3TX1263 - Justification (REDACTED).pdf

U.S. General Services Administration

GSA Region 7

Leasing Division (7PR)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3TX1263

Agency Name:

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

The General Services Administration currently leases 37,154 ABOA/38,756 rentable square feet (RSF) of office space at 1015 Jackson-Keller Road, San Antonio, TX under lease number GS-07P-LTX17398 for

. The current lease expires 4/30/27. 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).

submitted a continuing need letter on 4/8/24 for 38,756 rentable square feet of office and related space along with one hundred sixty-six (166) reserved parking spaces; one hundred twenty-one (121) secured surface spaces and forty-five (45) surface spaces.

This requirement is for 37,154 ABOA/38,756 RSF of space for a 17-year term; 15-year firm term to commence on 5/1/27. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of (estimated costs do not include Operating Cost escalations).

Lease No. GS-07P-LTX17398 New Proposed Lease

Shell Rent per RSF Shell Rent per RSF

Operating Cost per RSF Operating Cost per RSF

Tax Reimbursement per RSF* Tax Reimbursement per RSF

Total Rent per RSF Rent per RSF

In order to accurately compare the proposed rates to the current rates, the Tax Reimbursement per RSF was added to the base Shell Rent and Operating Costs.

The delineated area is:

Revised 10-23-2023

● All areas within the Texas State Highway Loop 1604 (city wide / CBA)

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 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 . Special space that would have to be replicated if the Agency relocated includes but is not limited to the following:

. A Tenant Improvement Allowance is being provided to install Curtain Walls and updated finishes, the cost estimate is . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating using the low-cost quote exceeds the cost of remaining at 1015 Jackson-Keller Road. The total savings to the Government over the term of the requirement is

. See attached Exhibit A, Succeeding Lease Analysis Tool (ROM and Formal CB Analyses) for a full breakdown of the cost analysis.

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 5/19/25 for 22 days. In addition, Public Properties conducted market research utilizing the CoStar database and outreach to local brokers.

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 in San Antonio, TX showed the rental rate within the delineated area ranges from (shell rent and operating costs) per RSF. Sources for market rates include the CoStar database and communications with local brokers.

Therefore, the proposed rental rates for this succeeding lease 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.

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 5/21/25 Public Properties, GSA Contracted Broker, conducted market research using the CoStar database and communication with local brokers and identified twenty-three (23) potentially acceptable locations (twenty-two (22) plus 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 5/19/25. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF. The interested party that provided the lowest cost quoted a rate of per RSF in its expression of interest.

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

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

1015 Keller-Jackson Road (incumbent) EOI

EOI

EOI

700 N Saint Marys Street CoStar*

5818 Farinon Drive CoStar*

300 Convent Street CoStar*

4350 Lockhill Selma Road CoStar*

40 NE Loop 410 CoStar*

4400 NW Loop 410 CoStar*

146 Navarro Street CoStar*

12451 Network Boulevard CoStar*

12459 Network Boulevard CoStar*

1560 Cable Ranch Road CoStar*

8930 Fourwinds Drive CoStar*

111 W Houston Street CoStar*

7611 Inner Circle Drive CoStar*

9903 Westover Place CoStar*

5859 Farinon Drive CoStar*

175 E Houston Street CoStar*

7990 W Interstate 10 CoStar*

5800 Northwest Parkway CoStar*

4522 Fredericksburg Road CoStar*

7515 Inner Circle Drive CoStar*

Figure 1: Market Research Comparables

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

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

ACQUISITION.

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 38,756 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_____________________ Don Day, 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______________________ Aaron LaBoon, Project Manager

13. REVIEW, CONCURRANCE, AND APPROVAL.

Reviewed by:

Mikhail Petersen, Real Property Law Division

Concurred by:

Jan Trevino, Leasing Director

Jared Bradley, Competition Advocate

Approved by:

Crofton Whitfield, HCA (Assistant Commissioner for Leasing)