5B. Jotfoc - Redacted.pdf

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Justification for Sole Source Lease Extension
Solicitation number
1243ZP10L0105
Issued by

About this file

This is a Memo to File documenting the contracting officer's justification for extending a real property lease without conducting full and open competition.

Lease number 1243ZP10L0105, located in Andalusia, Alabama, expires on June 30, 2025, and requires a 60-month extension. The estimated average net annual rent is $75,348.00, with an anticipated total annual rent of $376,740.00 over five years, placing it within the Simplified Lease Acquisition Threshold (SLAT). The extension is justified under GSAR 570.405 based on cost-based rationale: lease extensions avoid holdover tenancy costs and relocation expenses that the government cannot reasonably recover through competing a separate short-term lease. The contracting officer selected the cost-based rationale rather than mission-based rationale, indicating the decision stems from economic efficiency rather than unique location requirements. The government encounters unexpected delays outside its control in acquiring replacement space, which is the primary justification for the extension. The anticipated rental rate remains constant at $16.38 per unit annually across all five years of the extension. The memo was prepared and approved on March 18, 2024, and is filed under Project Number DAL05794-003.

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Memo to File

Project Number: DAL05794-003

Documentation to Explain the Absence of Competition – Lease Extension Within SLAT

Lease number 1243ZP10L0105 occupied by in Andalusia, AL, will expire on 6/30/2025. It has been determined that the government requires an extension for 60 months as noted in the Acquisition Plan located in the lease file.

The estimated net annual rent of this action is $ .00, which is within the Simplified Lease Acquisition Threshold (SLAT). See table below.

The decision to pursue a lease extension is supported by GSAR 570.405.

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

This extension for a lease below the simplified lease acquisition threshold is necessary as:

Cost based rationale

Lease extensions represent short-term contracting actions which are necessary to protect the occupancy rights of the government when the government cannot vacate the premises by the expiration of the existing contract term.

Extensions avoid the costs associated with holdover tenancies. Additionally, the government cannot reasonably expect to recover the costs associated with relocation of the tenant agency through full and open competition of a separate short-term lease to cover the term of this extension.

Mission based rationale

The agency’s mission for this location requires a unique location and cannot be satisfied through any alternative locations. The agency’s mission and justification for a unique location is summarized below:

Prepared By:

Date

Approved:

Date

File details come from the government source that posted it. Updated .