Redacted_JOFOC.pdf

GENERAL SERVICES ADMINISTRATION

3PRNE Branch, Real Estate Acquisition Division Justification for Other than Full and Open Competition

7PA2324

Social Security Administration (SSA)

Johnstown, PA

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

The SSA Field Office and Office of Hearing Operations (OHO) are currently collocated at 334 Washington Street, Johnstown PA under lease GSA-03P-80705 which expires on January 31, 2019. SSA occupies a total of 25,890 ABOA SF (29,773 RSF) of office and related space. The Government has termination rights as of . There are no renewal options.

In December 2016, both SSA Offices submitted a request for a combined long term requirement of 17,440 ABOA SF (5,915 ABOA SF for SSA and 12,245 ABOA for ODAR) along with 2 onsite, reserved parking spaces.

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

SSA will be relocating to a new leased location under a separate competitive leasing action procured through the GLS Broker Contract. A three year extension under the current lease will allow flexibility for the new procurement, including design and construction. The three year extension, with a two year firm term, will provide the Government with termination rights on or after January 31, 2016 with 90 days’ notice.

The current rental rate is $23.53/RSF. The proposed rental rate for the lease extension is $24.98/RSF (rounded).

The total cost for the action is estimated to be:

Soft Term: $24.98 (rounded) rate/rsf x 29,773 rsf = $743,751.64 (Annual Rent) x 3 years= $2,231,254.92 total soft term

Rent is comprised of the following:

3. Identification of the statutory authority

41 U.S.C. 3304(a)(1). Only one responsible source and no other supplies of services will satisfy agency requirements.

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

It would not be economically feasible to relocate the agency to a new location for such a short term. Replication and move costs far outweigh the cost of the 3 year extension. Remaining in the current location while the new lease is procured would allow SSA’s mission to be fulfilled without disruption.

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. 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 Johnstown central business district, according to CoStar (Class A), is . No REIS data is available. Based on this market research, it is determined that the anticipated rental rate for the extension of $24.98/RSF is fair and reasonable.

7. Description of the market research conducted

An online market survey was conducted on April 11, 2018 using the real estate website CoStar yielding 3 buildings

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

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.

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.

Using Other than Full and Open Competition, GSA will negotiate an extension of the current lease for an additional three years. This extension is the most practical interim solution, while GSA concurrently works on the long-term housing for the agency. This will allow the agency to continue to carry out their mission with minimal disruption and downtime.

If the long-term spaces for each of these components are completed prior to expiration of the extension, then this lease will be terminated.

Contracting Officer’s certification

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

Prepared by:

1/30/2019

X Meghan Kang Lease Contracting Officer Signed by: MEGHAN KANG

Concurred by:

1/31/2019

X Jennifer Kauffmann GSA Realty Supervisor - Pittsburgh Section Signed by: General Services Administration

X Carrie Vineberg GSA Real Estate - North Branch Chief Signed by: CARRIE VINEBERG

Approved by:

1/31/2019

X Libby Baumann GSA Regional Competition Advocate Signed by: LISABETH BAUMANN

Legal Review:

X Rob Notigan Rob Notigan Legal Review Signed by: ROBERT NOTIGAN