JOFOC_-_Memo_to_File_-_FBI_Roanoke_(2)_Redacted.pdf

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

LEASE NUMBER: GS-03B-05356

PROJECT NUMBER: 6VA0348

Agency Name: Federal Bureau of Investigation

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED.

FBI currently occupies 4,782 ABOA / 5,451 RSF, along with 9 structured parking spaces, at BB&T Bank Building, 310 First Street, SW, Roanoke, VA, under lease number LVA05356, which is set to expire on July 23, 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.

FBI occupies 5,451 rentable square feet (RSF) under lease number GS-03B-05356.

The lease was originally effective from July 24, 2006 to July 23, 2016. The planned action will extend the lease one (1) additional year, resulting in a lease expiration date of July 23, 2017.

GSA awarded a new/replacing lease on January 12, 2016 at the current 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 FBI’s new/replacing lease (LVA12231).

The annual rent for the extension is $150,805.09 ($27.67/RSF x 5,451 RSF) for an aggregate contract value of $150,805.09.

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 USC 253(c)(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, FBI, 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 FBI’s daily activities will be minimized. Additionally, FBI is satisfied with the lessor’s performance. The most recent customer satisfaction survey shows a 96% satisfaction rating. 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 two (2) additional buildings within the delineated area as a potential alternative. However, the required build-out of the alternative site, FBI square footage requirements, and 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 $27.69/RSF, with a shell rate at $20.50/RSF, which includes parking costs, and an operating rate of $7.19/RSF. It is anticipated that the Lessor will accept an extension at the current rate.

data does not exist for this delineated area. However, data for the showed fully serviced rates ranging from $22.79/RSF –

$26.69/RSF, exclusive of TI. However, considering FBI’s highly specialized mission and special requirements, it is reasonable to expect utilization of the full tenant allowance available to the agency. When FBI’s full TI allowance is applied over a one (1) year term, the market shows rates ranging from $63.70/RSF - $65.60/RSF. The estimated rate of the extension, at $27.69/RSF, falls well below the anticipated fully serviced rates shown through market research.

4/25/2016

X

Signed by: TREVOR OTTO

4/25/2016

X Stacy C. Keefer

The anticipated cost of this extension was also compared with leases in GSA’s inventory for the Roanoke area. In Roanoke, fully serviced rates range from $15.52 - $35.97/RSF. The estimated rate of the extension, at $27.69/RSF, falls within this range.

Based on the above, the anticipated fully serviced rental rate of $27.69/RSF is determined to be fair and reasonable.

7. DESCRIPTION OF ONLINE MARKET SURVEY CONDUCTED.

A market survey was conducted for this extension using . Two properties within the delineated area were evaluated as potential alternatives. The shell rates for these properties ranged from $15.60 - $19.50/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, FBI 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 FBI 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 FBI.

Prepared By:

Trevor Otto Leasing Specialist

Approved By:

Stacy Keefer Lease Contracting Officer