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U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 9CA3167

Agency Name:

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

The General Services Administration currently leases 16,425 ABOA/16,425 rentable square feet (RSF) of specialized hangar space at 12653 Osbourne Street, Los Angeles, CA under lease number GS-09B- 01510 for the . The current lease expires September 15, 2019. Approval is requested to negotiate a 3-year, 1-year firm 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: Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

The original long term requirement was for a 15-year firm succeeding lease with no tenant improvements.

While GSA was working with the incumbent Lessor to request a quote for the succeeding lease, the agency notified GSA on April 3, 2019, that there has been a change in the long term requirements. The change in the long term requirement has eliminated the incumbent Lessor’s building, as the existing runway cannot accommodate the agency’s new requirements.

As a result of the change in requirements, GSA determined that there is a continuing need for a short term extension for 16,425 rentable square feet of hangar and related space. The continuing need is short term to allow for sufficient time in the completion of the long term requirements. GSA is currently finalizing long term requirements with the agency. To satisfy the mission requirements, the facility must have a runway and the capacity to store a large aircraft.

This requirement is for 16,425 ABOA/16,425 RSF of space for a 3-year, 1-year firm term to commence on September 15, 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 12653 Osbourne Street, 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, 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 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 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 . If the agency must relocate, the following costly buildout must be replicated:

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and is attached to this justification. The cost of relocating the US Marshals exceeds the cost of remaining at 12653 Osbourne Street, Los Angeles, CA. The total savings to the Government is estimated to be .

Cost-Benefit Analysis

Cost of Alternate Space for 3 years ($ x 16,425 RSF x 3 years) $ Moving Costs for Telecommunications ( /RSF) Moving Costs for Furniture ( /RSF) Tenant Improvements (amortized over 3 years @ 8% interest) Total Costs Expected for Alternate Location

Cost of Existing Space for 3 years Moving Costs for Telecommunications Moving Costs for Furniture Alteration Cost for existing space $ Total Costs Expected for Existing Location

Minimum Savings to the Government to Remain in Current Facility

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

The GSA Lease Contracting Officer placed an advertisement on FedBizOpps (FBO) on April 1, 2019 for 15 days. In addition, PBS conducted market research using CoSTAR on May 2, 2019 and was not able to identify a practical alternative.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by PBS using a 5-mile radius from the existing location showed the rental rate for warehouses within the delineated area ranges from $ to per RSF. No information was available for hangar space. The market research was performed through 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.

In May 2019, GSA PBS conducted market research using CoSTAR and identified one potentially acceptable location (only the incumbent) that might meet the agency’s needs within the delineated area.

There were no hangar spaces that can accommodate the agency’s requirements. The Lease Contracting Officer further expanded the search on June 3, 2019 and changed the search criteria to industrial spaces within a 5-mile radius and was able to identify 8 buildings for cost comparison. In addition, PBS placed an advertisement on the Federal Business Opportunities Website (fedbizopps.gov) on April 1, 2019. 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 and FBO advertisement, including the incumbent.

Figure 1: Market Research Comparables

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

Rental Rate 12653 Osbourne Street, Los Angeles, CA [incumbent] Quote from Lessor $

2021 1st Street, San Fernando, CA CoSTAR $ * 14606 Arminta Street, Van Nuys, CA CoSTAR $ * 12960 Bradley Avenue, Sylmar, CA CoSTAR $ *

720 Jessie Street, San Fernando, CA CoSTAR No longer available 8501-8511, 8421 8501, & 8511 Lankershim Blvd, Sun Valley, CA CoSTAR $ *

3400-3420 N San Fernando Blvd, Burbank, CA CoSTAR $ * 13230-13256 Saticoy Street, North Hollywood, CA CoSTAR $ *

11130 Sherman Way, Sun Valley, CA CoSTAR $ * Average:

* For purposes of comparison, all locations above (except current space) include $3.61/RSF to reflect a fully serviced rental rate.

The average operating rent is obtained from the current GSA lease.

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

The tenants are satisfied with the services that the incumbent Lessor has provided. The Lessor responds to maintenance requests in a timely manner.

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.

In advance of an existing lease contract’s expiration, consideration will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and c ost 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 to 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.

Richard S Coulter (incumbent)

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 16,425 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.

2019-06-21 _ 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.

PREPARED BY: Linda Luong, Lease Contracting Officer Date

CONCUR:

Rocio Carbajal, Area Manager Date

Pedro Zepeda, Branch Chief Date

2019-07-01

Pamela Collins, Director Date Real Estate Acquisition Division

Jordan Baker Date R9 Assistant Regional Counsel

APPROVED: _

Jessica L. Escobedo, LAO Date Regional Competition Advocate