $24.56 per RSF. The savings to the Government by remaining in place is an estimated $76,956.00 as demonstrated below and referenced in GSA’s Formal Cost Benefit Analysis Excel Document (attached).

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

COMPETITION:

The current Lessor has been responsive throughout the term of the lease.

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

IN THE ACQUISITION:

No sources other than the incumbent Lessor expressed interest in this procurement.

10. STATEMENT OF ACTIONS IF ANY THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION:

The proposed lease renewal will protect the occupancy of while the long term project requirements are finalized and the procurement starts.

For the future long term action for this agency, GSA will seek full and open competition to the fullest extent practicable.

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 renewal for 15,770 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.

Certified By:

Nel Morales Vias Date Lease Contracting Officer and One Level Above LCO (2PRC)

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.

Prepared by:

Bena Parker Date Lease Contracting Officer (2PRC)

Concurred by:

Raffaela Battiloro Date Lease Acquisition Officer (2PR)

Jeannette Rios Date Leasing Director (2PR)

Reviewed by:

Leigh Erin S. Izzo Date Senior Assistant Regional Counsel (2L)

Approved by:

Warren F. Hall Date Competition Advocate (2L)