U.S. General Services Administration

Office of Leasing (PR)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER(s): 5NY0723

LEASE NUMBER(s): GS-02P-LNY22593

Agency Name:

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

currently occupies 145,912 Rentable Square Feet (RSF) yielding 126,881 ANSI BOMA Office Area square feet (ABOA) of office and related space together with 607 parking spaces at JFK Airport Building #77, Eastern Road, Jamaica, New York under Lease Number GS-02P- LNY22593. This lease expires on December 31, 2025. GSA is seeking approval to negotiate a lease extension for a thirty (30) month term with the current Lessor without full and open competition to provide sufficient time for the long-term competitive procurement to be completed.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

This requirement is for 126,881 ABOA/145,912 RSF of office and related space together with 607 parking spaces for a term of thirty (30) months, with the first twelve (12) month firm. The Lease originated on June 19, 1992, and is scheduled to expire on December 31, 2025.

GSA received approval for the new replacement lease under Prospectus Number PNY- 03-QU19 from Congress through the Resolutions signed by the Senate on June 19, 2019 and House of Representatives on September 19, 2019. A Competitive procurement was conducted under project number 2NY0825 and a new/replacing lease was awarded on June 13, 2024, for approximately 139,377 RSF yielding 121,197 and 208 parking spaces.

An additional extension of the current lease is needed for GSA to complete the design and construction of the new space. The projected completion of the new space is Spring 2028. Due to extenuating circumstances that delayed another procurement and directly affected the completion of the new space, the length of this extension is necessary to ensure enough time is provided for GSA to deliver the new space as substantially complete. This lease is subject to a master lease held by the Port Authority of New York and New Jersey. GSA is actively working towards novating the lease to create a direct lease agreement with the Port Authority of New York and New Jersey eliminating the

Rent under the current Lease is (exclusive of tenant electric). The current rent rate for this Lease is The lease also excludes operating cost and tax adjustments. The estimated cost of electricity is (rounded) for a total per annum cost of . The proposed rent rate for this lease extension is per RSF plus an additional F for electricity, for an annual rent of and an estimated overall total contract value of inclusive of the cost of electricity. The approved prospectus for the long-occupancy through a short-term lease extension.

The Delineated Area is as follows:

North: Intersection of Lefferts Boulevard and South Conduit Road heading East to Rockaway Boulevard then heading East to Brookville Boulevard

East: Head of Bay

South: Jamaica Bay

West: Leffert Boulevard

There is no floodplain issue associated with the current location.

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, Lease Extensions. It is determined that the extension price is fair and reasonable and that award to any other offeror would result in substantial duplication of costs to the Government that is not expected to be recovered through competition.

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. Under the authority of Prospectus Number PNY-03-QU19, a competitive lease procurement was conducted and resulted in a new lease awarded on June 13, 2024. The projected completion of the space, under the new Lease, is projected to be Spring 2028. This strategic lease extension will protect occupancy, provide for continued operations without interruption and simultaneously provide the time to deliver the new space as substantially complete.

Moreover, an award to other than the current Lessor would require move and replication costs that would not be recovered through competition. Relocation costs are estimated to be . Additionally, this allows the Government to make use of existing tenant improvements avoiding replication of Tenant Improvement costs estimated to be approximately (based on the tenant improvement allowance allocated for Queens, NY) and an allowance of approximately worth of BSAC Level III costs. GSA completed a Cost Benefit Analysis following the procedures set forth in GSAR 570.402-6. The cost of relocating CBP using the average rent for a 4 & 5 star building exceeds the cost of remaining at Building #77 at JFK Airport in Queens, NY with total estimated savings to the Government of over the thirty (30) month extension term.

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.

A recent review of the market within and immediately outside of the delineated area revealed that there are no buildings located within the delineated area that have the amount of space required readily available for lease. (See attached CoSTAR Report dated October 2025)

The current leased location is not located within a REIS market. As such, there is no Bullseye target rate for consideration. The South Queens, NY market, where the current lease is located, is primarily a residential neighborhood, with the exception of JFK Airport.

is currently located at Building # 77 located on JFK Airport property. The building is a Class B building with a need for significant upgrades in infrastructure. The only other building within the delineated area that could meet the size requirements of is fully leased, One Aviation Plaza, 159-30 Rockaway Boulevard, Queens, NY, a (4) four-star commercial property according to CoStar housing the Federal Aviation Administration (FAA). This location is located immediately adjacent to the JFK Airport. With a complete and parking requirement, there are no market comps for this location in the South Queens marketplace. The South Queens office market for 3 - 5-star commercial properties contains approximately 5,017,589 rentable building area with a vacancy rate of 6.4% for the entire submarket including 1- and 2-star commercial properties and a 12-month net absorption of a negative 23,100 square feet. The average rent for this submarket is

, which is a 0.6% increase from where they were a year ago. While rent growth has been positive over the past 12 months, rents are 4.72% lower than where they were two years ago. The market rents for this area are approximately for 3-star properties and for 4- & 5-star properties for lease terms of 7 years or more, exclusive of non-market shell improvements which are estimated to be approximately

, janitorial cost estimated at and parking at an estimated per month 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 CoStar report for this submarket. However, the market rates are reflective of longer-term agreements and thus do not factor in negotiating a short-term premium for a thirty (30) month extension as well does not contemplate the premium cost of being located on John F. Kennedy Airport property, providing integral access to in order for the agency 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.

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.

A CoSTAR report generated on October 27, 2025, illustrated that there are no buildings shrunk significantly over the last few years. At the beginning of 2021, 22.8 million SF was underway, which has fallen more than 50% to 6.5 million SF in the second half of 2025.

South Queens currently has no notable office projects underway. Recent additions have been in mixed-use formats, with new housing developments including some portion of dedicated office space. Without the presence of Fortune 500 companies, developers have little interest in meaningfully expanding the submarket's office inventory with the large, 5 limited in office space availability.

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

COMPETITION.

The existing leased facility located at Building # 77, JFK Airport is already built out and is fully functioning as a working leased facility. This leased facility is critical to the overall mission of as it is located within the airport proper and it is in close proximity to the JFK Airport tarmac (an operational requirement of ).

JFK Airport is an airport-of-entry that is required to monitor for drugs and contraband that may pass through the airport terminals. The space also contains a which will not be replicated in the new replacing long term action but is currently used for agent certification and training purposes. A competitive procurement to replace this lease under Prospectus Number PNY-03-QU19 was conducted resulting in a lease award on June 13, 2024. A short-term lease extension is required to protect lacement space is delivered for occupancy.

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

IN THE ACQUISITION.

None

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

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

A competitive procurement was conducted resulting in a lease award on June 13, 2024 for a new lease for a fifteen (15) year term. The new replacement lease is slated to be delivered for occupancy by the Spring, 2028.

CERTIFICATION

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of an extension for 145,912 RSF and 607 parking spaces at Building #77 at JFK Airport in Queens, New York under GSA Lease Number GS-02B-belief.

Raffaela Battiloro Date Lease Contracting Officer (PRAB)

CONCURRENCE:

Division Director Glenn Harvey (PRAB) Date

Deputy Assistant Commissioner Jeannette Rios (PRA) Date

REVIEWED FOR LEGAL SUFFICIENCY:

Leigh Erin-Izzo, Date Senior Assistant General Counsel (LR)

CONCURRED BY:

Gina DiTommaso, Office of Leasing (PR) Date Competition Advocate

APPROVED BY:

Crofton Whitfield Date Assistant Commissioner, Office of Leasing (PR) Head of Contracting Activity

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