JOTFOC - Laredo 1TX2636 CBP - Over SLAT (REDACTED).pdf

Revised 12-06-2022

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration GSA Region 7

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1TX2636

Agency Name: DHS-CBP OPERATIONS FACILITIES & TACT INFRASTRUCTURE

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

The General Services Administration currently leases 8,954 ABOA/9,775 rentable square feet (RSF) of office and special space at 500 E Mann Rd, Laredo, TX under lease number GS-07P-LTX17234 for the CBP. The current lease expires 9/14/24. 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).

CBP submitted a continuing need letter on 3/18/22 for 9,775 RSF of office and related space and 120 secured parking spaces. This requirement is for 8,954 ABOA/9,775 RSF of space for 15 years, 5 years firm term, to commence on 9/15/24. The estimated cost of this lease is $31.50 per rentable square foot per year, for shell and operating expenses, for an annual cost of $307,912.50 plus $1,570 per parking space for 120 secured parking spaces for exclusive use of the Government. The annual cost for parking is $188,400.

The total contract value is $7,444,687.50. The delineated area is:

● North – W Del Mar Blvd to E Del Mar Blvd

● East – Bob Bullock Loop

● South – Clark Blvd to N Arkansas Ave to Guadalupe St to San Dario Ave to Water St

● West – Santa Maria Ave

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 the contracting officer does not identify any potential acceptable locations.

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. Following the procedures set forth in GSAR 570.402-4 a cost-benefit analysis is not required since no potential alternate locations were identified.

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 8/15/22 for 5 days. In addition, GSA conducted market research using CoStar and LoopNet. The incumbent lessor submitted an expression of interest with an informational quote of $31.50/RSF. There were no other expressions of interest submitted.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by GSA in Laredo, TX show rental rates within the delineated area ranges from $29.25 to $35.75 per RSF according to CoStar. The incumbent lessor provided an informational quote rental rate of $31.50 per RSF, exclusive of parking costs estimated at $1,570 per space.

The quoted rate is within the current market range for this submarket.

Therefore, the proposed total full service rental rate with parking for this succeeding lease of $31.50/RSF and $1,570 per space for secured parking, 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.

On 3/24/22, GSA conducted market research using CoStar and identified 0 potentially acceptable locations, not including the incumbent, that might meet the agency’s needs within the delineated area. In addition, GSA posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 8/15/22. The incumbent Lessor’s expression of interest indicated that the rate would be $31.50 per RSF, for shell and operating. Updated market research on 3/6/23, using CoStar and LoopNet.com confirmed the scarcity of space and found rates have increased by 28% to 32%. The proposed rental rate of $31.50 per RSF is within the market range. Despite several market outreach attempts, no other offerors expressed interest and there is a lack of available alternatives. Only the incumbent expressed an interest.

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

500 E Mann Rd, Laredo, TX (incumbent) EOI $31.50 * *rate does not include parking Figure 1: Market Research Comparables

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

The current location satisfactorily meets all of the customer agency’s requirements, including a large parking lot, necessary to meet their mission and allows the Government to continue operations without disruption.

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

ACQUISITION.

500 E Mann Rd., Laredo, TX (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 award of a succeeding lease of 9,775 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.

__________________________________________________ Date_____________________ Adrienne Jackson, 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____________________ Aaron LaBoon, Project Manager

___________________________________________________ Date____________________ Nicole Simmerman, Leasing Specialist

13. CONCURRED BY:

Jan Trevino, Leasing Director

Legal Counsel

14. APPROVED BY:

Competition Advocate