Modesto JOTFOC_Redacted with exemptions.pdf

Revised 12-06-2022

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 VA 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 . Replication costs include furniture and equipment for the build out of clinical space to include Heating, Ventilation, and Air Conditioning (HVAC), enhanced conference rooms with video teleconferencing capabilities, and .

Additionally, the VA Lease Contracting Officer did not identify any potential acceptable locations through the advertisement or survey of the market. Section 5 and 7 of this justification describes efforts to locate alternative sources. Therefore, in accordance with GSAR 570.402-4: No Potential Acceptable Locations, a cost benefit analysis is not required.

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

AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402, the VA Lease Contracting Officer placed a sources sought/succeeding lease advertisement on the Contracting Opportunities domain of SAM.gov on September 12, 2023 for 30 Days under Notice ID: 36C10F23R0120. In addition, market research was conducted using CoStar on 5/23/23.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the VA Lease Contracting Officer in Modesto, CA using CoStar showed the rental rate within the market area ranges from per RSF unserviced, which did not include TI built-out costs for medical use.

A adjustment is added for VA specific medical space to these costs as data on medical facilities is not provided by CoStar. (This increase is based on years of comparing commercial rates to the rates received from offerors for VA specific medical space and proves to be accurate.) The adjusted market rental rate is between $ per RSF unserviced based on the adjustment.

In addition, VA has adopted increased physical security and sustainability standards for its build-to-suit lease projects. To reflect these costs, an additional per RSF is added. The total adjusted market rental rate is between $ per RSF unserviced.

Therefore, the anticipated rental rate for this succeeding lease of per RSF unserviced, is within the current market range for this submarket and are deemed fair and reasonable by the VA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On May 23, 2023, market research was conducted using CoStar and only three (3) potential locations were identified, including the incumbent. However, only the incumbent location meets the agency’s needs within the delineated area. In addition, the VA Lease Contracting Officer posted an advertisement conforming to GSAR 570.402- 2 on the Contract Opportunities domain of SAM.gov website on September 12, 2023. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF unserviced, per RSF fully serviced. This is the only offer received from the advertisement.

(b) (5)

(b) (5)

(b) (7)(F), (b) (7)(E)

(b) (5)

(b) (5)

(b) (5) (b) (5)

(b) (5)

(b) (5)

(b) (5)

(b) (4)

(b) (4)

(b) (4)