JOFOC_-_6DC0357_SSA_Advisory_Board_Extension_5.16.16_REDACTED.pdf

GENERAL SERVICES ADMINISTRATION

South Branch, Real Estate Acquisition Division

Justification for Other than Full and Open Competition Project # 6DC0357

Social Security Administration (SSA) Advisory Board Washington, DC

1. Nature and/or description of the action being approved.

Social Security Administration’s (SSA) Advisory Board currently occupies 13,976 ANSI/BOMA office area square feet (ABOA SF) / 16,705 rentable square feet (RSF) at 400 Virginia Ave. SW, Washington, DC, under lease number LDC01990. The current lease expires on September 29, 2017. This lease was transferred to Region 3’s inventory from the National Capitol Region on November 1, 2015.

Approval is requested to negotiate a two (2) year extension, 6 month’s firm, with termination rights upon 90 days’ written notice at this location. This extension with the incumbent lessor will occur without full and open competition for continued occupancy at this leased location to allow enough time for SSA’s reduced long term procurement which will be competed through the Advanced Automated Acquisition Program (AAAP).

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2. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

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Only 16 months remain until lease expiration and it is imperative that a two (2) year extension at the current location is negotiated to protect the government’s leasehold interest and allow sufficient time for buildout of SSA’s competitive new/replacing action.

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XXXXXXXXXXXXXXXXXX. The current rental rate for the existing location is XXXXX and is XXX below Region 3’s Lease Cost Relative to Market (LCRM). It is anticipated that the rental rate will remain the same during this two (2) year extension if negotiated now.

The estimated cost is:

Years 0 – 2 (Includes 18 month Soft Term): $43.90* (rounded) rate/rsf x 16,705 rsf = $733,349.50 (Annual Rent) x 2 years = $1,466,699.00

*Note: $43.90/RSF represents the current rent and is broken down as follows:

$34.09/RSF Shell rate; $9.81/RSF Operating rate

Total Contract Value: $1,466,699.00

3. Identification of the 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.

4. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited.

In accordance with 41 U.S.C. 3304(a)(1), the agency’s minimum needs can only be satisfied by unique supplies or services available from only one responsible source and no other type of property or services will satisfy the needs of the agency. Relocation costs are not expected to be recovered through competition.

GSAM 570.402-5 allows for negotiation with the incumbent lessor when a cost-benefit analysis demonstrates that the Government cannot expect to recover relocation and duplication costs through competition.

Market research was performed utilizing the XXXXX database on May 5, 2016. A cost benefit analysis illustrates that relocation costs would not be recovered through competition and that pursuing a two (2) year extension at the current location would result in a savings of $915,107.78 to the Government. Thus, it is in the best interest of the Government to pursue an extension at the existing location which will allow sufficient time to competitively procure a new/replacing lease. This procurement strategy will ensure that the Government will meet the agency’s requirements.

5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

In accordance with GSAM 570.106, Section (d), the Contracting Officer need not publicize the proposed acquisition of a leasehold interest in real property, including lease extensions under the conditions defined in 570.405, Section (c), which states, “FAR 6.203-1 permits contracting without providing for full and open competition when the property or services needed by the agency are available from only one responsible source and no other type of property or services will satisfy the needs of the agency.

This authority may apply to lease extensions in situations such as, but not limited to, ‘The Government encounters unexpected delays outside of its control in acquiring replacement space.’”

Market research was conducted on May 5, 2016 and is described in the attached document.

See Attachment 1, Market Research Memorandum

6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

XXXX and XXXXXX data are available for the Washington, DC market. Based on the XXXXXX Report which was generated on April 28, 2016, the Bullseye target for this extension is XXXXX or XXXX Fully Serviced. The anticipated rental rate of $43.90/RSF for this two (2) year extension is XXXXX below the Bullseye Target or XXX below Lease

Cost Relative to Market (LCRM) as determined by a Pre Award Assessment (PAA) and is determined to be fair and reasonable.

See Attachment 1, Market Research Memorandum

7. Description of the market research conducted and the results.

Market research was conducted on May 5, 2016 using the Co-Star database. The market research was confined to SSA’s delineated area. The research yielded 45 buildings which could potentially meet SSA’s square footage requirements but it is unlikely all buildings would meet SSA’s special requirements for the SSA Advisory Board.

See Attachment 1, Market Research Memorandum

8. Other facts supporting the use of other than full and open competition.

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XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX. In order to provide the government with the time it requires to competitively advertise, procure and construct space XXXXXXXXXXXXXXXXXX, a temporary short term extension is required at their current location. Although there may other buildings that could potentially meet SSA’s current square footage requirements, as the CBA demonstrates, the Government will save an estimated $915,107.78 by remaining in place.

9. Listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

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

10. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

Prior to expiration of the proposed lease term, a fully competitive lease action using AAAP, will be initiated for the new/replacing XXXXXX action.

Contracting Officer’s certification

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared by:

5/16/2016

X Ryan Ruggiero

Leasing Specialist

Signed by: RYAN RUGGIERO Concurred by:

5/16/2016

X John McFadden

Lease Contracting Officer

Signed by: JOHN MCFADDEN Concurred by:

5/16/2016

X Stacy C. Keefer

Stacy Keefer

Realty Supervisor

Signed by: STACY KEEFER Concurred by:

5/19/2016

X Laurie Ney

Real Estate Acquisition Branch Chief

Signed by: LAURA NEY

Approved by:

5/23/2016

X Dorothy Baratta

Competition Advocate

Signed by: DOROTHY BARATTA

Reviewed for legal sufficiency:

5/24/2016

X Robert J. McCall

Robert McCall

Regional Counsel

Signed by: ROBERT MCCALL