Redacted_Justification_-_LPR19205_7PR2088_DEA_Santurce_-_fully_signed.pdf

7PR2088 for Warehouse, Renewal for 1

GENERAL SERVICES ADMINISTRATION

Leasing Division, Caribbean & New Jersey Branch

Justification for Other than Full and Open Competition

Project No. 7PR2088, Lease No.

Proposed Action: The Government intends to add and execute an option of a Lease Renewal with cancellation rights, prior written notice to the Lessor.

Description of Requirement:

currently occupies /RSF of office and related space under Lease Number located at

. The term of their current Lease expires on . The current annual rental is GSA anticipates being able to negotiate at the same rate of per annum /RSF) for this fully-serviced lease for a with a total aggregate contract value of . Adding the renewal term of to the warehouse lease will allow the time needed to run the competitive lease procurement of which requirements have been received.

Certification of Statutory Authority: 41 U.S.C. 3304(a)(1).

Unique Qualifications: The current location is under a fully serviced lease that meets the agency’s requirement of RSF of warehouse. Allowing the agency to remain at their existing location until they are able to relocate into a new replacing lease location will eliminate the additional costs associated with physical relocation to a short term location. Costs associated with the move would not be recovered through a short term lease.

Efforts to Ensure Solicitation from Maximum Sources Practical: A search of warehouses in the area, close to the Agency’s current location was conducted through different websites such as: Loopnet, Google, and related real estate websites in addition to contacting local brokers in the area and revisiting previous market research inventory. There were no properties found that would satisfy the requirements and the immediate need of the in terms of availability and square footage.

Description of market survey result: Market research for the area shows rental rates ranging between $6.00 to $12.00/RSF with an AVG Market Rate of $9.00/RSF. The inquired warehouse locations either didn’t have available space or were not able to divide their space to meet the agency’s RSF requirement.

Determination that Anticipated Costs will be Fair and Reasonable: The rates obtained during the market research did not include utilities. Utilities are estimated at $3.00/RSF, increasing the market range to approximately $9.00 to $15.00/RSF with an AVG Market Rate of $12.00/RSF. The anticipated rental rate for this lease renewal is /RSF which is within the market range. The total anticipated annual rent for the renewal is per annum, inclusive of shell rent, and utilities. Therefore, it has been determined that these costs are fair and reasonable, and it is in the best interest of the Government to renew the lease at the existing location.

COST BENEFIT ANALYSIS: Although the market research results did not show availability of an

7PR2088 for Warehouse, Renewal for 2 adequate warehouse space, a Cost Benefit Analysis of Lease Extension was made. Allowing the to remain at the existing warehouse space would save the Government Tenant Improvement (TI) and relocation costs. The TI allowance for the is $54,878.99 and the moving cost is estimated to be $6.00/RSF for a total of $35,520.00. If the agency were to remain at the current location for months, the Government would save approximately $49,019.12.

AVG Market Rate per RSF 9.00$ Total Est. Const Cost* Tenant Electric Cost (if rate above is not Fully Serviced) 3.00$ Cost of Physical Move 6.00$

Cost of Non-Market Shell Items (Warm Lit vs Cold Dark) -$ Voice & Data Replication -$ Gov't Comparable AVG FS Rate per RSF 12.00$

Anticipated FS Rate per RSF to Stay in Place $ Present Location Alternate Location

Aggregate Rent 401,700.00$ 360,000.00$ Rentable SF New Amortized TI -$ 55,199.12$

Usable SF Cost of Physical Move -$ 35,520.00$ TI Allowance (TIA) 54,878.99$ Voice & Data Move -$ -$

TIA per USF for Expenditure 9.27$ Estimate RWA Needed* Total Aggregate Cost 401,700.00$ 450,719.12$

TI Amortization Rate 7.0% Soft Term (months) Full Term Savings 49,019.12$ Firm Term (months) months years

Cost Benefit Analysis of a Lease Extension

Total Term

*Please check box above if NO RWA will be needed to replicate space if moved.

Move Costs per USF

Full Term Analysis

Contract Scope

Market Analysis

List of Sources Expressing Interest in Solicitation: Market research was conducted from February 6, 2017 to February 8, 2017 and no properties were found that would satisfy the needs of the Agency in terms of availability and square footage of space.

Future Actions to Overcome Barriers to Full and Open Competition: The Government has received the agencies requirements for a long term lease procurement. GSA will be able to terminate the renewal option upon the acceptance of the space of the new replacing lease action.

CONTRACTING OFFICER CERTIFICATION THAT THE JUSTIFICATION IS ACCURATE AND

COMPLETE TO THE BEST OF THE CONTRACTING OFFICER’S KNOWLEDGE AND BELIEF

I certify that this justification for other than full and open competition is accurate and complete to the best of my knowledge and belief.

Prepared by:

Eli Cruz-Almonte, (2PRC) [Date] Leasing Specialist

ELI CRUZ-

ALMONTE

Digitally signed by ELI CRUZ-

ALMONTE

DN: c=US, o=U.S. Government, ou=General Services Administration, cn=ELI CRUZ-ALMONTE, 0.9.2342.19200300.100.1.1=4700100 3295652 Date: 2017.06.09 14:55:41 -04'00'

7PR2088 for Warehouse, Renewal for 3

Concurred by:

Wanda Cadilla, (2PRC) [Date] Supervisory Lease Contracting Officer

APPROVED BY:

Jeannette Rios [Date] Branch Chief/Caribbean & New Jersey

JEANNETTE

RIOS

Digitally signed by JEANNETTE RIOS DN: c=US, o=U.S. Government, ou=General Services Administration, cn=JEANNETTE

RIOS,

0.9.2342.19200300.100.1.1=47001000357587 Date: 2017.06.09 14:46:11 -04'00'

WANDA

CADILLA

Digitally signed by WANDA CADILLA DN: c=US, o=U.S. Government, ou=General Services Administration, cn=WANDA

CADILLA,

0.9.2342.19200300.100.1.1=47001000023447 Date: 2017.06.09 14:51:45 -04'00'