REDACTED JOFOC for FEMA.doc

GENERAL SERVICES ADMINISTRATION

Justification for Other than Full and Open Competition

Real Estate Acquisition Division South Branch

FEMA

Frederick, MD

Project Number: 9MD2125

1. Justification for other than full and open competition:

To complete a superseding lease action for the Federal Emergency Management Agency (FEMA). The lease acquisition will be for 83,568 ANSI/BOMA Office Area (ABOA) square feet of warehouse space located at 4440 Buckeystown Pike, Frederick, MD.

2. Nature and/or description of the action being approved.

FEMA currently occupies 83,568 ANSI/BOMA Office Area (ABOA) square feet or 84,261 rentable square feet (RSF) of warehouse space and related space under lease number GS-03B-07314. The lease term is December 1, 2006 through November 30, 2011.

While the warehouse was not specifically built for FEMA, it was a brand new building when FEMA occupied it in 2006. At that time, FEMA occupied the building in an “as-is” condition. While they did not complete any alterations to the warehouse, they also did not occupy the warehouse very long. Shortly after the lease was signed, HHS took over occupancy of the warehouse. In 2008, FEMA took over control of the building again. Their initial storage requirements had changed and they required alterations. They submitted a reimbursable work authorization (RWA) and scope of work (SOW) to GSA to accomplish alterations in the space. Under this SOW, they constructed office space, conference/training space, bathrooms, showers, a racking system, a guard shack, and some minor security system work. The alterations project cost <REDACTED> and is nearing completion.

During the alterations project, FEMA revaluated their current and future requirements for this location. The original need for the warehouse that was acquired in 2006 had significantly changed. On April 14, 2009, FEMA finalized and submitted their requirements to GSA. Their requirements are:

· The current lease needs to expire concurrently with the adjacent facility (FEMA Logistics Center) at 4420 Buckeystown Pike, which is January 31, 2016.

· The warehouse is now storing publications, furniture, and other supplies that require humidity levels below 50%.

· The lease needs to be fully serviced.

· They would also like a tenant improvement allowance. When FEMA originally accepted the space in an “as-is” condition as well as with the immediate transfer of occupancy to HHS, they did not utilize a tenant improvement allowance. While the recent RWA work fulfilled most of their requirements, there are still some outstanding alterations that need to be complete. FEMA needs additional security, bumpers to protect the racking system, electric and data for modular offices that will be installed, and perimeter fencing and gates.

Since FEMA is requesting significant changes/upgrades to the original lease that was signed in 2006, the best course of action is to complete a superseding lease at the current location. The Solicitation for Offers (SFO) would include the most up to date clauses and create a clear concise future lease. It would be prevent misinterpretation that may occur by simply adding the language for fully service operating costs, tenant improvements, etc. through a Supplemental Lease Agreement (SLA) under the current lease. GSA will proceed to issue an SFO to the current Lessor and conduct negotiations to establish a new lease for the current location.

3. Description of the supplies or services required.

The Government will enter into a six year firm term lease with no termination rights.

The estimated annual rental rate will be <REDACTED>. The estimated rate per rentable square foot is <REDACTED> office area square foot. The total contract value is <REDACTED>.

4. Identification of the statutory authority

41 U.S.C. 253 (c) (1) and FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited.

At this time, there are no locations within the agency’s delineated area of Frederick, MD or the surrounding county of Frederick that are able to meet the following requirements:

· 83,568 ABOA / 84,262 RSF.

· The current lease needs to be adjacent to the FEMA Logistics Center, located 4420 Buckeystown Pike, Frederick, MD.

· The current facility needs to maintain humidity control below 50%.

· The lease needs to be fully serviced.

While there are no buildings that can meet both the adjacency and humidity requirements, there are two locations that have the potential to meet the agency’s square footage requirements. The first location <REDACTED>.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable

An advertisement was placed on fedbizzopps on April 16, 2009. The current Lessor was the only response. Additional research was conducted on loopnet, there are no existing buildings within the agency’s delineated area of Frederick, MD or within Frederick County that will meet the agency’s requirements.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The rental rate was found to be fair and reasonable as described in the attached procurement sensitive document, “Market Analysis”.

8. Description of the market research conducted

A market survey was not conducted due to lack of locations that were able to meet the Government’s requirements. The current Lessor was the only response received to the advertisement. The current Lessor is willing to add the necessary equipment to meet the humidity requirement in the lease.

9. Other facts supporting the use of other than full and open competition

The current location is the FEMA’s publications warehouse. It is a mission-critical warehouse in support of all documentation for Disasters and Training for FEMA. It directly supports the adjacent Logistics Center, which is housed in a 227,548 ANSI/BOMA Office Area square foot warehouse/office building, located at 4420 Buckeystown Pike, Frederick, MD under lease number GS-03B-06310. Both buildings support FEMA’s publications operations and work in tandem to accomplish FEMA’s publication mission. Both locations share equipment as well as trucks and tractor trailers. During the disaster season, the warehouse must utilize the facilities at 4420 Buckeystown Pike to assist them in the mission of the shipping and receiving of materials for disasters.

FEMA recently completed <REDACTEED> of RWA alterations to their current locations. These alterations included creation of office space, training/conference rooms, restrooms, showers, racking system, and some minor security system work and a guard shack. The racking system may be capable of being disassembled and reassembled in a new location, however, the manual labor that is required to complete the de-installation and re-installation plus moving costs usually falls close to the actual cost to install a new system. In addition, there may be instability with the racking system during the process. All of the other alterations would need to be constructed at any new location.

In addition to move costs, the warehouse is mission critical and would severely affect FEMA’s mission to relocate. The employees in the adjacent building would be required to divert their attention from their mission to relocating the warehouse facility. The relocation would also cause a delay in the delivery and shipment of the publications that are stored in the warehouse.

<REDACTED>

10. List of any sources that expressed in writing an interest in the acquisition

The current location of 4440 Buckeystown Pike, Frederick, MD was submitted by the current Lessor, Matan Development.

11. Statement of actions the agency may take to remove or overcome any barriers to competition

GSA is procuring a superseding lease to incorporate FEMA’s new requirements into the lease. There are no other sources available that would be able to meet FEMA’s requirements at this time. Both 4420 and 4440 Buckeystown Pike, Frederick, MD will expire on January 31, 2016. It is anticipated that these two locations will become one requirement that can be competed.

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared by:

Elizabeth McCullough Date

Realty Contracting Officer

Approved by:

Julie Hepp

Date Realty Supervisor Approved by:

Laurie Ney

Realty Resource Manager

Approved by:

Luann Caruso

Date

Competition Advocate

PAGE