REDACTED JOFOC - 2NY0775_Redacted.pdf

Justification for Other Than Full and Open Competition

U.S. General Services Administration

GSA Region 2

PBS Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2NY0775

Agency Name:

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

The General Services Administration currently leases 6,501 ABOA/10,728 rentable square feet (RSF) of office space at , under lease number , for

. The current lease expires . Approval is requested to negotiate an unevaluated renewal option with the incumbent Lessor without full and open competition for continued occupancy at this leased location.

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

(INCLUDING ESTIMATED VALUE).

The Government requires a renewal of the current lease for a five (5) year/two (2) year firm term to commence on . is currently revising its long-term space needs in response to space utilization studies and surveys that the agency is conducting. has encountered delays in determining how much square footage this office requires. The estimated cost of this lease is the same as the existing fully serviced rent of RSF per year for an annual cost of and a total contract value of

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 570.401. 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 FERC to incur move and replication costs that would not be recovered through competition.

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The Government encountered unexpected delays outside of its control in acquiring replacement space because is continuing to develop its long-term space requirements. The attached Cost Benefit Analysis demonstrates an overall savings of if a renewal option is added and exercised and were to remain in place. The potential renewal period would simultaneously allow the opportunity to develop its space needs and an opportunity to conduct a competitive procurement.

Additionally, a potential renewal option to remain at this location would allow the Government to make use of existing tenant improvements for the term, avoiding replication of any tenant improvement allowance costs for this short-term renewal.

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 February 14, 2023, for fifteen (15) days. The Government received zero (0) expressions of interest in response to the advertisement. In addition, PBS conducted market research using a Market Research Report, which listed

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent Market Research reports conducted by in New York, NY showed the full-service rental rate within the delineated area ranges from .

Therefore, the proposed rental rate for this renewal lease of is within the current market range for this Penn Plaza/Garment Submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On PBS conducted market research using Market Research and identified potentially acceptable locations and the incumbent location that might meet the agency’s needs within the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.401-2 on the Contract Opportunities domain of SAM.gov website on February 14, 2023. The incumbent Lessor’s expression of interest indicated that the rate would be , which is the existing rent. The lowest cost alternative, , listed an asking rental rate of RSF without electricity. An additional $3.00 RSF for electricity was added to the asking rent to make rental fully serviced.

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

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

ACQUISITION.

None.

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, the 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 lease renewal of 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.

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