JOTFOC_ 2CA1795 (redacted)_Redacted.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2CA1795

Agency Name:

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

The General Services Administration currently leases 9,980 ABOA/10,722 rentable square feet (RSF) of office space at 2919 W. Ave. Burbank, CA under lease number GS-09P-LCA02455 for the TSA. The current lease has a rental rate of $43.21 per RSF per year and expires 12/18/2023. Approval is requested to negotiate one 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 to add one five-year renewal option. The estimated cost of the first option is per RSF per year for an annual cost of . The total contract value of this option is estimated to be

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 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 .

DocuSign Envelope ID: 76DDF0F0-257A-4627-8E85-D856E1978A74

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, the GSA Lease Contracting Officer placed a notice in the System for Award Management, Contracting Opportunities (SAM) on 2/24/2023 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 Burbank, CA, showed the rental rate within the delineated area ranges from

- per RSF, as identified via CoStar Market Reports.

Therefore, the anticipated rental rates for the renewal option of per RSF for the option period 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.

On 2/7/2023, GSA conducted market research using CoStar and identified 3 potentially acceptable locations (2 plus the incumbent) that might meet the agency’s needs within the delineated area. Burbank Airport Center has 14,000 RSF vacant and contiguous on one floor and 2255 N. Ontario St has 14,150 RSF contiguous on one floor. In addition, GSA placed a notice conforming to GSAR 570.402-2 on beta.SAM on 2/24/2023. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF for the option period.

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

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

2919 W. Ave. [incumbent] Initial proposal

*2550 N. Hollywood Way (Burbank Airport Center)

Costar

*2255 N. Ontario St CoStar

*Escalated at 5% over 5 years to match market conditions.

Figure 1: Market Research Comparables

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

The is satisfied with the leased space and the GSA Lease Administration Manager confirmed the Lessor is responsive. There are no documented fire protection and life safety deficiencies for the location.

There have been no previous renewal options added to this lease and there is no increase in square footage.

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

ACQUISITION.

Entity Name Stein Properties L.P. (Incumbent)

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 addition of two renewal options 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_____________________

Susan Baghdikian, 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.

6/6/2023

_____________ _________________________ Date______________________

Jason Reising, Regional Client Executive

CONCUR:

____________________________Date______________________

Pedro Zepeda, Branch Chief

____________________________Date______________________

Pamela Collins, Director Real Estate Acquisition Division

APPROVED: ____________________________Date______________________

Jessica L. Escobedo R9 Regional Competition Advocate (Leasing)

DocuSign Envelope ID: 76DDF0F0-257A-4627-8E85-D856E1978A74

6/6/2023

6/8/2023

6/27/2023

6/26/2023