JOFOC_20220503.pdf

FRANK H. ROGERS SCIENCE

AND TECHNOLOGY BUILDING

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

National Nuclear Security Administration | May 2, 2022

Frank H. Rogers Science and Technology Building | Page 2

Agency: National Nuclear Security Administration

Office of Infrastructure Planning & Analysis (NA-521) P.O. Box 5400 Albuquerque, NM 87185

Federal Agency Contact: Questions may be submitted via email or in writing to the following contact(s):

Sarah J. Watts Real Estate Contracting Officer 505-304-7483 sarah.watts@nnsa.doe.gov

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Action Being Approved The United States General Services Administration (GSA) currently leases the subject property, located at 755C East Flamingo Road, Las Vegas, Nevada 89119, from the Desert Research Institute (DRI), a member of the Nevada System of Higher Education (NSHE), which manages and operates the building on behalf of the State of Nevada, as owner. In 2001, the NSHE Board of Regents and GSA entered into a lease for 40,737 rentable square feet, under lease number LNV01075, beginning June 1, 2003, through May 31, 2023, for the Department of Energy, National Nuclear Security Administration (DOE/NNSA). NNSA utilizes this space via an Occupancy Agreement (OA) between GSA and NNSA which will expire coterminous with the lease. NNSA intends to independently negotiate a succeeding lease under its statutory authority, the Atomic Energy Act of 1954i, with the incumbent lessor without full and open competition for continued occupancy at this location.

Requirement The NNSA Nevada Field Office (NFO) verified a continuing need of approximately 41,000 sf special purpose space in or near the downtown Las Vegas, Nevada, area. To satisfy the NFO’s requirements, special purpose space is necessary to house three (3) separate, yet related tenants: statutorily required Dina Titus Public Reading Room and Nuclear Testing Archives (NTA), and the NNSA Office of Defense Programs (NA-10) funded National Atomic Testing Museum (NATM), managed by the non-profit Nevada Test Site Historical Foundation (NTSHF).

NNSA’s tenants are more detailed as follows:

Dina Titus Public Reading Room This is a public-use space to obtain unclassified records and documents associated with U.S.

atmospheric testing as required by the Freedom of Information Act. In addition, the Department of Energy’s records associated with human experimentation conducted in the 1960s are located within the facility for public access.

Nuclear Testing Archives (NTA) Coordination and Information Center The Archive houses more than 385,000 documents and records relating to the nuclear testing era. Collection activities are continuing, and approximately 450,000 documents are anticipated to ultimately be included in the collection. The scope of the collection includes:

• Data and documentation on the detection and measurement of radioactive fallout and the related factors resulting from nuclear device test activities at the Nevada National Security Site, the TRINITY Event, the Pacific Proving Grounds, and other on-continent test locations.

• Policy documents dealing with procedures and conduct of tests and public safety considerations and actions.

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• Published and primary sources describing the development and state-of-knowledge of the health effects of radiation.

• Documents dealing with public information as disseminated through such media as pamphlets, news releases and news publications.

• Related studies and reports produced by the scientific and technical fieldii.

Archaeological Research and Storage As a result of the National Historic Preservation Act of 1966iii, NNSA is required to preserve and protect all archeological artifacts recovered from the Nevada National Security Site.

National Atomic Testing Museum (NATM) The museum is a 501(c)3 nonprofit, independent from the Department of Energy and is the first Smithsonian affiliate in Nevada. As designated in the 2012 Defense Appropriations Activ, the Museum is one of only a few national museums in the nation. It is charged to preserve a unique aspect of the United States’ history and serve its national community.

This requirement is for any combination of a firm/soft term to total a ten (10)-year operating lease, to commence as soon as possible on or before the existing lease expires; the existing 40,737 sf is acceptable for continued occupancy by the end users. The estimated annual cost under this requirement is averaged at $15.02 sf for a mostly-operating-expense-only lease based on the attached Market Survey (Attachment A) for a total contract value of $6,118,697.40 (40,737 sf x $15.02 sf x 10 years). The delineated area is East Sahara Avenue to the North, South Eastern Avenue to the East, Tropicana Avenue to the South, and Las Vegas Boulevard to the West.

Statutory Authority The statutory authority permitting other-than-full-and-open competition is 41 USC 3304(a)(1)v, “the property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.”

Use of the Authority Cited FAR 6.302-1vi is appropriate for use where there is a reasonable basis to conclude that the agency’s needs can only be satisfied by unique supplies or services available from only one source or only one supplier with unique capabilities, in this instance, the current Lessor.

