JOTFOC-Redacted.pdf

Justification for Other Than Full and Open Competition

U.S. General Services Administration

GSA Region 2

PBS Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0NY2767

Agency Name: NASA/GODDARD

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

The General Services Administration currently leases 29,805 ABOA/34,276 RSF of office space at New York, NY under lease number GS-02P-LNY22725 for NASA/GODDARD. The current lease expires February 14, 2021. Approval is requested to negotiate an extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location.

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

(INCLUDING ESTIMATED VALUE).

This requirement is for 29,805 ABOA/34,276 RSF of space for a term of six (6) months firm. From February 15, 2021 – August 14, 2021.

The estimated cost of this lease extension is the existing rate of per rentable square feet per year for an annual cost of with a six (6) month total contract value of .

The delineated area is:

North – West 122 nd

Street, New York, NY.

South – West 110 th Street, New York, NY.

East – Morningside Avenue, New York, NY.

West – West End Avenue, New York, NY.

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.

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED.

A new/replacing competitive lease procurement was completed in 2015. The incumbent Lessor was awarded the new/replacing 10 year lease on June 26, 2015. It is in the best interest of the Government to remain at the current location.

(b) (4)

(b) (4) (b) (4)

(b) (7) (A)

The present space is currently being built to meet The National Aeronautics and Space Administration and The Goddard Space Flight Center’s (NASA/GODDARD) new requirements. This extension is being requested in order to provide sufficient time for the new Tenant Improvements to be completed.

Completion of the new Tenant Improvement (TI) is scheduled to be completed by the 3rd Quarter of 2021. Upon the completion of the TI buildout, the current lease will terminate.

Moreover an award to other than the current Lessor would require moving and replication costs that would not be recovered through competition. Relocation costs are estimated to be $342,003.96.

Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $2,522,678.59, along with $306,183.72 worth of BSAC. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and is attached to this justification. The cost of relocating NASA/GODDARD using the low cost alternative exceeds the cost of remaining at 2880 Broadway, New York, NY with a total savings to the Government of $3,370,961.34.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402, the GSA Lease Contracting Officer conducted market research using the CoStar Group, Inc.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Based on the CoStar Group’s report available properties within the Harlem/Morningside Heights reflect a market rent range from p.s.f.

The anticipated rental rate for this lease extension of RSF is below the current market range for this submarket and is deemed fair and the best value to the Government.

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 December 1, 2020, PBS conducted market research using the CoStar Group’s report and identified four (4) potentially acceptable locations (three [3] plus the incumbent) that might meet the agency’s needs within the delineated area.

See Figure 1 below for the results the CoStar Group’s market research report:

Figure 1: Market Research Comparables

Address

Source

(CoStar Group)

Asking Full Service Rental

Rate

2880 Broadway Present Lease per rentable square foot

2108 Adam Clayton Powell, Jr. Boulevard GSA IRS Lease full service rental

(levelized)

8 East 125th Street CoStar Group modified gross rental

215 West 125th Street CoStar Group modified gross rental

(b) (4)

(b) (4)

(b) (4)

(b) (4)

(b) (4)

(b) (4)

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

According to the GSA Lease Administration Manager, there are no outstanding office issues which we need to have the Lessor address for the Government once the Lease is extended.

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

ACQUISITION.

N/A

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In 2015, The Government completed a new/replacing competitive lease procurement for The National Aeronautics and Space Administration and The Goddard Space Flight Center’s (NASA/GODDARD). The incumbent Lessor was awarded the new/replacing 10 year lease on June 26, 2015.

The present space is currently being built to meet NASA/GODDARD new requirements. This extension is being requested in order to provide sufficient time for the new Tenant Improvements to be completed.

Completion of the new Tenant Improvement is scheduled to be completed by the 3 rd Quarter of 2021.

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 lease extension of 34,276 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_____________________

Eduardo Vidal Lease Contracting Officer

12. CONCURRED BY:

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______________________

Daren Marshall Branch Chief

13. CONCURRED BY:

__________________________________________ Date_____________________

Raffaela Battiloro, Lease Acquisition Officer Leasing Division (2PR)

15. CONCURRED BY:

Crofton Whitfield, Acting, Leasing Director Leasing Division (2PR)

16. REVIEWED FOR LEGAL SUFFICIENCY BY:

Leigh Erin Izzo, Senior Assistant Regional Counsel (2L)

17. APPROVED BY:

Warren F. Hall, Jr., Competition Advocate (2P)

AVG Market Rate per RSF $ Total Est. Const Cost* # -$

Tenant Electric Cost (if rate above is not Fully Serviced) -$ Cost of Furniture & Moving 11.47$

Cost of Non-Market Shell Items (Warm Lit vs Cold Dark) 5.00$ Voice & Data Replication -$

Gov't Comparable AVG FS Rate per RSF $

Anticipated FS Rate per RSF to Stay in Place $

Present Location Alternate Location

Aggregate Rent $ $

Rentable SF 34,276 New Amortized TI -$ 2,870,259.50$

Usable SF 29,805 Cost of Physical Move -$ 342,003.96$

TI & BSAC Allowance 2,828,862.31$ Voice & Data Move -$ -$

TIA & BSAC per USF for Expenditure 94.91$ Estimate RWA Needed* -$

Total Aggregate Cost $ $

TI Amortization Rate 5%

Soft Term (months) 0 Full Term Savings 3,370,961.34$ Firm Term (months) 6

6 months

# 0.50 years

Cost Benefit Analysis of a Lease Extension

Total Term

*Please check box above if NO RWA will be needed to replicate space if moved.

Move Costs per USF

Full Term Analysis

Contract Scope

Market Analysis

(b) (4)

(b) (4)

(b) (4)

(b) (4) (b) (4)

(b) (4)(b) (4)