Justification_-_Redacted.pdf

GSA – LEASING DIVISION

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

GODDARD SPACE FLIGHT CENTER (NASA)

LNY22725

The purpose of this action is to extend the above referenced lease for one (1) year in order to provide office and related space to the Goddard Space Flight Center (NASA) at 2880 Broadway, NY, NY.

DESCRIPTION OF REQUIREMENTS (INCLUDING ESTIMATED VALUE):

(NASA) currently occupies 34,276 Rentable Square Feet (RSF) yielding 29,805 ANSI BOMA Office Area square feet (ABOA) of office space at 2880 Broadway, New York, NY under Lease No. GS-02B-22725. This lease expires on February 14, 2015. GSA conducted a full and open competitive lease procurement and is currently in its final negotiations with the current Lessor for a new 10 year Succeeding lease for this location. This extension will protect the Agency’s occupancy while the new lease is awarded and the new Tenant Improvement requirement build-out is complete. This lease is to be extended from February 15, 2015 to February 14, 2016

IDENTIFICATION OF STATUTORY AUTHORITY:

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

UNIQUE QUALIFICATIONS:

NASA's Goddard Space Flight Center is home to the nation's largest organization of combined scientists, engineers and technologists that build spacecraft, instruments and new technology to study Earth, the sun, our solar system and the universe. Space-based observations provide a critical perspective for monitoring global climate and developing an understanding of Earth systems.

Working with this data is a specialty of the climatologists at the Goddard Institute for Space Studies (GISS) in the Columbia University’s location.

GISS occupies five of seven floors in Columbia University's Armstrong Hall in Manhattan's Morningside Heights neighborhood. The institute does basic research in space sciences in support of Goddard programs. Much of the institute's work involves examination of planetary atmospheres using data collected by telescopes and space probes.

Current research at GISS emphasizes a broad study of global change, addressing natural and man-made changes in our environment that affect the habitability of our planet and occur on various time scales -- from one-time events such as volcanic explosions, to seasonal effects such as El Niño, and on

(b) (1) (A) up to the millennia of ice ages. Access to Columbia’s PHD students and laboratory resources are vital to this Agency’s mission.

Further, GSAM 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. GSA placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities Web site (febizopps.gov) on December 20, 2014 for two weeks indicating its intent to enter into an extension with the incumbent landlord with Other Than Full Competition. GSA received no responses to its advertisement.

Moreover, award to other than the current Lessor would require relocation of the entire requirement and would cause the NASA to incur move and replication costs that would not be recovered through competition. Although no other location responded to the Government’s advertisement, attached is a cost-benefit analysis for similar office space in the Morningside Heights area.

The current location is already constructed to meet the needs of NASA’s office. If GSA were to conduct competitive lease procurement for this extension, approximately worth of Tenant Improvements would be required to duplicate the existing space.

Additional costs would be required to replicate telecommunications service and physically move the NASA Office.

The cost of relocating the NASA using the average market rental rate exceeds the cost of remaining at 2880 Broadway location. The saving to the Government is

Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, the Government intends to negotiate an extension and remain at its current location.

EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES

PRACTICAL:

Not required.

DETERMINATION THAT ANTICIPATED COST WILL BE FAIR AND

REASONABLE:

This NYC market area reflects fully serviced rents, adjusted for utilities, tax requirements and the Government’s warm/lit requirement range from

The current fully serviced rental rate of this location, net of electricity, is The proposed objective rental rate range for this extension is

This amount is below the current office market for the Morningside Heights section of New York. Considering the short term nature of this extension and the below market anticipated objective rental rate, the anticipated extension objective rent range of is considered fair and reasonable and the best value to the Government.

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DESCRIPTION OF MARKET SURVEY/RESEARCH AND RESULTS:

The Morningside Heights section of NYC is largely a residential community whose commercial footprint consists largely of first floor retail. There is a dearth of office space in this market. A search of CoStar and Loopnet for office space in market yielded no results, however, Studley, citing local brokers as the basis for their analysis during the full and open competitive procurement period, provided GSA with a rental rate range for this marketplace. These rates are reflected in their negotiation objectives. Please see attached negotiation objectives.

OTHER FACTORS SUPPORTING JUSTIFICATION: N/A

LISTING SOURCES EXPRESSING INTEREST IN SOLICITATION: N/A

FUTURE ACTIONS TO OVERCOME BARRIERS TO FULL AND OPEN

COMPETITION:

As a result of a full and open competitive lease procurement, GSA is currently finalizing a new 10 year Succeeding lease for this NASA location at an estimated rate per square foot of which includes the costs of the new Tenant Improvements and Building Specific Amortized Capital. This extension will protect the Agency’s occupancy until the new lease is awarded

I hereby certify that the above information is accurate and complete to the best of my knowledge. Agency requirements supporting this justification for other than full and open competition are certified as accurate.

Eduardo Vidal (2PRM) Date Lease Contracting Officer

Maria DiFedele (2PRM) Date Manhattan Branch Chief

Warren Hall Date Division Director (2P1PR)

Leigh Erin-Izzo (LR) Date Regional Counsel

Louis M. Lozito (2P1PG) Date Program Management Officer Competition Advocate