Redacted JOTFOC Lease Extension Bronx NY.pdf

Justification for Other Than Full and Open Competition

U.S. General Services Administration

GSA Region 2

PBS Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: ONY2667

Agency Name:

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

The General Services Administration currently leases 14,700 RSF, yielding 14,084 ABOA of office space and related space for at under lease number GS-02P-LNY23453, which expires August 21, 2020. GSA Region 2 is requesting approval to negotiate a six (6) month lease extension with a thirty (30) day cancellation clause with the incumbent Lessor without full and open competition for continued occupancy, because a new long term replacing lease, in the design phase at the current location, was delayed due to the COVID-19 pandemic.

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

(INCLUDING ESTIMATED VALUE).

This requirement is for 14,084 ABOA/14,700 RSF of space and related space for a term of six (6) months with a thirty (30) day cancellation clause. The Lease is scheduled to expire on August 21, 2020. The estimated cost of this lease extension is the existing rent of excluding heat and electricity for an estimated annual rent of . The anticipated total contract value of the six month extension term would be .

The intent of this lease extension is to protect occupancy under the current lease, while a new long term replacing lease (LNY00302), which was awarded to the same location and is in the design phase with CDs, is nearing completion. The new/replacing lease should commence within the next six (6) months at which point LNY23453 will terminate.

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 and GSAR 570.402, 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.

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.

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

(b) (7)(B)

(b) (7)(B) (b) (4)

(b) (7)(B) (b) (7) (B)

(b) (7)(B)

(b) (5)

(b) (5)

(b) (5) improvements, avoiding replication costs of . A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and is attached to this justification.

The cost of relocating the using the low cost quote exceeds the cost of remaining at . The total savings to the Government is .

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

POTENTIAL SOURCES AS IS PRACTICABLE.

The PBS Leasing Specialist conducted market research using CoStar Group.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Based on the CoStar Report conducted by the PBS Leasing Specialist, the existing fully serviced rental rate of excluding electricity and heat is within the market range of .

The anticipated rental rate for this fully serviced short term lease extension of is within the range of CoStar rates for comparable buildings in this area. The CoStar office rental rates for the delineated area are also quoted for office spaces requiring a term of five (5) – ten (10) years or longer and this is a short term lease extension with a cancellation clause, which usually costs a higher rent. Based on the forgoing, the LCO deems this anticipated rate to be fair and reasonable.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On January 27, 2020, the PBS Leasing Specialist conducted a market research report using CoStar Market Research and identified three (3) potentially acceptable locations (two (2) plus the incumbent) that might meet the agency’s needs within the delineated area.

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

Address Source: CoStar Market Research Rental Rate

Present Lease

CoStar Market Research

CoStar Market Research

Figure 1: Market Research Comparables

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

Replacing lease LNY00302 was awarded as the result of an AAAP competitive procurement and should be delivered during the course of this anticipated six month extension.

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

N/A

10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

The GSA Region 2 is currently in the process of securing a long term lease for at the existing location, - . This extension will protect the present occupancy, while the new long term replacing lease is in the design phase.

(b) (7)(B)

(b) (4)

(b) (4)

(b) (4) (b) (7)(B)

(b) (7) (B)

(b) (5)

(b) (5)

(b) (5) (b) (5)

(b) (5)

(b) (5)

(b) (5)

(b) (5)

(b) (5)

(b) (7)(B)

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 lease extension of 14,700 r.s.f. 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_____________________

Rita Bradley 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

13. APPROVED BY:

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______________________

Daren Marshall Branch Chief