JOFOC LWA06415 - r.doc

FOR LEASE NUMBER

GS-10b-06415

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 Homeland Security, Immigration and Customs Enforcement (DHS-ICE) located in the Great Western Building, Spokane, Washington. 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:

Continuation of space is needed for DHS-ICE while a new procurement is being completed via the NBC. A market survey was conducted 5/13/2008 and the SFO was sent to potential Offerors on 7/1/2008. Final offers were received at the end of December 2008, and review and analysis of the offers began in the beginning of January 2009. The long term procurement was awarded on 3/27/2009. The current lease expired 2/18/2009 and is in holdover. The expected date of occupancy of the new space is 9/1/2009, pending completion of build-out.

The action being proposed is a one-year extension from the date of expiration of the current lease with termination rights upon 30 days notice after 9/1/2009. This extension would give GSA adequate time to complete the new procurement via the NBC, while giving the option to terminate the lease if the new space is completed on schedule. GSA currently leases 2,387 RSF of office space for DHS-ICE in the Great Western Building, 901 W. Riverside Avenue, Spokane, WA 99201. The current rate is $52,514.88 annually, or $22.00/RSF full service, with annual escalation for services and utilities.

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 agency has occupied this space since February 2002 and is satisfied with the building, its location, and management service provided by the Lessor, but still has a need to compete its new procurement. Due to the fact that the continuing need of the agency is for a short period of time, there is no other 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 located in 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 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 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 $57,766.37 plus annual escalations for the entire term, assuming an offer rate at or below $24.20/RSF, full service, will be fair and reasonable based upon favorable comparison to prices obtained through market research for the same or similar space.

7. Description of the Market Survey Conducted:

An internet survey of the Spokane market was performed on 1/28/2009, and three buildings were identified for the purpose of comparing warehouse space. The following is a summary for the data based upon a five-year occupancy of space. The rates for the properties below do not account for GSA’s additional SFO requirements. The fair market rent value for the subject property would be the average rent of $27.66/RSF comprised of a shell rate of $20.66/RSF and an operating rate of $7.00/RSF.

Market Data for the Area

a. 1116 E Westview Ct.

$21.00/RSF + nnn

b. 165 S Howard St.

$15.00/RSF + nnn

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

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:

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:

The one-year extension with termination rights upon 30 days prior written notice will allow adequate time for the new space to be completed.

12. Contracting Officers Determination and Certification:

Joshua Campbell, Lease Contracting Specialist

[Date]

Terria Heinlein, Lease Contracting Officer

Scott M. Matson, Supervisory Contracting Officer

� EMBED Excel.Sheet.8 ���

_1302345634.xls Sheet1

1-Year Lease Renewal - LWA06415 901 W Riverside Ave. Alternate Location

Annual Shell $41,056.40 $49,315.42

Annual Operating Expenses (OE) $16,709.00 $16,709.00

Other Expenses

TIA: Existing Space $0.00 $0.00

*TIA: New Space $0.00 $83,248.00

**Cost of Physical Move ( RSF x $4.00/RSF) $0.00 $9,548.00

**Cost of Telephone & Data (RSF x $2.00/RSF) $0.00 $4,774.00

Parking (7 Spaces - Surface) $0.00 $0.00

Total: Other Expenses $0.00 $97,570.00

Total: Annual Rent $57,765.40 $163,594.42

Total: Cost Over 1-year Term $57,765.40 $163,594.42

Total: Savings Over 1-Year Term $105,829.02

2,387 RSF / 2,150 USF

*TI for new space are estimated at $38.72/RSF.

**Cost Estimates are averages as provided by GSA

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