LPR19208RedactedJOTFOCApr14.pdf

Justification for Other Than Full and Open Competition

U.S. General Services Administration

GSA Region 2

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0PR2154

Agency Name: National Labor Relations Board / Department of Human Services – Medicare & Medicaid

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

The General Services Administration currently leases 12,409 rentable square feet (RSF) yielding 11,120 ANSI/BOMA Office Area square feet (ABOA SF) of office space at La Torre de Plaza 525 F.D. Roosevelt Ave, San Juan, PR 00918 under lease number LPR19208 Deleted- Deleted – Deleted - Deleted The current lease expires June 30, 2022. Approval is requested to negotiate an unevaluated, added renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location to provide time to develop agency’s long-term requirements.

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

(INCLUDING ESTIMATED VALUE).

This requirement is for 12,409 RSF yielding 11,120 ABOA SF of office space to add renewal option (5) years to commence on July 01, 2022.

DeletedXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Deleted There is no vacant Federal Space available. GSA is currently in the early stages of working on the long-term procurement.

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 570.401. In accordance with GSAR 570.401, 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 the NLRB and the

HHS/CMS to incur move and replication costs that would not be recovered through competition.

Amortized tenant improvement is estimated to be XXXXXXX in addition to XXXXXX in estimated replication of telephone, furniture and data moving cost. Additionally, this allows the Government to make use of existing tenant improvement and avoid replication costs. The National Labor Relations

Board facilities are already built out and satisfy their continuing mission requirements. Duplication of the NLRB and HHS/CMS requirements in a new location for such a short period of time would not only be costly, but also cause interruption to the agency’s mission.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating the NLRB and HHS/CMS using the low-cost quote exceeds the cost of remaining at La Torre de Plaza 525 F.D. Roosevelt Ave, San Juan, PR 00918.The total savings to the Government is

XXXXXXX.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

The Leasing Specialist contacted the market via cold calling and by reviewing recent market surveys done in the area to determine if there were viable alternative buildings in the delineated area that could meet the government need also an AD was placed in SAM on April 27,2021 and became inactive May 26, 2021during that period no entity showed interest.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by GSA in San Juan, Puerto Rico showed two (2) commercial/office buildings that appeared to have the available square footage. A fully service agreement including operating cost and a warm lit shell of XXXX ranges from XXXX to XXXX. Therefore, the proposed rent of XXXXX is below market range. The average market midpoint is XXXXXX. The Government anticipates that the negotiated cost to the Government will be fair and reasonable.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.402-5 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. In April 2021, GSA conducted market research using local brokers and cold calls DELETED

XXXXXXXXXXXXXXXX DELETED.

See Figure 1 below for the results of the cost benefit analysis.

Incumbent in San Juan, PR Lowest Price Technically accepted

Annual Rental Rate per SF xxxxx xxxxxx

Tenant Improvement Cost xxxx xxxxx

Cost of Move Furniture xxx xxxx

Cost of Voice and Data Move xxx xxxxx

Total Cost (5 years) xxxxx xxxxx

Full Term Lease /Aggregate Cost Savings xxxxxxxxxx

Figure 1: Cost benefits analysis comparison

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

The Lessor is responsible and has provided adequate service to the Government throughout the life of the Lease.

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

ACQUISITION.

An AD was placed in SAM on April 27, 2021 and became inactive on May 26,2021 during that period no entity showed interest.

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, The Government is pursuing a competitive procurement that will be in the best interest of the agency.

Additionally, consideration will be given to the customer agency’s mission and security requirements to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable. The renewal lease term will protect the Government’s occupancy while the ongoing new replacing action is sought. GSA is in the early stages of the long-term procurement action and believes it will be completed before the expiration of the lease renewal.

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 renewal of 12,409/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_____________________ 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______________________ Thomas Landron Morales, Leasing Specialist

Concurred by:

__________________________________________ Date ______________________

Jeannette Rios

Branch Chief Leasing Division (2PR)

Concurred by:

__________________________________________ Date ______________________

Raffaela Battiloro

Lease Acquisition Officer – Leasing Division (2PR)

Concurred by:

__________________________________________ Date ______________________

Crofton Whitfield

Leasing Division Director – Leasing Division (2PR)

Concurred by:

__________________________________________ Date ______________________

Leigh Erin Izzo - Senior Assistant Regional counsel (2L)

Approved by:

__________________________________________ Date _______________________

Warren F. Hall, Jr.

Region 2 Competition Advocate (2PG)