JOFOC NLRB Exten 4KS0159 Redact.pdf

Docusign Envelope ID: DA83EFF1-9176-42F8-9642-DA1AB8599E99

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region R06 Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 4KS0159

Agency Name: National Labor Relations Board (NLRB)

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

The General Services Administration currently leases 10,266 ABOA / 11,057 rentable square feet (RSF) of office space at 8600 Farley St. in Overland Park, Kansas under lease number LKS31004 for the NLRB.

The current lease expires 01/12/2025. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease extensions.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for 12 months to commence on 01/13/2025.

The agency is being slated to move to vacant lease space in the area, The official location of the vacant lease space has not been determined. Since there is less than a year until the lease will expire a one-year extension has been requested by GSA and approved by the agency. The incumbent Lessor proposed a rate of $20.50 per rentable square feet per year for an annual cost of $221,274.39 and a total contract value of $221,274.39.

There is no federal or lease vacant space that would be cost effective for the agency to move into for the short term one year lease.

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

41 U.S.C. 3304(a)(1): Only one responsible source and no other supplies or services will satisfy agency requirements. This statutory authority is implemented through GSAR 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.

The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy

The government encounters unexpected delays outside of its control in acquiring replacement space

The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date

The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED.

It is in the best interest of the Government to remain at the current location during the extension period.

The agency occupying the leased space is scheduled to move into Federal owned space but due to delays associated with internal organizational uncertainties the agency will not be ready for occupancy until after the current lease expiration date. Therefore, a short extension is required for the current lease to allow more time. Award to other than the current Lessor would require relocation of the entire requirement and would cause the NLRB to incur move and replication costs that would not be recovered through competition.

Relocation costs are estimated to be $875,391.88. Additionally, this allows the Government to make use of existing tenant improvements, avoiding TI replication costs of $593,137.45. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6, see exhibit B. The cost of relocating NLRB using the lowest priced alternative rate exceeds the cost of remaining at 8600 Farley St. in Overland Park, Kansas. The total savings to the Government is $673,823.00.

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.

6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the Leasing Specialist in Overland Park, KS showed the rental rate within the market area ranges from $13.00 to $18.00 per RSF. These rates were determined based on the Co-Star Lease Availability Report for properties available within the proposed delineated area of Overland Park, KS. It also showed that total fully serviced rent for this market is between $20.00 to $25.00. Due to the short-term nature of this requirement and the fact that it does not include any firm term, it is anticipated that an additional risk premium of 10% to 15% increase in the shell rate would be required. Beyond this the government definition of shell (warm, lit) exceeds that of the private sector (cold, dark) definition which is also estimated to increase the rental rate by $1.00/RSF. Many of the properties in this submarket are Class A space and would cost the government substantially more than staying in place.

Therefore, the proposed rental rate for this lease extension of $20.50 per RSF, is within the current market range for shell and operating within this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On 06/17/2024, market research was conducted using Co-Star Office Market Reports for Kansas City, MO. The market research showed the rental rate within the market area ranges from $20.00 per RSF to $25.00 per RSF. See notes in Section 6 regarding this rate.

Please refer to the table attached for a breakdown of the available building and their rental rates.

8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION.

Remaining at the current location under a twelve (12) month extension avoids a holdover and allows the Government to continue operations without disruption.

9. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION.

N/A

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a lease extension of twelve (12) months for LKS31004 is in the Government’s best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

Date

Emily Becher, Lease Contracting Officer

12. PREPARER’S TECHNICAL 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

L. Elaine Henderson, Leasing Specialist