7NY2759_-_JOTFOC_Redacted.pdf

GSA – LEASING DIVISION

Justification for Other than Full and Open Competition

Department of Justice, Office of Inspector General (DOJ OIG)

GS-02B-23466

Project 7NY2759

PROPOSED ACTION:

The General Services Administration proposes to enter into negotiations for a two (2) month lease extension for the Department of Justice, Office of Inspector General (DOJ OIG) at 24 State Street, New York, NY10004.

DESCRIPTION OF REQUIREMENTS (INCLUDING ESTIMATED VALUE):

The DOJ OIG currently occupies 10,651 Rentable Square Feet (RSF) yielding 7,620 ANSI BOMA Office Area square feet (ABOA) of office space at 24 State Street, New York, NY under Lease No. GS-02B-23466, which expires on January 16, 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 annual rental rate under the current lease is ( per RSF).

The anticipated monthly rent during the extension term is ( per RSF).

The estimated aggregate rental rate 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.

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 December 20, 2017 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.

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Moreover, award to other than the current Lessor would require relocation of the entire office and would cause the DOJ OIG 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 Manhattan.

If GSA were to conduct competitive lease procurement for this requirement, approximately ( per ABOA x 10,651 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 DOJ OIG office.

The cost of relocating DOJ OIG using the Bullseye rate of per RSF exceeds the cost of remaining at its current location. The savings to the Government using the anticipated fully serviced lease rate of per RSF 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 monthly rental rate for this extension is ( per RSF, fully serviced). On December 14, 2017, market data from the CoStar report identified eight class A and five class B buildings in the vicinity of DOJ OIG in the Financial District of Manhattan that could satisfy its requirement. The asking rental rate range for this area is to , fully serviced. Additionally, the Bullseye report states a target rate of per RSF for this market.

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.

DESCRIPTION OF MARKET RESEARCH AND RESULTS:

Please see attached CoStar report.

OTHER FACTORS SUPPORTING JUSTIFICATION: N/A

LISTING SOURCES EXPRESSING INTEREST IN SOLICITATION: None

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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. 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:

Supervisory Lease Contracting Officer

APPROVED BY:

Branch Chief

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REVIEWED FOR LEGAL SUFFICIENCY:

Senior Assistant Regional Counsel (2L)