JOFOC redacted- 3PA0374.pdf

Revised MAR 2026

Justification for Other Than Full and Open Competition

U.S. General Services Administration

PBS, Office of Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3PA0374

Agency Name: <REDACTED>

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

The General Services Administration currently leases 49,490 ABOA/ 49,990 rentable square feet (RSF) of office space at <REDACTED> Philadelphia, PA under lease number GS-03B-09489 for the <REDACTED>. The current lease expires November 3, 2026. Approval is requested to exercise an unevaluated renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a renewal option are detailed in GSAR 570.401: Renewal Options.

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

(INCLUDING ESTIMATED VALUE).

<REDACTED> is currently finalizing their long-term requirements. There is a mission related need to continue to lease 49,990 rentable square feet of warehouse and related space. <REDACTED> further identified the current location continues to meet their mission requirements and relocation to a new location would result in significant relocation and replication costs that could not be recovered through competition.

The lease contains one unevaluated five-year soft priced renewal option to commence on 11/4/2026.

Notice to exercise the renewal option must be given to the Lessor 120 days prior to lease expiration. The Government intends to evaluate and exercise the renewal option outlined in the lease contract. There is no vacant Federal Space available. The renewal rate is approximately <REDACTED>.

<REDACTED> Renewal Total Value

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: FAR 6.103-1 (GSA Class Deviation RFO- 2025-06) and GSAR 570.401. In accordance with GSAR 570.401, use of the sole source authority is appropriate where 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. Award to other than the current Lessor would require relocation of the entire requirement and would cause <REDACTED> to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be <REDACTED>. Remaining in place allows the Government to make use of existing tenant improvements, avoiding replication costs of <REDACTED> for specialized space to support the <REDACTED> mission. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating <REDACTED> using the low-cost quote exceeds the cost of remaining at 10430 Drummond Road, Philadelphia, PA. The total savings to the Government is <REDACTED>. It would not be economically feasible to relocate the agency to a new location and exercising a lease renewal will protect occupancy while allowing the agency to continue their mission without disruption.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402, the GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on April 14, 2026 for three (3) days. In addition, PBS conducted market research using CoStar and local market data.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted using Costar in Philadelphia, PA showed the rental rate within the delineated area range from <REDACTED> fully serviced. REIS data is not available for warehouse space.

Therefore, the proposed rental rate for this renewal of approximately <REDACTED>, is 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.

GSAR 570.402-5 allows for negotiation with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition.

On April 14, 2026, PBS conducted market research using CoStar and LoopNet and identified 2 potentially acceptable locations plus the incumbent that might meet the agency’s needs within the delineated area.

In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on April 14, 2026. Other than the incumbent, GSA received 0 expressions of interest in response to the advertisement. The incumbent Lessor’s expression of interest indicated that the rate would be consistent with the rate in the lease contract, which is approximately <REDACTED>.

The incumbent was the only expression of interest received.

See Figure 1 below for the results of the market research and SAM.gov advertisement, including the incumbent.

Address Source [EOI/CoStar, etc.] Asking Full Service Rental Rate

10430 Drummond Street Phila, PA EOI <REDACTED>

9901 Blue Grass Road Phila, PA Costar <REDACTED>

415 Domino Lane Phila, PA Costar <REDACTED>

Figure 1: Market Research Comparables

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

In accordance with the requirements of GSAM 517.207(b), the lessor’s performance under this lease has met the Government’s expectations for quality performance. The most recent inspection by the

Government’s property manager documented that the Lessor has done a good job in maintaining the space in accordance with the lease requirements and is responsive to the Government.

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

ACQUISITION.

PHILADELPHIA PA GSA, LLC

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

There are no systemic barriers to competition. If the agency has a continuing need for space upon lease expiration, GSA will follow all authorities, regulations and policies applicable to lease acquisition. Should there be remaining useful life in the Government’s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

Additionally, objective scrutiny will be given to the customer agency’s mission and security requirements, if applicable, to eliminate unnecessary agency space requirements that may be deemed unduly restrictive.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that exercising the renewal option for 49,990 RSF 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.

<REDACTED> Date

12. ATTACHMENTS

Cost Benefit Analysis

Reviewed by:

Reviewed for legal sufficiency by:

Approved by: