Pre-Redact JOFOC - Legal Revision_Redacted Final.pdf

Revised 10-23-2023

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 10

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1WA2263

Agency Name: Department of Homeland Security Customs and Border Protection (DHS

CBP)

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

The General Services Administration currently leases 11,217 ABOA/13,756 rentable square feet (RSF) of office space at 300 5th Ave, Seattle WA under lease number GS-10B-LWA07011 for the DHS CBP. The current lease expires December 1, 2024. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

(INCLUDING ESTIMATED VALUE).

DHS CBP submitted a continuing need letter on September 12, 2022 for 13,756 rentable square feet of office and related space. To satisfy the DHS CBP mission requirements, the facility must be in the central business district of Seattle, WA and must not share space with other DHS CBP components. Onsite parking must allow for 17 spaces for Government owned vehicles.

This requirement is for 11,217 ABOA/13,756 RSF of space for a 20-year term to commence on December 2, 2024. The estimated cost of this lease, based on the incumbent lessors anticipated rate, is:

Term Rate per RSF Total Annual Rent Years 1-5 $553,541.44 Years 6-10 $622,321.44 Years 11-15 $691,101.44 Years 16-20 $759,881.44

Total Contract Value $13,134,228.80

The delineated area is the central business district of Seattle, WA. As per the GSA asset manager for Seattle, there is no vacant Federal Space available to house this space requirement.

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 570.402. In accordance with GSAR 570.402, 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 DHS CBP 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 A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating DHS CBP using the low-cost quote exceeds the cost of remaining at 300 5th Ave, Seattle, WA. The total savings to the Government (relocation expenses, replication costs, and rental rate) is $4,921,468.

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 GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on March 21, 2024 for 7 days. In addition, PBS utilized CoStar to conduct market research. Representatives from three buildings contacted the Lease Contracting Officer requesting information regarding the agency intended for this lease, no rates were provided upon further inquiry.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by PBS in Seattle, WA (REIS) showed the full-service Bullseye rental rate within the delineated area is per RSF.

Therefore, the incumbents proposed rental rates for this succeeding lease of RSF, are within the 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.

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.

On February 12, 2024, PBS conducted market research using CoStar and identified 5 potentially acceptable locations (4 plus the incumbent) that might meet the agency’s needs within the delineated area. All locations listed indicate vacant space that can meet the agency’s need in CoStar. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on March 21, 2021. The incumbent Lessor’s expression of interest indicated that the initial rate would be per RSF with step increases occurring every five years. No other party provided a rate to the Lease Contracting Officer.

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

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

5th & Yesler – 300 5th Avenue EOI

Millennium Tower – 719 2nd Avenue CoStar

QualtricsTower – 1201 2nd Avenue CoStar $

999 Third – 999 3rd Avenue CoStar $

Columbia Center – 701 5th Avenue CoStar $

Figure 1: Market Research Comparables

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

GSA conducted lease inspections indicate that the lessor promptly corrects identified deficiencies.

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

ACQUISITION.

Broker Building Rate

No Building Provided No Rate Provided

Provided No Rate Provided

Provided

No Rate Provided (Outside of the

CBD)

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 award of a succeeding lease of 13,756 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

______________________________ Date_____________________ 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 nd belief.

________________________________ Date______________________ sing Specialist

CONCURRED BY

_______________________ Date______________________ rvisory Lease Contracting Officer

__________________________ Date______________________ ase Acquisition Branch Chief

_______________________ Date______________________ etition Advocate

APPROVED BY

_________________________ Date______________________ BS Regional Commissioner

REVIEWED BY

______________________ Date______________________

Certificate Of Completion Envelope Id: 00B8B8A529EA44CEA25CA4F895FE6BC9 Status: Completed Subject: Complete with DocuSign: 1WA2263//DHS CBP Seattle - Succeeding Lease - JOFOC Source Envelope:

Document Pages: 4 Signatures: 7 Envelope Originator:

Certificate Pages: 2 Initials: 0 Madison Simmons AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC) Dublin, Edinburgh, Lisbon, London

1800F F St NW Washington DC, DC 20405 madison.simmons@gsa.gov IP Address:

Record Tracking Status: Original

5/28/2024 6:40:21 PM

Holder: Madison Simmons madison.simmons@gsa.gov

Location: DocuSign

Security Appliance Status: Connected Pool: FedRamp Storage Appliance Status: Connected Pool: US General Services Administration Location: DocuSign

Signer Events Signature Timestamp Madison Simmons madison.simmons@gsa.gov Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address:

Sent: 5/28/2024 7:05:50 PM Viewed: 5/28/2024 7:06:04 PM Signed: 5/28/2024 7:06:14 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Lindsay Vanover lindsay.vanover@gsa.gov Leasing Specialist US General Services Administration Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address:

Sent: 5/28/2024 7:06:15 PM Viewed: 5/28/2024 7:07:26 PM Signed: 5/28/2024 7:10:19 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Samantha Barr samantha.barr@gsa.gov US General Services Administration Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style

Using IP Address:

Sent: 5/28/2024 7:10:20 PM Viewed: 5/28/2024 7:11:19 PM Signed: 5/28/2024 7:11:38 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Eric Shreves eric.shreves@gsa.gov

SLCO

US General Services Administration Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address:

Sent: 5/28/2024 7:11:39 PM Viewed: 5/28/2024 7:46:20 PM Signed: 5/28/2024 7:46:24 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Signer Events Signature Timestamp Lindsey Snow lindsey.snow@gsa.gov Leasing Director US General Services Administration Security Level: Email, Account Authentication (None)

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Sent: 5/28/2024 7:46:25 PM Viewed: 5/28/2024 8:05:50 PM Signed: 5/28/2024 8:07:46 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Elizabeth Kruger betsy.kruger@gsa.gov Regional Counsel

LDA

Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address:

Sent: 5/28/2024 8:07:49 PM Viewed: 5/30/2024 6:28:12 AM Signed: 5/30/2024 6:28:27 AM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Lisa Pearson lisa.pearson@gsa.gov Regional Commissioner US General Services Administration Security Level: Email, Account Authentication (None)

Signature Adoption: Uploaded Signature Image Using IP Address:

Sent: 5/30/2024 6:28:28 AM Viewed: 5/31/2024 11:36:36 PM Signed: 5/31/2024 11:39:14 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

In Person Signer Events Signature Timestamp

Editor Delivery Events Status Timestamp

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Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 5/28/2024 7:05:50 PM Certified Delivered Security Checked 5/31/2024 11:36:36 PM Signing Complete Security Checked 5/31/2024 11:39:14 PM Completed Security Checked 5/31/2024 11:39:14 PM

Payment Events Status Timestamps