4IN0198 - Redacted JOFOC.pdf

Docusign Envelope ID: 9964D40B-CAE6-4A72-AC2C-64D0747267C8

GENERAL SERVICES ADMINISTRATION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER LIN18401

PROJECT NUMBER 4IN0198

1250 Eastport Centre Drive

Valparaiso, IN 46383

This request for approval is submitted in accordance with FAR 6.304(2) and GSAM 570.401 Lease Renewal.

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED

The General Services Administration currently leases 21,628 rentable square feet (RSF) / 20,687 ABOA of office space at 1250 Eastport Centre Drive in Valparaiso, IN under lease number LIN18401 for . The current lease expires on 8/26/2025. Despite constant communication with , they refused to provide long term requirements for this site until June 2024. Following the delay in receiving requirements, a renewal will allow the fastest method of extending this lease. During the renewal term, the agency will have the chance to further solidify their requirements and GSA will have the necessary time to work through the procurement process. Additionally, GSA will still have ample time to account for post-award and buildout delays. Therefore, approval is being requested to add the renewal option to enable continued occupancy at this leased location.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY'S

NEEDS (INCLUDING ESTIMATED VALUE).

The lease for is due to expire on 8/26/2025. If this new incorporated option is exercised, such a renewal of this lease for 5 years, 3 years firm commencing on 8/27/2025 is estimated to cost $ per rental square foot resulting in an annual cost of $ or a total cost of $ for the 5-year renewal.

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION.

41 U.S.C. 253 (c) (1)

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

Following the procedure described in 570.401 it was determined that it would be cost prohibitive and not in the best interest of the government to move the agency for the term of this renewal.

The cost to replicate the tenant improvements and move the agency would be approximately per rentable square foot of office space, prior to considering the rental rate or operating costs. The current space is capable of meeting the agencies current mission needs for the term of this renewal and can be extended without the expenditure of replication cost. Expending the funds to replicate space to be used for only 5 years would be a waste of taxpayer dollars and is not in the best interest of the government. It is GSA’s intention to finalize a long-term follow-on procurement concurrent to the expiration of this proposed renewal term.

Docusign Envelope ID: 9964D40B-CAE6-4A72-AC2C-64D0747267C8

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM

AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

After discussion with the GSA Property Management office, it was confirmed that the location is acceptable to meet the housing needs of the agency for the renewal period. An ad was also posted on SAM.gov to solicit offers from interested parties other than the incumbent and no responses were received. With that additional information it has been determined that inserting the renewal is in the best interest of the government. The long-term procurement to be conducted during the term of this renewal will consider all buildings that fall within the yet to be determined delineated area.

6. DEMONSTRATION BY THE CONTRACTING OFFICE THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The current rate for this location is $ . The anticipated rate for the renewal in the current location is $ per RSF. CoStar market research provided only three similar properties in the delineated area, showing rates between $ - $ per RSF, all of which were triple net. A typical triple net lease is one in which the tenant is responsible for all of the property’s operating expenses, therefore tax and operating rates were added to generate fully service rates. The fully serviced market range is estimated to be between $ and $ per RSF. This CoStar market range doesn’t factor in tenant improvement (TI) or move costs.

The anticipated rate of $ includes 108 surface parking spaces, which along with the shorter-term lease commitment, accounts for a higher rate than the current market research reflects. Additionally, although slightly high for the market, the anticipated rate is a reduction from the current rate being paid. Considering these factors, and that the anticipated cost for this renewal period is still well below the cost to move to an alternative location, the LCO finds this rate to be fair and reasonable.

Current Location Alternate Location

Shell Rent $ $

Operation Rent* (*as currently escalated)

Tenant Improvements $ $

Total Annual Rent $ $

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

A formal market survey was not conducted for this lease renewal as moving the agency for the term of this renewal would be cost prohibitive and disruptive to the agency but will be conducted