Redacted JOFOC 7-31-24.pdf

Revised 12-06-2022

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 5

Real Estate Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0MI2286

Agency Name: Army Recruiting Command (ARC)

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

The General Services Administration currently leases 6,280 ABOA / 7,222 rentable square feet (RSF) of office and related space at 22600 Hall Road, Clinton Township, MI 48036 under lease number GS-05B- 16910 for ARC. The current lease expires 03/14/2024. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

(INCLUDING ESTIMATED VALUE).

ARC submitted a continuing need letter on 09/05/2023 for 6,280 ABOA square feet of office and related space. To satisfy the ARC mission requirements, the facility must have 26 parking spaces, including 6 spaces for trailers.

This requirement is for 6,280 ABOA / 7,222 RSF of space for a 15-year, 10-year firm term to commence on 03/15/2024. The estimated cost of this lease is /RSF for both the firm term and the soft term of the lease for an annual cost of for both the firm term and the soft term of the lease term for a total of . The delineated area is: North: 23 Mile; South: Hall Road (M-59); East: Jefferson Avenue and Selfridge ANG Base; West: M-53. 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 570.402. In accordance with GSAR 570.402, 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 o other than the current Lessor would require relocation of the entire requirement and would cause ARC to incur move and replication costs that would not be recovered through competition. This allows the Government to make use of existing tenant improvements, avoiding replication costs of . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6, and is attached to this JOFOC for reference. The cost of relocating ARC using the low cost quote exceeds the cost of remaining at 22600 Hall Road, Clinton Township, MI 48036. The total savings to the Government is .

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 09/05/2023 for 28 days. In addition, LS Theodore Prillaman conducted market research using CoStar and CREXI on 04/04/2023, 07/31/2023 and 09/12/2023.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by LS Theodore Prillaman in Clinton Township, MI showed the rental rate within the delineated area ranges from per RSF when using the Agency’s full TI allowance. This data was derived from CoStar, CREXI, market knowledge, and GSA pricing policy. Net of TI, recent market research conducted by LS Theodore Prillaman in Clinton Township, MI showed the rental rate in the delineated area ranges from per RSF.

Therefore, the proposed rental rate for this succeeding lease of RSF for both the firm and soft term of the lease is 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.

GSAR 570.402-5 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 04/04/2023, LS Theodore Prillaman conducted market research using CoStar and identified 7 potentially acceptable locations (6 plus the incumbent) that might meet the agency’s needs within the delineated area. Further research indicated that 2 spaces would struggle to meet the agency’s minimum space requirements, but 5 locations could realistically meet the agency’s requirements (including the incumbent). In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 09/05/2023. Initially there were two expressions of interest (EOI) from the advertisement, but one of the EOI parties formally rescinded their interest, leaving the incumbent as the only remaining party that maintained an expression of interest to the advertisement.

The incumbent Lessor’s expression of interest indicated that the rate would be 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

22600 Hall Road, Clinton Township, MI 48036 (incumbent)

EOI /RSF for both the firm term and soft term of the lease.

19700 – 19800 Hall Road, Clinton Township, MI 48038

CoStar /RSF for both the firm term and soft term of the lease.

/RSF net of TI for both the firm term and soft term of the lease.

Figure 1: Market Research Comparables

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

GSA is in good standing with the current lessor, who satisfactorily meets all of the obligations of the lease. The most recent property inspection report indicated very minor issues, but the lessor is addressing them and there are currently no further outstanding issues. On 04/11/2023, the LAM Troy Brown stated that the lessor replaced the carpeting on the second floor hallway, replaced the matting in the stairwell, and resurfaced the parking lot. According to the LAM, the new lessor seems to address issues in a timely manner and the agency has no complaints at this time. The tenant agency is generally satisfied with the space and confirms that it meets their agency needs.

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

ACQUISITION.

22600 Hall Road, Clinton Township, MI 48036 (incumbent)

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 award of a succeeding lease of 7,222 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_____________________ Matthew Sermont, 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______________________ Theodore Prillaman, Leasing Specialist

See FAR 6.304 for appropriate signature threshold levels.

If Senior Procurement Executive (SPE) approval is required, must include signatures from Regional Contracting [Leasing] Director, Regional Counsel, and Head of Contracting Activity (HCA). Use of a separate signature page is required.

Note that the threshold for SPE approval is based on aggregate contract value;

therefore, it is possible that SPE approval may be required for actions below the prospectus threshold.