Redacted_0CA3065_Sole_Source_approved 4-26-21.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0CA3065

Agency Name: US Air Force (USAF), US Navy (USN), and US Coast Guard (USCG)

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

The General Services Administration currently leases 12,648 ABOA/15,589 rentable square feet (RSF) of office space along with 16 parking spaces at 10880 Wilshire Boulevard, Los Angeles, CA under lease number GS-09B-02304 for the USAF, USN, and USCG. The current lease expires April 30, 2021.

Approval is requested to negotiate a short-term lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a lease extension is detailed in GSAM 570.405(c)(1): Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

The lease contains 4,968 ABOA / 6,124 RSF of vacant space in which the Government does not have the termination rights to release. However, the Lessor agreed to release the vacant space at the commencement of the lease extension on May 1, 2021.

Due to the release of the vacant space, this requirement is for 7,680 ABOA / 9,465 RSF of space along with a total of 15 parking spaces for a 24-month term to commence on May 1, 2021. The USN also requested to reduce one unreserved parking space effective May 1, 2021. Additional COVID disinfectant cleaning is to be extended beyond the September 30, 2021 CARES Act funding. All terms and conditions are to remain the same. The estimated cost of this lease is $ per rentable square feet per year for an average annual cost of $ and a total contract value of $ . The delineated area is 10880 Wilshire Boulevard, Los Angeles, CA.

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. In accordance with FAR 6.302-1 and GSAR 570.405(c)(1), 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. The agencies will be moving to Federally controlled space located at the 11000 Wilshire Federal building. The extension is requested due to lack of requirements and funding from the agencies. Occupancy is estimated to be May 1, 2023.

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 USAF, USN, and USCG 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 $ . This figure is based on recent estimates performed by the Los Angeles Service Center in March 2021. Each of the agencies’ spaces contains .

will be costly to replicate for a short-term extension of 24 months.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Pursuant to the requirements of GSAR 570.106(d), lease extensions under the conditions defined in GSAM 570.405 are not required to be publicized. GSA did not solicit additional sources for this sole source procurement.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by GSA for a ½ mile radius from 10880 Wilshire Boulevard, Los Angeles, CA showed the rental rate within the delineated area ranges from $ to $ per RSF.

This information was obtained from CoSTAR.

Therefore, the proposed average rental rates for this lease extension 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 March 18, 2021, GSA conducted market research using CoStar and identified 3 potentially acceptable locations (2 plus the incumbent) that might meet the agency’s needs within the delineated area. Other buildings had the square footage available; however, did not provide the listing rental rate. The search resulted in buildings that were able to meet the agencies’ square footage requirement. The incumbent Lessor’s expression of interest indicated that the average rate would be $ per RSF. The interested party that provided the lowest cost quoted a rate of $ per RSF in its expression of interest; however, the listing rates provided by the market does not include the cost for parking. The incumbent Lessor’s quoted rate does include for the 15 parking spaces.

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

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

Rental Rate

[incumbent] Proposal (Year 1) $ /RSF

(Year 2) $ /RSF

10850 Wilshire Blvd, Los Angeles CoStar $ -$ /RSF

10900 Wilshire Blvd, Los Angeles CoStar $ -$ /RSF

Figure 1: Market Research Comparables

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

The tenants are satisfied with the services that are being provided by the incumbent Lessor.

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

ACQUISITION.

10880 Wilshire Blvd, Los Angeles, CA 90024 (incumbent)

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, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) 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.

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 lease extension of 9,465 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_____________________

Linda Luong, 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______________________

Linda Luong, Lease Contracting Officer

CONCUR: ____________ Date ________________ Veronica Montoya, Area Manager

___________________ Date ________________ Peter Zepeda, Branch Chief

_________________ Date ________________ Pamela Collins, Director Real Estate Acquisition Division

________________ Date ________________ Jordan Baker, Reviewing Attorney

R9 Assistant Regional Counsel

APPROVED: _____________ Date ________________ Jessica L. Escobedo, LAO

R9 Regional Competition Advocate

Certificate Of Completion Envelope Id: 155B8C8C0B6C42C8AF38AC3A5C5C0274 Status: Completed Subject: Please DocuSign: 0CA3065 Sole Source.docx Source Envelope:

Document Pages: 4 Signatures: 7 Envelope Originator:

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

1800F F St NW Washington DC, DC 20405 linda.luong@gsa.gov IP Address: 159.142.146.2

Record Tracking Status: Original

4/16/2021 10:44:59 PM

Holder: Linda Luong linda.luong@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 Linda Luong linda.luong@gsa.gov US General Services Administration Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image

Using IP Address: 159.142.146.2

Sent: 4/16/2021 10:52:08 PM Viewed: 4/17/2021 12:10:10 AM Signed: 4/17/2021 12:10:18 AM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Veronica Montoya veronica.montoya@gsa.gov Area Manager US General Services Administration Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address: 159.142.146.2

Sent: 4/17/2021 12:10:19 AM Viewed: 4/19/2021 5:07:13 PM Signed: 4/19/2021 5:07:30 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Pedro Zepeda pedro.zepeda@gsa.gov Branch CHief US General Services Administration Security Level: Email, Account Authentication (None)

Signature Adoption: Drawn on Device Using IP Address: 159.142.31.94

Sent: 4/19/2021 5:07:32 PM Viewed: 4/19/2021 6:09:00 PM Signed: 4/19/2021 6:44:45 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Pamela Collins pamela.collins@gsa.gov Director, Real Estate Acquisition Division US General Services Administration Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address: 159.142.146.2

Sent: 4/19/2021 6:44:47 PM Resent: 4/20/2021 12:17:29 AM Resent: 4/21/2021 4:17:19 PM Resent: 4/22/2021 7:53:15 PM Resent: 4/23/2021 9:11:57 PM Viewed: 4/26/2021 4:53:51 PM Signed: 4/26/2021 4:54:07 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Signer Events Signature Timestamp Jordan Baker jordan.baker@gsa.gov US General Services Administration Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style

Using IP Address: 98.42.96.170

Sent: 4/26/2021 4:54:08 PM Viewed: 4/26/2021 5:01:30 PM Signed: 4/26/2021 5:01:45 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Jessica L. Escobedo jessica.escobedo@gsa.gov Lease Acquisition Officer U.S. General Services Administration Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address: 68.98.43.111

Sent: 4/26/2021 5:01:47 PM Viewed: 4/26/2021 5:58:15 PM Signed: 4/26/2021 5:58:23 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

In Person Signer Events Signature Timestamp

Editor Delivery Events Status Timestamp

Agent Delivery Events Status Timestamp

Intermediary Delivery Events Status Timestamp

Certified Delivery Events Status Timestamp

Carbon Copy Events Status Timestamp

Witness Events Signature Timestamp

Notary Events Signature Timestamp

Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/16/2021 10:52:08 PM Certified Delivered Security Checked 4/26/2021 5:58:15 PM Signing Complete Security Checked 4/26/2021 5:58:23 PM Completed Security Checked 4/26/2021 5:58:23 PM

Payment Events Status Timestamps