Redacted_JOFOC_-_3PA0196_-_LPA10240.pdf

GENERAL SERVICES ADMINISTRATION

North Branch, Real Estate Acquisition Division

Justification for Other than Full and Open Competition Project #3PA0196

Defense Contract Audit Agency Philadelphia, Pennsylvania

1. Nature and/or description of the action being approved.

To exercise a recently added five (5) year renewal option in the current lease as well as reduce the leased square footage pursuant to updated CAD drawings for the Defense Contract Audit Agency (DCAA) which is currently located at One Independence Mall, 615 Chestnut Street, Philadelphia, PA under Lease Number GS-03B-LPA10240. DCAA currently occupies 17,375 ABOA SF (19,981 rsf) and the lease expires December 31, 2014 with one (1) – five (5) year renewal option remaining.

2. Description of the supplies or services required to meet the agency’s needs (including estimated value).

DCAA submitted a continuing need request for 16,532 ABOA SF (19,011 rsf).

The square footage requested was based on a mutually accepted re-measurement of the space by the lessor in December 2013.

DCAA is in the process of evaluating the need for this location. The agency plans to either close the office completely or relocate the office to DCAA controlled space in Washington. However, this process is estimated to take three (3) to five (5) years to implement.

After submitting their request for 16,532 ABOA SF, DCAA reviewed their storage needs in the basement of the building and determined that this could be reduced.

In working with the lessor, the agency agreed to give back 294 ABOA SF. The new requirement for the renewal is 16,238 ABOA SF (18,673 rsf).

The total cost for the action is estimated to be:

18,673 RSF (16,238 ABOA SF) X $26.06/RSF ($29.97/ABOA SF) =

$486,618.38 annually $486,618.38 X 5 years = $2,433,091.90 Aggregate

3. Identification of the statutory authority

41 U.S.C. 253 (c)(1) and FAR 6.302-1. Only one responsible source and no other supplies of services will satisfy agency requirements.

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4. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited.

Remaining in the current location would allow the mission of the agency to be fulfilled without disruption. Remaining at the current location will save costs associated with relocation as well as the full build-out required to duplicate the current space at another location. Please see the attached cost benefit analysis which outlines the cost savings of remaining at the current location.

5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Market research was completed using REIS and CoStar. Several buildings are available within the Philadelphia CBD that have adequate square footage to meet DCAA’s space requirements. Please see attached Market Research Memo.

An advertisement was placed on FedBizOpps on July 8, 2014. No expressions of interest were received.

6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The average rental rate for leases in the Philadelphia market, according to REIS, is $26.73/RSF. Based on Co-Star, the average asking rental rate is $30.40/RSF.

It is determined that the lessor’s renewal rate of $26.06/RSF is fair and reasonable.

7. Description of the market research conducted

Market research using REIS, Co-Star, Bullseye and REXUS was conducted.

Please see attached Market Research Memo.

8. Other facts supporting the use of other than full and open competition

The agency is very satisfied with the current space and they are happy with the past performance of the current lessor. In addition, the GSA Field Office did not convey any issues with the maintenance of the building or the lessor’s responsiveness to any building issues.

In accordance with the requirements of GSAM 517.207(b), the lessor’s performance under this lease has met the Government’s expectations for quality performance.

9. List of any sources that expressed in writing an interest in the acquisition

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No other source has expressed in writing an interest in the acquisition.

10. Statement of actions the agency may take to remove or overcome any barriers to competition

If the agency’s long term requirements do not require a move to DCAA controlled space, we will survey the market prior to the expiration of the renewal to determine if full and open competition exists to meet the DCAA space requirement.

Contracting Officer’s certification

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared by:

8/14/2014

X JoAnn Stewart

Lease Contracting Officer

Concurred by:

9/2/2014

X Carrie Vineberg

Realty Supervisor

Signed by: CARRIE VINEBERG

Concurred by:

9/2/2014

Laurie Ney

Real Estate Acquisition Branch Chief

Signed by: General Services Administration

Approved by:

9/9/2014

Dorothy Baratta

Regional Competition Advocate