JOTFOC Safford AZ 3.14.23 - JS pdf.pdf

“LEASE EXTENSION” JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER: L08PL00479

DELEGATED PROJECT NO. DAZ10531-001

LEASE LOCATION: Safford, AZ AGENCY NAME: Bureau of Land Management (BLM)

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED.

The BLM currently leases and occupies approximately 31,633 rentable square feet (RSF)/30,662 usable square feet (USF) of space consisting of 19,042 USF of office space and 11,620 USF of warehouse space; and 85,000 SF of wareyard space located at 714 14th Ave, Safford, AZ 85548 under BLM’s delegated lease authority, lease number L08PL00479. The current lease expires on May 31, 2024.

Delegated authority is requested to enter into a lease extension with the incumbent landlord for continued occupancy, without full and open competition.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED.

The BLM has a continuing need for 31,633 RSF of space in Safford, AZ.

BLM’s Agency Specific Requirements (ASR) package will be submitted to the General Services Administration-Public Building Services (GSA), in Fall of 2023. The lease extension will provide GSA the time it needs to complete a new lease acquisition as well as complete any necessary tenant improvements. BLM is requesting a Term of sixty (60) months, twelve (12) months firm, ending May 31, 2029.

The estimated annual rental cost for the extended Term is ). The total contract value, not including estimated annual CPI adjustments pursuant to the terms of the current Lease, is approximately

3. IDENTIFICATION OF STATUTORY AUTHORITY.

41 U.S.C. §3304, Use of noncompetitive procedures; and GSAM 570.405, Lease Extensions.

4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED.

GSAM 570.405. Subsection (a): applies to extension of the Term of a lease to provide for continued occupancy on a short-term basis; and subsection (c): FAR 6.302-1 permits contracting without providing for full and open competition when the property or services needed by the agency are available from only one responsible source and no other type of property or services will satisfy the needs of the agency. 41 U.S. Code §3304, subsection (a)(1): the property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.

5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL.

On February 24, 2022, the BLM, National Operations Center (NOC) duly published a pre-solicitation notice in FedBizOpps in accordance with the provisions of GSAM 570.402-2 and received (1) response from the current Lessor that meets BLM’s requirements. The incumbent lessor expressed an interest in entering into a lease extension.

6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE.

In accordance with FAR 6.303-2(b)(7), the Contracting Officer determined by certifying this document that the anticipated cost to the Government of is fair and reasonable, as further explained below.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

L08PL00479

7. DESCRIPTION OF MARKET SURVEY CONDUCTED.

BLM staff conducted a preliminary market analysis within the project area to determine the availability of comparable and more economical sites and was unable to identify any sites in the survey area that could accommodate this requirement.

A costar and loopnet search were performed which identified comparable properties in Safford, AZ which could be used to compare rental rates. BLM ran a report for all comparable properties in Arizona within the BLM portfolio which could be used to identify a fair market rate. Based upon the survey, it was determined that the annual rental range for similar BLM space is between to Full Service. Therefore, the estimated annual rental rate of represents a rate within the market range for the area. Remaining in the facility also represents a cost savings to the taxpayer especially when considering the costs of phone/data installation, moving, and tenant improvements required at a new location for a short term extension.

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

If the current lease was allowed to terminate, with the current lack of suitable facilities available, the AZFO would be put into a difficult position, without adequate space to operate and causing interruption to the delivery of public services and functions. Additionally, holdover situations are not preferable and avoided whenever possible. Approval of the proposed lease extension will maintain the uninterrupted delivery of services while providing flexibility through a right to terminate clause after the expiration of the first 12 months of the extended lease Term, which will allow the government to act quickly should relocation be required.

Cost Benefit Analysis Results (Approx.):

Cost of Alternate Space for 60 Months Moving Costs for Telecom and Data Moving Costs for Physical Move Tenant Improvement Allowance (60 month amortizatio RWA for above TI Allowance Cost Total Costs Expected for Alternate Location

Cost of Existing Space for

Cost of Existing Space for 60 Months Moving Costs for Telecom and Data Moving Costs for Physical Move Tenant Improvement Allowance RWA for above TI Allowance cost Total Costs Expected for Existing Location

Minimum Savings to the Government to Remain in Current Facility

9. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUSITION.

interested parties responded to the fedbizopps.gov advertisement that met BLM’s requirements other than the current lessor.

10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION IN A FUTURE

PROCUREMENT FOR THIS SPACE REQUIREMENT.

Approving this lease extension provides GSA the time it requires to complete a new lease acquisition as well as make any necessary tenant improvements or renovations. BLM is requesting a full Term of five (5) years, one (1) year firm, ending March 31, 2029.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

L08PL00479

11. CERTIFICATIONS AND APPROVAL.

The Contracting Officer certifies the information provided in this requested justification is accurate to the best of his/her knowledge and belief, and believes award of the requested lease extension without full and open competition is valid and in the Government’s best interest.

Prepared by:

Concurred b

Approved by:

Real Estate Leasing Chief