JOFOC (redacted 11.18.20).pdf

U.S. General Services Administration

GSA Region 3, Real Estate Acquisition Division, North Branch

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Project: 9PA2375

Agencies:

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

The General Services Administration currently leases 41,273 ANSI/BOMA Office Area Square Feet (ABOA SF) or 49,874 Rentable Square Feet (RSF) of office, and related space, along with four

(4) structured parking spaces, at the US Steel Tower at 600 Grant Street in Pittsburgh, PA. The space is held under Lease GS-03B-70046 for use by the The current lease expires December 2, 2022. Approval is requested to negotiate a strategic extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue an extension is detailed in GSAM 570.405 Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

A short-term extension is needed to protect the agencies' occupancy until they can complete their move to federal space. Given the many components and parties involved in this effort, GSA will seek to mitigate risk in the event of a schedule delay by pursuing a five (5) year extension with two (2) years firm.

The total cost for this action is estimated to be . This is composed of the following:

Firm Term:

Non-Firm Term:

Anticipated rent is as follows:

Years 1-5 Rate / RSF Rate / ABOA SF

The space requires no TI or BSAC buildout.

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. In accordance with FAR 6.302-1 and GSAR 570.402, it is determined that award to any other offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition.

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 until the agencies are able to complete their move . GSA is seeking a five (5) year full term in order to provide flexibility in case of schedule delays.

It would not be economically feasible to relocate the agency to a new location for such a short period of time. In addition to move costs, have a highly specialized buildout and replication costs would be prohibitive. The Government cannot expect to recover these costs through competition. Remaining in the current location until the federal space is ready will enable to continue to fulfill their mission without disruption.

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.

According to REIS market data for Class A space in the Pittsburgh Central Business District, the average fully-serviced rental rate for lease extensions is According to CoStar market data for 4-5 Star properties, the average fully-serviced rental rate is For more information on market rates, see Pre-Award Assessment (PAA) and CoStar Analytics Report (page 2) in file.

Therefore, the anticipated rental rates of are within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On May 8, 2020, GSA Realty Specialist conducted market research using CoStar and identified 7 potentially acceptable locations (6 plus the incumbent) that might meet the agency’s needs within the Central Business District of Pittsburgh. These locations have at least 49,000 SF of available contiguous space over 1-2 floors of the building.

The anticipated rental rates of are within the current market range for available properties within this submarket. For more information on available buildings, see CoStar Building Report in file.

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

In accordance with the requirements of GSAM 517.207, the Lessor’s performance under this lease has met the Government’s expectations for quality performance.

The do not participate in the Tenant Satisfaction Survey. However, GSA Property Managers both confirmed that there are no outstanding issues and that the Lessor’s property management representatives are generally responsive to tenant needs. The agencies seem satisfied in their current space.

Remaining at the current location avoids a holdover and allows the Government to continue operations without disruption while the new space is being prepared.

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

ACQUISITION.

No other source has expressed in writing an interest in the acquisition.

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

A federal backfill action is underway. However, if for any reason the move to federal space does not occur as planned, the Government will remain conscious of the effort to continuously encourage competition when practicable.

11. CERTIFICATION.

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared by:

Concurred by:

Concurred by:

Approved by: