Redacted - 2NC0449_2_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_or_SLAT-level_Memo_to_File_and_Supporting_Documentation_Signed_JOTFOC_1_3_2024_Redacted.pdf

Justification for Other Than Full and Open Competition, Superseding Lease

U.S. General Services Administration

GSA Region 4

Region 4 Sunbelt Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: Rexus 2NC0449

Agency Name: Social Security Administration (SSA)

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

The General Services Administration currently leases 74,000 ABOA/ 93,610 rentable square feet (RSF) of office space at 3604 Louis Stephens Drive, Research Triangle Park, NC 27709-0211 under lease number GS-04B-LNC46076 for the Social Security Administration (SSA), also referred to as the “SSA Data Center.”

The current lease expires January 15, 2029. Approval is requested to negotiate a superseding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location.

The right to pursue a superseding lease is detailed in GSAR 570.404: Superseding Leases.

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

NEEDS (INCLUDING ESTIMATED VALUE).

Social Security Administration (SSA) submitted a continuing need letter on August 03, 2023, for 93,610 rentable square feet of office and related space. To satisfy the Social Security Administration’s mission requirements, the current facility must meet the required Uptime Institute Teir III Certification infrastructural upfit alteration. This facility must always remain online to support a wide portfolio of cloud computing services for use by SSA business units to accomplish the agency’s mission objectives, and provide cost effective, secure, and reliable services to enable mission execution. This location houses agency applications (116 production applications) in the Cloud, 300+ Cloud Deployments, 77,000+ Cloud Infrastructure. SSA delivers financial SSA payments of roughly 5% of the gross domestic product to the US. SSA also delivers disability, retirement, and other social security benefits to over 73 million beneficiaries. If the facility’s digital services are unavailable, this could account for $2 million per hour in economic impact to the US.

This requirement is for 74,000 ABOA/ 93,610 RSF of space for a 15-year firm term to commence on January 16, 2024. The estimated cost of this lease is $25.93 years 1-5 / $39.13 years 6-15 per rentable square feet per year based on the informational quote received from the incumbent lessor during the market analysis stage of the project. The annual cost of Years 1-5 $2,428,066.17 and Years 6-15 $3,663,271.8,7 and a total contract value of $48,772,509.55. The delineated area is West: State Road 55 (Apex Highway), North State Road 54, East: State Road 885 (North Carolina Hwy), South: Hopson Road.

There is no vacant Federal Space available.

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. See FAR 6.302-1 and GSAR 570.404. In accordance with GSAR 570.404, use of this sole source authority is appropriate when the Government needs numerous or detailed modifications to the space that would cause complications or substantially change the present lease or when market conditions warrant renegotiation of an existing lease.

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. The SSA Data Center in Research Triangle Park is one of two critical SSA data centers in the nation that has a complex design and anti-terrorism features. It includes complex systems with full generator backup, raised floor systems and intricate telecommunication and data systems that operates 24/7, among other unique features. It produces mailings for the American people, a critical mission requirement for SSA, and is an essential facility for the SSA to perform its mandated mission.

In the third quarter of FY22, SSA notified GSA of its need for numerous and detailed modifications to the data center, including: upgrading the facility to an Uptime Institute Tier III Certification to meet critical infrastructure resilience in its mission to provide services to the American people, altering the 1st floor mail room to relocate the existing Print Mail Facility to the 1st floor allowing the agency to expand those mission operations, and replacing a battery to facilitate data center operations. Since the alterations are complicated and will substantially change the present lease, and since market conditions have changed from when the Lease was awarded in 2009, a renegotiation of the existing lease is warranted.

In addition, SSA has advance internet and technology installations, specialized heating, ventilation, and HVAC for data equipment. Installed 2.5 MV diesel generator w/ 11,000-gallon fuel storage tanks.

Enhanced space security installations with an FSL level IV. These existing space alterations would all have to be replicated if the agency were to relocate.

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 Oct 31, 2023, for 10 days. In addition, Public Properties and PBS conducted market research using CoStar and telephone.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS and Public Properties in Charlotte, North Carolina showed the rental rate within the delineated area ranges from $22.00 – $41.00 per RSF. Sources used were CoStar, REIS, and broker analysis.

Therefore, the proposed rental rate received from incumbent’s informational quote during the market analysis stage of the project for $25.93 in years 1-5 and $39.13 in years 6-15, are within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer.

Certificate Of Completion Envelope Id: C2BA27F03991477A9CBA8FA14CFD3353 Status: Completed Subject: Complete with DocuSign: 2NC0449 JOTFOC_2023.12.28 (Add Regional Competition Advocate Signature) Source Envelope:

Document Pages: 6 Signatures: 1 Envelope Originator:

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

1800F F St NW Washington DC, DC 20405 leshaundra.greer@gsa.gov IP Address: 172.0.49.168

Record Tracking Status: Original

1/3/2024 1:49:04 PM

Holder: LeShaundra Greer leshaundra.greer@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 Jeff Smith jeff.smith@gsa.gov Regional Commissioner GSA PBS Region 4 Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style Using IP Address: 174.210.164.120

Sent: 1/3/2024 1:53:00 PM Viewed: 1/3/2024 4:02:07 PM Signed: 1/3/2024 4:09:42 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 r4leasingacquisitionplansandjotfocs@gsa.gov r4leasingacquisitionplansandjotfocs@gsa.gov Security Level: Email, Account Authentication (None)

Sent: 1/3/2024 1:53:00 PM Viewed: 1/3/2024 2:19:03 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Witness Events Signature Timestamp

Notary Events Signature Timestamp

Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 1/3/2024 1:53:00 PM Certified Delivered Security Checked 1/3/2024 4:02:07 PM Signing Complete Security Checked 1/3/2024 4:09:42 PM Completed Security Checked 1/3/2024 4:09:42 PM

Payment Events Status Timestamps