Executed_Redacted_JOTFOC_Iselin_NJ.pdf

DocuSign Envelope ID: 98AE29EC-FC15-407C-8302-41EA57D20295

Justification for Other Than Full and Open Competition, Renewal Action

U.S. General Services Administration

GSA Region 2

2PRC Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3NJ0263

Agency Name: SSA – Social Security Administration -2804

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

The General Services Administration currently leases 10,030 ABOA/11,534 rentable square feet (RSF) of office space at Metro Star Plaza 190 Middlesex Essex Tpke 401, NJ 08830 under lease number LNJ23152 for the Social Security Administration (SSA). The current lease expires March 09, 2025.

Approval is requested to negotiate with the incumbent Lessor, without full and open competition, to add a renewal option for this leased location. The procedures for pursuing a renewal lease are detailed in GSAR 570.401: Renewal Leases.

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

(INCLUDING ESTIMATED VALUE).

This requirement is for 10,030 ABOA/11,534 RSF of space to add a five (5) year renewal option to be exercised on or before March 10, 2025. The renewal option, if exercised, will protect the occupancy of the SSA at the existing lease location and permit adequate time for GSA and SSA to develop the long term requirements for the new/long term competitive procurement.

The rent for the current lease is $37.90/RSF. GSA estimates the cost of this renewal option to remain at the current fully serviced rental rate of $37.90 per RSF equating to an annual cost of $ 437,146.69 for a total aggregate value of $ 2,219,556.04 (inclusive of escalation of the operating rent). There is no vacant Federal Space available.

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

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 570.401. In accordance with GSAR 570.401, use of the sole source authority is appropriate where it is determined that award to any other offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition.

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

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

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 would cause SSA to incur move and replication costs that would not be recovered through competition. Relocation costs, the physical relocation to an alternate site are estimated to be $ 165,129.78 Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $828,998.37 inclusive of an

Docusign Envelope ID: 737B0223-2D90-4141-8241-D60568EA65E1 amortization rate of 7%. The current space at Metro Star Plaza 190 Middlesex Essex Tpke 401, NJ 08830 is already constructed to meet SSA’s immediate needs and will require no improvement during the renewal term. The facility meets FSL Level 2 special security requirements and contains barrier wall security measures implemented at this location. GSA is currently working to finalize requirements for the agency’s long- term housing needs to secure a fifteen-year new/replacement lease. In order to continue supporting the agency’s mission and protect their occupancy at their current location while the new/ replacing is underway, a renewal option is needed.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.401. The cost of relocating SSA using the low-cost quote exceeds the cost of remaining at 190 Middlesex Essex Tpke 401, NJ 08830 The total savings to the Government is $1,021,405.00.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, the GSA Lease Specialist placed an advertisement on the Contracting Opportunities domain of SAM.gov on March 24th, 2023, for 15 days. In addition, The Lease GSA conducted market research using the Bullseye market report, CoStar, CBRE, REIS Market Data.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE.

The cost of relocating SSA using the Bullseye Market Report of $39.60 per RSF exceeds the cost of remaining at their current location at the anticipated rental rate at $37.90 per RSF. The Government would see at total cost savings of $1,021,405.00 over the life of the lease term if SSA were to stay in place. (See figure 1 below)

INTENTIONALLY DELETED

The sources of market data shows a Bullseye Market Average Full service of $39.60/RSF and an adjusted rental range between $39.41 to $48.25 per RSF for Class A/B Buildings. The current lease is fully serviced inclusive of all expenses in a Class A Building. The proposal rental rate for this renewal option is slightly below the low end of the market rent range. The space does contain the necessary barrier wall security measures that are required at SSA facilities. The proposed rent for this renewal is $37.90/RSF and it has been deemed fair and reasonable by the Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.401 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.

In April, 2023, market research was conducted and revealed few potential buildings with six (6) locations evaluated for comparable market information from the sources of market data from CoStar, REIS & CBRE-EA. The quoted asking rental rates range from $26.00 to $44.00 per RSF within the Iselin, New Jersey vicinity that appear to have the available square footage necessary to meet the agency’s requirement.

Market asking rental rates do not typically reflect the services included in a fully serviced Government lease. As a result, the market data chart below has been adjusted to reflect a fully serviced rental rate for a government lease. The resulting adjusted rental range is $39.41 to $48.25 per RSF.

See Figure 1 below for the results of the market research.

INTENTIONALLY DELETED

Figure 1: Market Research Comparables

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

SSA has a barrier wall security measure implemented in this location. SSA barrier walls are structures that create a secure way for the SSA employee to interact with the public and all conversations are conducted in a private alcove with the SSA employee behind a glass enclosure. The barrier wall system is a required feature for the SSA and is costly to replicate for a short timeframe. In addition to the security measures, the current location is well suited to service the public and the Lessor has had a favorable history with GSA and currently has no outstanding issues.

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

ACQUISITION.

No sources other than the incumbent Lessor expressed interest in this procurement.

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

Lease Acquisition O gal Sufficiency By:

There are no systemic barriers to competition. If the agency has a continuing need for space upon lease expiration, GSA will follow all authorities, regulations and policies applicable to lease acquisition. Should there be remaining useful life in the Government’s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

Additionally, objective scrutiny will be given to the customer agency’s mission and security requirements (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.

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 to add a renewal option lease to this lease 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.

7/5/2023 Date Nel Morales Vias, Lease Contracting Officer

12. PREPARER’S TECHNICAL 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.

7/5/2023

Thomas Landron Morales, Leasing Specialist

Concurred By:

7/5/2023

Raffaela Battiloro, fficer

7/6/2023

Jeannette Rios, Leasing Director

Reviewed for Le

Leigh Erin Izzo, Senior Assistant Regional Counsel

Approved By:

Warren F Hall Jr, Competition Advocate