Renewal JOFOC_redacted final.doc

Justification For Other Than Full and Open Competition Federal Bureau of Investigation (FBI) Winchester, VA Project: 9VA2017

PROPOSED ACTION:

To renew existing lease GS-03B-05349, for five (5) years for 9,000 ANSI/BOMA square feet (ABOA SF)(9,450 Rentable Square Feet (RSF)) at 112 N. Braddock Street, Winchester, VA for the Federal Bureau of Investigation (FBI). The renewal will commence on December 21, 2010, and the Government may terminate at any time upon 90 days notice. The option will be evaluated and exercised per GSAM 570.401, Renewal options.

DESCRIPTION OF REQUIREMENT (INCLUDING ESTIMATED VALUE):

FBI currently occupies 9,000 ABOA SF of office space (9,450 RSF) under lease number GS-03B-05349 at 112 N. Braddock Street in Winchester, VA. This office was originally a recruiting center and office and was related to the FBI Central Records Complex (CRC) project in Frederick County, VA, which is still pending completion, estimated for July 1, 2016. The agency is working on further requirements development, as they determine what will happen with this office after the CRC is complete.

Given this uncertainty, a five-year renewal option was incorporated into the contract through SLA Number 2 on June 2, 2010, as the lease will expire on December 20, 2010. This option may be exercised at any point prior to lease expiration. The annual rental of the lease renewal is $184,500. This is comprised of a shell rate of $15.50/ABOA SF ($14.76/RSF) and operating costs of $5.00/ABOA SF ($4.76/RSF) for a total of $20.50/ABOA SF ($19.52/RSF). The total anticipated aggregate cost of the renewal is approximately $922,500 for five (5) years. The Government may terminate, in whole or in part, at any time upon 90 days notice.

IDENTIFICATION OF STATUTORY AUTHORITY:

41 U.S.C. 53 (c) (1), as detailed further in FAR 6.302-1: “Only one responsible source….will satisfy agency requirements”.

UNIQUE QUALIFICATIONS OF PROPOSED CONTRACTOR OR NATURE OF ACQUISITION REQUIRING AUTHORITY CITED:

FBI wishes to remain at their current location of 112 N. Braddock Street in Winchester VA while requirements for their future occupancy are developed. By pursuing a five-year lease renewal at the present location, relocation costs, build out, and disruption of FBI’s daily activities would be eliminated. FBI is satisfied with the lessor’s performance and the GSA property manager confirmed that there were no issues with responsiveness or performance.

It would cost FBI approximately $1.2 million to move to a new location, which includes costs from moving, installing a new telephone system, and a full tenant improvement allowance. Due to the uncertainty of the future of this office, it would not be prudent to relocate when the current lessor is capable of meeting the standards of the SFO.

EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES PRACTICAL: Because the renewal option was not evaluated as part of the original lease, an advertisement was placed in FedBizOpps on November 4, 2010. Although expressions of interest were received, all were offers for new construction, which would not meet the schedule for this project.

DETERMINATION THAT ANTICIPATED COST WILL BE FAIR AND REASONABLE:

The current rental rate for this lease is $19.48 ABOA SF. This consists of a shell rate of $14.00/ABOA SF and an operating cost rate of $5.48/ABOA SF. The rate offered for the renewal is $20.50/ABOA SF (19.52/RSF) for an annual rent of $184,500. This is a 5% increase which is an appropriate increase for the market.

According to Co-star, market rental rates for Class A and B space in Winchester range between $16.50/rsf - $21.75/rsf ($18.97/ABOA SF - $25.01/ABOA SF). Adding approximately $5.00/ABOA SF for operating costs adjusts these rates to $23.00/ABOA SF - $30.01/ABOA SF. The $20.50/ABOA SF renewal rate falls well below the low end of this range.

No SIOR data exists for this market, but GSA Central Office established a market range for purposes of the Lease Cost Relative to Market (LCRM) performance measure. The range of $17.00/RSF to $26.00/RSF ($17.85/ABOA SF - $27.30/ABOA SF), has the midpoint being approximately $20.50/RSF ($21.53/ABOA SF). The $20.50/ABOA SF renewal rate falls within this range. LCRM is not applicable to this leasing action.

Additionally, other GSA leases in the Winchester, VA market were evaluated for comparison. Fully serviced rates ranged from $12.94/ABOA SF - $26.47/ABOA SF, averaging $20.38/ABOA SF. The $20.50/ABOA SF renewal rate falls within this range.

Should the agency relocate, a full tenant improvement allowance of $41.48/ABOA SF ($39.50/RSF) would be allocated for the build out, and additional move costs would also be incurred. The Government would save approximately $312,640.29 if relocation was avoided (see Cost Benefit Analysis).

Based on the above, the rental rate of $20.50/ABOA SF is determined to be to be fair and reasonable and the most advantageous option to the Government at this time.

OTHER FACTORS SUPPORTING JUSTIFICATION:

FBI is satisfied with their current location and a renewal will allow them to continue to execute their mission without disruption. In addition, it should be noted that other potential buildings in the area do not meet the setback requirements of FBI.

LISTING SOURCES EXPRESSING INTEREST IN BEING SOLICITED:

The following sources expressed in writing an interest in this procurement:

1. Aubrey D. Wilson Robra Construction Company

708 South Rosemont Road #102

Virginia Beach, VA 23452 Ms. Wilson contacted GSA via email on November 8, 2010, indicating an interest in constructing a new building for this requirement. GSA indicated that unless an existing building was available, it could not consider a proposal from Ms. Wilson as a renewal option existed in the lease contract. Ms. Wilson responded on November 11, 2010 that she did not have an existing building but would be appreciative of consideration for future procurements.

2. Sherrie Manuel – 540-837-2764 Mr. Manuel contacted GSA via telephone on November 10, 2010. Upon learning that an existing renewal option was being evaluated, he withdrew his expression of interest.

FUTURE ACTION TO OVERCOME BARRIERS TO FULL AND OPEN COMPETITION:

A renewal option will be exercised for five years. FBI will determine the future of the current office once the FBI CRC is completed, at which time a fully competitive leasing action will be considered if appropriate.

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

Agency requirements supporting this Justification for Other Than Full and Open Competition are also certified as accurate and complete.

Prepared by:

Ling Xu, Realty Specialist

Date

Concurred by:

Alexis Cragle, Contracting Officer &

Realty Section Chief Concurred by:

Luann Caruso, Real Estate Acquisition Branch Chief

Approved by:

Dale Anderson, Regional Competition Advocate

Justification for Other Than Full and Open Competition

Justification for Other Than Full and Open Competition