Redacted JOTFOC.pdf

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1CA2907

Agency Name: DHS Immigration and Customs Enforcement (DHS-ICE)

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

The General Services Administration currently leases 9,623 ABOA/10,362 rentable square feet (RSF) of office space at 733 L Street, Fresno, CA under lease number GS-09-03307 for DHS-ICE. The current l ease has a rental rate of REDACTED per RSF per year and expires 2/28/25. Approval is requested to negotiate two renewal options with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue a renewal option is detailed in GSAR 570.401:

Renewal Options.

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

(INCLUDING ESTIMATED VALUE).

GSA has confirmed the need for renewal options at this leased location. DHS-ICE is in process of evaluating future long term space needs, including what adjustments should be made to office designs and space allocation standards in the post-COVID work environment. Renewal options allow the Government to protect occupancy while this evaluation occurs.

This requirement is to add two five-year renewal options. The estimated cost of the first option is REDACTED per RSF per year for an annual cost of REDACTED . The estimated cost of the second option is REDACTED per RSF per year for an annual cost of REDACTED . The total contract value of these options is estimated to be REDACTED .

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. In accordance with FAR 6.302-1, 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. Award to other than the current Lessor would require relocation of the entire requirement and would cause DHS-ICE to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be REDACTED . Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of REDACTED . Current space includes, but is not limited to, private offices, conference room, private locker rooms and restrooms, interview rooms, holding cells, processing center, sally port, secure weapons storage and fitness/weight room.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.401, the GSA Lease Contracting Officer placed a notice in the System for Award Management, Contracting Opportunities (SAM) on 11/8/23 for 10 days. There were no responses to the SAM notice.

In addition, GSA conducted market research using CoStar/Loopnet to locate alternative locations.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating ICE using the low cost estimate exceeds the cost of remaining at 733 L Street, Fresno, CA.

The total savings to the Government is REDACTED .

Therefore, the proposed rental rates for this renewal of REDACTED /RSF for the first renewal and REDACTED /RSF for the second renewal (average of REDACTED /RSF over 10 years) 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.

On 12/12/23, GSA conducted market research using CoStar and LoopNet and identified 6 potentially acceptable locations (5 plus the incumbent) that might meet the agency’s needs within the delineated area. The potentially acceptable locations had available space to meet the requirements. In addition, GSA placed a notice conforming to GSAR 570.402-2 on SAM.gov on 11/8/23. The incumbent Lessor’s expression of interest indicated that the rate would be REDACTED per RSF for the first option and REDACTED per RSF for the second renewal option.

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

Address Source [EOI/CoStar, etc.] Estimated Full Service Rental Rate

733 L. St., Fresno, CA EOI REDACTED

2314 Mariposa St., Fresno, CA CoStar REDACTED

1570 E Nees Ave., Fresno, CA CoStar REDACTED

2721 Ventura St., Fresno, CA Loopnet REDACTED

7335 N Palm Bluffs Ave., Fresno, CA

Loopnet REDACTED

7575 N Fresno St., Fresno, CA Loopnet REDACTED

*escalated 1.5% yearly for estimated second option rate ̂ adjusted for market based operating rent of REDACTED /RSF.

Figure 1: Market Research Comparables

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

DHS-ICE is satisfied with the leased space and the GSA Lease Administration Manager confirmed the Lessor is responsive. There are no documented fire protection and life safety deficiencies for the location.

There have been no previous renewal options added to this lease and there is no increase in square footage.

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

ACQUISITION.

United Security Bank (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 addition of two renewal options 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.

_______ REDACTED _______________ Date____2/29/24_________________

Susan Baghdikian, 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.

_________ REDACTED ________________ Date____2/29/24___________

Eric Johnson, Leasing Specialist

CONCUR:

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____________________________Date______3/4/24________________ Peter Zepeda, Branch Chief

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____________________________Date______3/4/24___________ Jessica L. Escobedo R9 Leasing Advocate for Competition

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____________________________Date______3/11/24___________ Pamela Collins, Director Real Estate Acquisition Division

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___________________________Date______3/11/24_________ Jordan Baker, Reviewing Attorney R9 Assistant Regional Counsel

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___________________________Date_____3/12/24__________ Amanda Sweeney Deputy Regional Commissioner

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APPROVED: ____________________________Date______3/12/24___________

Dan R. Brown, HCA Regional Commissioner Public Buildings Service

Pacific Rim Region