JOTFOC0NC2155Redacted.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: 0NC2155

Agency Name:

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

The General Services Administration currently leases 50,245 ANSI/BOMA Occupant Area (ABOA) square feet (SF) /51,355 rentable square feet (RSF) of warehouse and office space at 103 Outer Banks Dr.

Havelock, NC 28532-1603 under lease number LNC01030 for the

The current lease expires 10/17/2024. 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 continuing need letter on 10/31/2022 for 50,245 ABOA /51,355 rentable square feet (RSF) of warehouse and office space. The mission of the is to maintain, train and equip combat-ready capable of winning wars, deterring aggression and maintaining freedom of the seas. The warehouse building the agency currently occupies includes a subsection of 16,140 square feet of Climate Controlled space. This portion of the warehouse stores climate sensitive equipment for the . The mission also requires them to be located within 15 minutie radius from To satisfy the facility must provide sufficient parking and access for disabled persons consistent with the Architectural Barriers Act Accessibility Standard (ABAAS).

This requirement is for 50,245 ABOA /51,355 RSF of warehouse and office space for a 10 year, 5 year firm term lease to commence on 10/18/2024. The estimated cost of this lease is 17.00 per rentable square feet per year for an annual cost of $873,035.00 and a total contract value of $8,730,350.00.

The delineated area is:

North: HWY 70 Traveling SE to HWY 101 and Outer Banks Dr.

East: Traveling South from the intersection of HWY 70 and McCotter South: Continue traveling west on McCotter West: Continue traveling Northwest on McCotter back to HWY 70

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(b)(1) and GSAR 570- 402-4 (no potentially acceptable locations). In accordance with GSAR 570.402-1(b)(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.

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 Lease Contracting Officer (LCO) placed an advertisement on the Contracting Opportunities domain of SAM.gov on April 14th, 2023 with a closing date of May 13th, 2023, and received one expression of interest. In addition, LCO conducted market research using CoStar to search for available space within the prescribed delineated area.

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 LCO placed an advertisement on the Contracting Opportunities domain of SAM.gov for 30 days. The LCO also conducted market research using CoStar to search for available space, and none where identified within the delineated area.

There were no expressions of interest other than the incumbent Lessor.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by GSA, in Havelock, NC showed the rental rate within the delineated area ranges from $11.66 per RSF to $31.73 per RSF fully serviced, net of a tenant improvements allowance. This market information was obtained from CoStar, Loopnet listings existing inventory in Havelock, NC.

Therefore, the projected rental rate for this succeeding lease of $17.00 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.

On January 1st, 2024, the LCO conducted market research using CoStar, Loopnet listings and evaluating , but did not identify any potentially acceptable locations. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website for 30 days. The incumbent Lessor provided an expression of interest.

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

The mission of the Navy is to maintain, train and equip combat-ready capable of winning wars, deterring aggression and maintaining freedom of the seas. The warehouse building the agency currently occupies includes a subsection of 16,140 square feet of Climate Controlled space. This portion of the warehouse stores climate sensitive equipment for the Navy. Though this is not a cost based justification to stay in place, it should be noted that duplicating this requirement is not in the best interest

Concurred by:

8/15/2024

8/15/2024

8/20/2024

8/20/2024