7 - LAFAYETTE JOFOC Final signed.pdf

FOR OFFICIAL USE ONLY

Source Selection Information -- See FAR 2.101 and 3.104

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

CFTC intends to solicit on a sole-source basis. The following rationale is provided in accordance with the requirements of FAR 6.302-1.

1. Identification of the agency and the contracting activity.

This justification for other than full and open competition has been prepared by the Commodity Futures Trading Commission (“CFTC” or “Commission”), Business Operations Branch, 1155 21st Street, NW, Washington, DC 20581.

2. Nature and/or description of the action being approved.

The action being approved is a sole-source extension of the CFTC Headquarters lease with Beacon Capital Partners for the building located at 1155 21st St. NW, Washington, DC 20581. This extension is necessary as a result of President Trump’s Presidential Memorandum (PM), “Return to In-Person Work,” and the associated Office of Personnel Management (OPM) memorandum entitled “Guidance on Presidential Memorandum Return to In-Person Work.”

3. A description of the supplies or services required to meet the agency’s needs (including estimated value).

The Commission proposes to extend its existing lease for its Headquarters location for a minimum of one year with an option to extend for one additional year, for a total potential extension period of two (2) years.

The estimated price of this extension, including the option period, is $41,108,819.50.

4. An identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition for this requirement is 41 U.S.C.3304(a)(1). “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

CFTC entered into a Memorandum of Understanding (“MOU”) with the General Services Administration (“GSA”) in November 2016 to find, lease and assist with space planning for all of its leases. CFTC has independent leasing authority (reference 7 U.S.C. § 16(b)(3)) and is the lease holder for the current lease at its Washington, DC headquarters (“Headquarters”) at 1155 21st Street NW, Washington, DC 20581, which expires on September 30, 2025.

GSA located new space for the Commission’s headquarters at 355 E St SW, Washington, DC, 20024. However, that space requires a renovation to become suitable for CFTC use.

GSA began work on that renovation on April 16, 2024, but does not anticipate completing the renovation until June 30, 2026. This completion date may be extended as well due to any unforeseen renovation delays.

As a result of this delay for its new Headquarters location, GSA offered temporary space to CFTC that GSA was already leasing on behalf of the National Aeronautics and Space Administration (NASA) beginning prior to the expiration of the current headquarters lease at 1155 21st St. NW. This space is located at 300 E Street SW. At the time this space was offered to CFTC, NASA had indicated to GSA that NASA did not require use of the space, and GSA could seek a different tenant.

On January 20, 2025, President Trump issued the Presidential Memorandum (PM) entitled “Return to In-Person Work.” This PM stated, “[h]eads of all departments and agencies in the executive branch of Government shall, as soon as practicable, take all necessary steps to terminate remote work arrangements and require employees to return to work in-person at their respective duty stations on a full-time basis, provided that the department and agency heads shall make exemptions they deem necessary.”

On January 22, 2025, the Office of Personnel Management (OPM) issued further guidance related to the PM. Specifically, this guidance memorandum stated that “The agency head or acting agency head should revise their agency’s telework policy issued under 5 U.S.C. § 6502(a)(1)(A) to state that eligible employees must work full time at their respective duty stations unless excused due to a disability, qualifying medical condition, or other compelling reason certified by the agency head and the employee’s supervisor.”

As a result of the PM and OPM guidance memorandum, GSA and NASA informed CFTC on February 3, 2025, that the temporary space offered by NASA would no longer be available, as NASA now needed that space for its own employees.

After moving into the temporary space offered (and now rescinded) by NASA, CFTC intended to maintain a mostly remote posture with many employees continuing to telework while the new headquarters location renovations were completed.

Additionally, to comply with the PM, CFTC now requires all Commission employees to be on-site on a full-time basis. The PM has modified CFTC’s requirements for temporary office space. As of the date of the issuance of the PM and OPM Policy Memorandum, CFTC now has the following requirements for temporary office space:

1. 75,000 usable square feet (500 staff at 150 usable square feet per person).

2. Individual meeting space.

3. Ready for occupancy by August 2025, including all necessary IT infrastructure.

When it became clear that CFTC’s new headquarters location at 355 E St SW, Washington, DC, 20024 would not be ready for occupancy prior to the end of the existing headquarters lease at 1155 21st St. NW, Washington DC 20581, CFTC sought options from GSA for temporary space, as follows:

Patriots Plaza 3 Temporary Space 355 E St SW Washington, DC CFTC initially reached out to GSA about temporary space in April 2024. GSA indicated that there was temporary space available on the 8th floor at the same location as the planned new CFTC headquarters location. CFTC conducted a site visit of this space on April 25, 2024.

As a result of the PM and OPM Memorandum, this temporary space does not meet CFTC’s revised requirements. It only has 33,000 available square feet.

NASA Headquarters Temporary Space 300 E Street SW Washington, D.C.

