Redacted Justification .pdf

Docusign Envelope ID: DCACE807-AAD0-4971-AA71-ED0F9BF2501A

Justification for Other Than Full and Open Competition

U.S. General Services Administration

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 5NY0814

Agency Name: U.S. Customs and Border Protection

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

The General Services Administration currently leases 29,717 ABOA/34,175 rentable square feet (RSF) of office space and related space plus fourteen (14) parking spaces at Halmar Cargo Building 75 JFK Airport, Queens, NY 11430 under lease number LNY23947 for the U.S. Customs and Border Protection (CBP.) The current lease expires 12/31/2025. 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 thirty (30) months, with the 30 months firm to commence on January 1, 2026. The estimated cost of this lease extension is $56.92 per RSF, plus an additional $3.88 RSF for electricity, for an annual cost of $2,077,840.00 and a total contract value of $5,194,599.99 This extension will protect the agency’s occupancy while allowing additional time for GSA to secure a new replacing lease on behalf of CBP in the delineated area.

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

☐ The government is consolidating various agencies and the contracting officer needs to extend the terms of some leases to establish a common expiration date

☐ The agency occupying the space has encountered delays in planning for a potential relocation

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED.

The space is built to support CBP’s mission and is located on JFK Airport property. It is necessary for the agency to be in close proximity to the airport to achieve its mission of inspecting and monitoring materials traveling into the United States. In addition, a competitive procurement is in progress and the LCO requires additional time to complete the procurement.

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

POTENTIAL SOURCES AS IS PRACTICABLE.

In accordance with GSAM 570.106(d) and 570.405, an advertisement is not required for extensions.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by the Lease Contracting Officer in Queens, NY showed the rental rate within the market area ranges from approximately $44.82/RSF for 3-star properties and $46.88/RSF for 4- & 5-star properties for lease terms of 7 years or more. These rates are exclusive of non-market shell improvements which are estimated to be approximately $4.00 per RSF, janitorial cost estimated at $3.77 per RSF and parking at an estimated $300.00 per space per month in the amount of $8.18/RSF making the market range from $60.77 per RSF to $62.83 per RSF.

Based on the above, the anticipated rental rate for this extension of $56.92 per RSF, plus the cost of electricity estimated at $3.88/RSF for a total rate of $60.80 per RSF is within the market based on the most recent CoStar report for this submarket. The market rates reflect longer-term agreements, however, and thus do not factor in a premium for a short-term, thirty (30) month extension or the premium cost of being located on John F. Kennedy Airport property, which provides integral access to CBP to conduct its mission in the most effective and efficient manner. Therefore, the proposed rent rate of $60.80 per RSF is deemed fair and reasonable by the GSA Lease Contracting Officer.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

In January 2026, market research was conducted using CoSTAR. The market research showed the rental rate within the market area ranges approximately from 44.82/RSF for 3-star properties and $46.88/RSF for 4- & 5-star properties for lease terms of 7 years or more. These rates are exclusive of non-market shell improvements which are estimated to be approximately $4.00/RSF, janitorial cost estimated at $3.77/RSF and parking at an estimated $300.00/space per month in the amount of $8.18/RSF making the market range from $60.77/RSF to $62.83/RSF.

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

Remaining at the current location under a 30 month extension avoids a holdover and allows the Government to continue operations without disruption.

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.

A competitive procurement is underway to replace this lease with a new lease for a fifteen (15) year term. The new, replacement lease procurement is currently underway and is projected to be awarded in calendar year 2026, with a projected occupancy of 2028.

CONTRACTING OFFICER CERTIFICATION.

oncurred By:

iewed By:

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 30 months for LNY23947 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.

1/29/2026

Date

Michelle Jackson, Lease Contracting Officer

C 1/29/2026

Javier Escobar Molina, Acting Branch Chief, Branch G (PRAEG)

1/30/2026

Michelle Parrish, Director, Simplified Acquisition Branch (PRAE)

Rev

Leigh Erin Izzo, Senior Assistant Regional Counsel (LR)

Approved By:

Gina DiTommaso Competition Advocate