6FL0657_LFL59839 USAO Pensacola Renewal Redacted Justification.pdf

Revised MAR 2026

Justification for Other Than Full and Open Competition, Lease Renewal

U.S. General Services Administration

PBS, Office of Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 6FL0657

Agency Name: 1535 – Office of U.S. Attorneys (USAO)

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

The General Services Administration currently leases 26,760 ABOA/30,388 rentable square feet (RSF) of office space at the Wachovia Bank Building, 21 E Garden Street, Pensacola, FL under lease number LFL59839 for the Office of U.S. Attorneys. The current lease expires July 14, 2026. Approval is requested to bilaterally exercise a renewal option with the incumbent Lessor for continued occupancy at this leased location. The procedures for negotiating, evaluating, and exercising a pre-existing right to renew the lease are detailed in GSAR 570.401: Renewal Options.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING ESTIMATED VALUE).

USAO submitted a continuing need letter on October 20, 2023 for 42,269 rentable square feet of office and related space. To satisfy the USAO mission requirements, the facility must be within a four-block radius of REDACTED. The agency needs additional time to revise the long-term housing plan, and to prepare the budget for buildout and relocation costs expected to exceed the tenant improvement (TI) allowance. The lease contract gives the General Services Administration the right to exercise a five-year renewal option, provided written notice is sent to the Lessor 120 days before lease expiration. The said notice period was missed, but the lessor has agreed to bilaterally execute a five-year renewal option for the same cost and terms as stated in the original renewal option. This requirement is for 26,760 ABOA/30,388 RSF of space for a five (5) year firm term to commence on July 15, 2026. The estimated cost of this lease is REDACTED per rentable square feet per year (rounded) for an annual cost of REDACTED and a total contract value of REDACTED. The delineated area is North: Cervantes St, South:

Main St, East: Main St, West: De Villiers St. There is no vacant Federal Space available.

(Shell Rent Per Year + Operating Rent Per Year) = Annual Rent in Dollars

(Shell REDACTED + Operating REDACTED = REDACTED Annual Rent in Dollars

Annual Rent in Dollars / RSF = Fully Serviced Rental Rate per RSF rounded

REDACTED / 30,388 RSF = REDACTED rounded to REDACTED / RSF

(Fully Serviced Rental Rate per RSF x RSF) X Number of Years = Renewal Lease Total Value

REDACTED /RSF x 30,388 RSF) x 5 years = REDACTED Renewal Total Value

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: FAR 6.103-1 (GSA Class Deviation RFO- 2025-06) and GSAR 570.401. In accordance with GSAR 570.401, use of the sole source authority is appropriate where the contract provides a right to renew the lease, and the addition of a renewal option is satisfied by the Competition Requirements in GSAM Part 506.

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE 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. Award to other than the current Lessor would require relocation of the entire requirement and would cause USAO to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be REDACTED. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of REDACTED. The agency specific requirements include REDACTED

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXREDACTED that would all have to be replicated if they were to move.

These requirements also limit competition in an already small market. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating USAO using the low-cost quote exceeds the cost of remaining at 21 E. Garden Street. The total savings to the Government is REDACTED.

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 Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on May 18, 2026 for 21 days. In addition, PBS conducted market research using CoStar and LoopNet.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS in Pensacola, Florida showed the rental rate within the delineated area ranges from $28.00 to $35.00 per RSF according to data sourced from CoSTAR and responses to the advertisement.

Therefore, the proposed rental rates for this lease renewal of REDACTED /RSF, are within the current market range for this submarket and are 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 May 12, 2026, PBS conducted market research using CoStar and LoopNet and two (2) potentially acceptable locations (one (1) plus the incumbent) that might meet the agency’s needs within the delineated area. The alternative location is just east of the boundaries of the delineated area, but the floor size meets the agency’s requirements. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on May 18, 2026. GSA received three (3) expressions of interest for the same building in response to the advertisement, however only one (1) interested offeror was authorized to represent the building, and one (1) expression of interest from the incumbent Lessor. The incumbent Lessor’s expression of interest indicated that the rate would be REDACTED per RSF. The interested party that provided the lowest cost quoted a rate of REDACTED per RSF in its expression of interest.

See Figure 1 below for the results of the market research and SAM.gov advertisement, including the incumbent.

Address Source [EOI/CoStar, etc.] Asking Full Service

Rental Rate

[incumbent] Wachovia Bank Building, 21 E Garden Street, Pensacola, FL

Rate in lease REDACTED

One Energy Place Pensacola, FL 32520

CoSTAR Multiple broker representatives

REDACTED

Figure 1: Market Research Comparables

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

The LAM-COR noted that there is a pending issue with janitorial services and the Lessor is considering a replacement contractor. However, a review of the Lease Management Tool demonstrates that there are no open conditions that would prevent GSA from negotiating and exercising the renewal option. The lessor is performing satisfactorily under the lease and the tenant appears to be satisfied with their performance.

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

ACQUISITION.

Name Email Phone Building Address

(incumbent) Steven del Gallo stevedelgallo@gmail.com (850) 232-8337 21 E Garden St

Michael Carro

SVN

mcarro@svn.com (850) 434-7500 One Energy Place

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

There are no systemic barriers to competition. If the agency has a continuing need for space upon lease expiration, GSA will follow all authorities, regulations and policies applicable to lease acquisition. Should there be remaining useful life in the Government’s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

Additionally, objective scrutiny will be given to the customer agency’s mission and security requirements, if applicable, to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the bilateral exercise of a renewal option of 30,388 RSF is in the Government’s best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

__________________________________________________ Date_____________________ Keitra E. Harris, Lease Contracting Officer

12. PREPARER’S TECHNICAL CERTIFICATION.I certify that the supporting data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief.

___________________________________________________ Date______________________

Keitra E. Harris, Lease Contracting Officer

13. ATTACHMENTS

☒ REDACTED

Concurred by:

Cathleen Ryer Date One Level above LCO

Reviewed for legal sufficiency by:

Helen Y. Kearns Date Office of the General Counsel, Leasing

Approved By:

Gina DiTommaso Date Competition Advocate