Justification REDACTED - 1WV2084.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Renewal

U.S. General Services Administration

GSA Region 3, 3PRNC

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1WV2084

Agency Name: IRS

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

The General Services Administration currently leases 3,080 ABOA/3,418 rentable square feet (RSF) of office space at The Horne Building, 1100 Main Street, Wheeling, WV under lease number LWV12128 for the IRS. The current lease expires 12/22/2024. Approval is requested to exercise a five (5) year renewal with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a renewal is detailed in GSAR 570.401: Renewal Options (https://www.acquisition.gov/content/570.401-renewal-options.?&searchTerms=570.401).

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

(INCLUDING ESTIMATED VALUE).

IRS signed the CPA Part 2 on 09/08/2022 for 3,080 ABOA/3,418 RSF of space for a 5-year term to commence on 12/23/2024. The estimated cost of this lease is $14.30201 per rentable square feet per year for an annual cost of $48,884.28 and a total contract value of $244,421.40. The delineated area is the city limits of Wheeling, WV. . 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. In accordance with GSAR 570.402, use of the sole source authority is appropriate where it is determined that award to any other offeror would result in substantial 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.

It is in the best interest of the Government to remain at the current location. Award to other than the current Lessor would require relocation of the entire requirement and would cause IRS to incur move and replication costs that would not be recovered through competition. Additionally, this allows the Government to make use of existing tenant improvements and avoiding replication costs. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating IRS using the low-cost quote exceeds the cost of remaining at their current location. The total savings to the Government is $144,609.00.

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 02/27/2024 with responses due by 4:00 PM EST on 03/15/2024. In addition, the GSA LCO conducted market research using www.COSTAR.com to identify any potential locations.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Market data conducted by the GSA LCO in Wheeling, WV showed the rental rate within the delineated area ranges from $14.00 to $24.00 per RSF. The GSA LCO utilized both responses to this advertisement and data from www.COSTAR.com.

Therefore, the proposed rental rates for this succeeding lease of $14.30201/RSF, are well 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.

The GSA LCO conducted market research using websites including www.COSTAR.com. In addition, the GSA LCO placed an advertisement conforming to GSAM 570.404 on the SAM Web site (www.SAM.gov) on 02/27/2024. Expressions of interest were received in response to this advertisement. The advertisement and research concluded with the current location being the best option within the delineated area capable of meeting the Government’s minimum requirements.

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

This action is for a short-term solution for expiring lease LWV12128. The anticipated annual rental of approximately $14.30201 per RSF is well within the minimum identified in the GSA LCO’s market data and will allow both IRS and GSA additional time to gather new long-term requirements for this specific office. Additionally, as required by GSAM 509.105-1(b), the Lessor’s performance under the existing lease has been acceptable, and the Lessor has been responsive in addressing any lease administration issues. An Asset Tester was conducted with the results being positive, along with confirmation from the GSA Field Office regarding the Lessor’s past performance. A search of the Inventory and Reporting (IRIS) web-based system within the PBS Portal, along with follow-up to the GSA Fire Protection and Life Safety (FPLS) Team, identified no outstanding fire and life safety issues. Therefore, the Lessor’s performance meets the Government’s expectation for quality performance.

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

ACQUISITION.

Contact: Jennifer Bell, Century Realty, 919-264-3164, jennbell.jb40@gmail.com Property Address: 1233 Main Street, Wheeling, WV Availability: From 2,000 Up to 9,000 SF of available office space spread over floors Asking Rates: $22.00 Fully Serviced of which $8.00 to $9.00 is for Operating Rent. This is for minimal buildout. If GSA were to require complete gut and rebuild, the rates would be higher.

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. Should there be remaining useful life in the Government’s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action.

Additionally, objective scrutiny will be given to the customer agency’s mission and security requirements (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 5-year Renewal of 3,418 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.

SIGNATURE ON FILE____________________________ Date_____________________ Dominic A. Innaurato, Lease Contracting Officer, 3PRNC