SSJ-R.doc

For Lease Extension / Lease Number GS-10B-05900 General Services Administration Region 10

Public Building Service

Real Estate Acquisition Division

Space Acquisition

Justification for Other Than Full and Open Competition

1. Identification and description of action being approved:

This justification for other than full and open competition is being undertaken for the Bureau of Indian Affairs (BIA) located in Lapwai, ID. This action is being taken by the General Services Administration (GSA), Public Building Service, Northwest Arctic Region 10, Real Estate Acquisition Division located in the Region 10 Headquarters, Auburn, WA.

BIA requires a continuation of occupancy at its current location in the Phinney Building, Agency Drive, Lapwai, ID 83540-9998 for a period of one year. The extension of Lease GS-10B-05798 is required while GSA completes the long term procurement for BIA.

2. Description of Supplies of Services Required:

GSA currently leases 11,350 RSF/9,870 USF of office space for BIA in Lapwai, ID at the rate of $14.76/RSF, or $167,544.90 annually. BIA has occupied this location since 1994, and the lease expired in April 2009. An extension for a period of one year with cancellation rights upon 60 days prior written notice to the Lessor will give GSA adequate time to complete the long term procurement. For the long term procurement, GSA will pursue a 10 year, five year firm succeeding lease and reduce the square footage currently occupied by BIA to 5,384 RSF.

3. Identification of Statutory Authority:

41 U.S.C. 253(c)(1) and FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

4. Demonstration that the Acquisition Requires use of the Authority Cited:

BIA has occupied this space since 1994 and is currently satisfied with the Lessor, building, and services provided. The lease expired April 5, 2009 and is currently in holdover. Due to the current market in Lapwai, the short term of the extension, and the inclusion of cancellation rights, there is no other available space that can provide for its needs without a significant increase in overall costs to the agency as specifically identified in the cost/benefit analysis included under Section 9, and include not only the cost of the move, but tenant improvements to provide a similar space for the short time frame. In addition, in order to conduct its mission, it is a requirement for BIA to remain located in its current location on tribal land. Therefore, in accordance with 41 U.S.C. 253(c)(1), the agency’s minimum needs can only be satisfied by the unique supplies or services available from only one responsible source and no other type of property or services will satisfy the needs of the agency.

5. Description of Efforts to Solicit as Many Offers as Practicable:

In accordance with GSAM 505.202(b)(2)(ii), an advertisement was not placed as this action is a Supplemental Lease Agreement for an extension meeting the criteria set forth in GSAM 570.405.

6. Demonstration that the Anticipated Cost will be Fair and Reasonable:

In accordance with 41 U.S.C. 253 (f)(3)(c), the Contracting Officer determines that the anticipated lease cost to the Government of $167,544.90 annually, assuming an offer rate at or below $14.76/RSF, full service, will be fair and reasonable due to the short term of the extension and the inclusion of cancellation rights. In addition, the costs associated with moving the agency and tenant improvements which may be required for new space further justify the anticipated lease cost, as described in the cost/benefit analysis located under Section 9.

7. Description of the Market Survey Conducted:

An internet market survey of Lewiston, ID was performed on 8/10/2009 via Loopnet and CoStar and resulted in three buildings that would meet the needs of BIA. No available buildings could be found when searching the Lapwai market. The rental rates range from $11.52/RSF to $14.40/RSF and do not account for GSA’s additional SFO requirements. Operating costs in Lewiston are estimated at $5.00/RSF. Triple net costs are estimated at $2.00/RSF. For comparative purposes, the average rental rate of the following properties will be used in the cost/benefit analysis found in Section 9.

Market Data for the Area

625 Bryden Ave

Lewiston, ID 83501 $11.52/RSF + nnn

105-111 Thain Rd Lewiston, ID 83501

$12.00/RSF + nnn

868 S Main St Lewiston, ID 83501 $14.40/RSF + nnn

8. Other Facts Supporting the use of Other than Full and Open Competition:

It is a requirement for BIA to remain in its current location on tribal land in Lapwai, as it is essential to their mission. A cost/benefit analysis has been included to show costs associated with moving BIA to new location.

9. Cost/Benefit Analysis Results:

10. List of Sources that Expressed an Interest in the Acquisition:

Given the fact that the requirement was not advertised, as set forth in Section 5 above, no sources expressed interest in the acquisition.

11. Statement of Actions to Overcome Barriers to Competition:

A one year extension with termination rights upon 60 days notice will give GSA adequate time to complete the long term procurement for BIA in Lapwai, ID. The offered rate of $167,544.90 annually or $14.76/RSF, full service, is below current market value. In addition, the short term of the extension, the costs of moving the agency, and tenant improvements to build-out the space further show that remaining in the current location is of best value to the Government at this time.

12. Contracting Officer’s Determination and Certification:

(a) Prepared by: Joshua D. Campbell, Lease Contracting Specialist

(b) Realty Project Manager/Technical or Requirements Official Certification

Joshua D. Campbell, Lease Contracting Specialist

Date

(c) Contracting Officer/Supervisor Certification

Scott Matson, Supervisory Lease Contracting Officer

Date � EMBED Excel.Sheet.8 ���

_1320472206.xls Sheet1

1-Year Extension Phinney Building Alternate Location

Annual Shell $110,776.00 $143,464.00

Annual Operating Expenses (OE) $56,750.00 $56,750.00

Other Expenses

TIA: Existing Space $0.00 $0.00

*TIA: New Space $0.00 $401,222.50

**Cost of Physical Move ( RSF x $4.00/RSF) $0.00 $45,400.00

**Cost of Telephone & Data (RSF x $2.00/RSF) $0.00 $22,700.00

Triple Net Costs $0.00 $22,700.00

Total: Other Expenses $0.00 $469,322.50

Total: Annual Rent $167,526.00 $222,914.00

Total: Cost Over 1-year Term $167,526.00 $692,236.50

Total: Savings Over 1-Year Term $524,710.50

USF 9,980

RSF 11,350

*TI for new space are estimated at $35.35/RSF. TI would be paid in firm term of the lease.

**Cost Estimates are averages as provided by GSA

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