Redacted JOFOC.pdf

Revised 12-06-2022

Justification for Other Than Full and Open

Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 6

6P1RW

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1KS2052

Agency Name: Federal Bureau of Investigations (FBI)

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

The General Services Administration currently leases 9,168 ABOA/10,506 rentable square feet (RSF) of office space at Epic Center, 301 North Main Street, Wichita, Kansas under lease number GS-06P- LKS90024 for the FBI. The current lease expires April 16, 2025. 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).

FBI signed a Client Project Agreement (CPA) on August 23, 2023 for 9,168 ABOA square feet of office and related space. Based on this, the procurement requirement is for 9,168 ABOA of space for a 15-year term/10 year firm term with a 5-year renewal option to commence on April 17, 2025. The estimated cost of this lease is $ per rentable square feet per year for an annual cost of $ and a total contract value of $ not including the renewal option. The delineated area is the Central Business District (CBD) of Wichita, Kansas.

There is no vacant Federal Space available that can meet this requirement.

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 to other than the current Lessor would require relocation of the entire requirement and would cause FBI to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $ utilizing the move BPA pricing for Wichita, Zone 3, Option 3. Additionally, this allows the Government to make use of existing tenant improvements and furniture, avoiding replication costs of $ A cost-benefit analysis was completed following the procedures set forth in GSAR

570.402-6. The cost of relocating FBI using the low cost quote exceeds the cost of remaining at Epic Center, 301 North Main Street, Wichita, KS. 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 November 9, 2023 for 9 days. In addition, PBS conducted market research using CoStar market data.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by PBS in Wichita, Kansas showed the rental rate within the delineated area ranges from $ to $ per RSF. (Data source: CoStar Property Summary)

Therefore, the proposed rental rates for this succeeding lease of $ RSF, are 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 August 28, 2023, PBS conducted market research using CoStar and identified ten (10) potentially acceptable locations (nine (9) plus the incumbent) that might meet the agency’s needs within the delineated area.

In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on November 9, 2023. The incumbent Lessor’s expression of interest indicated that the rate would be $ per RSF. There were no other expressions of interest received.

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

Address Source Asking Full Service Rental Rate

Epic Center, 301 N Main Street, (Incumbent)

EOI $ /RSF

703 E Douglas Ave CoStar Property Summary Report

$ /RSF ($ /RSF

NNN plus estimated operating costs of $ /RSF)

151 N Main Street CoStar Property Summary Report

$ /RSF

245 N Waco Street CoStar Property Summary Report

$ /RSF

1501 E Douglas Ave CoStar Property Summary Report

Withheld

701 E Douglas Ave CoStar Property Summary Report

Withheld

Bank of America, 100 N Broadway, CoStar Property Summary Report

$ /RSF

212 N Market Street CoStar Property Summary Report

$ /RSF

130 S Market Street CoStar Property Summary Report

$ /RSF ($ /RSF

NNN plus estimated operating costs of $ /RSF)

345 Riverview Street CoStar Property Summary Report

$ /RSF

Figure 1: Market Research Comparables

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

Recent GSA property inspection at the current location completed on January 6, 2023 showed the space to be well maintained and in good condition. Cyclical paint and carpet was completed July 2022.

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

ACQUISITION.

Epic Center, 301 N Main Street, Wichita, KS (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 10,506 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.

BY:

Date_____________________ Lease Contracting Officer