Award Notice - Redated JOTFOC - 0NY2674 - 3 Year Bronx Extension.pdf

Justification for Other Than Full and Open Competition

U.S. General Services Administration

GSA Region 2

PBS Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0NY2674

Agency Name:

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

The General Services Administration currently leases 19,970 rentable square feet/18,234 ANSI/ABOA square feet for the for office and related space, including fifty-eight (58) structured parking spaces, located at under lease number: LNY23775 expiring on May 12, 2021. PBS Region 2 is requesting approval to negotiate a three (3) year term extension commencing on May 13, 2021 and terminating on May 12, 2024 without full and open competition.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS (INCLUDING ESTIMATED VALUE).

The General Services Administration currently leases 19,970 rentable square feet/18,234 ANSI/ABOA square feet for the under LNY23775 which expires May 12, 2021. This proposed three (3) year lease extension will allow the to continue their law enforcement mission without interruption, while PBS Region 2 conducts a full and open competitive procurement to award and execute a new/replacing lease and construct new tenant improvements. A new long term competitive lease procurement for .

The present rent at the incumbent location, is per annum/ per month/ per rentable square foot.

GSA is proposing a lease extension rental of per annum per month/ per rentable square foot.

The total contract value of this lease action beginning 5/13/2021 through 5/12/2024 is estimated as follows:

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION.

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41 U.S.C. 3304(a) (1): Only one responsible source and no other supplies or services will satisfy agency requirements. This statutory authority is implemented through GSAR 570.402.

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED.

GSAR 570.402-5 allows for negotiation with the incumbent Lessor, when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition.

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 to incur move and replication costs that would not be recovered through competition.

Relocation costs are estimated to be . Additionally, this allows the Government to make use of the existing tenant improvements, avoiding replication costs of amortized Tenant Improvements for Lowest Priced Alternative in the amount of . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and is attached to this justification. The cost of relocating the using the low cost quote exceeds the cost of remaining at , at an Aggregate Cost Savings associated with Staying in Place of .

It is in the best interest of the Government to house the offices and related space at located at with a three (3) year term extension, while a new replacing long term lease is being developed, in order not to interrupt or disturb the law enforcement mission.

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

A MANY POTENTIAL SOURCES AS IS PRACTICABLE.

The GSA Realty Specialist placed an advertisement on beta.sam.gov on February 23, 2021 for 20 days and there were no expressions of interest.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Based on the market research conducted by the CBRE GLS Plus brokers, the anticipated rental rate for the extension of per rentable square foot is within the market range of per rentable square foot.

The anticipated rental rate for this fully serviced short term lease extension of is within the market range of the CBRE market research for comparable buildings in this area. The CBRE office rental rates for the delineated area are also quoted for office spaces requiring a term of five

(5) – ten (10) years or longer with varying amounts of on-site parking. In contrast, this lease extension of 36 months is a short term lease, which is expected to be priced at a premium. Based on the forgoing, the LCO deems this anticipated rate to be fair and reasonable.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On February 7, 2020, the GSA Real Estate Specialist’s independent market research identified potentially acceptable locations that might meet the agency’s needs within the delineated area.See Figure 1: Market Research Comparables (below) for the results of the GSA’s Market Research:

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Source:

(CBRE Market Research) Fully Serviced Cost Per Rentable Square Foot

. CBRE Research $ - $ per r.s.f.

Incumbent Lessor $ per r.s.f. fully serviced + parking spaces t CBRE Research $ - per r.s.f. (As adjusted) CBRE Research $ per r.s.f.

CBRE Research $ per r.s.f.

Figure 1: Market Research Comparables

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

According to the GSA Lease Administration Manager, there are no outstanding issues which we need to have the Lessor address for the Government before the succeeding lease is finalized.

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

ACQUISITION.

LIST OF SOURCES THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION

ACQUISITION Company Comments

N/A N/A N/A

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

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

A new competitive procurement is underway to secure the long term needs of the in the Bronx, New York. This short term extension is necessary to protect the Government's occupancy while the long term procurement is completed and ready for occupancy.

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 three (3) year lease extension for 19,970 rentable square feet/18,234 ANSI/ABOA square feet for the under lease number: LNY23775, 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.

_________________________________________ Date_____________________

Lease Contracting Officer (2PRM)

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