Redacted JOTFOC 7.17_Redacted.pdf

Justification for Other Than Full and Open

Competition, Extension U.S. General Services Administration

Region 3 Leasing

Public Buildings Service

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 2VA0942

Agency Name:

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

The General Services Administration currently leases 32,150 ABOA/34,356 rentable square feet of office space at , under lease number GS-03P-LVA12232 for the Department of Justice - . The current lease expires on January 20, 2026. There is an existing five (5) year firm renewal option in the lease. Renewal notice must be provided by September 20, 2025. Approval is requested to exercise the existing renewal option without full and open competition. The procedures for pursuing a lease renewal are detailed in GSAR 570.401: Renewal Options.

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

(INCLUDING ESTIMATED VALUE).

The confirmed a continuing need on May 7, 2025 for space in Stafford, Virginia with no tenant improvements. The current lease contains an unevaluated five (5) year firm renewal option. Notice to exercise the renewal option must be provided to the Lessor by September 20, 2025. The Government intends to evaluate, the existing rate, and exercise the renewal option outlined in the lease contract. There is no vacant Federal space available. The current rental rate is $31.75 per rentable square foot.

The renewal rate is as follows:

Renewal Option:

Shell: $22.38 (rounded) x 34,356 RSF = $769,024.70

Operating: $10.87 (rounded) x 34,356 RSF = $373,405.81

Total annual rent: $1,142,430.51

Estimated Total Contract Value: $5,603,320.50

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 570.401- Renewals.

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 the Government to incur move and replication costs that would not be recovered through competition for this lease renewal period. Relocation costs are estimated to be . Additionally, this approach allows the Government to make use of existing tenant improvements, avoiding replication costs of .

GSA completed a cost benefit analysis following the procedures set forth in GSAR 570.402-6. The cost of relocating the to the lowest cost quote exceeds the cost of remaining at the current leased location for the five (5) year period. The total aggregate cost savings to the Government associated with staying in place is .

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402-2, the GSA Lease Contracting Officer placed an advertisement on SAM.gov on May 29, 2025. The advertisement was available for nine (9) days. In addition, the Lease Contracting Officer 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 research conducted by the Government in Stafford, Virginia, showed the rental rate within the market area ranges from $25.50-$29.50 per rentable square foot.

The anticipated rate of $33.25 per rentable square foot reflects the unique security and operational requirements of a high-security leased building.

the price is deemed fair and reasonable by the GSA Lease Contracting Officer. Upon signature of the Justification for Other than Full and Open Competition the Contracting Officer intends to negotiate the proposed rental rate of the renewal option in an effort to achieve a rate that falls inline with the established market range.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On May 21, 2025, the Government conducted market research using CoStar. There were no buildings that could satisfy the square footage requirement over 30,000 rentable square feet. Only the incumbent has the ability to meet the agency’s minimum requirement. Another CoStar report was produced reducing the search to 10,000 rentable square foot minimum for market research purposes only. The market research showed the rental rate within the market area ranges from $25.50 to $29.50 per rentable square foot, fully serviced.

See Figure 1 below for the results of the market research, including the incumbent. All rates below include warm lit shell adjustments typically made for Government Lease requirements.

Address Source Asking Full-Service Rental Rate y- Incumbent CoStar $33.25/RSF

124 Old Potomac Church Road CoStar Withheld

65 Barrett Heights Road CoStar $27.00RSF

39 Tech Parkway CoStar $29.50 RSF

50 Tech Parkway CoStar $28.50 RSF

800 Corporate Drive CoStar Withheld

475 Aquia Towne Center Road CoStar $25.50/RSF

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

In accordance with the requirements of GSAM 517.207(b), the lessor’s performance under this lease has met the Government’s expectations for quality performance.

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

ACQUISITION.

No other source has expressed a written or verbal 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. The agency has a continuing need for space upon lease expiration.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the Lease Contracting Officer certifies that the award of a lease renewal of five(5) years for GS-03P-LVA12232 is in the Government’s best interest and that this Justification is accurate and complete to the best of the Lease Contracting Officer’s knowledge and belief.