Redacted JOFOC_Redacted.pdf
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- Redacted justification in Billings, MT
- Solicitation number
- 6MT0116
About this file
This is a Justification for Other Than Full and Open Competition for a Succeeding Lease by the U.S. General Services Administration (GSA) PBS Office of Leasing.
GSA seeks to expand its existing lease for office space in Billings, Montana (Project Number 6MT0116) by approximately 9,486 rentable square feet (RSF), increasing total leased space from 9,524 ABOA square feet to 20,343 RSF. The current lease (GS-08P-LMT00598) expires September 30, 2038, with the firm term ending September 30, 2033. The expansion is necessitated by increased mission requirements and the establishment of a new Montana Field Office, which has doubled the Funded Staffing Level. The proposed rental rates are redacted but indicated to mirror current lease rates. The expansion space will accommodate interim personnel and operational needs while a permanent facility is being designed and constructed. GSA conducted market research on February 12, 2026, and March 10, 2026, identifying only one alternative property (550 North 31st Street/Transwestern III), which was subsequently determined unavailable. GSA posted a SAM.gov advertisement for three business days on March 26, 2026, receiving two expressions of interest: the incumbent lessor and one competing bidder with undefined escalation terms. A cost-benefit analysis demonstrates that relocation costs and lease buyout expenses would substantially exceed the cost of remaining at the current location. The justification cites GSAR 570.403 and 41 U.S.C. 3304(a)(1) as authority for sole-source negotiation. The incumbent lessor is deemed uniquely qualified due to required adjacency for operational needs, existing security waivers, acceptable current layout, and cost-efficiency compared to relocation.
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Text version
Revised MAR 2026
Per the requirements of GSAR 570.402, the GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on March 26, 2026 for 3 business days. In addition, GSA Lease Contracting Officer Michael Condon conducted market research on March 10, 2026 using a CoStar market report analyzing the Billings, Montana office market for approximately 18,000 to 20,000 USF of space. The report identified only one potential property capable of meeting the space requirement, other than the incumbent, located at 550 North 31st Street (Transwestern III). In addition, the LCO reviewed other publicly available sources, including LoopNet and local broker listings, to verify market availability. These additional sources confirmed that no other properties in the market appeared capable of meeting the requirement.
6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE
GOVERNMENT WILL BE FAIR AND REASONABLE.
Recent market research conducted by Michael Condon in Billings, Montana indicates that full-service rental rates within the delineated area range from per rentable square foot (RSF). This data was derived from market sources including LoopNet, CoStar, and direct outreach to local commercial real estate brokers.
Michael Condon requested a quote from the incumbent Lessor, who indicated that the rental rates for the expansion space will mirror those currently under lease. The proposed full-service rental rates are per RSF for Years 1–2, per RSF for Years 3–7, and per RSF for Years 8–12.
Although these rates exceed the identified market range, they are considered fair and reasonable given current market conditions, limited available inventory, and the Government’s specific space and operational requirements.
Accordingly, the rental rate is determined to be 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 February 12, 2026, GSA LCO, Michael Condon, conducted market research using Costar Loopnet, and called local brokers and identified 2 potentially acceptable locations (550 North 31st Street (Transwestern III) plus the incumbent) that might meet the agency’s needs within the delineated area. On March 10, 2026, the LCO contacted the listing broker for the identified property to request an informational quote. The broker advised that the space was no longer available. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on March 26, 2026. GSA received two expressions of interest in response to the advertisement .
The incumbent Lessor’s expression of interest indicated that the rate would be per RSF for Years 1–2, per RSF for Years 3–7, and per RSF for Years 8–12. The interested party that provided the lowest cost submitted a proposed full-service rental rate of per RSF for Year 1, per RSF for Year 2, and 0 per RSF for Year 3. The offer further indicated an undefined escalation in shell rent for each subsequent year through the end of the firm term in its expression of interest.
Revised MAR 2026 best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer’s knowledge and belief.
___ ____________________________________ Date_____________________ Melissa Mckenna, 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______________________ Michael Condon, Leasing Specialist
13. ATTACHMENTS
X Cost Benefit Analysis, required when the Justification action is based upon cost savings to the Government
Concurred by:
Melissa Mckenna, Acting Director Date One Level above LCO
Reviewed for legal sufficiency by:
Elizabeth Johnson Date Office of the General Counsel, Real Property Law Division
Concurred by:
Gina Ditommaso Date Competition Advocate
File details come from the government source that posted it. Updated .