8CA3571_Sole_Source-redacted.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 8CA3571

Agency Name:

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

The General Services Administration currently leases 12,572 ABOA/15,262 rentable square feet (RSF) of office space along with 15 parking spaces at 10880 Wilshire Boulevard, Los Angeles, CA under lease number GS-09B-02304 for the . The current lease expires July 31, 2019.

Approval is requested to negotiate a short term lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a lease extension is detailed in GSAR 570.405(c)(1): Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

The submitted a continuing need letter on October 30, 2018 for 10,000 rentable square feet of office and related space. There is 5,262 rentable square feet of the extension square footage that was vacated by the . GSA does not have rights to terminate in part and the Lessor will not agree to a reduction of space or a buyout of the vacant space.

This requirement is for 12,648 ABOA/15,589 RSF of space for a 21-month term to commence on August 1, 2019. There is an increase of 76 ABOA/327 RSF due to a recent re-measurement of the building. The USAF also requested for one additional unreserved parking space effective March 1, 2019. The estimated cost of this lease is per rentable square feet per year for an annual cost of $ and a total contract value of $ . The delineated area is 10880 Wilshire Boulevard, Los Angeles, CA.

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

41 U.S.C. 3304(a)(1): Only one responsible source and no other supplies or services will satisfy agency requirements. In accordance with FAR 6.302-1 and GSAR 570.405(c)(1), it is determined that award to any other offeror would result in substantial duplication of cost to the Government that are not expected to be recovered through competition. The agency will be moving to Federally controlled space located at 11000 Wilshire Blvd. The extension is requested due to unforeseen Federal building conditions that require correction, such as HVAC upgrades and asbestos abatement; therefore, occupancy is not expected until April 1, 2021.

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE 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 requirement and would cause the USAF, USN, and USCG 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 $ . This figure is based on $ /ABOA from the 2015 version of RS Means. Each of the agencies’ spaces contains a . The in each of the agencies’ spaces will be costly to replicate for a short term of 21 months.

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Pursuant to the requirements of GSAR 570.106(d), lease extensions under the conditions defined in GSAM 570.405 are not required to be publicized. GSA did not solicit additional sources for this sole source procurement.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by GSA for a ½ mile radius from 10880 Wilshire Boulevard, Los Angeles, CA showed the rental rate within the delineated area ranges from $ to $ per RSF.

This information was obtained from CoSTAR.

Therefore, the proposed rental rates for this lease extension of /RSF are within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On March 20, 2019, GSA conducted market research using CoSTAR and identified six potentially acceptable locations (five plus the incumbent) that might meet the agency’s needs within the delineated area. The potentially acceptable locations are in high rise office buildings within a ½ mile radius from the current location. The incumbent Lessor’s expression of interest indicates that the rate would be $ per RSF. The interested party that provided the lowest cost quoted a rate of $ per RSF in its expression of interest.

See Figure 1 below for the results of the market research, including the incumbent.

Address Source [EOI/CoStar, etc.] Asking Full Service Rental Rate

[incumbent] Expression of interest $

1100 Glendon Ave, Los Angeles, CA 90024 CoSTAR $ *

10900 Wilshire Blvd, Los Angeles, CA 90024 CoSTAR $ *

10940 Wilshire Blvd, Los Angeles, CA 90024 CoSTAR $ *

10877 Wilshire Blvd, Los Angeles, CA 90024 CoSTAR $ *

10960 Wilshire Blvd, Los Angeles, CA 90024 CoSTAR $ *

* $ /RSF w as adjusted to non-fully serviced listed rental rates. This figure w as obtained fromtaking an average of all GSA leases located w ithin 2 miles from the incumbent. $ /RSF w as adjusted to all rates as the incumbent’s quoted rate includes 15 parking spaces. This w as obtained by taking the average of parking rates w ithin a ½ mile radius of the incumbent’s building.

Figure 1: Market Research Comparables

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

The tenants are satisfied with the services that are being provided by the incumbent Lessor.

9. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION.

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

The agency will be moving to a Federally owned building for the long term.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a lease extension of 15,589 RSF is in the Government’s best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

2019-04-02 _ Date

Linda Luong, 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 2019-04-02 _

Linda Luong, Leasing Contracting Officer

CONCUR:

Veronica Montoya, Area Manager

Peter Ze d hief

Pamela l Real Estate Acquisition Division

Jordan Ba Attorney R9 Assistant Regional Counsel

2019-06-04

2019-06-04

10880 Wilshire Blvd, Los Angeles, CA 90024 (incumbent)

APPROVED:

Jessica L. Escobedo, LAO R9 Regional Competition Advocate

2019-06-05