Extension Justification (JOFOC) 4NY0817Redacted.pdf

Revised Nov 2023

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

Public Building Services

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 4NY0817

Agency Name:

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

The General Services Administration currently leases 27,281 Rentable Square Feet (RSF) yielding 23,723 ANSI BOMA Office Area square feet (ABOA) of office and related space together with 62 parking spaces at JFK Airport Building #75, Eastern Road, Jamaica, New York under Lease Number GS-02P- LNY23949 for the The current lease expired December 31, 2025. Approval is requested to negotiate a lease extension with the incumbent Lessor, without full and open competition, for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease Extensions.

2.

(INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for thirty (30) months, with the first twelve (12) months firm to commence on January 1, 2026. The estimated cost of this lease extension is per RSF, plus an additional RSF for electricity, for an annual cost of and a total contract value of

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 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.

The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy

The government encounters unexpected delays outside of its control in acquiring replacement space

The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date

The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties

4. 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 during the extension period. A competitive lease procurement was conducted and resulted in a new lease awarded on January 16, 2025. The projected completion of the space, under the new Lease, is projected to be Summer

Revised Nov 2023

2027.

without interruption and simultaneously provide the time to deliver the new space as substantially complete. 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.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the Lease Contracting Officer in Queens, NY showed the rental rate within the market area ranges approximately for 3-star properties and for 4- & 5-star properties for lease terms of 7 years or more. These rates are exclusive of non-market shell improvements which are estimated to be approximately , janitorial cost estimated at and parking at an estimated in the amount of making the market range from .

Based on the above, the anticipated rental rate for this extension of , plus the cost of electricity estimated at for a total rate of is slightly above the market based on the most recent report for this submarket. The market rates reflect longer-term agreements, however, and thus do not factor in a premium for a short-term, thirty (30) month extension or the premium cost of being located on John F. Kennedy Airport property which provides integral access to to conduct its mission in the most effective and efficient manner. Therefore, the proposed rent rate of is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On October 27, 2025, market research was conducted using . The market research showed the rental rate within the market area ranges approximately for 3-star properties and for 4- & 5-star properties for lease terms of 7 years or more. These rates are exclusive of non-market shell improvements which are estimated to be approximately , janitorial cost estimated at and parking at an estimated in the amount of making the market range from

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

Remaining at the current location under a thirty (30) month extension avoids a holdover and allows the Government to continue operations without disruption.

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

ACQUISITION.

N/A

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. A competitive procurement was conducted resulting in a lease award on January 16, 2025 for a new lease for a fifteen (15) year term. The new replacement lease is slated to be delivered for occupancy by the Summer 2027.