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Justification
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1204H100L0229-Justification
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Justification for Other Than Full and Open Competition – Lease Extension

This is a Justification for Other Than Full and Open Competition document for a federal lease extension in Region 6. The government seeks to extend its current office and warehouse lease at 2819 Dahlia Street, Klamath Falls, Oregon 97068 (Lease #1204H100L0229) for 60 months commencing July 1, 2025. The leased space comprises 26,387 rentable square feet (RSF) of combined office and warehouse capacity. The extension is estimated at $25.19 per RSF annually, with a total annual cost of $664,688.53 and a five-year contract value of $3,323,442.65. The extension is justified under 41 U.S.C. 3304(a)(1) and GSAR 570.405 due to unexpected delays outside government control in acquiring replacement space.

The justification demonstrates that remaining at the current location is in the government's best interest, as relocating would require the incumbent lessor to incur move and replication costs that cannot be recovered through competition. Market research conducted on January 29, 2026 using Loopnet established that comparable office rental rates in the Klamath Falls area range from $19.00 to $39.37 per RSF, while warehouse rates range from $9.80 to $20.00 per RSF, making the proposed blended rate of $25.19 per RSF fair and reasonable. No sources expressed written interest in the acquisition. Future procurements will allow sufficient time for full and open competition by considering relocation timelines and costs in advance of lease expiration.

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Justification for Other Than Full and Open Competition, Extension Above SLAT

Region 6

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: DOR00625-003

LEASE NAME AND NUMBER: OFFICE OR RD #1204H100L0229

AGENCY NAME:

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

The currently leases 26,387 ABOA/26,387 rentable square feet (RSF) of office and warehouse space at 2819 Dahlia Street, Klamath Falls, OR 97068 under lease number 1204H100L0229 for the ). The current lease expires 6/30/2025. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease extension are detailed in GSAR 570.405: Lease extensions.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING ESTIMATED VALUE).

The government requires an extension of the current lease for 60 months to commence on 7/1/2025. The estimated cost of this lease extension is $25.19 per rentable square feet per year for an annual cost of $664,688.53 and a total contract value of $3,323,442.65.

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 570.405. In accordance with GSAR 570.405, use of the sole source authority is appropriate when the government experiences a delay in acquiring replacement space.

The agency occupying the leased space is scheduled to move into other Federally controlled space, but encounters unexpected delays in preparing the new space for occupancy

The government encounters unexpected delays outside of its control in acquiring replacement space

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

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or to undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

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 extension of 60 months for 1204H100L0229 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.

__ Date_____________________

, 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______________________

Realty Specialist

13. APPROVED BY.

Date______________________

, Acting Lease Branch Chief

14. APPROVED BY.

_ Date______________________

, Director of Office of Property & Environmental Management

See FAR 6.304 for appropriate signature threshold levels.

If Senior Procurement Executive (SPE) approval is required, must include signatures from Regional Contracting Director, Regional Counsel, and Head of Contracting Activity (HCA). Use of a separate signature page is required.

File details come from the government source that posted it. Updated .