Award to other than the current Lessor would require relocation of the entire requirement and would cause NNSA to incur move and replication costs that would not be recovered through competition. In addition to general office and conference space, this facility has highly specialized requirements (i.e., curation facility, archival storage spaces and museum exhibition space) which would all have to be replicated if they were to relocate. The National Institute of Building Sciences’ Whole Building Design Guide details all the current specialties required in designing and constructing both an archives and record storage buildingvii and libraryviii, with museum space being similar in design and construction. Specific space requirements were identified in the attached Nevada Atomic Testing History Institute Program Resource Document (Attachment B), which was included in the original Request for Lease Proposal in 1999. Existing unique qualities are highlighted per tenant as follows:

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Coordination and Information Center The existing archival mobile shelving system in place has already been moved three (3) separate times, including being altered to fit the leased space. These systems were not only not designed to be relocated and have therefore suffered damage in the course of their lifetimes but are also technically obsolete. Archive personnel have been physically injured scaling shelving due to the powered floor track systems failing.

Archaeological Research and Storage This space includes features mandated under 36 CFR 79ix, Curation of Federally Owned and Administered Archeological Collections, including climate control, security systems, and inventory control using bar coding equipmentx. Additionally, relocating the cultural artifacts under this collection requires written consent of the Indian tribe having jurisdiction over the artifactsxi.

National Atomic Testing Museum (NATM) The museum displays nuclear testing artifacts which contain low levels of nuclear radiation.

Transporting this one element alone must meet the Department of Transportation’s requirements for shipment of the nuclear material including route selection, vehicle condition and placarding, driver training, package marking, labeling, and other shipping documentationxii.

The catering/staging kitchen is governed by the State of Nevada Division of Public and Behavioral Health (DPBH) via the Nevada Revised Statues and Nevada Administrative Code (NAC), Chapter 446. Catering operations must meet all applicable standards of a food service establishment as provided in the NAC 446 and be licensed as suchxiii.

A Desert Research Institute Taxable Lease Revenue Bond (the “DRI Bond”) was issued in 2002 in the amount of $8,460,000 to finance a portion of the costs of the planning, design, construction, acquisition, improvement and equipping of the subject building. The DRI Bond is payable solely out of and is secured by an irrevocable pledge of the Pledged Revenues comprised of the Construction Rent paid via the aforementioned Lease No. GS-09B-01075 (a.k.a. Lease No.

LNV01075)xiv. The Construction Rent pays both the principal and interest on the DRI Bond, paid in arrears at $70,131.97 per month for the period June 1, 2003, through April 30, 2023.

Additionally, the design, fabrication, and installation of permanent exhibits for the ATM cost approximately $3.8 million, paid via donated funds raised by NTSHF. Roughly $1.9 million of these costs were incurred for the purchase of furniture and fixtures which are not part of the Rogers Building infrastructure.

If NNSA was to reconstruct this facility, using only the DRI bond and permanent exhibit amounts above, the cost would be $19,334,953.64 in 2022 dollars. This cost would either be paid by a lump-sum amount to the lessor for reimbursement, or more likely amortized over the firm term of the lease. Over a ten-year lease term, the build-out would add an additional $47.46 per square foot to the overall cost of the lease ($8.46M + $3.8M = $12.26M [2002 $$] raised to [cumulative rate of inflation at 57.7%xv] $19.33M [2022 $$] ÷ 40,737 sf ÷ 10 years = $47.46 psf).

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The estimated cost for relocating the Coordination and Information Center alone are as follows:

• Remove/excess existing shelving units $40,000

• Install new mechanical shelving systems $665,000

• Miscellaneous Start Up Costs $350,000

• Mover expense

• Iron Mountain off-site files costs

• Licenses

• Cubicle construction

• Miscellaneous digitization

• Moving expense for remote files to be relocated to central NTA (currently at three other locations)

• Archival Lighting retrofit

• Archival Temperature Controlled Facility retrofit (Cooling/Humidity Temperature Controlled)

• Archival environmental control units retrofit

• ESTIMATED TOTAL $1,055,000

In addition to the above costs, NNSA and/or NTSHF would have to contract and/or account for the additional following costs:

• 800 to 1,000 hours productivity loss

• Business or sales revenue loss

• New staffing costs

• Marketing expenses

• Cleaning and repair fees

• Information technology expenses

• Insurance needs

• Equipment removal or lease reestablishment

• Disconnection and connection fees including internet, phone, cable, utilities

• Physical move

The cost of relocating the Dina Titus Public Reading Room, Nuclear Testing Archives and National Atomic Testing Museum exceeds the cost of remaining at the current location. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, the Government intends to negotiate a succeeding lease and remain at its current location.

Practical Solicitation Efforts As discussed in the Market Survey (Attachment A), NNSA advertised a Sources Sought on the Contract Opportunities website (https://sam.gov/content/opportunities) citing the leased space requirements from July 26 – August 16, 2021. No responses were received. A second Sources Sought was published from November 30 – December 20, 2021, and similarly e-mailed to local listing agents through Catylist.com. Responses are discussed below in Interested Sources, and further detailed in the Market Survey.

Fair and Reasonable Cost Demonstration Pursuant to Federal Acquisition Regulation (FAR) 6.303-2(b)(7)xvi, the Contracting Officer determines by certifying this document that the anticipated cost to the Government of $6,118,697.40 for the entire requirement is fair and reasonable.

