JOTFOC_9GA2235_final_redacted.pdf

Justification for Other Than Full and Open Competition, Lease Extension

U.S. General Services Administration GSA Region 4

Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 9GA2235

Agency Name: SOCIAL SECURITY ADMINISTRATION

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

The General Services Administration (GSA) currently leases 27,122 ABOA/31,775 rentable square feet (RSF) of office space at 245 Peachtree Center Ave. NE, Atlanta (FULTON), GA, under lease number LGA44080 for the Social Security Administration. The current lease expires 08/31/2021. Approval is requested to negotiate an extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing an extension are detailed in GSAR 570.405: Lease Extensions.

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

(INCLUDING ESTIMATED VALUE).

Social Security Administration submitted a continuing need letter on 11/12/2020 for 31,775 rentable square feet of office and related space to satisfy the Social Security Administration mission requirements.

This requirement is for 27,122 ABOA/31,775 RSF of space for a 2-year term to commence on 09/01/2021. The proposed action is a strategic extension to allow time for the completion of the agency’s planned federal space in the Peachtree Summit Federal Building, Atlanta, Georgia.

The short-term requirement to extend the current lease for a two-year term with one-year firm is estimated to be valued at:

rate/rsf x 31,775 rsf = (Annual Rent) x 2 years =

Firm Term Total Firm Term Total -+ Non + Renewal Option(s) Total + ension Total Ext = Total Contract Value:

The delineated area is Downtown, Atlanta.

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 Social Security Administration 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 Social Security Administration using the low-cost quote exceeds the cost of remaining at Marquis One Tower. The total savings to remain in place for a short-term extension .

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

POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.405, the GSA Lease Contracting Officer placed an Intent to Award on the Contracting Opportunities module of beta.SAM on December 17, 2020, for 21 days. In addition, PBS conducted market research using CoStar.

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 Atlanta, Georgia showed the rental rate within the delineated area ranges from per RSF. CoStar

Therefore, the proposed rental rates for this extension of RSF, 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 12-08-20, PBS conducted market research using CoStar and identified 12 potentially acceptable locations (11 plus the incumbent) that might meet the agency’s needs within the delineated area. None of the buildings except for the incumbent are able to meet the short-term requirement until the federal space is completed. In addition, PBS posted an intent-to-award notice conforming to GSAR 570.402-5 on the Contract Opportunities module of beta.SAM website (beta.sam.gov) on December 17, 2020. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF. There was only one other interested party in this short-term requirement.

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

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

245 Peachtree Center Ave. NE Lessor Proposal

270 Peachtree CoStar $22.50

100 Edgewood CoStar $34.00

101 Marietta CoStar $32.00

133 Peachtree CoStar $27.50

191 Peachtree CoStar $35.50

225 Peachtree CoStar $24.50

233 Peachtree CoStar $24.50

235 Peachtree CoStar $24.50

34 Peachtree CoStar $25.00

100 Peachtree CoStar $31.50

250 Williams CoStar $24.50

Figure 1: Market Research Comparables

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

Past performance of the Lessor indicates no outstanding issues. The most recent property inspection revealed the leased space is well maintained and in good condition.

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

Incumbent Lessor – 245 Peachtree Street NE, Atlanta, Georgia

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent.

The Government will remain conscious of the effort to continuously encourage competition when practicable.

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 an extension of 31,775 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.

1/21/2021

X Marc Skinner

Lease Contracting Officer

Signed by: MARCUS SKINNER

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.

1/21/2021

X Teresa J. Holmes

Teresa J. Holmes

Leasing Specialist

Signed by: TERESA HOLMES

APPROVED BY:

1/21/2021

X Darnell Chavis

Darnell Chavis

Georgia Branch Chief

Signed by: DARNELL CHAVIS 1/21/2021

X Heather Driskell

Heather Driskell

Lease Acquisition Officer

Signed by: HEATHER DRISKELL 1/21/2021

X LaSonya A Glover

LaSonya Glover

Leasing Director

Signed by: LASONYA GLOVER

Expired certificate

X Ben Lorber

Legal Counsel

4L

Signed by: BENJAMIN LORBER

1/22/2021

X Pamela Mitschke

Pamela Mitschke

Competition Advocate

Signed by: General Services Administration