5A JOFOCRedact.pdf

U.S. General Services Administration

GSA Region 10

Leasing Division-Auburn, WA

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 9WA2428

Agency Name:

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

The General Services Administration currently leases 14,717 ABOA/16,918 rentable square feet

(RSF) of office space at 1201 Pacific Avenue, Tacoma, WA 98402 under lease number

LWA06899 for the . The current lease expires 6/30/2020. Approval is requested to negotiate an extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a succeeding lease is 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 new replacing lease at a new location under project (5WA0499) for has a planned beneficial occupancy date of 9/22/2020 which requires extending the current lease to meet the project schedule. This requirement is for 14,717 ABOA/16,918 RSF of space for a (6) month firm term. The firm term of the extension is 7/1/2020 through 12/31/2020 which provides time for completion of the long term solution under project 5WA0499. The estimated cost of this lease is This rate is based on a premium rate of which is more than the rates determined by market research of comparable properties within the delineated area (See Table 1 below).

Table 1 Tacoma CoStar Market Comps from a 12/4/2019 report

IRS/Tacoma

RSF

Required 16918

Building Address Bldg. Class

SF

Available

Shell

Rent Taxes

Adjusted

Shell

Operating

Rent

Full Service

Rent

909 A. St. The Russell Building A 19082

1301 A. St. Columbia Bank

Center A 21307

Averages:

Assumptions/Adjustments:

Historic operating rent for this lease has consistently ben , so assumption that it will remain the same for the three (3) month extension.

The delineated area encompasses the Tacoma Central Business District and Submarket

Leasing Division-Auburn, WA

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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. In accordance with FAR 6.302-1 and GSAR 570.405, 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.

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. Relocation costs are estimated to be

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and is attached to this justification. The cost of relocating using the low cost quote and replicate the tenant improvements exceeds the cost of remaining at 1201 Pacific, Tacoma, WA

98402. The total savings to the Government is

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

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

N/A

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by GSA via Bullseye and CoStar Reports for Tacoma, Washington Central Business Area and Submarkets determined the rental rate within the delineated area ranged from to per RSF. The Bullseye Rate is

Therefore, the proposed rental rates for this lease extension of /RSF, which represent increase over the market rates, are deemed fair and reasonable by the GSA Lease

Contracting Officer.

Leasing Division-Auburn, WA

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

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. (See Table 1, Tacoma CoStar Market Comp above)

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

COMPETITION. None

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

THE ACQUISITION.

Incumbent Lessor: UNICO, 1215 Fourth Ave, Suite 600, Seattle, WA 98161 (Property

Management/Lessor rep)

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

Leasing Division-Auburn, WA

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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 16,918 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_____________________

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______________________

Lease Contracting Specialist

PROJECT NUMBER: 9WA2428