JOTFOC_0NV2106_AFR_Las_Vegas Renewal_Redacted.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0NV2106

Agency Name: USA AFR

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

The General Services Administration currently leases 6,367 ABOA/7,369 rentable square feet (RSF) of office space and indoor, secure warehouse parking for 17 Government Owned Vehicles at 3320 Pepper

Ln, Las Vegas, NV 89120-2738, under lease number LNV01926 for the USA AFR. The current lease has a rental rate of $44.90 per RSF per year and expires 6/30/2023. Approval is requested to negotiate a renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a renewal option is detailed in GSAR 570.401: Renewal Options.

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

(INCLUDING ESTIMATED VALUE).

GSA has confirmed the need for a renewal option at this leased location.

This requirement is for 6,367 ABOA/7,369 RSF of space for a five-year renewal term to commence on

7/1/2023. The estimated cost of this lease is per RSF per year for an annual cost of and a total contract value of

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, 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 USA AFR 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

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

SAM on 3/11/2022 for 10 days.

In addition, GSA conducted market research using CoStar.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

An analysis of the market in Las Vegas, NV showed the rental rate within the delineated area ranges from per RSF for office space ( Source: CoStar). The market rate for warehouse space in Las

Vegas is approximately per SF (Source: CoStar).

The quoted rate of averaged over 5 years includes per SF for indoor, secure warehouse parking for Government Owned Vehicles. Although the per RSF is higher than the market range for office, the higher rate is justified as fair and reasonable by the below savings demonstrated from the following cost-benefit analysis:

Low quote of alternate office space for 5 years (7,369 RSF x /RSF x 5 years)

Costar estimate for warehouse space for parking for 5 years (7,369 SF x x 5 years)

Tenant improvement costs*

Moving costs for furniture

Moving costs for telecommunications

Total costs estimated for alternate location

*GSA Independent Government Estimate

Cost of current office space for five years (7,369RSF x /RSF x 5 years)

Cost of current warehouse space for parking ( /SF for 5 years)

Tenant improvement costs

Moving costs for furniture

Moving costs for telecommunications

Total costs estimated for current location

Estimated savings to the Government to remain in current location

APPROVED: Date______________________

Jessica L. Escobedo

R9 Regional Competition Advocate (Leasing)