5WV0120_-_JOFOC_-_Memo_to_File_-_MSHA_Logan_(6.8.16)_final_Redacted.pdf

Memo to File (Below SLAT) U.S. General Services Administration

LEASE NUMBER: GS-03B-89042

PROJECT NUMBER: 5WV0120

Agency Name: Mine Safety and Health Administration (MSHA)

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED.

MSHA currently occupies 6,700 ABOA / 7,705 RSF, along with 33 surface parking spaces, Rt. 17 Over 5 Chalet Village Rd., Logan, West Virginia, under lease number LWV89042, which is set to expire on August 14, 2016.

Approval is requested to extend without full and open competition for continued occupancy at this leased location.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED.

MSHA occupies 7,705 rentable square feet (RSF) under lease number GS-03B-89042.

The lease was originally effective from November 11, 1988 to August 14, 2016. The planned action will extend the lease one (1) additional year, resulting in a lease expiration date of August 14, 2017.

GSA awarded a new/replacing lease on October 13, 2015 at a new location. An extension is being pursued to provide sufficient time to complete the new/replacing lease action.

The lease extension will provide the amount of time necessary to complete the design and construction of MSHA’s new/replacing lease (LWV12211).

The annual rent for the extension is $120,599.75 ($15.65/RSF x 7,705 RSF) for an aggregate contract value of $120,599.75.

3. IDENTIFICATION OF STATUTORY AUTHORITY.

41 U.S.C. 3304(a)(1). Only one responsible source and no other supplies or services will satisfy agency requirements.

4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED.

In accordance with 41 U.S.C. 3304(a)(1), when the supplies or services required by the agency are available from only one responsible source, or from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided to meet the agency’s needs.

The proposed action is an extension of the current lease for a period of one (1) year. In this case, it would be economically infeasible to relocate the tenant agency, MSHA, for such a short period of time. The purpose of the extension is to provide an adequate amount of time to complete a new/replacing lease action.

By pursuing a one (1) year extension at the present location, relocation costs will be eliminated and disruption to MSHA’s daily activities will not be realized. Therefore, as there is no other source who can meet the client’s requirements, a one (1) year extension is the optimum solution and in the best interest of the Government based upon the above information and market survey results listed below.

5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS

PRACTICAL.

In accordance with GSAM 505.202(b), advertisement for this extension is not required, as it is an excepted lease action.

However, GSA undertook a search to locate a potential alternative location.

The search revealed one (1) additional building within the delineated area as a potential alternative. However, the required build-out of the alternative site, MSHA square footage requirements, and the urgency of the action indicate that remaining in place for the period of the planned extension is the best course of action. The Government does not anticipate recouping the relocation and TI expenditure to move to a new building via a full and open competition.

6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND

REASONABLE.

The current rental rate for this lease is $15.65/RSF, with a shell rate at $7.51/RSF and an operating rate of $8.14/RSF. It is anticipated that the Lessor will accept an extension at the current rate.

data does not exist for this delineated area or the state of West Virginia. However, data for Logan, WV showed a fully serviced rate of $15.17/RSF, exclusive of TI. However, considering MSHA’s specialized mission and special requirements, it is reasonable to expect utilization of the full tenant allowance available to the agency.

When MSHA’s full TI allowance is applied over a one (1) year term, the market shows a rate of $49.40. The estimated rate of the extension, at $15.65/RSF, falls well below the anticipated fully serviced rates shown through market research.

Based on the above, the anticipated fully serviced rental rate of $15.65/RSF is determined to be fair and reasonable.

6/7/2016

X Trevor Otto Leasing Specialist - 3PRSC Signed by: TREVOR OTTO

6/8/2016

X Sandro "Sam" Ruiz Lease Contracting Officer - 3PRSC Signed by: SANDRO RUIZ

7. DESCRIPTION OF ONLINE MARKET SURVEY CONDUCTED.

A market survey was conducted for this extension using . One (1) property within the delineated area was evaluated as potential alternatives. The shell rate for this property was advertised at $7.00/RSF. However, in considering the period of the extension, imminent expiration of the current lease, and requirements of the tenant agency, the costs of moving to an alternative site far outweigh the benefits of staying in place.

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

COMPETITION.

The existing Lessor’s performance under the current lease meets the Government’s expectations. By remaining in the current location, MSHA will realize cost savings and avoid disruptions as it completes post-award requirements (design/build) for the awarded new/replacing lease.

9. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUSITION.

No other source has expressed in writing an interest in the acquisition.

10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION.

The lease extension for MSHA is being done concurrently with the proposed new/replacing lease. The extension provides the necessary time to adequately execute the long-term lease action for MSHA.

Prepared By:

Approved By: