JOFOCRedact.pdf

Revised 05-20-2021

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 10

Public Buildings Service/Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0AK2138

Agency Name: Military Enlistment Processing Station (MEPS), operated by the Department of the Army’s Miliary Enlistment Processing Command.

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

The General Services Administration currently leases 17,102 ABOA/19,665 Rentable Square Feet (RSF) of office space at 1717 C Street, Anchorage, AK under lease number GS-10P-LAK07027 for the Military Enlistment Processing Station (MEPS). This current lease expires 2/29/2024. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

(INCLUDING ESTIMATED VALUE).

MEPS submitted a continuing need form on 4/16/2021 for 17,102 ABOA square feet of office and related space, along with 3 GOV parking spaces. There is no change in the amount of square footage or parking with this continuing need.

This requirement is for a 20-year/10-year firm lease to commence on 3/1/2024. The estimated annual cost of this lease is $ per RSF per year for an annual cost of $ (Years 1-10), and $ per RSF per year for an annual cost of $ (Years 11-20) and a total contract value of $10,485,378.00.

The delineated area is defined as:

North: Depot Drive, to West 1st Avenue, to East First Avenue, to North Cordova Street, to East Ship Creek Avenue, to North Ingra Street, to East 1st Avenue, to North Post Road, to Reeve Boulevard, to Commercial Drive, to Mountain View Drive, to Boniface Road, to Glen Highway, to Muldoon Road.

East: Muldoon Road, to East Tudor Road.

South: East Tudor Road, to Dr. MLK Jr. Avenue, to Elmore Road, to Abbott Road to Hillside Drive, to O'Malley Road, to Hillside Drive, to Rabbit Creek Road, to Seward Highway, to the intersection of Seward Highway and the creek named Rabbit Creek, and from the creek named Rabbit Creek to the Cook Inlet.

West: Cook Inlet.

There is no other 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 570.402. In accordance with GSAR 570.402, 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 MEPS to incur move and tenant improvement replication costs that would not be recovered through competition. Relocation costs are estimated to be $ and replication costs are estimated to be $

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and shows a total savings to the Government of $6,637,888.00 with staying in place. It is attached as Exhibit A.

A decision paper completed in 2017 examined the potential relocation of MEPS to Federally owned space at the Anchorage NFB Annex. The analysis showed that MEPS would be unable to move into the Annex as-is, as their mission needs would require extensive build-out, including labs and supplemental restrooms. This build-out would be difficult to accommodate on the Annex’s concrete slab foundation which is embedded above bedrock. The current lease was renewed on 2/28/2019 and the agency has confirmed that this existing lease location fulfills their need to be located within a 30-minute commute of the airport, as well as close to public transportation.

MEPS conducts processing and testing of new recruits for active and reserved armed forces, and requires specialized exam rooms, labs, and restrooms.

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, GSA placed an advertisement on the Contracting Opportunities domain of SAM.gov on 5/7/2021, using the Central Business Area as the delineated area and received no expressions of interest. The GLS Broker, Cushman Wakefield, placed another advertisement on the Contracting Opportunities domain of SAM.gov on 4/4/2022 for 11 days using an expanded delineated area that includes the Central Business Area and received no expressions of interest other than from the owner of property located at 949 E 36th

Ave. In addition, the GLS Broker conducted market research using CoStar on 3/4/2022. Relevant results from the SAM.Gov ad response and market research are shown in Section 7 below.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by the GLS Broker in Anchorage, AK showed the rental rate within the delineated area ranges from $25.80 per RSF to $35.41 per RSF.

Therefore, the proposed rental rate for this succeeding lease of $26.16/RSF, is within 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.

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 3/4/2022, market research was conducted using Costar. The market research identified 2 potential buildings within the delineated area that could potentially satisfy the requirement. Each of these buildings are within the

Revised 05-20-2021

Revised 05-20-2021

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______________________ Kathy Cooke, Leasing Specialist

CONCURRED BY

___________________________ Date______________________ Eric Shreves, Lease Acquisition Branch Chief

APPROVED BY

_______________________ Date______________________ Lindsey Snow, Competition Advocate

REVIEWED BY

___________________________ Date______________________ R10 Legal

5/23/22