JOTFOC_Redacted.pdf

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1AZ2184

Agency Name: )

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

The General Services Administration currently leases 25,007 ABOA/25,588 rentable square feet (RSF) of on-airport space located at 6335 S. Downwind Circle, Mesa, AZ 85212-6433 under lease number GS-09B-

02192 for The current lease expires December 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).

submitted a continuing need letter on January 20, 2022 for 25,007 ABOA/25,588 RSF of special use on-airport space for a 15-year firm term, with 1 option to renew for 5 years to commence on December 30, 2024. The estimated full service cost of this lease is per RSF per year for an annual cost of and a total contract value of The delineated area is the Phoenix-Mesa

Gateway Airport. There is no vacant Federal Space available.

The agency requires space to house its office operations as well as a detainee holding facility, a physical fitness area, sensitive compartmented information facility (SCIF), vault, interview/detention area, and sally port. In addition, the agency requires specialized on-airport space which has room to park three (3) Boeing

737 Class airplanes, and a ramp to access the airport runways for take off and landing. The aircraft and ramp must be located adjacent to the detainee holding facility to allow for regular movement between the holding facility and aircraft. The space for the aircraft is key to the critical mission function of the agency.

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 570.402-4, No potential acceptable locations (on-airport requirement).

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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. No potential acceptable locations are available for this special use on-airport requirement for . The agency operates multiple large aircraft including at least three (3) Boeing 737 Class airplanes, and requires space to park the aircraft and a ramp to access the airport with the aircraft. The aircraft and ramp must be adjacent to the leased space, which is used as a detainee holding facility and is key to the critical mission function of the agency. Other special use spaces at the current location include a physical fitness area, sensitive compartmented information facility (SCIF), vault, interview/detention area, and sally port. The incumbent space has been built to the agency’s specifications and continues to serve the agency’s purpose and requirements.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402-4, the GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on August 9, 2022 for 20 days. In addition, GSA conducted additional market research by inquiring about vacant Federal space with the United States Postal

Service (USPS) and the Department of Defense (DoD). Market research was also conducted via internet searches on Loopnet.com and CoStar. Only the incumbent Lessor responded to the advertisement.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

A market search conducted on June 23, 2022 yielded 3 results for combined office and hangar space, however none of the possible locations meet all of the requirements of the agency. The lessor has stated that the proposed full service rental rate would be between and per RSF. A non-competitive situation is created by on-airport requirement and market comparisons for similar on-airport space are unavailable. Therefore, the proposed rental rate of /RSF, is deemed fair and reasonable by the

GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On June 23, 2022, PBS conducted market research using an internet search and Loopnet.com and identified 3 potentially acceptable locations (3 plus the incumbent) that might meet the agency’s needs.

However, one of the locations is in pre-construction and construction is not anticipated to be complete until late 2023, the second location is at a different airport which could not accommodate the agency’s planes and does not contain the square footage required, and the third is outside the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of

SAM.gov website on August 9, 2022. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF. No other expressions of interest were received.

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

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