6CA0759 Redacted JOTFOC 1.13.26_Redacted.pdf
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- Attached to
- Notice of Lease Award - Fresno, CA
- Solicitation number
- 6CA0759
About this file
This document is a Justification for Other Than Full and Open Competition for a succeeding lease submitted by the General Services Administration (GSA) Region 7, Public Building Service, Leasing Division.
GSA seeks to negotiate a succeeding lease with the incumbent lessor for 22,870 rentable square feet (RSF) of office and warehouse space at 2202 Monterey Street, Fresno, California under lease number GS-09P-LCA02275. The current lease expires February 28, 2025, and the proposed 15-year succeeding lease with a 10-year firm term is scheduled to commence March 1, 2025. The facility must provide space on one contiguous floor, approximately 6,540 square feet of yard space with security fencing, and 18 feet 6 inches ceiling height for warehouse space. Required specialized features include secured storage, IT room with connectivity, three laboratories with dedicated ventilation and drainage systems, 1,160 square feet of training classrooms and conference rooms with projection screens, 2,737 square feet of warehouse, seismic upgrades per GSA standards, raised access flooring, and a perimeter security system. The estimated annual rental rate and total contract value are redacted in the document. Market research identified five potentially acceptable locations through CoStar analysis and a 14-day SAM.gov advertisement posted April 30, 2025, which generated one expression of interest beyond the incumbent. The incumbent lessor's rate was noted as competitive within the market range of adjusted GSA rental rates in the Fresno submarket. A cost-benefit analysis determined that relocation costs would exceed remaining at the current location, supporting negotiation with the incumbent under 41 U.S.C. 3304(a)(1) and GSAR 570.402. The justification was signed and approved by the Lease Contracting Officer, Project Manager, GSA Broker Contractor, Legal Counsel, Leasing Director, Competition Advocate, and Head of Contracting Activity on June 23-24, 2025.
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Text version
Docusign Envelope ID: 2AEAB878-8AAD-431F-A749-C461BD0820B3
Revised 10-23-2023
. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . The requirements at the current location includes:
● Secured Storages
● IT Room with connectivity throughout space
● 3 Laboratories with dedicated ventilation systems and drainage systems
● 1,160 sf of Training Classrooms and Conference rooms with Projection Screens
● 2,737 sf of Warehouse
● 6,540 sf of Ware yard
● Seismic upgrades per GSA standards
● Raised Access flooring
● Perimeter Security System
A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating using the low-cost quote exceeds the cost of remaining at 2202 Monterey Street, Fresno, CA. The total savings to the Government is . The full cost-benefit analysis worksheet is attached to this justification and labeled Exhibit A.
NOTE: The low-cost quote provided was a Triple Net rate. For the purposes of the cost-benefit analysis the low-cost quote was adjusted for comparison with typical GSA rental rates.
5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS
MANY POTENTIAL SOURCES AS IS PRACTICABLE.
Per the requirements of GSAR 570.402, the GSA Broker Contractor placed an advertisement on the Contracting Opportunities domain of SAM.gov on April 30, 2025 for 14 days. In addition, GSA conducted market research using Costar and Loopnet.com. One (1) expression of interest in addition to the incumbent was received.
6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE
GOVERNMENT WILL BE FAIR AND REASONABLE.
Recent market surveys conducted by GSA in Fresno, CA showed the rental rate within the delineated area ranges from to per RSF fully serviced after being adjusted for comparison with typical GSA rental rates. CoStar.
Therefore, the proposed rental rate for this succeeding lease of per RSF, is within the current market range for this submarket and 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.
On 05/20/2025, the GSA Lease Contracting Officer reviewed the CoStar report dated 04/07/2025 and identified five (5) potentially acceptable locations. In addition, the GSA Broker Contractor posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on April 30, 2025. There was one (1) expression of interest in response to the advertisement and the incumbent Lessor provided an informational quote indicating they were also interested in continuing to lease space to the Government. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF. The interested party that provided the lowest cost quoted a Triple Net rate of per RSF in its expression of interest. For the purposes of the cost benefit analysis and this justification, Figure 1 below shows the quoted rate to be per RSF which includes adjustments noted.
File details come from the government source that posted it. Updated .