REDACTED 8IL2393 JOTFOC.pdf

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 5

PBS

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 8IL2393

Agency Name: XXXXXXX

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

The General Services Administration currently leases 10100 ABOA/11,716 rentable square feet (RSF) of office space ESPLANADE V AT LOCUST POINT, 3250 Lacey Rd , DOWNERS GROVE, IL under lease numberLIL19018 for the BUR OF ALCOHOL,TOBACCO,FIREARMS & EXPLOSIVES (ATF). The current lease expires 12/31/2023. Approval is requested to insert a renewal option 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).

AGENCY submitted a continuing need letter on 6/22/2022 for 11,716 rentable square feet of office and related space.

This requirement is for 10100 ABOA/11716 RSF of space for a 5-year term to commence on 01/01/2024.

The estimated cost of this lease is per rentable square feet per year for an annual cost of $XXXXXX and a total contract value of $XXXXXXX. The delineated area is the city limits of the Village of Downers Grove IL. 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. This statutory authority is implemented through GSAM 570.401 which allows for negotiation with the incumbent lessor for a renewal option to provide for continued occupancy.

The Government is currently working on obtaining long term Lease requirements to replace the existing Lease which expires 12/31/2023, and the Government has encountered unexpected delays outside of its control in finalizing requirements.

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 during the renewal period.

The cost of a temporary relocation during upon lease expiration would far exceed the cost of the contemplated renewal option. Award to other than the current Lessor would require relocation of the entire requirement and would cause ATF to incur move and replication costs that would not be recovered through competition.

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 7/1/2023 for 20 days. In addition, Amanda Kruse conducted market research using Costar and was unable to find any building whose availability and offered terms would suit ATF’s needs.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS in DOWNERS GROVE, IL showed the rental rate within the delineated area ranges from $24.86-$22.86 per RSF. The market data was extremely limited and only 3 building were found in the delineated area that could potentially meet the agencies requirements.

Therefore, the proposed rental rates for this renewal of $XXX RSF, is above the current market range for this submarket however, this price per square foot does not outweigh the substantial cost associated with replication and relocation costs and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On 8/1/2023, market research was conducted using CoStar. The market research showed the rental rate within the market area ranges from $XX to $XX.

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

Remaining at the current location under a 60 month (60 month firm) renwal avoids a holdover and allows the Government to continue operations without disruption.

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

ACQUISITION.

N/A

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 insertion of this renewal option for 60 months (60 months firm) of 11,716 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_____________________ John Boguslawski, 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______________________ Amanda Kruse, Leasing Specialist

Concurred by:

Katrina Trimble Date Client Delivery Team Manager

Christopher Gronwald Date Lease Policy and Program Branch

Sheryl Wittstock Date Real Estate Acquisition Director

Date Regional Counsel

Approved by:

Rob Green Date Regional Competition Advocate