4DE0016_-_JOFOC_redacted.pdf

GENERAL SERVICES ADMINISTRATION

North Branch, Real Estate Acquisition Division

Justification for Other than Full and Open Competition Project No. 4DE0016

Lease Renewal

Newark, DE

1. Nature and/or description of the action being approved.

The purpose of this justification is to obtain a five year (5) year lease renewal for the for 21,190 RSF (19,005 ABOA SF) at 1352 Marrows Road, Newark, Delaware. Approval is requested to pursue a lease renewal with the incumbent lessor without full and open competition, for continued occupancy at this location.

2. Description of the supplies or services required to meet the agency’s needs (including estimated value).

is currently located in 23,555 RSF (21,126 ABOA SF) at 1352 Marrows Road, Newark, Delaware under Lease No. LDE06338 which is set to expire on November 13, 2016. The current rental rate for this lease space is /RSF.

The agency initially occupied 2,365 RSF on the first floor and 21,190 RSF on the second floor, however, vacated 593 RSF on the first floor in 2013. This space could not be returned to the Lessor due to lack of partial termination rights in the lease. In addition, recently submitted 120 days’ notice to vacate the remaining 1,772 RSF on the first floor by the end of September 2016. The Lessor has agreed to this reduction even though the lease does not give the Government partial termination rights.

significant reduction in space. At this time, it is anticipated that will reduce by about 50% in Newark, DE. needs to work through their internal approval on the reduction before submitting their requirements to GSA. Therefore, GSA has determined it is in the best interest of the Government to protect occupancy by executing a five year lease renewal with partial termination rights of up to 6,500 RSF after year three of the renewal period. This is the shortest lease term that the Lessor will agree to since the building is being refinanced and the lender will not accept anything less than a five year term.

The proposed rental rate for this lease renewal is /RSF.

The estimated value for this leasing action is:

/RSF x 21,190 RSF = (Annual Rent) x 5 years =

Total Contract Value:

3. Identification of the statutory authority

41 U.S.C. 3304(a) (1). Only one responsible source and no other supplies or services will satisfy agency requirements.

4. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited.

In accordance with 41 U.S.C. 3304 (a) (1), the agency’s minimum needs can only be satisfied by unique supplies or services available from only one responsible source and no other type of property or services will satisfy the needs of the agency. In addition, the Government would incur cost savings by not having relocation or tenant improvement build out costs for the short term renewal period. These cost savings are not expected to be recovered through competition and are further outlined in the attached CBA analysis.

5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

In accordance with GSAM, an advertisement was placed on FBO for this action since this is a lease renewal action greater than 10,000 square feet.

6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

There is limited market research available for Newark, Delaware and no REIS data is available for this market. Based on the market research preformed for this requirement in Newark, DE, we have determined the market range to be approximately $22.50-$24.00/RSF. Due to the short timeframe before lease expiration, the Lessor’s imminent refinancing of the property, and the Government’s request for the shortest lease term possible, a proposed rate of

RSF fully serviced is determined fair and reasonable

7. Description of the market research conducted

An online market survey was conducted on March 14, 2016

. The results from this research are attached and further detailed in the “Market Research Report”

8. Other facts supporting the use of other than full and open competition

The agency is satisfied with their current location and lessor’s performance. The GSA Property Manager has confirmed that the Lessor is responsive to the Governments needs and completes any identified issues in a timely manner. In addition, the building complies with current fire, life safety, and ABAAS codes.

In accordance with the requirements of GSAM 517.207 (b), the lessor’s performance under this lease has met the Government’s expectations for quality performance.

9. List of any sources that expressed in writing an interest in the acquisition.

No other source has expressed in writing an interest in this acquisition.

10. Statement of actions the agency may take to remove or overcome any barriers to competition

Prior to expiration of this lease renewal, a fully competitive lease action, if necessary and appropriate, will be initiated.

Contracting Officer’s Certification

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared By:

6/6/2016

X Brian M. Pace Leasing Specialist Signed by: BRIAN PACE

Concurred By:

X Cathleen Ryer Lease Contracting Officer Signed by: CATHLEEN RYER

Concurred by:

X Carrie Vineberg Real Estate Acquisition Division Section Chief,...

Signed by: CARRIE VINEBERG

Concurred by:

X W.A. Berger Andrew Berger Real Estate Acquisition Division Branch Chief, ...

Signed by: WILLIAM BERGER

Approved by:

6/7/2016

X Dorothy Baratta Competition Advocate Signed by: DOROTHY BARATTA

Reviewed for legal sufficiency:

X Robert John McCall (3L) Regional Counsel