REDACTED Extension JOFOC - DMEA McClellan 2CA1679_Redacted.pdf

Justification for Other Than Full and Open Competition, Extension

U.S. General Services Administration

GSA Region 9 Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2CA1679

Agency Name:

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

The General Services Administration currently leases 13,832 ABOA/17,925 rentable square feet (RSF) of office space at Building 600, 3720 Dudley Blvd, McClellan Park, CA 95652 under lease number LCA03284 for the . The current lease expires September 6th, 2024. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease extensions.

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

(INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for 36 months to commence on September 7th, 2024 to finalize the agency’s special requirements and complete the succeeding lease award. The current rental rate is $27.63/RSF for 17,925 RSF. The estimated cost of this lease extension is $ per rentable square feet per year for an annual cost of $ and a total contract value of

The delineated area is the McClellan Park community, which is identified as a census-designated place in California (West at Raley Blvd, South at Fwy 80, East at Watt Ave, North at Ekhorn Blvd.). 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 GSAR 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.

☐ The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy

X The government encounters unexpected delays outside of its control in acquiring replacement space

☐ The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date

☐ The agency occupying the space has encountered delays in planning for a potential relocation to other federally controlled space due to documented organizational, financial, or other uncertainties

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 extension period.

The government encountered unexpected delays outside of its control in acquiring replacement space due to the agency’s delay on providing the long term specific requirements for a succeeding procurement.

Updated requirements have been finalized by the tenant agency. The agency’s square footage requirement has been reduced to a total 17,925 rentable square feet (RSF), yielding 13,832 ANSI/BOMA Occupant Area (ABOA) square feet (SF) of office and related Space located on the 1st floor(s) and known as of the Building.

This reduction was executed via the Lease Amendment Number 23. Extending the current lease for 36 months will grant sufficient time for the Government’s long-term project to be completed.

Award to other than the current Lessor would require relocation of the entire requirement and would cause DMEA 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.

In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the Lease Contracting Officer in McClellan Park, CA showed no market availability within the delineated area. However, there were four viable properties found outside of the delineated area within 10 miles from McClellan Park, CA. The rental rate within this market area ranges from $ per RSF to $ per RSF as identified via CoStar Market Reports.

Therefore, the anticipated rental rates for this lease extension of $ per 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.

On May 29th, 2024, market research identified one potentially acceptable location that might meet the agency’s needs within the city of McClellan Park, which was the incumbent offeror’s property.

Additional market research was conducted within 10 miles of the delineated area using CoStar, identifying four viable properties that could match the agency’s requirements. This market research showed the rental rate within the market area ranges from $ per RSF to $ per RSF.

See Figure 1 below for the results of the market research, including the incumbent.

Figure 1: Market Research Comparables

Address Source [EOI/CoStar, etc.]

Estimated Full Service Rental Rate for Office Space

Building 600, 3720 Dudley Blvd. McClellan Park, CA 95652

EOI $ /RSF years 1-3

Property within the delineated area

(Incumbent)

2555 Natomas Park Dr.

Sacramento, CA 95833

CoStar $ /RSF years 1-3

Property outside the delineated area

2020 W El Camino Ave.

Sacramento, CA 95833

CoStar $ /RSF years 1-3

Property Outside the delineated area

2804 Gateway Oaks Dr.

Sacramento, CA 95833

CoStar $ /RSF years 1-3

Property outside the delineated area

2480 Natomas Park Dr.

Sacramento, CA 95833

CoStar $ /RSF years 1-3

Property outside the delineated area

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

Remaining at the current location under a 36 month extension 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.

MP Holdings, LLC Building 600, 3720 Dudley Blvd. Sacramento, CA 95833

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 36 months for LCA03284 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_____________________

Clara Lee, Lease Contracting Officer / Area Manager

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______________________

Mason Decker, Leasing Specialist

CONCUR:

__ ___________Date______________________ Pe h Chief

__ _________Date______________________ Je R9 Leasing Advocate for Competition

__ __________Date______________________ Pa r Real Estate Acquisition Division

_ _Date______________________ A R9 Assistant Regional Counsel

_ ______Date______________________ A Deputy Regional Commissioner

APPROVED: _ _______Date______________________ D Regional Commissioner Public Buildings Service Pacific Rim Region