On September 11, 2024, GSA indicated that it had additional temporary space available on the 2nd floor of the NASA Headquarters location. CFTC conducted a site visit of this location on October 1, 2024, and determined at that time the space was acceptable. However, as noted above, NASA indicated on February 3, 2025, that it could no longer accommodate CFTC in this space due to its own space requirements resulting from the PM and OPM Memorandum.

Even if NASA and GSA had not rescinded the offer of this space, the space does not meet CFTC’s revised requirements resulting from the PM and OPM Memorandum. It only has 57,000 available square feet.

Potomac Center 550 12th St SW, Washington, DC 20024 CFTC sought additional space from GSA after NASA determined that it could no longer provide its temporary space. GSA indicated that it had additional temporary space available at Potomac Center.

Even though the Potomac Center temporary space is the largest offered by GSA in terms of square feet, the open layout is insufficient and there is not sufficient time to build it out for CFTC’s needs. Based on the expected renovation timeline for the new headquarters location at 355 E St SW, CFTC estimates appropriate buildout of this space would take a minimum of 1 year. CFTC requires move in ready space that is available as of August 2025.

Additionally, renovating temporary space would not be a good use of funding, as CFTC is already paying for a complete renovation of its new headquarters location at 355 E St SW, and currently has sufficient space at its current headquarters location at 1155 21st St NW.

Also, the CFTC Division of Administration, Information Technology Branch has provided guidance that a buildout of any temporary space will require a minimum of 6 months to ensure proper IT infrastructure and network connectivity for all employees. Due to the timing of the PM, OPM Memorandum, and NASA’s decision to revoke its offer of temporary space, it is functionally impossible to build out any new or temporary space in sufficient time for occupancy by or before August 2025.

As a result of its market research, the PM and the OPM Guidance Memorandum, CFTC has determined that the only option available is an extension of its lease with Beacon Capital Partners at its existing headquarters location (1155 21st St. NW, Washington DC 20581). In accordance with the GSA MOU for leasing services, CFTC “will continue to administer its existing leases, and will negotiate and administer any necessary extensions to existing CFTC leases…” Additionally, CFTC has independent leasing authority as cited in 7 U.S.C. § 16(b)(3), which states “[t]he Commission shall also have authority to make and enter into contracts with respect to all matters which in the judgment of the Commission are necessary and appropriate to effectuate the purposes and provisions of this chapter, including, but not limited to, the rental of necessary space at the seat of Government and elsewhere.”

The current headquarters location is the only location that can continue to provide office space for all CFTC federal employees and contractors while the new headquarters location at 355 E St SW, Washington, DC, 20024 is completed.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

Pursuant to the requirements of FAR 6.302-1(d)(2) and 5.201(b)(1)(i), CFTC posted a pre-solicitation notice of its intent to enter into a lease extension with Beacon Capital Partners on a sole source basis. The notice described CFTC’s requirements and stated that it would consider responses from all responsible sources received. The announcement was posted on May 13, 2025, with a response date of May 28, 2025. No responses to the announcement were received. Therefore, negotiations were conducted with Beacon Capital Partners on a non-competitive basis.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

CFTC has retained a commercial real estate broker to advise on the CFTC headquarters lease extension. The leasing consultant will, in part, provide “market information pertaining to all recent transactions comparable to that contemplated by the Commission, including a listing of such transactions, rental rates, operating expenses and real estate taxes, tenant improvement allowances, and other pertinent business terms” and assist in “analyzing offers received in terms of their responsiveness to CFTC’s requirements and the reasonableness of the proposed pricing (including a net present value analysis).”

The contracting officer will use this data and expertise to ensure that the price offered by Beacon Capital Partners is fair and reasonable.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

As noted in section 5, CFTC conducted extensive market research but has determined there is no sufficient space available in the short amount of time CFTC has before the expiration of its current lease. CFTC also posted a notification of its intent to extend its lease on a sole source basis on May 13, 2025. The announcement stated that all responses received within 15 days would be considered, but no responses were received.

9. Any other facts supporting the use of other than full and open competition.

None.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

As stated in sections 6 and 8 of this justification, no sources expressed an interest in this requirement. No valid responses were received to the SAM.gov notice.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

CFTC does not currently foresee a need to extend its current headquarters lease at 1155 21st St. NW beyond the amount of time justified above, as it fully expects its new headquarters location at 355 E ST SW to be completed prior to the expiration of the proposed lease extension.

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Certifications and Approvals

Technical Personnel Certification

I certify that the data supporting the recommendation to solicit and award on an other than full and open competitive basis is accurate and complete to the best of my knowledge and belief.

Edward Busse Date Support Services Supervisor

I certify that the data supporting the recommendation to solicit and award on an other than full and open competitive basis is accurate and complete to the best of my knowledge and belief.

Lynn Bulan Date Managing Counsel Office of General Counsel

Contracting Officer’s Certification I certify that the data supporting the recommendation to solicit and award on an other than full and open competitive basis is accurate and complete to the best of my knowledge and belief.

Benjamin Van Wormer Date Contracting Officer

Approval in accordance with FAR 6.304(a)(3)

William Roberson Date Senior Procurement Executive