9NY2698_New_Rochelle_JOTFOC_Redacted.pdf

GSA – LEASING DIVISION

Justification for Other Than Full and Open Competition

Social Security Administration (SSA) Project No. 9NY2698

GS-02B-23006

PROPOSED ACTION:

The Government requests approval to negotiate a twenty (20) month lease extension on behalf of the U.S. Social Security Administration located at 140 Huguenot Street, New Rochelle NY 10801 without a full and open competitive procurement.

DESCRIPTION OF REQUIREMENTS (INCLUDING ESTIMATED VALUE):

The United States Social Security Administration currently occupies 9,860 Rentable Square Feet (RSF) yielding 8,000 ANSI BOMA square feet (ABOA) of office and related space at 140 Huguenot Street, New Rochelle NY, under Lease No. LNY23006, which expires on July 14, 2019. A new/replacing competitive lease procurement is currently underway and SSA is expected to occupy a new space by early 2021. An extension is needed in order to provide sufficient time for the new lease to be awarded and the new tenant improvements to be constructed.

The anticipated annual rent for this extension is expected to be the current annual rent of per RSF multiplied by 9,860 RSF), net of electricity.

The estimated aggregate contract value for this extension is

IDENTIFICATION OF STATUTORY AUTHORITY: 41 U.S.C. 3304(a)(1).

Only one responsible source and no other supplies or services will satisfy the agency’s requirements.

UNIQUE QUALIFICATIONS:

GSAM 570.402-5 allows for negotiations with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition. GSA placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities web site (www.fbo.gov) on June 18, 2019 for five business days indicating its intent to enter into an extension with the incumbent landlord with Other Than Full Competition. GSA received no responses from the posting.

The current office at 140 Huguenot Street is located in New Rochelle, a city in the southern region of Westchester County with a population of over 77,000 residents. The office at 140 Huguenot Street is already constructed to meet SSA’s current needs and the current Lessor remains in good standing with the Government. This location is one of five SSA offices in

(b) (5)

Westchester County, the 2nd most populous county on after the Bronx on New York states mainland. Award to other than the current Lessor would require relocation of the entire office and would cause SSA to incur move and replication costs that would not be recovered through competition causing an undue burden to the public and a disruption to SSA operations.

If GSA were to conduct a competitive lease procurement matching SSA’s current requirements, approximately per ABOA x 8,000 ABOA) worth of Tenant Improvements would be required to duplicate the existing space, please see attached TI calculator. Additional costs would be required to replicate telecommunications service and physically moving the SSA Office.

The current SSA location is considered Class B space. The Bullseye target rate for this area is $29.65 per RSF, please see the attached Bullseye Report. By staying in place, using the Lowest Priced Alternative, the Government can expect to save approximately over the course of two years, please see attached cost benefit analysis. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, the Government requests approval to negotiate an extension to remain at its current location.

EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES PRACTICAL:

Not required.

DETERMINATION THAT ANTICIPATED COST WILL BE FAIR AND REASONABLE:

The anticipated annual rent for this extension is per RSF, net of electricity.)

On March 27, 2019, market data from the CoStar report identified only one building in New Rochelle within the delineated area that could satisfy its requirement. According to REIS data collected for the Westchester area, the average asking rental rate for this area is approximately $28.28. This information is a representation of a twelve (12) month lease term. The anticipated extension rate is below the market average collected and considering the short term nature of this extension, can be considered to be fair, reasonable and the best value to the Government.

DESCRIPTION OF MARKET RESEARCH AND RESULTS:

Please see attached CoStar report.

OTHER FACTORS SUPPORTING JUSTIFICATION: N/A

LISTING SOURCES EXPRESSING INTEREST IN SOLICITATION: None

FUTURE ACTIONS TO OVERCOME BARRIERS TO FULL AND OPEN COMPETITION:

A new/replacing lease action is currently underway with an expected occupancy by March 15, 2021. This extension is necessary in order to protect the Government’s occupancy while the tenant

(b) (5) improvements in the new/replacing lease are completed.

CONTRACTING OFFICER CERTIFICATION:

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

PREPARED BY:

Date Leasing Specialist

CONCURRED BY:

Supervisory Lease Contracting Officer (LCO)

REVIEWED FOR LEGAL SUFFICIENCY:

Senior Assistant Regional Counsel (2L)

Branch Chief

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