Redacted JOTFOC 0NY2707 Extension Bronx NY.pdf

U.S. General Services Administration

GSA Region 2

PBS Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0NY2707

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

The General Services Administration currently leases 6,600 ABOA/9,174 rentable square feet (RSF) of office space at under lease number GS-LNY00220 for the

The current lease expires on February 1, 2021. Approval is requested to negotiate an extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue an extension of the lease is detailed in GSAR 570.405: Lease Extensions.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET

NEEDS (INCLUDING ESTIMATED VALUE).

The is currently conducting the .

initiatives have been negatively impacted due to the COVID-19 pandemic and completion of the population count is delayed. Therefore, the effort will not be complete prior to the expiration of the leases for their and an extension is required to allow adequate time to complete the in the communities where the offices are located.

The agency is requesting an extension of up to 6 months for these leases, so that these leases expire on June 30, 2021.

. This requirement is for 6,600 ABOA/9,174 RSF of space for up to a 6-month extension term to commence on February 2, 2021. The estimated cost of this extension is per rentable square feet per year for an annual cost of and a total contract value of for a five (5) month lease extension.

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 requirements. In accordance with FAR 6.302-1 and GSAR 570.405, it is determined that award to any other offeror would result in unacceptable delays in fulfilling the agency's requirements.

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 due to the short term of the need and the fact that relocation would unnecessarily interrupt the work of the and further delay the completion of

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

The extensions of this lease will not be acquired through competitive action however; the initial lease acquisition for this location was acquired through competitive procurement to the extent practicable.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market data collected by CoStar Realty Information Inc. in New York, NY showed rental rates ranging from per RSF.

Although the proposed rental rate of for this extension is not within the current market range for this submarket, the existing rental rates are deemed fair and reasonable by the GSA Lease Contracting Officer.

The reasons the existing rent are above the market range can be justified by the following factors:

A. When the required office space in this delineated area, no office space may have been available for the future commencement date. Consequently, this office space could have been removed from the market and “warehoused” before the lease commencement date to accommodate the requirement and the Lessor’s downtime may have been amortized in to the lease shell rent.

B. Since the lease was for a short term and included a termination clause, allowing the to end the lease with sixty (60) days written notice, the may have paid a premium to rent space at this building.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

FAR 6.302-1 and GSAR 570.405 allow for negotiation with the incumbent Lessor when award to any other source would result in unacceptable delays in fulfilling the agency's requirements.

On August 3, 2020, Laurence Wendorf conducted market research using CoStar Realty Information Inc.

and identified five (5) potentially acceptable locations (four (4) plus the incumbent) that might meet the needs within the delineated area.

See Figure 1 below for the results of the market research, including the incumbent.

Address Source Asking Full Service

Rental Rate

Incumbent Location

1417-1421 Webster Avenue, Bronx, NY CoStar Report

2486-2488 Webster Avenue, Bronx, NY CoStar Report

389-296 East 149 th Street CoStar Report

2886 Third Avenue CoStar Report

Figure 1: Market Research Comparables

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

The existing lease is for . The lease commenced on January 2, 2019 and will expire on February 1, 2021. The COVID-19 Pandemic started to peak in New York City on approximately March 16, 2021. This was firm term and would not allow the enough time to complete their mission and thus requiring an lease amendment to extend their lease term at their existing location,

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

ACQUISITION.

Per GSAR 570.106, the requirement for this extension was not advertised; therefore, no expressions of interest were received.

10. STATEMENT OF ACTIONS, IF ANY, THE BUREAU OF THE MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

The will no longer require a lease for these locations beyond the extension contemplated under this justification. Upon completion of the decennial census the agency will vacate the space and no follow on action is anticipated.

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 an extension of 9,174 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_____________________

Daren Marshal, Branch Chief/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______________________

Laurence Wendorf, Leasing Specialist

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