A1_0MS2101_JOTFOC-Redacted_9.23.2020.pdf

PDF 298 KB Posted Sep 23, 2020

Attached to: Extension of Government Lease in Vicksburg, MS
Solicitation number: GS04B31128
Issued by: General Services Administration Public Buildings Service Region 4

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GSA SOUTHEAST SUNCOAST REGION 4

Project #0MS2101

U.S. General Services Administration

GSA Region 04

Leasing Division - Branch 4PLA

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0MS2101

AGENCY NAME: Social Security Administration (SSA)

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED

The General Services Administration (GSA) currently lease 28,564 rentable square feet (RSF), with a Common Area Factor (CAF) of 1.0865, yielding 26,290 ANSI/BOMA Office Area

(ABOA) square feet at COE PROJECT, 4155 CLAY STREET, VICKSBURG, MS 39183-

3435 (“Premises”) under Government Lease Contract GS-04B-31128 (“Lease”) for both the

Corps of Engineers and Social Security Administration. The current Lease expired on July 31, 2020. Approval is requested to negotiate an extension of the Lease for SSA only with the incumbent Lessor without full and open competition for continued occupancy at the Premises from August 01, 2020 thru October 31, 2020.

A long-term requirement for the Corps of Engineers (COE) has been fulfilled by Government

Lease GS-04P-LMS01321 at the current Premises. The new lease will be effective August 01, 2020 and is unrelated to the requested lease action.

A long-term requirement for SSA has been fulfilled by Government Lease GS-04P-LMS61569.

However, due to COVID-19, the furniture for the new location has been delayed. Per the

Agency, the furniture could be delivered and installed as late as September 2020.

As GSA intends for SSA to remain at the Premises, there is no need to detail the delineated area.

However, the following could be a potential delineated area:

North: Sherman Avenue;

East: US Highway 61/ Mississippi Route 27;

South: Confederate Avenue/ North Frontage Road/ Indiana Avenue/ Old Highway

27/ Warriors Trail;

West: US 61 Business

As detailed in Section 7 below, there are no available buildings or potential locations that could meet the Agencies’ requirements. Further, even if there were any available buildings or potential locations, relocation is unfeasible due to the aforementioned furniture issues.

The SSA will occupy 10,325-RSF/ 9.357-ABOA SF of space at the Premises from August 01, 2020 thru October 31, 2020. The SSA’s long-term needs will be met in Government Lease

Contract GS-04P-LMS61569, which was awarded on March 09, 2018. However, following extensive post-Award negotiations and an extended build-out, SSA’s furniture vendor notified the Agency of a delay in delivery & installation caused by its temporary shut down due to

COVID-19. Per the Agency, furniture will be available until September 2020, though the delay could be longer. Due to this delay, SSA will be unable to occupy its new location and must remain at the Premises until the furniture has been installed.

2. CALCULATION OF NET AVERAGE ANNUAL RENT OVER EXTENSION PERIOD

The current Lease expires on July 31, 2020. The Premises meets all of the Agencies’ short term needs. The current fully-serviced rent at the Premises is $23.13 per RSF. The anticipated annualized cost of this extension would be $23.13 per RSF.

Term Shell Rent

Operating

Rent

Annual

Rent

Rate per

RSF

Rate per

ABOA SF

Monthly

Rate

8/01/2020 – 10/31/2020 $176,144.50 $65,755.80 $241,900.30 $ 23.43 $ 25.85 $20,158.36

Estimated Total Contract Value (including extensions) -

Term Shell Rent

Operating

Rent Annual Rent

Rate per RSF

Rate per

ABOA SF

Monthly

Rate

6/15/1996 – 6/14/2006 $3,173,214.92 $ 15.91 $ 17.56 $264,434.58

8/01/2006 – 2/28/2010 $3,227,427.02 $ 16.19 $ 17.86 $268,952.25

3/01/2010 – 7/31/2016 $3,545,499.14 $ 17.78 $ 19.62 $295,458.26

8/01/2016 – 8/31/2016 $ 0.00 $169,670.16 $169,670.16 $ 5.94 $ 6.45 $14,139.18

9/01/2016 – 7/31/2017 $487,301.84 $169,670.16 $656,972.00 $ 23.00 $ 24.99 $54,747.67

8/01/2017 – 8/31/2017 $ 0.00 $169,670.161 $169,670.16 $ 5.94 $ 6.45 $14,139.18

9/01/2017 – 7/31/2018 $487,301.84 $169,670.16 $656,972.00 $ 23.00 $ 24.99 $54,747.67

8/01/2018 – 8/31/2018 $ 0.00 $169,670.16 $169,670.16 $ 5.94 $ 6.45 $14,139.18

9/01/2018 – 7/31/2019 $487,301.84 $169,670.16 $656,972.00 $ 23.00 $ 24.99 $54,747.67

8/01/2019 – 7/31/2020 $487,301.84 $178,624.58 $665,926.42 $ 23.31 $ 25.33 $55,493.87

8/01/2020 – 10/31/2020 $176,144.50 $65,755.80 $241,900.30 $ 23.43 $ 25.85 $20,158.36

Estimated Total Contract Value: $68,633,531.00

3. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL.

Not Applicable.

EugeneBWright Highlight

4. COST-BENEFIT ANALYSIS (IF APPLICABLE)

Not applicable. See Sections 5 & 6 below.

5. IDENTIFICATION OF STATUTORY AUTHORITY

41 § USC 3304 (a)(1) and FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy Agency requirements. The incumbent property is uniquely qualified as the space is immediately available and is already constructed to meet the Agency’s requirements for the term of the succeeding lease or extension.

6. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED

GSAM 570.402-4 allows for negotiation with the incumbent Lessor when the Lease Contracting

Officer (LCO) does not identify potential acceptable locations through advertisement or market survey. Market research conducted provided by Bullseye did not yield alternative locations.

However, a relocation makes no practical sense as the Agency already has a location for its long-term need but cannot occupy due to a delay in furniture delivery & installation. Cost-benefit is not the issue but the lack of furniture. If the Agency could use existing furniture at the Premises, there would be no need for an extension. Therefore, the Government intends to negotiate an extension of the current Lease at the Premises.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED

Market research was conducted via a search on on June 05, 2020. Based on the market research, there The only building available with the square footage available to meet the Agency’s need was the incumbent Lessor’s building.

8. TECHNICAL REQUIREMENTS PERSONNEL 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.

9. CONTRACTING OFFICER’S CERTIFICATION AND DETERMINATION THAT THE

ANTICIPATED COST WILL BE FAIR AND REASONABLE.

By signature on this Justificaiton for Other Than Full and Open Competition, the Lease

Contracting Officer certifies that the award for a three (3) month extension for 10,325-RSF/

EugeneBWright Highlight

9,357-ABOA SF of office and related space is in the Government’s best interest and that this

Justification is accurate and complete to the best of the Lease Contracting Officer’s knowledge and belief. Further, due to the furniture issues reported above, relocation into any other leased location is both unfeasible and impossible.

Approved/ Concurrence:

6/24/2020

X Eugene B. Wright

Lease Contracting Officer (LCO)

Signed by: General Services Administration

7/1/2020

X LaShone Butler

LaShone Butler

Branch Chief, 4PL

Signed by: LASHONE BUTLER

Director of Leasing (4P)

Legal Counsel (4L)

Pamela Mitschke

Competition Advocate

HCA

File details come from the government source that posted it. Updated Sep 23, 2020.