HHS Frederick, MD JOFOC (Redacted).pdf

GENERAL SERVICES ADMINISTRATION

South Branch, Real Estate Acquisition Division Justification for Other than Full and Open Competition

Project # 6MD0239 Health and Human Services (HHS)

Frederick, MD

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

HHS currently occupies 191,986 ABOA SF / 193,599 RSF of warehouse and office space, along with 194 surface parking spaces, at Wellington I, 6701 English Muffin Way, Frederick, MD, under lease number LMD09355, which is set to expire on April 30, 2019.

The current lease contains one five-year renewal option.

Approval is requested to exercise the five-year renewal option with the incumbent lessor without full and open competition for continued occupancy at this leased location.

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

HHS has indicated that the existing space is capable of meeting the agency’s needs.

The current rate for the existing location is $12.05/RSF ($12.16/ABOA SF). No previous sole source actions have been exercised.

The estimated cost is:

Years 1 – 5 (1 year firm term): 193,599 RSF x $12.77/RSF (rounded) = $2,472,259.23 (Annual Rent) x 5 years = $12,361,296.15

Total Contract Value: $12,361,296.15

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 conducted on February 13, 2017 and confirmed on November 8, 2017. A cost benefit analysis illustrates that relocation costs would not be recovered through competition and that pursuing a renewal option at the current location would result in a savings of approximately $5,694,232.07 to the Government. Thus, it is in the best interest of the Government to pursue renewal option at the existing location. This procurement strategy will ensure that the Government will meet the agency’s requirements.

See Attachment 1, Cost-Benefit Analysis

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, an advertisement was posted on November 8, 2017.

That notwithstanding, market research conducted on February 13, 2017 and confirmed on November 8, 2017 yielded one (1) existing office building and 4 proposed buildings within the delineated area that could potentially satisfy HHS’ square footage requirement.

See Attachment 2, Market Research Report

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

The market research established an estimated non-fully-serviced rental rate of

$17.00/RSF.

Based on the aforementioned factors, the anticipated non-fully-serviced rental rate of $12.77/RSF is determined to be fair and reasonable.

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

Market research was conducted on February 13, 2017 and confirmed on November 8, 2017. The market research was confined to Frederick County, as the current location lies outside of Frederick city limits. The research yielded one (1) existing building and four (4) proposed buildings which could potentially meet HHS’ needs...

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

HHS, after consulting with GSA, has indicated their current space can fully meet their existing needs. Further, the Lessor is performing in accordance with the requirements of the existing lease. Last, while the five-year renewal term will ensure the Government maintains its leasehold interest, a 1 year firm term will provide sufficient flexibility to respond to changing conditions.

3/30/2018

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

4/2/2018

X John McFadden Lease Contracting Officer - 3PR Signed by: JOHN MCFADDEN

4/2/2018

X Sandro "Sam" Ruiz Realty Section Chief - 3PRSC Signed by: General Services Administration

HHS is tasked with enhancing and protecting the health and well-being of all Americans by providing for effective health and human services and fostering advances in medicine, public health, and social services. HHS’ location in Frederick is largely dedicated for disaster response activities. By exercising the five-year renewal option, HHS will enjoy uninterrupted operations in comparison to the cost and disruption associated with performing substantial improvements for a new location.

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, if necessary and appropriate, will be initiated.

Contracting Officer’s certification

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

Prepared by:

Concurred by:

4/16/2018

X Laurie Ney Real Estate Acquisition Branch Chief - 3PRS Signed by: LAURA NEY

4/18/2018

X Dorothy Baratta Competition Advocate - 3P1 Signed by: DOROTHY BARATTA

4/19/2018

X Robert J. McCall Robert John McCall Regional Counsel (3L) Signed by: ROBERT MCCALL

Approved by:

Reviewed for Legal Sufficiency: