9CA3422_3-Yr Ext_REDACTED JOFOC.pdf

TSA Burbank_JOTFOC for 3-Year Lease Extension_9CA3422 Page 1 of 3

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 9CA3422

Agency Name: Department of Homeland Security (DHS) Transportation Security Administration (TSA)

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

The General Services Administration currently leases 9,980 ABOASF / 10,722 rentable square feet (RSF) of office space at 2919 West Empire Ave, Burbank, CA, under lease number GS-09B-02455 for the Transportation Security Administration (TSA). The current lease expires on December 18, 2020. Approval is requested to negotiate a 3-year soft-term lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue an 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).

TSA submitted a continuing need letter, mission and security requirements, and agency specific requirements on April 13, 2018, for a minimum 5,207 ABOASF of office and related space. To satisfy the TSA mission and employee security requirements for 24/7 operation: the delineated area requires the office to be within 10-minutes driving time to the Burbank airport; amenities and public transportation must be within ½ walkable mile from the primary building entrance; and parking must allow safe passage to the office for second and third shift employees. GSA opened new/replacing lease project 7CA3095 and completed requirements development on August 2, 2018. The delineated area was:

● North: Vanowen Street - North Hollywood Way

● South: West Burbank Boulevard

● East: North Glenoaks Boulevard

● West: Tujunga Avenue

The GSA Lease Contracting Officer (LCO) conducted three market surveys with a total of eight candidate buildings (including the incumbent), however, no candidate buildings could meet the agency specific requirements and the incumbent Lessor was not willing to demise the existing space. To meet the mission requirements, the delineated area could not be expanded.

This requirement is for 9,980 ABOASF / 10,722 RSF of space for a 3-year soft-term lease extension to commence on 12/19/2020. The current lease includes normal business hours on weekdays from 6:00 am to 7:00 pm and Saturday from 8:00 am to 2:00pm, and to operate 24/7 TSA is paying for overtime hours using RWA funds (for 2019, the cost for recurring utilities was approximately $60,000). For the lease extension, TSA requested that recurring overtime utilities be included in operating cost.

The estimated annual cost of this lease extension with operating cost for 24/7 operations, is $459,252.51 (±$42.832728/RSF) and a 3-year total contract value of $1,377,757.53. The current, annual rental rate at this location is $399,252.51 (±$37.236757/RSF); adding annual recurring utilities equates to a total annual cost of $459,252.51.

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

COMPETITION.

The Government has encountered unexpected delays outside of its control in acquiring replacement space. 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, 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 Government to incur move and replication costs that would not be recovered through competition.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per GSAM 570.106 (d), the contracting officer need not publicize the proposed acquisition of a leasehold interest in real property, including lease extensions under the conditions defined in GSAM 570.405.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Market research conducted on 3/16/2020 using CoStar lease listings in the delineated area showed the full service rent ranges from $43.20/RSF to $48.60/RSF for normal hours of operation.

Therefore, the proposed rental rate for this lease extension of $42.83/RSF (including operating cost for 24/7 operation), is below the current market range for this submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On March 16, 2020, the LCO conducted market research using CoStar and identified six lease listings for existing buildings that might meet the agency’s needs within the delineated area. Prior to the initial market survey, the project broker contacted the representatives for all six buildings regarding interest in housing the TSA office and all declined. See table below for the results of the market research, including the incumbent.

Address Source Available

RSF

Asking Full Service

Rental Rate*

2919 W Empire Ave, Burbank (incumbent) Estimated 10,722 $42.83

2300 W Empire Ave, Burbank CoStar 11,830 $43.20

2350 W Empire Ave, Burbank CoStar 11,916 $45.00

3333 W Empire Ave, Burbank CoStar 15,784 $48.60

3355 W Empire Ave, Burbank CoStar 38,399 $48.60

2255 N Ontario St, Burbank CoStar 18,298 $48.60

2777 N Ontario St, Burbank CoStar 10,413 $47.20

Note: *Asking rent for incumbent includes operating cost for 24/7 operations; asking rent for other buildings includes operating cost for normal business hours.

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

The GSA Lease Administration Manager advised the current Lessor is responsive and is meeting the requirements of the lease. The current leased location meets the agency’s requirements.

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

EXTENSION.

STEIN PROPERTIES L.P. (incumbent)

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

GSA plans to complete a long-term procurement using full and open competition.

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 10,722 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. 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.

James Valk, Lease Contracting Officer Date

CONCUR:

Veronica Montoya, Area Manager Date

Peter Zepeda, Branch Chief Date

Pamela Collins, Director Date Real Estate Acquisition Division

Jordan K. Baker Date R9 Assistant Regional Counsel

APPROVED:

Jessica L. Escobedo, LAO Date R9 Regional Competition Advocate