JOFOC Redacted.pdf

Revised 12-06-2022

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 10

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3AK0297

Agency Name: Anchorage, Alaska

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

The General Services Administration currently leases 35,775 ABOA/41,141 rentable square feet (RSF) of office space at 101 East 6th St, Anchorage, AK, 99501 under lease number GS-10B-05872 for the

The current lease expires 10/2/2024. Approval is requested to exercise an unevaluated priced renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a Lease renewal are detailed in GSAR 570.401: Renewal Option (unevaluated).

2.

(INCLUDING ESTIMATED VALUE).

The submitted a continuing need letter on 9/26/2023 for 41,141 rentable square feet of office and related space.

There is no vacant Federal Space available.

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 570.401. 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.

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 to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $ . Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . The requires 62 secured structured parking spaces for official GOV s. Due to these requirements, it is expected that replacement costs in the Anchorage Market would exceed rates currently found in CoStar for similar size space.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating using the low cost quote exceeds the cost of remaining at 101 East 6th St. The total savings to the Government is $12,409,569.

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 10/16/2023 for 20 days. In addition, PBS conducted market research using Costar and LoopNet.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS in Anchorage, AK showed the rental rate within the delineated area ranges from $ per RSF excluding tenant improvements and building specific amortized capital.

Therefore, the proposed rental rate for renewal option of $ /RSF, is below the current market range for this submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On 9/28/2023, PBS conducted market research using Costar and Loopnet and identified 5 potentially acceptable locations plus the incumbent The potentially acceptable locations would meet the RSF requirement of the Agency and are located within the Delineated Area, however, none of these locations currently can meet the structured parking requirements. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 10/16/2023. The current lease includes an unevaluated ten year renewal option priced at $ per RSF that can be exercised unilaterally by the Government.

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

101 East 6th St Lease Renewal Option $

3900 C St Costar $

2600 Denali St Costar $

188 W Northern Lights Blvd Costar $

301 W Northern Lights Blvd Costar $

Figure 1: Market Research Comparables

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

The incumbent lessor has a history of performing well in the maintenance of the leased space and meeting the requirements of the Government at 101 East 6th St, Anchorage, AK, 99501.

BERKSHIRE ANCHORAGE ASSOCIATES, LP (Incumbent) 101 East 6th St, Anchorage, AK

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 the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

(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 the award of a succeeding lease of 62 parking spaces is in the interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting

_ ____________________________ Date_____________________ Caitlin Morgan, Lease Contracting Officer

12.

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______________________ Samantha Barr, Leasing Specialist

CONCURRED BY

___________________________ Date______________________ Eric Shreves, Lease Acquisition Branch Chief

CONCURRED BY:

_______________________ Date______________________ Lindsey Snow, Competition Advocate

APPROVED BY

____________________________ Date______________________ Lisa K. Pearson, PBS Regional Commissioner

CONCURRED BY

____________________________ Date______________________ R10 Legal