JOTFOC-Redacted.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: 9NY2867

Agency Name: SSA

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

The General Services Administration currently leases 11,270 ABOA/13,250 RSF of office space at 2389 Richmond Avenue, Staten Island, New York under lease number GS-02B-23061 for the Social Security Administration. The current lease expires November 14, 2019. Approval is requested to negotiate an extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location.

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

(INCLUDING ESTIMATED VALUE).

This requirement is for 11,270 ABOA/13,250 RSF of space for a (16) sixteen day term to commence on November 15 th through November 30th, 2020.

The anticipated extension rate is /RSF for an annual rent of for a total contract value of the extension 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.

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. The current space is already built to meet SSA’s requirements. GSA conducted a (10) ten year competitive lease procurement in 2018 and awarded a new/replacing lease to the Lessor of 1441 South Avenue, Staten Island, NY on 7/13/2018.

GSA Region 2 is currently engaged in TI price negotiations and completion of the new/replacing lease is scheduled for May of 2020. The current Lessor has a new private sector tenant that will start occupying the current leased space on 12/1/2019. GSA Region 2 has secured a temporary swing space from the current Lessor which will be available on 12/1/2019. This swing space will be utilized by SSA until the long term lease solution is completed. This 16 day extension will protect SSA’s occupancy in its current location until the swing space is ready for occupancy.

Moreover, 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 are estimated to be $125,502.72. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $674,252.54 along with rent costs paid to the old location during the move estimated to be $32,965.46. 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 SSA using the lowest priced alternative exceeds the cost of remaining at 2389 Richmond Avenue with a total savings to the Government of .

(b) (5) (b) (5)

(b) (5)

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

POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402, the GSA Leasing Specialist conducted market research using the CoStar Group.

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 PBS LCO, the delineated area surrounding the current lease location rental rates’ for three star commercial properties ranges from $21.95 p.s.f. - $32.73 p.s.f for terms of 5 years and over.

The anticipated fully serviced rental rate for this lease extension of p.s.f. As the anticipated rent for this extension is within the market rent range for this delineated area and based on the short term nature of this extension, the anticipated rate is therefore deemed fair and reasonable and the best value to the Government.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On November 8th, 2019, PBS conducted market research using the CoStar and identified five potentially acceptable locations (four [4] plus the incumbent) that might meet the agency’s needs within the delineated area.

See Figure 1 below for the results the CoStar Group’s market research report:

Address Source (CoStar, Market Research) Asking Rent

2389 Richmond Avenue Present lease Rate

550 US Highway 1 South CoStar

1090 King Georges Post Rd. CoStar

517 Route One South CoStar

1855 Richmond Avenue CoStar

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 lease administrative concerns with the space.

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.

The Government is currently completing construction of a new/replacing competitive 10 year procurement located at 1441 South Avenue, Staten Island, NY. This office will relocate to the new/replacing lease upon completion of that location. Completion of the new/replacing lease is slated for May of 2020

(b) (4)

(b) (4)

(b) (4)

11. 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.

__________________________________________ Date_____________________

Eduardo Vidal Leasing Contracting Officer

12. 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 13,250 r.s.f. 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_____________________

Eduardo Vidal

Lease Contracting Officer

13. APPROVED BY:

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______________________

Daren Marshall Branch Chief