JOFOC Redacted.pdf

Revised 10-23-2023

Justification for Other Than Full and Open

Competition, Added Renewal

U.S. General Services Administration

GSA Region 10

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2WA0634

Agency Name: NATIONAL PARK SERVICE

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

The General Services Administration currently leases 21,720 ABOA/22,695 rentable square feet (RSF) of office space at the CADILLAC HOTEL BUILDING, 319 2ND AVE S, SEATTLE, WA under lease number LWA06588 for the NATIONAL PARK SERVICE (NPS). The current lease expires 09/30/2025. Approval is requested to negotiate and add one (1) five-year renewal with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing an added renewal are detailed in GSAR 570.401: Renewal.

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

(INCLUDING ESTIMATED VALUE).

NATIONAL PARK SERVICE submitted a continuing need letter on 01/13/2023 for 22,695 rentable square feet of office and related space.

This requirement is for 21,720 ABOA/22,695 RSF of space for a 5-year term consisting of one (1) five year added renewal, to commence on 10/01/2025. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of . The delineated area is Pioneer Square Reservation District. 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. 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 NATIONAL PARK SERVICE 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 . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating NATIONAL PARK SERVICE using the low-cost quote exceeds the cost of remaining at CADILLAC HOTEL BUILDING. The total savings to the Government is $5,469,010.00.

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 01/13/2023 for 10 days. In addition, PBS conducted market research using Loopnet and CoStar.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by PBS in Seattle, WA (REIS) showed the full-service Bullseye rental rate within the delineated area is $43.69 per RSF.

Therefore, the proposed rental rates for this added Renewal 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.

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 2/16/23, PBS conducted market research using CoStar and Loopnet and identified 4 potentially acceptable locations (plus the incumbent) that might meet the agency’s needs within the delineated area.

A Cost Benefit Analysis comparing the proposed rates to stay in place (incumbent) versus the lowest asking full-service rate in the Delineated Area of $41.00/RSF showed that costs to move the agency cannot be recovered over the firm term. Additionally, this avoids Tenant Improvement costs and move costs totaling $5,469,010.00.

In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 01/13/2023. The incumbent Lessor’s expression of interest, which was the only expression of interest received, indicated that the rate would be per RSF.

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

319 2ND AVE S EOI

110 Union St Loopnet

701 5th Ave. Loopnet

710 2nd Ave Loopnet

570 1st Ave S 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 319 2ND AVE S, SEATTLE, WA, 98104.

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

THEACQUISITION.

Name Building Rate Cordero Mason 3257 16th Ave. (Outside of the

Delineated Area)

Cordero Mason

2414 SW Andover St.

(Outside of the

Delineated Area)

Cordero Mason 117 S Washington

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 the award of a succeeding lease of 22,695 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.

__________________________________________________ Date_____________________ Samantha Barr, Supervisory 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______________________ Joel Wilson, Leasing Contracting Officer

CONCURRED BY

Eric Shreves, Leasing Acquisition Branch Chief

CONCURRED BY

Lindsey Snow, Competition Advocate

APPROVED BY

Lisa K. Pearson, PBS Regional Commissioner

REVIEWED BY

R10 Legal, Legal Review