Below_SLAT_JOTFOC_Memo PCC Signed.pdf

Department of Veterans Affairs Memorandum

DATE: 09/02/2024

TO: Reviewer

Lease Delegation Review Team General Services Administration (GSA)

FROM: Kim, Foster Lease Contracting Officer

SUBJECT: Below SLAT Justification for Other than Full and Open Competition

Panama city beach, Florida, Biloxi VA Medical Center

The anticipated annual rent for the subject lease delegation is $170,094.10, unserviced, and therefore meets the criteria of a Simplified Lease Acquisition Threshold (SLAT) lease. Pursuant to GSAM 570.2, a SLAT lease does not require a Justification for Other than Full and Open Competition (JOTFOC).

The below statutory authority, cost-based or mission-based rationale supports the lack of competition and documents the file per GSAM 570.203-2(b) for new and new/replacing leases; 570.402-1(a) for succeeding leases; 570.403(c)(1) for lease expansions; 570.404(b) for superseding leases; or 570.405(b) for lease extensions, based on one of the following selections:

☐ The proposed lease is for the purpose of providing health-care resources to Veterans and the proposed lessor is an academic affiliate organization, institution, or a covered entity. 38 U.S.C. § 8103(h)(1) authorizes non-competitive lease procurements to academic affiliate organizations and institutions or covered entity organizations.

☒ The proposed new, new/replacing, succeeding, superseding, expansion, renewal or extension lease action will not be competed through full and open competition because the LCO has determined the space required by the agency is available from only one responsible source based on mission needs and procurement from any other source will result in substantial duplication of cost to the Government that is not expected to be recovered through competition and/or results in unacceptable delays in fulfilling the agency’s requirements. The determination that the requirement can only be met by one responsible source is supported by (select one):

☐ The proposed action is a lease extension. No further justification is required.

☐ No potentially acceptable alternative locations were identified through market research and sources sought advertisement (if required).

☒ Cost based rationale.

Market research was conducted on 8/27/2024 within 10 miles of the delineated area utilizing LoopNet. Market research identified 4 potential sources with only one identified as a medical space. The contracting specialist conducted a cost benefits analysis between the lowest potential offered space and the current leased space. Based on the market research, it would be most advantageous to the Department of Veterans Affairs in supporting a succeeding lease for the Panama City Beach CBOC. The Lessor’s performance has been determined to be adequate during the previous contract period.

The succeeding lease analysis tool was used to evaluate the expected costs of remaining in place against the costs of relocation to a new location. The analysis demonstrates that the Government could not expect to recover relocation and duplication costs through full and open competition. The expected cost savings for this action is $8,186,646 which represents savings of $828.94/ABOA SF

☐ Mission based rationale

The agency’s mission for this location requires a unique location and cannot be satisfied through any alternative locations. The agency’s mission and justification for a unique location is summarized below:

Entering into a non-competitive lease for space or a non-competitive lease action for continued space requirements with the proposed lessor is in the best interest of the VA;

and the anticipated annual rent is deemed fair and reasonable.

Please do not hesitate to contact me with any questions at Kim.Foster3@va.gov.

Kim Foster Lease Contracting Officer

SUBJECT: Below SLAT Justification for Other than Full and Open Competition Panama city beach, Florida, Biloxi VA Medical Center