LNJ24182_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_Redacted.pdf

private offices, meeting rooms and a waiting room. Duplication of such requirements in a new location would be a significant cost burden for the Government, for the short term of this lease action. In addition, the building is a Class A office in the heart of downtown Morristown, just off the historic Green, and is conveniently located with easy access to Routes 202, 10 and Interstate 287.

The cost of relocating using the Bullseye target rate in the cost benefit analysis exceeds the cost of remaining at . The total savings to the Government is . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.401 GSAR 570.401 allows for negotiation with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition. As a result of the above referenced cost benefit analysis and market research, the cost to move and replicate an already existing office for a temporary period would be excessive and not in the best interest of the Government.

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, the GSA Leasing Specialist, placed an advertisement on the Contracting Opportunities domain of SAM.gov on March 28, 2023 for 14 days. In addition, conducted market research using sources of market data such as CoStar, CBRE-EA and REIS. The SAM,gov advertisement yielded no responses from the public.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research was conducted in Morristown, NJ and showed the rental rates, within the delineated area, to range from , as per the Bullseye Report. The sources of market data are (See Exhibit B – Bullseye Report)

The Bullseye target rate of was used as the market comparable for the purposes of cost-benefit analysis. In addition to this, the full Tenant Improvement Allowance of was amortized over five (5) years, at 7% interest. The Government would also incur furniture moving costs of approximately and voice and data moving costs of approximately . This equates to an estimated total cost of if the Government were to move to a new location. (See Exhibit A – CBA)

The current Lease is fully serviced inclusive of all expenses in a Class A building. On March 22, 2023, market research was conducted and eleven (11) buildings, with higher-end 4 & 5 Star rating buildings within the city of Morristown, NJ appear to have the available square footage necessary to meet the agency's requirements. The market research showed price rates for fully serviced agreement ranges from

, for office buildings with 4 & 5 Star ratings, not including TI when adjusted to reflect the non-market shell requirements of a GSA lease in the amount of , the market range becomes . (See Exhibit C – )

Therefore, the proposed rental rate for this lease of , for the five (5) year renewal term is within the current market range for this submarket for Class A buildings. The proposed rent for this renewal of is deemed fair and reasonable by the GSA Lease Contracting Officer, due to the Aggregate Cost Savings associated with staying in place totaling in which substantial duplication cost are not expected to be recovered by the Government through competition.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.401 allows for negotiation with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition.

The table below compares the cost of staying in place at the current location at the current rent with the cost of relocating to a new location, at the Bullseye rate of . The overarching savings to the Government when remaining in place is an estimated total of as demonstrated below and in Exhibit A (See Exhibit A – CBA).

this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.

__________________________________________________ Date_____________________ Nel Morales Vias, Lease Contracting Officer

12. PREPARER’S TECHNICAL CERTIFICATION.

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______________________ Javier Escobar Molina, Leasing Specialist

13. REVIEWS AND APPROVALS.

Concurred By:

Raffaela Battiloro, Lease Acquisition Officer Date

Jeannette Rios, Leasing Division Director Date

Reviewed for Legal Sufficiency by:

Leigh Erin Izzo, Legal Counsel Date

Approved By:

Warren F. Hall, Jr., Competition Advocate Date