JOFOC Ext Data (4OH0426) - Executed_Redacted.pdf

Revised Nov 2023

Justification for Other Than Full and Open

Competition, Extension U.S. General Services Administration

GSA Region 05 Leasing

Real Estate Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 4OH0426

Agency Name:

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

The General Services Administration currently leases 8,377.00 ABOA/9,588.00 rentable square feet (RSF) of office space at 7344 PEARL ROAD, 7344 PEARL RD , MIDDLEBURG HEIGHTS, OH under lease number LOH17907 for The current lease expires July 31, 2025. A lease procurement has been started and a new lease has been awarded. However, that lease award is currently being protested, preventing buildout from beginning at the newly awarded location. It is unclear when a judge will issue a decision regarding the protest, and after that decision is released, full buildout will still be needed. As such, 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. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for 36 months, 12 months firm, to commence on August 1, 2025. The estimated cost of this lease extension is $ per rentable square feet per year 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. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE 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.

An extension is necessary due to the unpredictable nature of adjudicating protests, combined with required flexibility to account for post-award construction. 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. This allows the Government to make use of existing tenant improvements avoiding replication costs of $ This includes a supplemental HVAC system for a server and LAN equipment, Roxbury windows, -specific electronic security systems, furniture requirements, interview stations and conference rooms that provide acoustic privacy, as well as all of the security requirements associated with an FSL II building.

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 Leasing Specialist in MIDDLEBURG HEIGHTS, OH showed only four similar properties in the delineated area, with rental 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 rental rates for this lease extension of $ per RSF includes 40 surface parking spaces, which, along with the shorter-term lease commitment, accounts for a higher rate than the current market research reflects. Further negotiation with the lessor will also aim to bring the rate closer to in line with the current market conditions. As such, the anticipated rental rate of $ per RSF is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On July 25, 2024 market research was conducted using CoStar and LoopNet. The market research showed the rental rate within the market area ranges from $ to $

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

Remaining at the current location under a 36 month, 12 month firm 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. Should there be remaining useful life in the Government’s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

Additionally, objective scrutiny will be given to the customer agency’s mission and security requirements (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a lease extension of 36 months, 12 months firm, for LOH17907 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_____________________ Thomas Nisivaco, Lease Contracting Officer

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.

Date______________________ Lauren Calamari, Leasing Specialist

See GSAM 506.304(d) and (e) for appropriate signature threshold levels.

If Senior Procurement Executive (SPE) approval is required, must include signatures from Regional Contracting [Leasing] Director, Regional Counsel, and Head of Contracting Activity (HCA). Use of a separate signature page is required.

Note that the threshold for SPE approval is based on aggregate contract value;

therefore, it is possible that SPE approval may be required for actions below the prospectus threshold.

Reviewed and concurred by:

Kimberly Gill Date Leasing Branch Manager

Christopher Gronwold Date Lease Policy and Program Branch k Date

Director, Real Estate Division

Scott McCleary Date Regional Counsel

Mike Wolff Date Regional Competition Advocate

Approved by:

Robert Green Date Regional Head of Contracting Activity