8NC2283_2_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_or_SLAT-level_Memo_to_File_and_Supporting_Documentation_REDACT.pdf

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 4

Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 8NC2283

Agency Name: MILITARY ENTRANCE PROCESSING COMMAND (“MEPS”)

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

The General Services Administration (GSA) currently leases 27,802 ABOA/ 28,321 rentable square feet (RSF) of office space at 2625 Appliance Court, Raleigh, NC 27604, under lease number LNC61959 for the MEPS. The current lease expires 11/07/2022. Approval is requested negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

(INCLUDING ESTIMATED VALUE).

MEPS submitted a continuing need letter on 03/26/2020 for 27,802 USF/ 28,321 rentable square feet of office and related space and requested to remain in place until federally owned space becomes available for occupancy in 2026.

This requirement is for 27,802 ABOA/28,321 RSF of space for a ten year/five-year firm term lease to commence on or about July 2022. The estimated cost of this lease is $30.66 per rentable square feet per year for an annual cost of $863,35.87 and a total contract value of $8,926,070.85. The delineated area is North Interstate 540, East: US 540, South: US Route 1, West: US 540. There is no vacant Federal Space available to accommodate this agency’s requirement.

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. This statutory authority is implemented through GSAR 570.402-1. In accordance with GSAR 570.402-4, if no potentially acceptable locations are identified through advertisement or market survey, then the contracting officer can proceed with negotiating a succeeding lease with the incumbent lessor.

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. Upon advertising the requirements on SAM, no expressions of interested were received. Furthermore, upon review of the real estate market in the delineated area, no potentially acceptable locations were identified that could meet the agency’s square footage and parking requirements, which include the need for space on one contiguous floor and 80 reserved parking spaces.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402, the GSA Broker Contractor placed an advertisement on the Contracting Opportunities module of beta.SAM on 12/17/2020 with a closing date of 1/14/2021.

Additionally, the GSA Broker Contractor, Savills, conducted market research using CoStar as well as contacting local brokers.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research using Costar conducted by the national broker contractor, Savills Inc. in Raleigh, NC showed the rental rate within the delineated area ranges from $24.95/ RSF to $37.50/RSF fully serviced, net of a tenant improvements allowance.

Therefore, the proposed rental rates provided by the incumbent Lessor on September 10, 2021 via an informational quote for this succeeding lease was $24.72 per RSF (net of TIA); The agency indicated only cosmetic changes for a 5 year firm lease, however GSA would provide them the full TIA rate of $60.53 per ABOA SF, in which case, the rental rate will be $30.66 per RSF, which is 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.

Savills Inc. conducted market research using CoStar however they were unable to identify any locations that could meet the agency’s requirements within the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on December 17, 2020. There were not any responses to the advertisement.

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

MEPS long term strategy is to relocate to Sanford Federal Building, as early as 2026, to achieve cost savings and backfill vacant space that is scheduled to become available. Remaining in place will allow MEPS to budget for a move into federal space at the Sanford Federal Building. In the interim, staying in place will also allow MEPS to make use of existing TI without the need for replication costs and to avoid two potentially costly moves.

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

ACQUISITION.

Capital MEPS, LLC (incumbent)

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of the existing lease contract’s expiration, considerations will be given to allow for sufficient time to consider conducting a full and open procurement if applicable. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

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 succeeding lease of 27,802 ABOA SF/ 28,321 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.

X

SHANIKA EDWARDS

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 01.12.2022

Melissa Hein, GLS Broker Contractor

See FAR 6.304 for appropriate signature threshold levels.

If Senior Procurement Executive (SPE) approval is required, must include signatures from Regional Contracting [Leasing] Director, Regional Counsel, and Head of Contracting Activity (HCA). Use of a separate signature page is required.

Note that the threshold for SPE approval is based on aggregate contract value;

therefore, it is possible that SPE approval may be required for actions below the prospectus threshold.

Concurred by:

Ryan Johnson Branch Chief

Heather Driskell Lease Acquisition Officer

LaSonya Glover Leasing Director

Legal Review:

4L

Approved by:

Pamela Mitschke Competition Advocate