REDACTED 3FL0581_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_or_SLAT-level_Memo_to_File_and_Supporting_Documentation_3FL0581_SSA_Pensacola_Renewal_Justification.docx_20260908_19_9_9_2026 (1).pdf

Docusign Envelope ID: BAB10EFC-7FED-8CDD-8057-CC3B1034598A

Revised MAR 2026

Justification for Other Than Full and Open Competition, Renewal

U.S. General Services Administration

PBS, Office of Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3FL0581

Agency Name: Social Security Administration (SSA)

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

The General Services Administration currently leases 16,984 ABOA/18,137 rentable square feet (RSF) of office space and 120 surface parking at 411 West Garden Street Pensacola, FL 32502 under lease number GS-LFL60110 for the Social Security Administration (SSA). The current lease expires April 10, 2027. Approval is requested to exercise an unevaluated five-year renewal with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a renewal are detailed in GSAR 570.401: Renewals.

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

(INCLUDING ESTIMATED VALUE).

SSA submitted a continuing need letter on January 17, 2025 for 18,137 rentable square feet of office and related space. To satisfy the SSA mission requirements, the agency has identified that staying in place with no tenant improvements or alterations represents the best interest of the agency and aligns with the agency's operating principles. The agency has occupied the current location for the last ten years and tenant improvement payments will conclude upon expiration of the current lease on April 10, 2027. The lease contract gives the General Services Administration the right to exercise a five-year renewal option, provided written notice is sent to the Lessor 180 days before lease expiration. At the time of lease execution, this renewal option was not evaluated. The lease contract rate for the renewal option lists $40.78 PRSF for shell plus operating costs which amounts to $53.03 fully serviced. However, the lessor’s expression of interest indicated a reduced rate to bilaterally execute the five-year renewal of $34.00 for shell plus operating which amounts to $46.25 fully serviced. It is this reduced rate renewal option that GSA now evaluates, in accordance with GSAR 570.401, to remain in place.

This requirement is for 16,984 ABOA/18,137 RSF of space for a five-year renewal term to commence on April 11, 2027. As noted above, the estimated cost of this five-year renewal term is $46.25 per rentable square feet per year for an annual cost of $838,849.57 and a total contract value of $4,194,247.85. The delineated area is North: Airport Blvd, South: Bayfront Blvd, East: 12th Ave, West: Main Street. There is no vacant Federal Space available.

($46.25073441 per RSF x 18,137) X 5 Years = $4,194,247.85 Lease Total Value

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: FAR 6.103-1 (GSA Class Deviation RFO- 2025-06) and GSAR 570.401. In accordance with GSAR 570.401, 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 SSA to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $1,498,179.00. Additionally, remaining in place under the renewal option allows the Government to make use of existing tenant improvements, avoiding replication costs of $5,380,492.89. In addition to the build out of the office space, upgraded security would have to be replicated if they were to move. The cost of relocating SSA exceeds the cost of remaining at 411 West Garden Street Pensacola, FL 32502. The total savings to the Government is $1,129,305.00.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, the GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on July 22, 2026 for 20 days. In addition, PBS conducted market research using Bullseye/CoStar to identify potential locations.

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 Pensacola, Florida showed the rental rate within the delineated area ranges from $26.00 to $45.50 per RSF (full service) according to data sourced from CoSTAR and Moody’s Commercial Real Estate. There were no expressions of interest to the advertisement.

Therefore, the proposed full-service renewal rate of $46.25 per RSF, is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

GSAR 570.401 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 July 13, 2026, PBS conducted market research using CoStar/Bullseye. Pensacola is not within a REIS market so no Bullseye target was identified. A CoStar report identified two potentially acceptable locations (one plus the incumbent) that might meet the agency’s needs within the delineated area. The potential alternative location at 1 Energy Place did not express interest in the opportunity and is used for market research purposes only. The cost to duplicate the Social Security Administration’s office would exceed the cost to remain in place. In addition to market research, PBS posted an advertisement conforming to GSAR 570.401 on the Contract Opportunities domain of SAM.gov website on July 22, 2026. GSA received two email inquiries (excluding the incumbent) in response to the advertisement.

Both parties (excluding the incumbent) that inquired in response to the advertisement requested clarifying information but did not present interest and did not supply any quotes or interest in fulfilling the requirements of the advertisement. The incumbent Lessor was the only expression of interest which indicated that the full service rate would be $46.25 per RSF.

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

[incumbent]

411 W Garden Street Pensacola, FL

Incumbent $46.25

411 W Garden Street Pensacola, FL (incumbent)

1 Energy Place Pensacola, FL CoStar $41.00

350 W. Cedar Street Pensacola, FL Moody’s Commercial Real Estate

$45.50

Figure 1: Market Research Comparables

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

Per the GSA LAM, Katherine Langham, as noted on July 13, 2026, the incumbent lessor’s past performance has been very satisfactory and there are no issues within the agency’s space.

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

ACQUISITION.

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, the existing lease includes a second unevaluated renewal option that may be exercised.

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 lease renewal of 18,137 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.

9/8/2026 | 19:43:53 BST

Date Heather Driskell, 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 9/8/2026 | 19:43:53 BST

Heather Driskell, Lease Contracting Officer

13. ATTACHMENTS

NA

Reviewed for legal sufficiency by:

9/8/2026 | 19:53:13 BST

Leigh Erin S. Izzo, Senior Assistant General Counsel Date Office of the General Counsel, Real Property Law Division

Concurred by:

9/8/2026 | 20:00:24 BST

Gina DiTommaso Date Competition Advocate