Marquette OFOC - REDACTED.pdf

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GENERAL SERVICES ADMINISTRATION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER LMI17059

PROJECT NUMBER 9MI2429

1055 W. Baraga Street Marquette, MI 49855-4068

This request for approval is submitted in accordance with FAR 6.304(2) and GSAM 570.405 c

(2) Lease Extension.

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED

The General Services Administration currently leases 2,948 ABOA/3,122 rentable square feet

(RSF) of office space at 1055 W. Baraga Street, Marquette, MI 49855-4068 under lease number LMI17059 for the . The current lease expires 9/30/2020.

Approval is requested to negotiate an extension of the current lease with the incumbent

Lessor without full and open competition to enable continued occupancy at this leased location.

In order to comply with the Commissioner of GSA’s initiative to save taxpayer dollars through rental savings we have been prioritizing our procurements based on the overall value of the contract and the potential for rental savings. In situations where the space currently occupied has been confirmed by the GSA Property Manager to be capable of meeting the government's continued needs and agencies continued mission need Region 5 is extending the lease based on the small financial risk to the government. Moving actions forward through extensions will allow the region to focus on deals with higher financial impact, realign our expiring workload in a phased manner and realize the organization's goal of longer term strategic planning.

At this time, we have not received long term requirements from the agency. An extension would allow us time to firm up requirements and set long term housing needs for the agency.

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

NEEDS (INCLUDING ESTIMATED VALUE).

The is currently located at 1055 W. Baraga Street, Marquette, MI, 49855-4068 under lease number LMI17059 in 3,122 ABOA/2,948 rentable square feet (RSF) of office space. This 10 year / 5 year firm term lease is due to expire on 9/30/2020. In order to meet the agency’s ongoing mission requirement an extension of the lease is required. GSA in

Region 5 has been faced with agency delays in providing requirements for long term procurements for years creating delays in our ability to address agencies longer term space needs. In addition, the high number of leases expiring in the next 3 years has required Region

5 to use planned extensions of lower value contracts to allow resources to focus more on the larger, higher value contracts where the Government has more financial exposure. Extending of this lease for 3 years/ 2 years firm, commencing on 10/1/2020 is estimated to be per rental square foot resulting in a total cost of for the 3 year extension

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION.

41 U.S.C. 253 (c) (1)

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED.

It would be cost prohibitive and not in the best interest of the government to move the agency for the short term of this extension. The cost to replicate the tenant improvements and move the agency would be approximately per rentable square foot prior to considering the rental rate or operating costs. The current space is capable of meeting the agency’s current mission needs for the short term of this extension and can be extended without the expenditure of replication cost. Expending the funds to replicate space to be used for only 3 years would be a waste of taxpayer dollars and is not in the best interest of the government. It is GSAs intention to finalize a long-term follow on procurement concurrent to the expiration of this proposed extension term.

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

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

After discussion with the GSA Property Management office it was confirmed that the location is acceptable to meet the housing needs of the agency for the extension period. With that information it was determined that proceeding with an extension was in the best interest of the government and therefore no additional sources were contacted. The long term procurement to be conducted during the term of this extension will consider all buildings that fall within the delineated area of said procurement.

GSA Region 5 currently has this project on the 36 month planning cycle and it is projected that this project’s long term housing solutions will be completed during this extension term.

6. DEMONSTRATION BY THE CONTRACTING OFFICE THAT THE ANTICIPATED COST

TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

From the current data we have, we believe the lessor would be willing to enter into a 3 year extension that we currently believe will fall within the market range. The range is anticipated to be between . CoStar market research conducted on 9/25/2019 indicates current market rates for this area to be between . The anticipated cost for this extension should fall above this market range. Although the extension rate will be above the market range, the cost of moving the agency and replicating the space would be far higher.

Therefore, the anticipated rate for this extension is considered fair and reasonable. The delineated area for the market research is the city limits of Waite Park, MN.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

A formal market survey was not conducted for this lease extension as moving the agency for the short term of this extension would be cost prohibitive and disruptive to the agency but will be conducted during the long term replacement procurement that will be conducted during the extension period.

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

COMPETITION.

In order to comply with the Commissioner of GSAs initiative to save taxpayer dollars through rental savings we have been prioritizing our procurements based on the overall value of the contract and the potential for rental savings. In situations where the space currently occupied has been confirmed by the GSA Property Manager to be capable of meeting the government's continued needs and agencies continued mission need Region 5 is extending the lease based on the small financial risk to the government. Moving actions forward through extensions will allow the region to focus on deals with higher financial impact, realign our expiring workload in a phased manner and realize the organization's goal of longer term strategic planning.

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

ACQUISITION.

Not Applicable

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

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

Through continued focus on longer term strategic planning with our clients and negotiating longer lease terms GSA will be able to better manage our inventory and reduce the need for short term noncompetitive lease extensions.

11. CONTRACTING OFFICER CERTIFICATION

I, the Lease Contracting Officer, certify that the above information is accurate and complete to the best of my knowledge.

Prepared by:

11/21/2019

Veronica Reyes Date Leasing Specialist

Approved by:

11/21/2019

Thomas Nisivaco Date Lease Contracting Officer (LCO)