FOjofocRedacted_Redacted.pdf
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- Solicitation number
- 5NY0796
About this file
This is a Justification for Other Than Full and Open Competition document from the U.S. General Services Administration (GSA) Region 2 Leasing for a lease extension at 68-94 S. Elmwood Ave, Buffalo, NY. The GSA currently leases 61,562 ABOA/70,796 square feet of office space under lease number LNY24278, which expires on 10/15/2025. The agency is seeking a four-month lease extension with the incumbent lessor without full competitive bidding, citing unexpected delays in the long-term succeeding lease project.
The justification is based on 41 U.S.C. 3304(a)(1), which allows sole-source procurement when only one responsible source can satisfy agency requirements. Market research conducted by CBRE on 03/06/2024 identified two potentially acceptable locations, but the agency determined only one building would meet their strict security requirements. The anticipated rental rate for the extension is below the current market range of $38.76-$46.43 per rentable square foot, and remaining at the current location will avoid disruption to government operations. The lease extension is scheduled to commence on 10/16/2025, with the GSA Lease Contracting Officer certifying the action as in the government's best interest.
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U.S. General Services Administration
GSA Region 2 Leasing
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
PROJECT NUMBER: 5NY0796
Agency Name:
1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.
The General Services Administration currently leases 61,562 ABOA/70,796 square feet (RSF) of office space at 68-94 S. Elmwood Ave, Buffalo, NY under lease number LNY24278 for the The current lease expires 10/15/2025. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease extensions.
2.
(INCLUDING ESTIMATED VALUE).
The government requires an extension of the current lease for four (4) months to commence on 10/16/2025. The estimated cost of this lease extension is per rentable square feet per year for an annual cost of and a total contract value of
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 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.
The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy
The government encounters unexpected delays outside of its control in acquiring replacement space
The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date
The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties
4.
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 during the extension period.
The government is currently encountering delays related to the long-term succeeding lease project and is projecting a need of four months to complete the long-term project. Award to other than the current
Lessor would require relocation of the entire requirement and would cause the to incur move and replication costs that would not be recovered through competition.
5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS
MANY POTENTIAL SOURCES AS IS PRACTICABLE.
In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.
6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO
THE GOVERNMENT WILL BE FAIR AND REASONABLE.
Recent market surveys conducted by CBRE in Buffalo, NY showed the rental rate within the delineated area ranges from $38.76-$46.43 per RSF on , Local brokerage and developer websites and LoopNet market survey.
Therefore, the anticipated rental rates for this lease extension of per RSF, are below the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer.
7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.
On 03/06/2024, CBRE conducted market research using Site Survey and identified 2 potentially area. While there were eight (8) buildings identified as potential locations, the was consulted about the potential locations and they determined that only one (1) building would fit their strict security requirements. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 12/03/2024 which received no responses. A Market Analysis Report was prepared by CBRE on 11/28/2024 which identified nine (9) potentially acceptable locations, but the has not yet been consulted about their feasibility in regards to security requirements.
8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION.
Remaining at the current location under a four (4) month extension avoids a holdover and allows the Government to continue operations without disruption.
9. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE
ACQUISITION.
N/A
10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME
ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.
In advance of an existing considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.
Additionally, consideration will be given to the customer agency mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.
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 lease extension of four (4) months for LNY24278 is in the
__________________________________________ Date_____________________
Timothy Wells, Senior Lease Contracting Officer
12. 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.
________________________________________ Date______________________
Andrew Ware, Leasing Specialist
See FAR 6.304 for appropriate signature threshold levels.
If Senior Procurement Executive (SPE) approval is required, must include signatures from Regional Contracting Director, Regional Counsel, and Head of Contracting Activity (HCA). Use of a separate signature page is required.
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