JOTFOC Redacted_Redacted.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 4

Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 8NC2211

Agency Name:

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

The General Services Administration currently leases 11,630 ABOA /12,889 rentable square feet (RSF) of office space at WILMINGTON, NC under lease number for the The current lease expires 05/09/2024. 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.

(INCLUDING ESTIMATED VALUE).

submitted a continui ed letter on 10/31/2022 for 12,889 rentable square feet of office and related space.

sufficient parking and access for disabled persons consistent with the Architectural Barriers Act Accessibility Standard (ABAAS).

This requirement is for 11,630 ABOA / 12,889 RSF of space for a 10 year, 5 year firm term to commence on 05/10/2024. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of .

The delineated area is:

North: I-40 from the intersection of Castle Hayne Road to combining with NC-17 to intersection with to Intracoastal Waterway.

East:

South: Intracoastal Waterway at Piner Road to intersection of Carolina Beach Road.

West: Carolina Beach Road from the intersection of Piner Road to Intersection at Shipyard Boulevard, Shipyard Boulevard to intersection of South 17th Street, South 17th Street to the split with South 16th Street (both are one way streets), South 16th Street to intersection with Market Street, Market Street to intersection with 23rd Street, 23rd Street to intersection with Castle Hayne Road, Castle Hayne Road to intersection with I-40.

* There is no vacant Federal Space available.

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 570.402-1(1) and GSAR 570-402-4 (no potentially acceptable locations). In accordance with GSAR 570.402-1(1) and GSAR 570.402-4, use of this sole source authority is appropriate when the contracting officer does not identify any potentially acceptable locations through advertisement or market survey.

4. DEMONSTRATION THAT THE

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 other potentially acceptable locations were identified through public advertisement or market research besides the incumbent. The GSA Broker Contractor placed an advertisement on the Contracting Opportunities domain of SAM.gov on 10/26/23 with a closing date of 11/17/2023, and received one expression of interest. In addition, within the prescribed delineated area. Upon review of the site submitted in response to the advertisement, to be located in a modern office building as the space offered was part of a strip mall. Furthermore, this area was a high trafficked retail center, also stipulated criteria for elimination.

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 10/26/23 with a closing date of 11/17/2023. As described above, also conducted market research using CoStar to search for available space, and placed calls to assess viability of sites found within the delineated area.

In response to the ad, there was a submission for a space located in a retail strip mall. This was that, there were no viable options or interest other than the

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market Wilmington, NC showed the rental rate within the delineated area ranges from $20.55 per RSF to $30.78 per RSF fully serviced, net of a tenant improvements allowance. This market information was obtained from CoStar listings in Wilmington, NC.

Therefore, the projected rental rates for this succeeding lease of $26.50 per rentable square feet (net of tenant improvements or a BSAC allowance) 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 570.402-4 allows for negotiation with the incumbent Lessor when the Lease Contracting Officer does not identify any potentially acceptable locations through advertisement or market survey.

potentially acceptable locations. In addition, PBS posted an advertisement conforming to GSAR 570.402- 2 on the Contract Opportunities domain of SAM.gov website on October 26, 2023 through November 17, 2023. In addition to the site offered that did not meet the Agen , as discussed above in paragraph 5, the incumbent Lessor provided an expression of interest. currently pays and in operating expense. The lessor will realign the operating expense base with current market, which will range between and $

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

The building has just undergone a mold remediation, which now obligates the Lessor to carpet and paint the entire space at no charge to the Government. Though this is not a cost based justification to stay in place, it should be noted that this recent work will eliminate any additional funds needed to update or refresh the space.

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

ACQUISITION.

Two parties expressed an interest in this procurement, including the incumbent Lessor.

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.

Additionally, objective scrutiny will be given to the c (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 12,889 and that this Justification is accurate and com knowledge and belief.

4/4/2024

X Alvin Jackson Alvin Jackson GSA Lease Contracting Officer Signed by: ALVIN JACKSON

12. .

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.

Concurred by:

4/5/2024

X Pamela Mitschke Pamela Mitschke Competition Advocate Signed by: PAMELA MITSCHKE

Approved by:

X Jeffrey M. Smith Regional Commissioner (R4)