Redacted JOTFOC Woodland Park.pdf

Justification for Other Than Full and Open

Competition, Renewal

U.S. General Services Administration

GSA Region 2

Caribbean and New Jersey Branch, Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 4NJ0280

Agency Name:

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

The General Services Administration currently leases 12,409 ABOA/14,891 rentable square feet (RSF) of office space and 47 surface parking spaces at 1 Garret Mountain Plz, Woodland Park, NJ, under lease number LNJ24039 for the . The current lease expires 11/04/2025. Approval is requested to add a renewal option with the incumbent Lessor, without full and open competition, that if exercised will allow for continued occupancy at this leased location. The existing Lease contains an evaluated renewal option, however, the option exceeds the current market rate and the Government does not intend to execute the existing renewal option. The procedures for pursuing a renewal option are detailed in 570.401: Renewal options.

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

(INCLUDING ESTIMATED VALUE).

GSA received long term requirements on 5/15/2023 for 14,891 rentable square feet of office and related space. A long term lease project for the is currently in the development stage. The current lease has a 60 month evaluated renewal option, with the right to terminate upon 90 days notice at any time during the renewal period. The evaluated renewal option rental rate is approximately $10 above the current Bullseye market rate of $30.64 per RSF for fully serviced leases and is unfavorable to the Government. GSA is requesting to add a renewal option to the existing lease, and negotiate a rental rate that is fair and reasonable. This added renewal, if exercised, will secure Government occupancy while the long term lease action is completed. Based upon market research, the existing evaluated renewal option rental rate of $40.80 per RSF is considerably higher than the market. As such, GSA is seeking approval to add a new renewal and renegotiate the rental rate to reflect more favorable terms commensurate with the market. The proposed added renewal is for a sixty (60) month, at the anticipated rate of per RSF or lower, all other terms remaining the same, to protect the occupancy of the

The current annual rental under this lease is $446,931.01 ($30.01 per RSF, rounded) for a fully serviced lease. The proposed renegotiated annual rental rate for the renewal is expected to reflect the anticipated rental rate of per RSF, inclusive of a carpet and paint refresh of the office space for an aggregate total contract value of . Termination rights are anticipated to continue from the original lease and may occur with 90 days prior written notice to the Lessor at any time during the renewal period. 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.

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.

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. Furniture costs are estimated at $62,045.00. Relocation move costs are estimated to be $49,636.00. Telecommunications Replication Costs are estimated at $49,636.00. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $1,261,168.84 amortized over the term of the renewal. The current location is already built out to accommodate the unique needs, including the following requirements: FSL 2 security upgrades, site fencing and holding cell/secure area requirements in addition to a backup generator.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating using the bullseye rate exceeds the cost of remaining at 1 Garret Mountain Plaza, Woodland Park, NJ 07424. The total savings to the Government is $1,394.937.00. The cost to move and replicate an already existing office for a temporary period would, therefore, be excessive and not in the best interest of the Government.

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, notice ID 4NJ0280, was posted on SAM.gov on 03/25/2024 until 04/01/2024 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

GOVERNMENT WILL BE FAIR AND REASONABLE

On 03/01/2024, market research was conducted through Bullseye and Loopnet.com for the expanded delineated area in Woodland Park, NJ (attached). The Bullseye report revealed a target rental rate of $30.64 per RSF. The report and Loopnet.com listings showed three (3) buildings within the delineated area with the available square footage necessary to meet the agency’s requirement.

The table below reflects the adjusted fully serviced market rates.

A competitive procurement is planned to replace this lease under project 4NJ0281.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the negotiation of a renewal option for 14,891 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__ ______

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:

__________________________ Date___ ______

Alexander Litvak, Leasing Specialist

_ ______________________________ Date___ _________

Bena Parker, Lease Contracting Officer

Concurred by:

___ ____________________________ Date__ _________

Raffaela Battiloro, Lease Acquisition Officer (2PR)

_ _____________________________ Date___ ________

Jeannette Rios, Leasing Director (2PR)

Reviewed by:

__ ________________________ Date______ ______

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

Approved by:

__ ___________________________ Date____ ________

Warren Hall, Competition Advocate

_ _____________________________ Date______ ____

Michael Gelber, Regional Commissioner