LCA02564_JOTFOC_Redacted.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2CA1758

Agency Name: SOCIAL SECURITY ADMINISTRATION (SSA)

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

The General Services Administration currently leases 8,575 ABOA, 9,870 RSF of office space at 800 Claremont St., San Mateo, CA. under lease number GS-09B-02564 for the SSA. The current lease has a rental rate of $56.57 per RSF per year and expires 12/31/2025. Approval is requested to negotiate one renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a renewal option is detailed in GSAR 570.401: Renewal Options.

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

(INCLUDING ESTIMATED VALUE).

GSA has confirmed the need for a renewal option at this leased location. SSA is in process of evaluating future long term space needs, including what adjustments should be made to office designs and space allocation standards in the post-COVID work environment. The renewal option allows the Government to protect occupancy while this evaluation occurs.

This requirement is to add one five-year renewal option. The estimated cost of the option is per RSF per year for an annual cost of . The total contract value of this option is estimated to be .

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. In accordance with FAR 6.302-1, 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 SSA to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be

. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . Current space includes, but is not limited to, private offices, DocuSign Envelope ID: F8862A10-A841-4C77-AC8A-E70F636E54D6 large training/conference room, private and public restrooms, interview areas/barrier walls, and large waiting room.

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, GSA placed a notice in the System for Award Management, Contracting Opportunities (SAM) on 07/06/2023 for 10 days. There were no responses to the SAM notice.

In addition, GSA conducted market research using Costar and Bullseye Report..

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating SSA using the low cost estimate exceeds the cost of remaining at 800 Claremont St., San Mateo, CA. The total savings to the government is .

As seen in Section 7, the proposed rental rates for this renewal of are within 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.

On 02/07/2023, GSA conducted market research using Costar and Bullseye Report and identified six potentially acceptable locations (five plus the incumbent) that might meet the agency’s needs within the delineated area. All the locations are office spaces with available square footage for this requirement. In addition, GSA placed a notice conforming to GSAR 570.402-2 on SAM on 07/06/2023. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF.

See Figure 1 below for the results of the market research and SAM notice, including the incumbent.

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

800 Claremont St.

San Mateo,CA [incumbent]

EOI /RSF

400 S. El Camino Real San Mateo, CA*

Costar RSF

181 2nd Ave San Mateo, CA*

Costar /RSF

2 W 5th Ave San Mateo, CA*

CoStar /RSF

101 S Ellsworth Ave San Mateo, CA*

CoStar /RSF

520 S. EL Camino Real CoStar /RSF

San Mateo, CA* *includes market escalations over 5 years

Figure 1: Market Research Comparables

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

The SSA is satisfied with the leased space and the GSA Lease Administration Manager confirmed the Lessor is responsive. There are no documented fire protection and life safety deficiencies for the location.

There have been no previous renewal options added to this lease and there is no increase in square footage.

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

ACQUISITION.

Raiser Construction Co., Inc. (incumbent)

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 addition of one renewal option 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_____________________

Susan Baghdikian, Lease Contracting Officer

12. PREPARER’S TECHNICAL CERTIFICATION.

3/6/2024

I certify that the supporting data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief.

__ ________________________ Date______________________

Phuong Vuu, Leasing Specialist

CONCUR: __ _________Date______________________ Pedro Zepeda, Branch Chief

__ _________Date______________________ Jes R9 Leasing Advocate for Competition

__ __________Date______________________ Pamela Collins, Director Real Estate Acquisition Division

_ _________Date______________________ Jo ng Attorney R9 Assistant Regional Counsel

_ ______Date______________________ Amanda Sweeney Deputy Regional Commissioner

APPROVED: __ _______Date______________________ Dan R. Brown, HCA Regional Commissioner Public Buildings Service Pacific Rim Region

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