FEDbiz JOFOC LID05936 extension.doc

FOR LEASE NUMBER

GS-10b-05936

GENERAL SERVICES ADMINISTRATION REGION 10

PUBLIC BUILDINGS SERVICE

REAL ESTATE ACQUISITION DIVISION

SPACE ACQUISITION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Identification of the agency and the contracting activity (Service Center) This justification for other than full and open competition action is being undertaken for the Department of Interior United States Geological Survey (DOI USGS), Moscow Idaho. The action is being undertaken by General Services Administration (GSA), PBS, Northwest Arctic Region 10, Real Estate Acquisition Division located in the Region 10 Headquarters, Auburn, Washington.

2. Description of Supplies or Services Required:

USGS has requested a continuation of occupancy for a period of four months while the long term procurement is being completed. A market survey was conducted on 12/03/2009. The action being proposed is a lease extension. The current lease expires on 12/04/09. GSA currently leases 1,744/RSF of office space for USGS at 530 Ashbury Street, Moscow ID. The current rate is $40,338.98 annually or $23.13/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:

The USGS has occupied this space since 12/06/1994 and the agency is satisfied with the current space, with the exception of some minor tenant improvements, i.e. carpet and paint. Through the NBC contract, Labonde Land has been tasked with the long term procurement which is at the “best and final” offers stage due in early January 2010. Since the current lease expires on 12/04/09, there is not sufficient time to locate space and negotiate for a new procurement before the lease expiration date. In addition, there would be substantial moving costs and tenant improvement (TI) costs incurred if a new location was considered. In accordance with 41 U.S.C. 253 (c), (1), the agency’s minimum needs can only be satisfied by 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 lease extension which meets 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 approximately $13,446.32 for the four month term, assuming an offer rate at $23.13/RSF, will be fair and reasonable considering the short time frame of the extension, potential move costs and TI costs for a new location.

7. Description of the Market Survey Conducted:

An internet market survey of the Moscow, ID market was performed on 12/02/2009 via Loopnet. Two buildings were identified in Moscow for the purpose of comparing office space. The following is a summary for the data based upon one year occupancy of space. The rates for the properties below do not include estimates for operating expenses or triple net costs. The rates also do not include anticipated costs of TIs at $31.91/RSF for a new location. The fair market rent value for the subject property would be the average rent of $17.75/RSF comprised of a shell rate of $12.75/RSF, an operating rate of $3.00/RSF and triple net costs of $2.00/RSF (cost estimates based on broker discussions).

Market Data for the Area

a. 403 S Jackson Street Moscow, ID 83843 $12.00/RSF (unserviced plus triple net costs)

b. 317 W 6th Street Moscow, ID 83843 $13.50/RSF/YR (unserviced, plus triple net costs )

8.

Other Facts Supporting the use of Other Than Full and Open Competition:

While the proposed rate for the extension appears to be high considering the existing market, the short term lease is more indicative of a “month to month” tenancy and would command a higher lease rate. Based on the cost/benefit analysis below, it is in the best interest of the Government to remain in its current location.

9. Cost Benefit Analysis Results based on annual rate (for ease of comparison):

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

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

11. Statement of Actions to Overcome Barriers to Competition:

A four month lease extension will allow GSA to continue to provide for the needs of the agency. Considering potential move costs, as well as TI costs and the short term duration of the extension, this action is fair and reasonable. It will also allow the USGS to effectively and efficiently continue to conduct its mission in Moscow Idaho, which is to serve the nation by providing reliable scientific information to describe and understand the Earth.

12. Contracting Officers Determination and Certification:

Barry Sullivan, Lease Contracting Specialist

[Date]

Michael J. O’Brien, Lease Contracting Officer

[Date] � EMBED Excel.Sheet.8 ���

_1324181733.xls Sheet1

12 month lease extension 530 Ashbury Street Alternate Location

Annual Shell $40,338.98 $22,236.00

Annual OE plus NNN ($5.00/RSF) $0.00 $8,720.00

Other Expenses

TIA: Existing Space $0.00 $0.00

*TIA: New Space $0.00 $65,633.72

**Cost of Physical Move ( RSF x $4.00/RSF) $0.00 $6,976.00

**Cost of Telephone & Data (RSF x $2.00/RSF) $0.00 $3,488.00

**Total: Other Expenses $0.00 $10,464.00

Total: Annual Rent $40,338.98 $107,053.72

Total: Cost Over 12 Month Term $40,338.98 $107,053.72

Total: Savings Over 12 Month Term $66,714.74

1,744 RSF

*TI for new space are estimated at $65,633.72. Since the term is less than a year, this amount would be paid as a lump sum.

**Cost Estimates are averages as provided by GSA

***Actual lease term is 4 months. For ease of comparison, 1 year term is used in cost analysis.

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