Redacted JOTFOC - 2LA0291_Redacted.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 7

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2LA0291

Agency Name: Office of United States Attorneys (USAO)

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

The General Services Administration currently leases 55,318 ABOA/63,615 rentable square feet (RSF) of office space at 650 Poydras Street, New Orleans. LA under lease number GS-07P-LLA16639 for the USAO.

The current lease expires February 24, 2026. 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).

USAO submitted a continuing need letter on September 6, 2022, for 63,615 rentable square feet of office and related space. To satisfy the USAO mission requirements, the facility must be located within four (4) walkable blocks of the Hale Boggs Federal Building.

This requirement is for 55,318 ABOA/63,615 RSF of space for a 17-year term (15-year firm term) to commence on February 25, 2026. The estimated cost of this lease is per rentable square foot per year for an annual cost of and a total contract value of . The delineated area is: North: Loyola Ave Eastbound to Canal St. / East: Canal St southbound along the Mississippi River to Poydras St. / South: Poydras St northwest bound to St. Charles Ave. St. Charles Ave southwest bound to Howard Ave. / West: Howard Ave northwest bound to Lloyd Ave. 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. An award to other than the current Lessor would require relocation of the entire requirement and would cause USAO to incur move and replication costs that would not be recovered through competition. Relocation costs (move costs only) are estimated to be . Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of . The space buildout is office intensive requiring significant ducting for HVAC, sprinklers, etc.; additionally, the space has large conference rooms with enhanced video teleconferencing capabilities, multiple kitchenettes, and a FSL level of 3 due to the attorney’s occupancy. This specialized buildout will have to be replicated in the event the USAO was to relocate. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating USAO using the low-cost quote (CoStar availability) exceeds the cost of remaining at 650 Poydras. The total savings to the Government is . The full cost-benefit analysis worksheet is attached to this justification.

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 May 1, 2024, for 21 days. In addition, Public Properties (GSA Broker) conducted market research using CoStar and its in-house database of building owners and brokers in the New Orleans market.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by Public Properties (GSA Broker) in New Orleans, LA showed the rental rate within the delineated area ranges from to per RSF (inclusive of 129 parking spaces, 15 reserved). Market data was sourced from CoStar and conversations with local brokers and building owners.

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 May 29, 2024, Public Properties (GSA Broker) conducted market research using CoStar and conversations with local brokers and building owners and identified two potentially acceptable locations (one plus the incumbent) that might meet the agency’s needs within the delineated area. Due to the USAO requirement to be within four walkable blocks of the Hale Boggs Federal Building, only two properties could meet this square footage requirement. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on May 1, 2024. The incumbent Lessor’s expression of interest indicated that the rate would be per RSF in Years 1-6, per RSF in Years 7-12, per RSF in Years 13-15, and per RSF in Years 16-17. No other properties submitted a formal expression of interest.

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

650 Poydras Street (Incumbent) EOI

1555 Poydras Street CoStar

Figure 1: Market Research Comparables

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

Based on conversations with the USAO and building inspections by the GSA building manager, the incumbent Lessor consistently satisfies the obligations of the lease terms. They maintain the property in Class A condition and management of the building is in line with expectations.

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

ACQUISITION.

– 650 Poydras Street (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 63,615 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_____________________ ease 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______________________

Brad Seifert, GSA Broker Contractor

13. REVIEW CONCURRENCE AND APPROVAL.

______________________________ Date_____________________ Jan Trevino, Leasing Director

____________________________ Date_____________________ Dixon Merkt, Legal Counsel

_______________________________ Date_____________________ Charlie Hart, Competition Advocate

___________________________ Date_____________________ Giancarlo Brizzi, Head of Contracting Activity