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Justification for Other Than Full and Open Competition 1 of 5

Justification for Other Than Full and Open Competition, Lease Extension

U.S. General Services Administration

GSA Region 4

Leasing Division – Branch E

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER: GS-04B-43415

PROJECT NUMBER: 8AL2122

AGENCY NAME(S): DOL ETA, OFCCP, and OSHA and SSA OIG

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED.

The General Services Administration (GSA) currently leases 9,596 rentable square feet (RSF), yielding 8,488 ANSI BOMA Office Area (ABOA) square feet (SF) of office and related space along with seven (7) structured and four (4) surface parking spaces at 950 22nd Street North, Birmingham, AL – location code AL2071 – under lease number GS-04B-43415 for DOL’s ETA, OFCCP, and OSHA and SSA’s OIG. The current lease, originally effective February 4, 2005 and renewed for three (3) years effective February 4, 2015, expires February 3, 2018. Approval is requested to negotiate a lease extension with the incumbent lessor without full and open competition for continued occupancy at this leased location.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED.

This requirement is for 9,596 RSF, yielding 8,488 ABOA SF of office and related space along with seven (7) structured and four (4) surface parking spaces for a two (2) year, one (1) year firm term extension to commence on February 4, 2018. Said extension will give GSA time to conduct the agencies’ long-term lease procurements of which two are in progress – one for DOL’s ETA and OFCCP under project number 5AL0175 and another for OSHA under project number 7AL2099.

The long-term plan for SSA’s OIG is to add its space to SSA’s CDIU lease – Lease No.

LAL60353 – via an expansion project at the current location (AL2071) once that lease is completed. The estimated cost of this lease including parking is $15.74 (rounded) per RSF for an annual cost of $151,057.31 ($15.741695 per RSF x 9,596 RSF) and a total contract value of $302,114.62 excluding expected operating cost adjustments over the term of the lease.

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.

Lease Number: GS-04B-43415 Project Number: 8AL2122 Agency Name(s): DOL ETA, OFCCP, and OSHA and SSA OIG

Justification for Other Than Full and Open Competition 2 of 5

4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED.

GSAM 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.

Award to other than the incumbent lessor would require relocation of the entire requirement and would cause DOL’s ETA, OFCCP, and OSHA and SSA’s OIG to incur move and replication costs that would not be recovered through competition.

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Justification for Other Than Full and Open Competition 3 of 5

The cost of relocating DOL’s ETA, OFCCP, and OSHA and SSA’s OIG using the available building with the lowest rental rate exceeds the cost of remaining at 950 22nd Street North – the current location. The savings to the government is $348,738.04. Based on this cost benefit analysis, the government cannot expect to recover relocation and duplication costs through competition. Therefore, the government intends to negotiate a lease extension and remain at its current location.

5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL.

On January 30, 2018, GSA conducted market research for Birmingham’s central business district (CBD) submarket using CoStar in an effort to identify potentially acceptable locations other than the current location.

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Agency Name(s): DOL ETA, OFCCP, and OSHA and SSA OIG

Justification for Other Than Full and Open Competition 4 of 5

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

The purpose of a lease extension using other than full and open competition is to allow GSA the time it needs to complete the agencies’ long-term procurements which for DOL’s agencies will be completed using full and open competition.

9. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION.

On January 30, 2018, GSA conducted market research for Birmingham’s CBD submarket using CoStar in an effort to identify potentially acceptable locations other than the current location.

10. TECHNICAL REQUIREMENTS PERSONNEL CERTIFICATION.

I certify that the supporting space requirements data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief.

2/2/2018

X W. Justin Kidwell Lease Contracting Officer (LCO) Signed by: WILLIAM KIDWELL

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Justification for Other Than Full and Open Competition 5 of 5

11. CONTRACTING OFFICER CERTIFICATION AND DETERMINATION THAT THE

ANTICIPATED COST WILL BE FAIR AND REASONABLE.

Recent market research conducted by GSA for comparable properties in Birmingham’s CBD submarket revealed full service rental rates ranging from $12.00 to $26.50 per RSF excluding parking costs.

The full service rental rate quoted to the government by the incumbent lessor for the existing location including parking is $15.74 (rounded) per RSF.

It is anticipated that the government will save approximately $348,738.04 in duplication costs which it could not reasonably expect to recover through full and open competition as demonstrated by the cost benefit analysis in section 4 of this document.

Therefore, as the rate quoted by the incumbent lessor falls well within the market range established via market research and because the government will save approximately $348,738.04 in duplication costs which it could not reasonably expect to recover through full and open competition, the Lease Contracting Officer (LCO) determines that the anticipated cost to the government of $15.74 (rounded) per RSF for the entire requirement is fair and reasonable.

2/2/2018

X W. Justin Kidwell Lease Contracting Officer (LCO) Signed by: WILLIAM KIDWELL