4OK0142_LOK15428_JOTFOC-Redacted_-_NSimmerman.pdf

4OK0142/IRS/Enid, OK

Justification For Other Than Full And Open Competition PAGE 1 OF 3 Last Revised 5/28/14

U.S. General Services Administration GSA Region 7

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER: GS-07B-15428

PROJECT NUMBER: 4OK0142

Agency Name: Internal Revenue Service (IRS)

1. Nature and/or description of the action being approved.

The General Services Administration currently leases 1,900 ANSI/BOMA Office Area (ABOA)/ 2,299 Rentable Square Feet (RSF) of office space at 601 South Harding Street, Enid, OK, under lease number GS-07B-15428 for the Internal Revenue Service (IRS). The current lease expires January 4, 2015. Approval is requested to execute a three-year renewal option with the incumbent landlord without full and open competition for continued occupancy at this leased location.

2. Description of the supplies or services required to meet the agency’s needs (including estimated value).

IRS would like to remain at their existing lease consisting of 1,900 ABOA SF/ 2,299 RSF of office space at 601 South Harding Street. IRS confirmed that the space supports their new space requirements and they would like to remain in place for another three years. The current lease expires on January 4, 2015; notice of intent to renew is required by the expiration date. The rate contained within the option provides an estimated contract value as follows:

$14.34/RSF (rounded) x 2,299 RSF= $32,976.36 Annually x 3 Years= $98,929.08

3. Identification of the statutory authority

41 U.S.C. 253 (c) (1). Only one responsible source and no other supplies or services will satisfy agency requirements.

4. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited.

GSAM 570.402-5 allows for negotiation with the incumbent Lessor when a cost-benefit analysis demonstrates that the Government cannot expect to recover relocation and duplication costs through competition.

The estimated aggregate cost savings to the Government of staying in place is $94,939.02.

Therefore, it is in the best interest of the Government to execute the renewal option at the existing location. This procurement strategy will ensure that the Government will avoid relocation and/or duplication of costs.

See Attachment 1, Cost-Benefit Analysis

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Justification For Other Than Full And Open Competition PAGE 2 OF 3 Last Revised 5/28/14

5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable

In accordance with the Leasing Desk Guide, an advertisement for this renewal option is not required since it is for less than 10,000 ABOA SF. Additional market research was performed on September 9 , 2014 using CoStar, internet sources and GSA comparable lease data. These activities demonstrated that an award to an offeror other than the present lessor would result in substantial relocation or duplication costs to the Government, and the Government cannot expect to recover such costs through competition.

6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Market data obtained through REIS provided an average asking rent of $16.84/RSF for the Enid, OK market. One GSA comparable lease was also located in the area providing a rate of $21.16/RSF. The rate contained within the renewal option of $14.34/RSF ($17.36/ABOA SF) fully serviced is within the market range and below the other GSA comparable. For the reasons above, the rate contained in the renewal option is determined to be fair and reasonable to the Government.

7. Description of the market research conducted

As outlined above, market research was conducted by searching REXUS and CoStar. All research led to the same conclusion that an award to an offeror other than the present Lessor would result in substantial relocation or duplication costs to the Government, and the Government cannot expect to recover such costs through competition.

8. Other facts supporting the use of other than full and open competition

IRS is satisfied with their current location. The Lessor, Gary L. Young and Sherry L. Young, is responsive and is meeting the requirements of the lease.

9. List of any sources that expressed in writing an interest in the acquisition

None.

10. Statement of actions the agency may take to remove or overcome any barriers to competition

GSA is working with the IRS to develop a follow on procurement strategy that will meet their long term needs. If appropriate, a competitive procurement will take place at that time.

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Justification For Other Than Full And Open Competition PAGE 3 OF 3 Last Revised 5/28/14

11. CONTRACTING OFFICER CERTIFICATION:

By signature on this justification for Other than Full and Open Competition, the Contracting Officer certifies that exercising the renewal option of 2,299 RSF is in the Government's best interest and that this Justification is accurate and complete to the best of my knowledge and belief.

12/22/2014

X Dusty Griffith

Contracting Officer

(Approver up to $650,000 TCV)

12. TECHNCAL REQUIREMENTS PERSONNEL CERTIFICATION:

I certify that by signature on this Justification for Other than Full and Open Competition, the supporting data used to form the basis of this Justification is accurate and complete to the best of my knowledge and belief

12/11/2014

X MURIEL AUTHER

Prject Manager

X Nicole Simmerman

Leasing Specialist

FAR Part 6.303 requires that information on which the Justification is based be certified as complete and accurate by the technical or requirements personnel. FAR Part 6.304 specifies that the justification must be approved in writing by a specified designee (position title from FAR used above) based on TCV. No additional guidance is included in GSAM Part 506.3. *Regional practice requires concurrence by the Leasing Director and Legal Counsel where TCV>$650,000, by the RC where TCV>$12.5M and by all lower level approvers.

M=Million NAR=Net Annual Rent (Annual Rent less Operating) TCV=Total Contract Value HCA=Head of Procuring Activity SPE=Senior Procurement Executive

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