JOTFOC - Succeeding Lease Indy Domiciliary Redacted.pdf

Justification for Other Than Full and Open Competition, Indianapolis, IN Domiciliary Succeeding Lease

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 570.402-1(b)(1) and (2), use of the sole source authority is appropriate where the lease contracting officer does not identify any potential acceptable locations through advertisement and market research, or when potential acceptable locations have been identified, but a cost benefit analysis indicates that award to an offeror other than the present lessor would result in substantial relocation costs or 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.

The VHA Lease Contracting Officer did not identify any potential acceptable locations through the advertisement or survey of the market. Section 5 and 7 of this justification describes efforts to locate alternative sources. Therefore, in accordance with GSAR 570.402-4: No Potential Acceptable Locations, a cost benefit analysis is not required.

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 VA Lease Contracting Officer placed a Presolicitation notice on the Contracting Opportunities domain of SAM.gov on October 23, 2024, for fifteen (15) days. No parties expressed interest or responded to the Presolicitation effort. In addition, market research was conducted using the CoStar and LoopNet websites for potential solutions for the requirement.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Market research, conducted 04/28/2025, by the Lease Contracting Officer, demonstrated rental rates net of taxes, insurance, and utilities (NNN) for the succeeding lease within the Indianapolis, IN market ranges from $17.00 to $25.00 per RSF ($44.81 – $52.81 per RSF when adjusted for utilities). The anticipated first year rental rate for this succeeding lease, consisting of a Shell Rent of NNN per RSF, plus first year Operating Rent of per RSF for a FSR of per RSF falls within the market research range as adjusted for utilities, and is determined fair and reasonable by the Lease Contracting Officer.

The proposed shell rental rate, as extended, is less than $1M in un-serviced annual rent.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

Tactical Market research was conducted using LoopNet and CoStar to assist in identifying potential acceptable locations, other than the current location. No other acceptable locations were available within delineated area or surrounding city based on LoopNet and CoStar searches.

In addition, NCO 10 Contracting Office posted an advertisement (sources sought notice) conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 11/04/2024. The incumbent Lessor’s expression of interest in response to the Contract Opportunities Notice indicated a rate of net of operating costs per RSF ( fully serviced). No other party provided an expression of interest. See Table below for the results of the SAM.gov advertisement and CoStar market research.

Justification for Other Than Full and Open Competition, Indianapolis, IN Domiciliary Succeeding Lease

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

Remaining at the current location under the proposed succeeding lease would allow the local VA Medical Center (VAMC) to continue operations without disruption. The incumbent Lessor has a strong past performance record with VHA. The Lessor has successfully performed all obligations to present under the expiring lease and the VHA Client Agency is satisfied with the current location’s building condition.

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

ACQUISITION.

Incumbent

And no others

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

Burns Development Inc.

9152 Kent Ave A150 Indianapolis, IN 46216 e-mail correspondence in response to SAM Contract Opportunities

(NNN)

OpCost Fully Serviced Rent (FSR))

No Others In response to SAM Contract Opportunities

Georgetown Medical Plaza 4880 Century Plaza Road Indianapolis, IN 46254

CoStar $20-$25/RSF NNN $27.81 OpCost

$47.81 - $52.81 FSR

College Park 14 3535 W. 86th Street Indianapolis, IN 46268

CoStar $17 - $20/RSF NNN $27.81 OpCost

$44.81 - $47.81 FSR

Castleton Commons 8310-8410Castleton Corner Dr Indianapolis, IN 46250

CoStar $17 - $21/RSF NNN $27.81 OpCost

$44.81 - $48.81 FSR

Figure 1: Market Research Comparables