JOFOC_CharlestonFCRenewal (final signed)_Redacted.pdf

Justification for Other than Full and Open Competition, Unevaluated Renewal Option

U.S. General Services Administration

GSA Region 3

South Branch, Charleston Section

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 6WV0074

Agency Name: Social Security Administration (SSA) and the Department of Labor (DOL)

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED

The General Services Administration currently leases 90,050 ABOA SF /110,000 rentable square feet (RSF) of office space at under lease number LWV90414 for the SSA and DOL. The current lease expires 12/9/2019. Approval is requested to exercise an unevaluated renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a renewal option is detailed in GSAR 570.401: Renewal Options.

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

(INCLUDING ESTIMATED VALUE).

To date, all tenants have indicated that they are satisfied with the present building and square footage.

DOL has confirmed their desire to keep their square footage and remain in the same lease as SSA.

SSA (dominant tenant) has provided long term office and related space requirements reflecting a reduction to 50,151 ABOA SF in accordance with their Utilization Rate (UR) Policy. Given the impending expiration date, ) and related approvals, and limited market options, GSA has determined it is not feasible to complete the reduction prior to the expiration date of the current lease. A five (5) year lease renewal will provide additional time to accomplish SSA’s reduced requirement.

90,050 ABOA SF (110,000 RSF) of office and related space is required for a five (5) year firm term to commence on December 10, 2019. The cost of this renewal is per rentable square foot for an annual cost of and; a total contract value of as previously negotiated as part of the larger Saban portfolio project. The delineated area is the Charleston, West Virginia City Limits.

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. In accordance with FAR 6.302-1 and GSAR 570.402, it is determined that award to any other offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition.

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 all tenant agencies to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be . Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . In accordance with the Leasing Desk Guide, Chapter 9, a cost-benefit analysis was completed following the procedures set forth in the GSAR 570.402-6 and is attached to this justification. The cost of relocating the Charleston Federal Center using the low cost quote exceeds the cost of remaining at The total savings to the Government is .

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, placed an advertisement on the Federal Business Opportunities (FedBizOpps) website on March 15, 2019 for fourteen (14) days. In addition, on March 5, 2019, she conducted market research of the Charleston, West Virginia city limits using .

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by in Charleston, West Virginia showed the rental rate within the delineated area ranges from

Therefore, the proposed rental rates for this succeeding lease of 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 March 5, 2019, a search was conducted first for 90,000 square feet of new or relet office space within Charleston, West Virginia City Limits. This search returned zero (0) results. In order to better determine a market rate, a subsequent search for a minimum of thirty thousand square feet was conducted. This search returned two (2) results as outlined below.

In addition, the Realty Specialist placed an advertisement on the Federal Business Opportunities (FedBizOpps) website, on March 15, 2019 and allowed it to run for fourteen (14) days. No expressions of interest were received.

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

Address Source Advertised/ Asking

Rate Adjusted Full

Service Rental Rate

Offer

Figure 1: Market Research Comparables

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

A long term procurement for SSA’s reduced square footage would be difficult to conduct prior to the December 9, 2019 expiration date. The current Lessor has consistently met all lease requirements.

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

ACQUISITION. None

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a five (5) year lease renewal for 110,000 RSF, is in the Government’s best interest at this time and; that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

5/7/2019

X Sandro "Sam" Ruiz, LCO Realty Supervisor - 3PRSC Signed by: SANDRO RUIZ

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.

5/6/2019

X Lauren Williams Realty Specialist - 3PRSC Signed by: General Services Administration

Reviewed & Concurred by:

5/7/2019

X JoAnn Stewart Section Branch Chief Signed by: JOANN STEWART

Reviewed & Concurred by:

5/8/2019

X Dale Anderson Dale Anderson Director of Real Estate Signed by: General Services Administration

Reviewed & Concurred by:

5/9/2019

X Rob Notigan Rob Notigan Legal Counsel Signed by: ROBERT NOTIGAN

Reviewed & Approved by:

5/10/2019

X Libby Baumann Regional Competition Advocate Signed by: LISABETH BAUMANN