JOFOC for Fedbiz.doc

FOR LEASE NUMBER

GS-10b-06741

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 United States Department of Agriculture (AMA) and Department of Interior Fish and Wildlife (FWS), Idaho Falls, 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:

The USDA and FWS have requested a continuation of occupancy for a period of 2 years while the long term procurement is being completed. A market survey was conducted on 12/29/2009. The action being proposed is a lease renewal. The current lease expired on 12/15/09. GSA currently leases 2,734/RSF of office space for USDA and FWS at the Exchange Plaza Building 1820 E 17th Street, Idaho Falls ID. The current rate is $13.26/RSF or $36,252.84 annually.

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 USDA and FWS have occupied this space since 12/16/04 and the agency is satisfied with the current space. GSA is seeking a two year renewal at the existing rate of $13.26/RSF. The DOI FWS will eventually be relocating to one location with agency staff from the A & M Rentals Building (reference lease #LID05728). This renewal will allow sufficient time for the DOI FWS long term procurement tasked to CBRE through the NBC contract. The final SFO is due in early January 2010. A succeeding lease, reducing the space, will eventually be needed for USDA AMS prior to expiration of the renewal. Since the current lease expired on 12/15/09, there is not sufficient time to locate space and negotiate for a new procurement. 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 $72,505.68 for the two year renewal, assuming an offer rate at $13.26/RSF, will be fair and reasonable considering potential move costs and TI costs for a new location.

7. Description of the Market Survey Conducted:

An internet market survey of the Idaho Falls, ID market was performed on 12/29/09 via Loopnet. Three buildings were identified in Idaho Falls 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 $38.29/RSF for a new location. The fair market rent value for the subject property would be the average rent of $16.66/RSF comprised of an average shell rate of $11.66/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. 850 Energy Drive

Idaho Falls, ID 83402 $11.50/RSF (unserviced plus triple net costs)

b. 503 S Woodruff Idaho Falls, ID 83401 $11.50/RSF (unserviced plus triple net costs)

c. 1619 S Curlew Idaho Falls, ID 83406 $12.00/RSF/YR (unserviced, plus triple net costs )

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 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 two year renewal will allow GSA to continue to provide for the needs of the agency. Considering potential move costs and TI costs, this action is fair and reasonable. It will also allow both agencies, the USDA and FWS to effectively and efficiently continue to conduct their mission in Idaho Falls, Idaho. The mission of the USDA is to provide leadership on food, agriculture, natural resources, and related issues based on sound public policy, the best available science, and efficient management. The mission of the FWS is to work with others to conserve, protect and enhance fish, wildlife and plants and their habitats for the continuing benefit of the American people.

12. Contracting Officers Determination and Certification:

Barry J. Sullivan, Lease Contracting Specialist

Date

Michael J. O’Brien, Lease Contracting Officer

Date � EMBED Excel.Sheet.8 ���

_1325511070.xls Sheet1

12 month lease extension 1820 E 17th Street Alternate Location

Annual Shell $36,252.84 $31,878.44

Annual OE plus NNN ($5.00/RSF) $0.00 $13,670.00

Other Expenses

TIA: Existing Space $0.00 $0.00

*TIA: New Space $0.00 $95,281.54

**Cost of Physical Move ( RSF x $4.00/RSF) $0.00 $10,936.00

**Cost of Telephone & Data (RSF x $2.00/RSF) $0.00 $5,468.00

**Total: Other Expenses $0.00 $111,685.54

Total: Annual Rent $36,252.84 $31,878.44

Total: Cost Over 12 Month Term $36,252.84 $143,563.98

Total: Savings Over 12 Month Term $107,311.14

2,734 RSF

*TI for new space are estimated at $95,281.54. Since the firm term is 1 year, this amount would be paid as a lump sum.

**Cost Estimates are averages as provided by GSA

***Actual lease term is 2 years, 1 year firm. For ease of comparison, 1 year term is used in cost analysis.

Sheet2

Sheet3