Redacted JOFOC New Replacing Lease DOL 4NE0080.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, New Replacing Lease

U.S. General Services Administration

GSA Region 6

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 4NE0080

Agency Name: DOL and US Marshals

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

The General Services Administration currently leases 7,183 ABOA/8,265 rentable square feet (RSF) of office space at 222 S. 15th St., Omaha, NE under lease numbers GS-06P-LNE01018 (Department of Labor) and GS-06P-LNE51003 (US Marshals). The current DOL (GS-06P-LNE01018) lease expires April 30, 2024, and the current US Marshals lease (LNE51003) expires June 30, 2025. Approval is requested to supersede lease # GS-06P-LNE01018, through negotiations with the incumbent Lessor without full and open competition, to house both agencies’ requirements and terminate lease # GS-06P-LNE51003.

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

(INCLUDING ESTIMATED VALUE).

The current building which houses both DOL and US Marshals is being converted into a residential building on April 1, 2024. Due to this fact, the Lessor is relocating both agencies to temporary space until their long-term procurements are ready for occupancy. GSA was notified of the April 1, 2024 construction start date via phone call on January 23, 2024. The building owner offered DOL (3,802 RSF) and US Marshals (2,766 RSF) temporary space in the adjacent North tower at a reduced rate and agreed to cover the costs for move and any alterations needed.

This requirement is for 5,516 ABOA/6,568 RSF of space for 27 months to commence on April 1, 2024.

The estimated cost of this lease is $9.77/RSF for the first 9 months and $9.20/RSF for the remaining 18 months for a total contract value of $138,747.00. This will save the Government $134,682.00 over the 26-month term of the lease. The delineated area is the CBD of Omaha, NE. 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 to other than the current Lessor would require relocation of the entire requirement and would cause DOL and US Marshals to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $11,327.92. Additionally, this allows the Government to avoiding replication costs of $383,682.35. The cost of relocating both agencies using the low-cost quote exceeds the cost of remaining at 222 S. 15th Street. The total savings to the Government is approximately $597,153.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.404, the GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on February 15, 2024, for 6 days and a revised advertisement to increase square footage on March 7, 2024. In addition, Leasing Specialist, Elaine Henderson, conducted market research using CoStar.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys through CoStar conducted by GSA in Omaha, NE showed the rental rate within the delineated area ranges from $13.00 - $29.00 per RSF.

Therefore, the proposed rental rate for this New Replacing lease of $9.77/RSF for 9 months and $9.20/RSF for 18 months, is below 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 March 12, 2024, GSA Leasing Specialist, Elaine Henderson, conducted market research using CoStar and identified 12 potentially acceptable locations, including the incumbent, that might meet the agency’s needs within the delineated area. All spaces listed below in Figure 1 are listed as having a minimum of 5,516 SF of space on the first floor or above within the Central Business District of Omaha, NE. In addition, GSA posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on February 15, 2024, and a revised advertisement to increase square footage on March 7, 2024. The incumbent Lessor’s expression of interest indicated that the blended rate for the two agencies would be $9.77/RSF for 9 months and $9.20/RSF for 18 months. The only party to express an interest in this opportunity was the incumbent, therefore, the lowest cost quoted was the blended rate of $9.77/RSF for 9 months and $9.20/RSF for 18 months.

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

222 S. 15th St Incumbent $12.00 950 S 10th St CoStar $30.00

1111 N 13th St CoStar $23.00 319 S 17th St CoStar $22.00 112 S 20th St CoStar $22.00

1100 Capitol Ave CoStar $28.50 2027 Dodge St CoStar $23.00 1299 Farnam St CoStar $36.00 1700 Farnam St CoStar $20.00 1901 Howard St CoStar $27.00

901 Jones St CoStar $26.50

1501 Mike Fahey St CoStar $34.50 Figure 1: Market Research Comparables

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

The agency and Field Office attest to the space to be well maintained and in good condition.

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

ACQUISITION.

N/A

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. Full and Open New Replacing actions for both requirements are currently underway.

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 New Replacing lease of 6,568 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___8/21/2024__________________ Emily Tinsley, 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__8/21/2024__________________ L. Elaine Henderson, Leasing Specialist

See GSAM 506.304(d) and (e) 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.