8AZ2225 JOTFOC_ Final_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

U. S. General Services Administration GSA Region 9

Real Estate Acquisition Division

LEASE NUMBER: LAZ99130

PROJECT: 8AZ2225

AGENCY NAME:

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED

The General Services Administration currently leases 19,307 rentable square feet (RSF)/19,307 ANSI/BOMA Office Area square feet (ABOA) for the

. The current Lease GS-09P-LAZ99130 will expire on January 31, 2020. Approval is requested to negotiate a three year extension with the incumbent landlord without full and open competition. The right to pursue an extension is detailed in GSAR 570.405: Lease Extensions.

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

This requirement is for 19,307 RSF of space for a three-year extension term to commence on February 1, 2020. GSA is currently working on the long term lease procurement and anticipates soliciting market driven new construction. The request for lease proposals is anticipated to be issued in June of 2019.

The estimated full service rental rate for 19,307 RSF of space, including 32 reserved secured parking spaces, is estimated to be per annum. The anticipated total contract value for the three year lease extension is The current rental rate at this location is $36.94/rsf ($713,186.37) per annum.

3. IDENTIFICATION OF STATUTORY AUTHORITY

41 U.S.C. 3304 (a)(1) and FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements. In accordance with FAR 6.302-1, 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 ACQUISITION REQUIRES 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 office and would cause DEA 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 approximately

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

GSAM 570.106(d) exempts short term lease extensions described in GSAM 570.405 from the requirement to publicize lease acquisitions.

6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE.

In accordance with Federal Acquisition Regulation (FAR) 6.303-2(b)(7), the Contracting Officer certifies by signing this document that the anticipated cost to the Government of an annual average of over three years for the entire procurement is fair and reasonable.

7. DESCRIPTION OF MARKET ACTIVITY CONDUCTED

Market Analysis Comparables

Lease # Building Full Service Rate

LAZ02392; Rio Rico - Santa Cruz County

41/57 Paseo De Yucatan

$ /RSF

LAZ01693; Nogales - Santa Cruz County

MASTIC

K WAY

$ .RSF

LAZ02947; Nogales - Santa Cruz County

870 W

SHELL

DR

$ RSF

The Market Comparables provided in the table above represent existing GSA leases within Santa Cruz County, Arizona. The lease rates range from per RSF. The lease rates include shell and operating cost components. Rio Rico, Santa Cruz County, is a very small market with a limited number of commercial office spaces.

8. OTHER FACTORS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

This extension of the existing lease term coincides with the anticipated schedule for the long term procurement and tenant improvement build out of the new/replacing lease.

9. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUISITION.

141 Paseo De Yucatán, Rio Rico, AZ (incumbent)

10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION

GSA is soliciting for long-term space for DEA by conducting a full and open procurement.

11. CONTRACTING OFFICER CERTIFICATION

By signature on this Justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of an extension for 19,307 RSF is in the Government’s best interest and that this justification is accurate and complete to the best of my knowledge and belief.

__ __ Date______________________

Guadalupe Flores, Lease Contracting Officer

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.

_ __ Date______________________

Skip White, Leasing Specialist

CONCUR: _ ___

Derek Lynch, Area Manager

Pamela Collins, Director Real Estate Acquisition Division

Jordan Baker, Reviewing Attorney R9 Assistant Regional Counsel

APPROVED: _ ___

Jessica L. Escobedo, LAO R9 Regional Competition Advocate

01-07-2019

01-07-2019