Recent market surveys conducted by NNSA in the Las Vegas, NV, showed the rental rate within the surveyed area ranges from $4,583,800 to $8,999,500, based on 41,000 square feet and a ten (10)-year term.

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Market Research See attached Market Survey (Attachment A).

Other Supporting Facts Not applicable.

Interested Sources As discussed in the Market Survey (Attachment A), one listing agent responded to the Catylist.com e-mailer with two (2) listings, both located at the Hughes Center, previously identified in the Market Survey. Neither location would be a viable alternative due to substantial duplication of costs as discussed above.

Actions to Overcome Barriers to Competition Not applicable.

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Technical Requirements 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:_________________

SARAH J. WATTS

Real Estate Contracting Officer, NA-521

Contracting Officer Certification By signature on this Justification for other than Full and Open Competition, the Contracting Officer certifies that the award of a succeeding lease of $6,118,697.40 is in the Government’s best interest and that this Justification is accurate and complete to the best of my knowledge and belief.

JOELLE ALTAMIRANO

Real Estate Contracting Officer, NA-521 Team Lead

General Counsel I certify that this justification is accurate and complete to the best of my knowledge and belief.

WILLIAM MAYERS

General Attorney (Procurement), NA-GC-30

Competition Advocate I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this JOFOC does not exceed $15M, this review serves as approval.

TEMIDAYO OSINUGA

Competition Advocate

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Attachments Attachment A, Market Survey Attachment B, Nevada Atomic Testing History Institute Program Resource Document, October 5, i General Duties of the Commission, Acquisition of Real and Personal Property, Public Law No. 83-703, 68 Stat. 919, 42 USC 2201(g) (2019). Atomic Energy Act of 1954, as amended. https://www.govinfo.gov/content/pkg/USCODE-2020-title42/pdf/USCODE-2020-title42-chap23-divsnA-subchapXIII-sec2201.pdf ii U.S. Department of Energy. (2015). Nuclear Testing Archive (NTA) Fact Sheet. Retrieved March 29, 2022, from https://www.nnss.gov/docs/docs_NucTestingArchive/NTA%20fact-sheet%20detailed.pdf iii National Preservation Programs, 54 USC Subtitle III (2020). National Historic Preservation Act of 1966.

https://www.govinfo.gov/content/pkg/USCODE-2020-title54/pdf/USCODE-2020-title54-subtitleIII.pdf iv National Atomic Museum and National Atomic Testing Museum, 42 USC 7142. (2012).

https://www.govinfo.gov/content/pkg/USCODE-2020-title42/pdf/USCODE-2020-title42-chap84-subchapII-sec7142.pdf v Use of noncompetitive procedures, 41 USC 3304. (2018). https://www.govinfo.gov/content/pkg/USCODE-2020-title41/pdf/USCODE- 2020-title41-subtitleI-divsnC-chap33-sec3304.pdf vi Only one responsible source and no other supplies or services will satisfy agency requirements, 38 CFR 6.302-1. (2019). Federal Acquisition Regulation. https://www.acquisition.gov/sites/default/files/current/far/pdf/FAR.pdf vii Acker, E., O'Connell, P. (2021). Archives & Record Storage. Whole Building Design Guide. National Institute of Building Sciences.

Retrieved March 29, 2022, from https://www.wbdg.org/building-types/archives-record-storage viii (2019). Library. Whole Building Design Guide. National Institute of Building Sciences. Retrieved March 29, 2022, from https://www.wbdg.org/space-types/library ix Curation of Federally-Owned and Administered Archaeological Collections, 36 CFR 79. (2021).

https://www.govinfo.gov/content/pkg/CFR-2021-title36-vol1/pdf/CFR-2021-title36-vol1-part79.pdf x Desert Research Institute. (n.d.). Curation Facility. Retrieved March 29, 2022, from https://www.dri.edu/labs/curation-facility/ xi Curation of Federally Owned and Administered Archeological Collections, 36 CFR 79. (2021). https://www.govinfo.gov/content/pkg/ CFR-2021-title36-vol1/pdf/CFR-2021-title36-vol1-part79.pdf xii United States Nuclear Regulatory Commission. (n.d.). Shipping Requirements. Retrieved March 29, 2022, from https://www.nrc.gov/materials/transportation/shipping.html xiii Department of Health and Human Services Nevada Division of Public and Behavioral Health (DPBH). (2020). Food Establishment - Catering Operations. Retrieved March 29, 2022, from https://dpbh.nv.gov/Reg/Food/dta/Catering/Catering/ xiv (2019). Nevada System of Higher Education Debt Summary and Guidelines. Retrieved March 29, 2022, from https://nshe.nevada.edu/wp-content/uploads/Debt-Summary-Book.pdf xv U.S. Inflation Calculator. (n.d.). Retrieved March 29, 2022, from https://www.usinflationcalculator.com/ xvi Content, 38 CFR 6.303-2. (2019). Federal Acquisition Regulation.

https://www.acquisition.gov/sites/default/files/current/far/pdf/FAR.pdf