3TX1200 - Justification (3.4.25)_Redacted.pdf

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 7

Greater Southwest Region

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3TX1200

Agency Name: TD Office of the Secretary

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

The General Services Administration (GSA) currently leases 148,856 ABOA/151,833 rentable square feet (RSF) of warehouse and office space at n Laredo, TX under lease number GS-07P-LTX16793 for the Office of the Secretary. The current lease expires 10/31/2026. 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).

The Office of the Secretary submitted a continuing need letter on 2/15/2024 for 151,833 rentable square feet of warehouse, office, and related space to be located in Laredo, TX. GSA reconfirmed the Office of the Secretary's space need and obtained GSA Office of Leasing concurrence on 3/17/25.

This requirement is for 148,856 ABOA/151,833 RSF of space for a 10-year; 8-year firm term to commence on 11/1/2026. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of The delineated area is as follows:

North: I-35 (Monarch Highway); Union Pacific Boulevard; EastPoint Drive; NE Bob Bullock Loop East: International Boulevard South: International Boulevard West: I-35 (Monarch Highway)

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.

Revised 10-23-2023

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. Award to other than the current Lessor would require relocation of the entire requirement and would cause the Office of the Secretary to incur move and 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 . This is a highly-secured facility housing seized assets. Special space requirements include, but are not limited to, (1) minimum of twelve (12) docking bays at truck level with automatic dock leveling plates to accommodate a 53-foot tractor trailer; (2) FSL IV building with closed access to the general public, and to be located within close proximity to law enforcement agencies; (3) specialized equipment and rooms used to store seized perishables and quarantine dangerous perishables. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating Office of the Secretary using the low-cost quote exceeds the cost of remaining at . 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 10/7/2024 for 22 days. A revised notice was posted on 2/26/25 for 3 days to update the lease terms to 10 years total; 8 years firm. In addition, Public Properties, GSA Broker Contractor, conducted market research using the CoStar database.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by Public Properties, GSA Broker Contractor, in Laredo, TX showed the rental rate within the delineated area ranges from per RSF to per RSF (Full-Serviced Year 1 Rent). Market data is based on the CoStar database and outreach to local brokers.

Therefore, the proposed rental rates for this succeeding lease of is below the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer. The informational quote from the incumbent was provided via email on 8/27/25.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-4 allows for negotiation with the incumbent Lessor when the contracting officer does not identify any potential acceptable locations through the pre-solicitation notice or the market survey.

On 10/25/2024, Public Properties, GSA Broker Contractor, conducted market research using CoStar and identified one (1) potentially acceptable location (the incumbent) that might meet the agency’s needs within the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 2/26/25. The incumbent Lessor’s expression of interest indicated that the rate would be $ per RSF, provided on 2/27/25.

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

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

(incumbent) EOI

Figure 1: Market Research Comparables

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

None.

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

ACQUISITION.

(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 151,833 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_____________________ Michael Sianan, 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______________________ Nick Porter, Project Manager

13. REVIEW, CONCURRENCE, AND APPROVAL

Reviewed by:

__________________________________________________ Date_____________________

Helen Kearns-7L Legal Counsel

Concurred by:

__________________________________________________ Date_____________________

Jan Trevino, Leasing Director

Concurred by:

__________________________________________________ Date_____________________

Jared Bradley Competition Advocate

Approved by:

__________________________________________________ Date_____________________

Jared Bradley, HCA (Acting Regional Commissioner)