Redacted JOFOC Bloomington MN Renewal 4MN0222.pdf

The current space is capable of meeting the agencies current mission needs for the term of this renewal and can be extended without the expenditure of replication cost. Expending the funds to replicate space to be used for only 5 years would be a waste of taxpayer dollars and is not in the best interest of the government. It is GSA’s intention to finalize a long-term follow-on procurement concurrent to the expiration of this proposed renewal term.

5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM

AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

After discussion with the GSA Property Management office, it was confirmed that the location is acceptable to meet the housing needs of the agency for the renewal period. An ad was also posted on SAM.gov to solicit offers from interested parties other than the incumbent and no responses were received. With that additional information it has been determined that incorporating a renewal document into the lease is in the best interest of the government. The long-term procurement to be conducted during the term of this renewal will consider all buildings that fall within the yet to be determined delineated area.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The current rate for this location is . The anticipated rate for the renewal in the current location is per RSF. The Bullseye average rate for full-service office rent is . This number reflects the average fully serviced office asking rent per RSF, inclusive of base rent, operating expenses, and real estate taxes and derived from CoStar, REIS, and CBRE-EA data.

This number is utilized as the market rent number in the Lease Cost Relative to Market measure. This market rate doesn’t factor in tenant improvement (TI) or move costs.

The anticipated rate of includes 80 surface parking spaces, which along with the shorter-term lease commitment, accounts for a higher rate than the current market research reflects.

Based on this information, the anticipated cost for this renewal period falls close to the market rate and well below the cost to move to an alternative location and therefore should be found to be fair and reasonable.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

A formal market survey was not conducted for this lease renewal as moving the agency for the term of this renewal would be cost prohibitive and disruptive to the agency but will be conducted during the long-term replacement procurement that will be conducted during the renewal period.

An ad was posted on SAM.gov to solicit offers from interested parties and Other than the incumbent, no responses were received.

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

COMPETITION.

In order to comply with the PBS Commissioner’s initiative to save taxpayer dollars through rental savings we have been prioritizing our procurements based on the overall value of the contract and the potential for rental savings. In situations where the space currently occupied has been confirmed by the GSA Property Manager to be capable of meeting the government's continued needs and agencies continued mission need Region 5 is renewing the lease based on the small financial risk to the government. Moving actions forward through renewals will allow the region to focus on deals with higher financial impact, realign our expiring workload in a phased manner and realize the organization's goal of longer-term strategic planning.

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

ACQUISITION.

Not Applicable

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

Through continued focus on longer term strategic planning with our clients and negotiating longer lease terms GSA will be able to better manage our inventory and reduce the need for non-competitive lease renewals.

11. CONTRACTING OFFICER CERTIFICATION

I, the Lease Contracting Officer, certify that the above information is accurate and complete to the best of my knowledge.

Prepared by:

Chynita Richards Date Lease Contracting Officer

Reviewed and Concurred by:

Thomas Nisivaco Date Lease Contracting Officer

Kimberly Gill Date Leasing Branch Manager

Christopher Gronwold Date Lease Policy and Program Branch

Sheryl Wittstock, Director Date Real Estate Division

Scott McCleary Date Regional Counsel

Mike Wolff Date Regional Competition Advocate

Approved by:

Robert Green Date Regional Head of Contracting Activity