9CA3109 - SSA San Bernardino - Signed Redacted JOTFOC.pdf

This is a Justification for Other Than Full and Open Competition document submitted by the U.S. General Services Administration (GSA) Region 9, Real Estate Acquisition Division, for a real estate lease acquisition on behalf of the Social Security Administration (SSA).

The GSA seeks to negotiate a succeeding lease for 41,981 ABOA/46,946 rentable square feet (RSF) of office space at 605 N Arrowhead Avenue, San Bernardial, CA, currently leased under lease numbers GS-09B-LCA02053 and GS-09B-LCA02054. The existing leases expire May 4, 2027. The proposed lease term is 10 years (8 years firm with a single 5-year renewal option) commencing May 5, 2027, with an estimated annual cost of approximately $34.01 per RSF including escalation clauses, resulting in a total contract value of undisclosed amount. The justification cites 41 U.S.C. 3304(a)(1) as statutory authority, permitting sole-source negotiation where only one responsible source can satisfy agency requirements and duplication costs would be substantial if competed. The SSA requires the facility to be within a 1/4 mile of public transportation and will not require tenant improvements at the existing location.

The GSA conducted market research on July 10, 2023, using CoStar and broker outreach, identifying four potentially acceptable locations within the delineated area. Market survey results showed rental rates ranging within the current market, with the incumbent lessor at 655 N Arrowhead Avenue expressing interest at rates with no escalation in shell rent. A SAM.gov notice was posted on March 13, 2023, for 24 days. The Lease Contracting Officer certified on September 5, 2023, that negotiating directly with the incumbent is in the Government's best interest, supported by cost-benefit analysis showing relocation costs would exceed competition savings. The document was approved by the Regional Commissioner of Public Buildings Service on September 21, 2023.