9AZ2210_-_JOTFOC_-_Extension_-_Census_Tucson_-_Signed_-_Redacted.pdf

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region 9

Public Buildings Service

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 9AZ2210

Agency Name: United States Census Bureau - 1304

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

The General Services Administration (GSA) currently leases 15,470 ABOA/ 16,605 rentable square feet (RSF) of office space and 8 structured and 7 surface parking spaces at 201 N Bonita Ave, Tucson, AZ 85745 under lease number LAZ02273 for United States Census Bureau. The current lease expires November 19, 2019. Approval is requested to complete a lease extension action with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue an extension of the term of a lease to provide for continued occupancy on a short term basis is detailed in GSAR 570.405: Lease Extensions.

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

(INCLUDING ESTIMATED VALUE).

This requirement is for approximately 16,605 rentable (15,470 ANSI/BOMA) square feet of space for a two year firm term, to commence November 20, 2019. The two year extended term is necessary to solidify Census Bureau’s occupancy through November 19, 2021 in order to complete the build out of the new/replacing lease.

GSA previously solicited space for a new/replacing long term lease for the Census Bureau in Tucson.

However, in February 2019, GSA cancelled the procurement after Census Bureau notified GSA of major changes in special requirements. GSA recently received the Census Bureau’s revised requirements, which are now being reviewed by Space Management personnel.

The current annual cost of the lease is $38.09 per RSF ($632,540.87 per annum) inclusive of operating costs escalations. The estimated annual cost of the lease extension is ($ per RSF) for a total contract value of $ .

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

COMPETITION.

41 U.S.C. 3304(a)(1), FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements. In accordance with GSAR 570.405(c) contracting without providing for full and open competition is appropriate when the Government encounters unexpected delays outside of its control in acquiring replacement space.

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 Census Bureau to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $ (based on a ROM estimate of furniture and telecommunication move costs) .

Additionally, this allows the government to make use of existing tenant improvements, avoiding replication costs of $ (based on current TI allowance).

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

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

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The GSA leasing specialist conducted market research on comparable properties in Tucson, AZ to establish a current market range of approximately $ /RSF to /RSF. The Lessor has agreed to extend the per RSF. Although this rate is higher than the market range, this rate takes into account the short term nature of the extension as well as the Lessor actively marketing the space for lease.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating US Census Bureau using the low cost quote exceeds the cost of remaining at the current leased location. The total savings to the Government is $ .

Present Location Alternate Location

Fully Serviced Rent for 2 Year Term

$ ( /RSF for 2 years)

$ ( /RSF for 2 years)

Cost of physical move $

Cost of telecommunication $

Cost of tenant improvements $

Total 2 year cost $

Lease savings $

Therefore, the proposed rental rate for this Extension of $ /RSF is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

The locations depicted on Figure 1 were identified on Costar and Rexus

Figure 1: Market Research Comparables Address Source Fully Serviced

Rental Rate 201 N Bonita Ave, Tucson, AZ Current Space $

75 E Broadway Blvd, Tucson, AZ CoStar $ 1 S Church Ave, Tucson, AZ CoStar $ 407 W Congress, Tucson, AZ Rexus $

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

Not applicable.

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

ACQUISITION.

No interest has been expressed at this time, other than the incumbent lessor.

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

Consistent with Competition in Contracting Act, full and open competition will be utilized to procure the new/replacing long term lease for this tenant agency.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of a two year firm lease extension of 16,605 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_____________________

Erin Winschel, 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_____________________

John Brown, Leasing Specialist

CONCUR:

Guadalupe Flores, Branch Chief

Pamela Collins, Director Real Estate Acquisition Division

Jordan Baker, Reviewing Attorney

R9 Assistant Regional Counsel

APPROVED: __ ______

Jessica L. Escobedo, LAO

R9 Regional Competition Advocate