Redacted JOFOC-SSA Welch WV-4WV0141.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 3

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 4WV0141

Agency Name: Social Security Administration (SSA)

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

The General Services Administration currently leases 7,559 ABOA/8,693 rentable square feet (RSF) of office space at 26-34-50 McDowell Street, Welch, WV under lease number GS-03B-01325 for the Social Security Administration (SSA). The current lease expires June 2, 2027. Approval is requested to exercise an existing five-year renewal with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The renewal option will be exercised in accordance with 41 U.S.C.

3304(a)(1) and the General Services Administration Acquisition Manual (GSAM), Renewal options,

570.401. The renewal period will be effective June 3, 2027 through June 2, 2032.

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

(INCLUDING ESTIMATED VALUE).

SSA began working with GSA on their continued occupancy of the Welch, WV office on January 13, 2025. The agency has a continuing need of 7,559 ABOA/8.693 rentable square feet (RSF) in Welch, WV, which is the territory served by this office. An existing, but unevaluated, 5-year renewal exists in the lease for the following rates:

Shell - $108,852.09 Annual ($12.52 per RSF rounded) Operating - $65,191.54 Annual ($7.50 per RSF rounded) Total Annual Rent - $174,043.63 ($20.02 per RSF)

The aggregate contract value of all five years of the renewal is $870,218.15. The delineated area is defined as the city limits of Welch, WV.

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.

In accordance with 41 U.S.C. 253 (c) (1), the agency’s minimum needs can only be satisfied by unique supplies or services available from only one responsible source and no other type of property or services will satisfy the needs of the agency. Additionally, relocation costs are not expected to be recovered through competition.

See Attached Cost Benefit Analysis.

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 Specialist, Michael Palermo, placed an advertisement on the Contracting Opportunities domain of SAM.gov on April 28, 2025 for 5 days. In addition, Michael Palermo, Leasing Specialist conducted market research using CoStar data.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

On March 3, 2025 Michael Palermo, Leasing Specialist, conducted market research via CoStar which yielded zero results within the delineated area in Welch, WV that could meet the Government’s space requirements, however market conditions within a 50-mile radius of Welch, WV showed the rental rates in the area ranging from $8.00 per RSF to $16.00 per RSF for a less than fully serviced lease and 12.00/RSF to $22.00/RSF for fully serviced lease. Data was collected using CoStar. Therefore, the proposed rental rate for this lease renewal of $20.02/RSF, is at the top of 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.

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

The incumbent location has been maintained since the lease commenced on June 3, 2002. The GSA Property Manager in the Charleston Field Office performed a building inspection on September 30, 2024 and confirmed that there are currently no apparent deficiencies or issues with the building.

The procurement strategy of pursuing a renewal option at the Star Building, 26-34-50 McDowell Street, Welch, WV is aimed at providing the best value to the taxpayer by making use of the existing buildout while avoiding high replication and relocation costs.

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

ACQUISITION.

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 8,693 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.

_____SIGNATURE ON FILE____________________________ Date_____________________ Elizabeth McCullough, 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.

_____SIGNATURE ON FILE____________________________ Date______________________ Michael Palermo, Leasing Specialist