Homer_NOAA_Memo_to_file_-_JOTFOC-SLAM_w_cba_(FINAL_Review_5.21)_Redacted.pdf

Memo to File:

RE: 2AK0148 - Priced Five Year Renewal National Oceanic and Atmospheric Administration Parkside Plaza 3665 Ben Walters Lane Homer, AK 99603

General Services Administration (GSA) currently leases 805 ABOA / 926 RSF of office space on behalf of NOAA at the Parkside Plaza, 3665 Ben Walters Lane, Suite A, Homer, AK 99603. The current lease expires on 6/17/2015. This memo is in furtherance of an evaluated renewal lease action, with the incumbent lessor without full and open competition for continued occupancy at this leased location. The prevailing authority is GSAR 570.203-2(b): If soliciting only one source, document the file to explain the lack of competition.

Homer, AK has a population of 5,003, based on 2014 statistics. Fishing and tourism are the principal industries. There is limited commercial space available that meets GSA requirements. U.S. Department of Commerce agency National Oceanic and Atmospheric Administration (NOAA)/National Marine Fisheries Service operates an Office of Law Enforcement-Alaska Division office in Homer. The agency mission requires close proximity to the harbor/marine operations. GSA and NOAA are in the process of evaluating several other locations, including vacant federal space, for future office space and the current location is required to continue as NOAA’s interim office space.

The priced renewal option will ensure that the NOAA Law Enforcement Office will remain at the current location and not interrupt operations, while the long term requirement is completed by way of full & open competition, or an MOU between NOAA and FWS. Award to other than the current Lessor would require relocation of the entire requirement and would cause the agency to incur move and replication costs that would not be recovered through competition, as more specifically detailed below, in addition to disrupting services for what will likely be a temporary, short lease term.

Cost-benefit Analysis Renewal of 926 Rentable Square Feet (RSF)

5-Year Analysis:

Present Location Potential Location2 Square Footage 926 RSF 926 RSF Annual Lease Rental Rate $21.54

Total Estimated Rent for 926 RSF for five (5) years

$99,730.20

Tenant Improvements for new/remodeled space. 926/RSF

$0 $76,400.08

Estimated voice and data move costs -

$5.00/RSF4

$0 $4,648.52

Physical Move Cost - $2.50/RSF4 $0 $2,324.26

TOTAL COST: $183,103.06

1Rate based on current rate.

2Rates based on average from market analysis. Due to lack of competition in the Homer market, data used includes existing State and Federal leased spaces in Homer and other similar markets. See table below.

3Based on Tenant Improvement Allowance of $69.37/RSF, amortized at 7% over 5 years.

4Based on market averages for Homer, AK

Market Analysis – lease data for similar markets Location Sq. Ft. Operating Taxes Shell Full Service

Rate Term

NOAA Seward-

GSA

922 N/A N/A N/A $24.58 5 yrs

State Lease in Homer – Nat Res

Office

649 N/A N/A N/A $21.34 1-5 yrs

FWS Soldotna-GSA 5,010 $3.13 N/A $8.23 $11.36 10 yrs State Lease in Homer - Labor

3000 N/A N/A N/A $25.09 1-5 yrs

State Lease in Homer – H&SS

1,700 N/A N/A N/A $25.11 1-5 yrs

Average $21.54

6/1/2015

X Joshua Campbell Joshua D Campbell Lease Contract Officer Signed by: JOSHUA CAMPBELL

6/1/2015

X Breanne K Campbell Breanne K Campbell Lease Contract Specialist Signed by: BREANNE CAMPBELL