Redacted 1KS2053 SSA JOTFOC.docx

Justification for Other Than Full and Open Competition, Succeeding Lease NOTE: THIS TEMPLATE REFLECTS WORDING AND CITATIONS FOR SUCCEEDING LEASE ACTIONS WHERE POTENTIALLY ACCEPTABLE LOCATIONS HAVE BEEN IDENTIFIED, REQUIRING THE COMPLETION OF A COST BENEFIT ANALYSIS (CBA). SUCCEEDING LEASE JUSTIFICATIONS BASED ON MISSION OR LACK OF ALTERNATIVE ACCEPTABLE LOCATIONS MUST USE DIFFERENT WORDING, AS APPLICABLE FOR THE CIRCUMSTANCES.

JUSTIFICATIONS FOR OTHER TYPES OF ACTIONS (SUPERSEDING LEASES, EXTENSIONS, EXPANSIONS, UNEVALUATED RENEWAL OPTIONS) MUST USE THE SAME HEADINGS, BUT WITH DIFFERENT WORDING AND CITATIONS, AS APPLICABLE.

U.S. General Services Administration GSA Region 6 Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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

The General Services Administration currently leases 9,058 ABOA/9,410 rentable square feet (RSF) of office space at Kansas Commerce Center, 15375 W 95TH ST, LENEXA, KS under lease number LKS41036 for the Social Security Administration. The current lease expires 05/31/2025. 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).

Social Security Administration submitted a continuing need letter on 01/03/2024 for 9,058 ABOA of office and related space. ACTION REQUIRED: INCLUDE THIS FOR SUCCEEDING LEASES INVOLVING PROSPECTUS-LEVEL PROJECTS. OTHERWISE, DELETE.

This requirement is for 9,058 ABOA of space for a 7-year term to commence on 06/01/2025. The estimated cost of this lease is $14.00 per rentable square feet per year for an annual cost of $131,740.00 and a total contract value of $922,180.00. The delineated area is the City Limits of LenexaACTION REQUIRED: INCLUDE THIS SENTENCE FOR SUCCEEDING LEASES REQUIRING CENTRAL OFFICE REVIEW AND APPROVAL. OTHERWISE, RECOMMENDED BUT OPTIONAL. There is no vacant Federal Space available.

THE GSAR CITATION [570.402] ONLY APPLIES FOR SUCCEEDING LEASE JUSTIFICATIONS. IF THIS IS NOT A SUCCEEDING LEASE ACTION, REVISE GSAR CITATION AS FOLLOWS:

· RENEWAL: 570.401

· SUPERSEDING: 570.402 AND 570.404

· EXTENSION, 570.405

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 Social Security Administration to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $20,818.91. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $1,013,406.00 A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating Social Security Administration using the low-cost quote exceeds the cost of remaining at Kansas Commerce Center. The total savings to the Government is $1,316,629.00.

[REVISE TEXT IF NO ACCEPTABLE ALTERNATIVES WERE IDENTIFIED OR IF THE CLIENT AGENCY HAS A MISSION-BASED REASON FOR SOLE SOURCE PROCUREMENT. A COST-BENEFIT ANALYSIS IS NOT REQUIRED UNDER THESE CIRCUMSTANCES. REVISE GSAR REFERENCE ABOVE TO 570.402-4, WHICH ADDRESSES SITUATIONS WHERE NO POTENTIAL ACCEPTABLE LOCATIONS WERE FOUND.]

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 01/30/2024 for 15 days. In addition, the Leasing Specialist conducted market research using CoStar.

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 Lenexa, KS showed the total fully serviced rental rate within the delineated area ranges from $15.00 to $27.00 per RSF (CoStar). A bullseye report was obtained for the project, which stated that the average full service, rental rate for the Northwest Johnson County office submarket in Lenex, KS is $25.35.

Therefore, the proposed rental rate for this succeeding lease of $14.00/RSF is below the current market range for this submarket and is 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.

DELETE THE PARAGRAPH ABOVE AND REVISE TEXT BELOW IF NO ACCEPTABLE ALTERNATIVES WERE IDENTIFIED OR IF THE CLIENT AGENCY HAS A MISSION-BASED REASON FOR SOLE SOURCE PROCUREMENT. A COST-BENEFIT ANALYSIS IS NOT REQUIRED UNDER THESE CIRCUMSTANCES.

On 01/04/2024 PBS conducted market research using CoStar and identified 18 potentially acceptable locations, including the incumbent lessor, that might meet the agency’s needs within the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 01/30/2024. The incumbent Lessor’s expression of interest indicated that the rate would be $14.00 per RSF. The only party to express an interest in this opportunity was the incumbent, therefore, the lowest cost quoted was $14.00 per RSF.

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

Figure 1: Market Research Comparables

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

The incumbent lessor’s performance has been very good. The agency and GSA Field Office attest to the space to be well maintained and in good condition.

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

There were no expressions of interest for the acquisition other than the incumbent Lessor.

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 9,410.00 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_____________________ Gayle S. Dunning, 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______________________ L. Elaine Henderson, Leasing Specialist Revised 10-23-2023