7NY2617_-_JOTFOC_Redacted.pdf

GSA – LEASING DIVISION

Justification for Other than Full and Open Competition National Aeronautics and Space Administration (NASA)

Goddard Space Flight Center

GS-02B-22725

Project 7NY2617

PROPOSED ACTION:

The General Services Administration proposes to enter into negotiations for a two (2) year lease extension for the National Aeronautics and Space Administration (NASA) at 2880 Broadway, New York, NY10025.

DESCRIPTION OF REQUIREMENTS (INCLUDING ESTIMATED VALUE):

NASA currently occupies 34,276 Rentable Square Feet (RSF) yielding 29,805 ANSI BOMA Office Area square feet (ABOA) of office space at 2880 Broadway, New York, NY under Lease No. GS-02B-22725, which expires on February 14, 2018. GSA has conducted a full and open competitive procurement and has awarded the new/replacing lease to the incumbent Lessor. This extension is necessary in order to protect the Government’s occupancy while the tenant improvements in the new/replacing lease are completed. The construction of the new Tenant Improvements is currently underway with an expected completion date in the 2nd Quarter of 2019. The requested 2 year extension will have no firm term as this current lease will be terminated once the new/replacing lease becomes effective.

The annual rental rate under the current lease is ( per RSF, net of electricity).

The anticipated annual rent during the extension term is ( per RSF, net of electricity). The estimated aggregate rent for the extension of the lease term is .

IDENTIFICATION OF STATUTORY AUTHORITY: 41 U.S.C. 3304(a)(1)

Only one responsible source and no other supplies or services will satisfy the agency’s requirements.

(b) (5)

(b) (5)

UNIQUE QUALIFICATIONS:

GSAM 570.402-5 allows for negotiations with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition. GSA placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities web site (www.fbo.gov) on January 16, 2018 for two weeks indicating its intent to enter into an extension with the incumbent landlord with Other Than Full Competition. GSA received no responses from the posting.

Moreover, award to other than the current Lessor would require relocation of the entire office and would cause NASA to incur move and replication costs that would not be recovered through competition. Although no other location responded to the Government’s advertisement, attached is a cost-benefit analysis based on GSA market research for similar office spaces in the Morningside Heights neighborhood of Manhattan.

If GSA were to conduct competitive lease procurement for this requirement, approximately

( per ABOA x 29,805 ABOA) worth of Tenant Improvements would be required to duplicate the existing space. Additional costs would be required to replicate telecommunications service and physically move the office.

The cost of relocating NASA using the average market rental rate in Morningside Heights of per RSF, this rate has been adjusted for Government’s warm lit requirements, exceeds the cost of remaining at its current location. The savings to the Government using the anticipated fully serviced lease rate of per RSF, net of utilities is over the life of the extension term. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, the Government intends to negotiate an extension and remain at its current location.

EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES PRACTICAL:

Not applicable.

DETERMINATION THAT ANTICIPATED COST WILL BE FAIR AND RESONABLE:

The anticipated annual rent for this extension is ( per RSF, net of electricity). On January 11, 2018, market data from the CoStar report identified four class B buildings in the Morningside Heights of Manhattan that could satisfy its requirement. The asking rental rate range for this area is to per RSF, net of electricity. This market average is representative of long lease terms, usually between 5 and 10 years. The anticipated extension rate of is within the market range for this area and, considering the short term nature of this extension, can be considered to be fair, reasonable and best value to the Government.

(b) (5) (b) (5)

(b) (5)

(b) (5)(b) (5)

DESCRIPTION OF MARKET RESEARCH AND RESULTS:

Please see attached CoStar report.

OTHER FACTORS SUPPORTING JUSTIFICATION: N/A

LISTING SOURCES EXPRESSING INTEREST IN SOLICITATION: None

FUTURE ACTIONS TO OVERCOME BARRIERS TO FULL AND OPEN COMPETITION:

GSA has conducted a full and open competitive procurement and has awarded the new/replacing lease to the incumbent lessor. This extension is necessary in order to protect the Government’s occupancy while the tenant improvements in the new/replacing lease are completed.

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

PREPARED BY:

Date

Leasing Specialist

CERTIFIED BY:

Lease Contracting Officer

CONCURRED BY:

Branch Chief

(b) (6)

Lease Acquisition Officer

Leasing Division Director

REVIEWED FOR LEGAL SUFFICIENCY:

Senior Assistant Regional Counsel (2L)

APPROVED BY:

Competition Advocate (2P)

(b) (6)

(b) (6)