Justification - REDACTED.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: 4WV0136

Agency Name: BOP

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

The General Services Administration currently leases 10,000 ABOA SF / 11,500 rentable square feet (RSF) of office space at 796 Foxcroft Ave, Martinsburg, WV under lease number LWV08352 for the BOP.

The current lease expires 10/28/2024. GSA awarded New Replacing Lease #LWV00929 in February 2023 to a new location. Additional time is required to design, construct, and relocate the BOP to the newly awarded Lease #LWV00929. The current Lease includes a five (5) year renewal with termination rights. Approval is requested to exercise the 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).

The BOP agrees with exercising the existing 5-year renewal for 10,000 ABOA SF / 11,500 RSF of space to commence on 10/29/2024. The estimated cost of this lease renewal is $27.71 per rentable square foot per year for an annual cost of $318,659.05 with a total contract value of $1,593,295.25 ($318,659.05 per year multiplied by 5 years). The delineated area is the city limits of Wheeling, WV. There is no vacant Federal Space available. The annual rent is considered below SLAT and broken down as follows:

10/29/2024 to 10/28/2029

Annual Rent

Shell Rent $211,800.00

Operating Costs $104,699.05

Other Space $2,160.00

Total Annual Rent $318,659.05

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 BOP 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 BOP using the low-cost quote exceeds the cost of remaining at their current location. The total savings to the Government is estimated at $1,002,798.

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 04/10/2024 with responses due by 4:00 PM EST on 04/29/2024. 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 for Martinsburg, WV identified rates within the delineated area ranging from $26.00 to $35.00 per RSF fully serviced. The GSA LCO utilized both responses to this advertisement and data from www.COSTAR.com.

Therefore, the proposed rental rates for this renewal of $27.71/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 04/10/2024. No expressions of interest were received in response to this advertisement other than the current location. 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 LWV08352. The anticipated annual rental of approximately $27.71 per RSF is well within the range identified in the GSA LCO’s market data and will allow both BOP and GSA additional time to design and construct their new space under New Replacing Lease #LWV00929. Additionally, as required by GSAM 509.105-1(b), the Lessor’s performance under the existing lease has been deemed acceptable by the GSA Field Office, and the Lessor has been responsive in addressing any lease administration issues. 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.

No expressions of interest were received other than the current location.

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 11,500 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_____________________ Dominic A. Innaurato, Lease Contracting Officer, 3PRNC