Redacted LCA02344_Justification_for_Other_Than_Full_and_Open_Competition.pdf

DocuSign Envelope ID: 6643C47A-47BC-4228-890A-0242EF82E819

U.S. General Services Administration

GSA Region 9

Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1CA2830

Agency Name: Custom and Border Protection (CBP), Food and Drug Administration (FDA), and United States Postal Service (USPS)

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

The General Services Administration currently leases 46,563 ABOA/46,563 rentable square feet (RSF) of industrial warehouse space at 20700 Denker Ave., Torrance, CA under lease number GS-09B-02344 for CBP, FDA, and USPS. The current lease has a rental rate of REDACTED per RSF per year and expires 11/12/24. Approval is requested to negotiate one renewal option 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 a renewal option at this leased location. CBP, FDA, and USPS are currently occupying an industrial mail facility for review and scanning of incoming mail for contraband.

The facility has 5 loading dock stalls with maneuverability for 53 foot trailers with secured fencing around the building. There is also a screening area with canine inspections/x-ray machines to clear mail packages, an agricultural lab and disposal center, and a secure storage detention room. The facility also has 22 foot ceilings in the warehouse/storage areas. The ability to remain housed at the current location allows the Government to avoid replication of costs while maintaining current security review/protocol required for international mail inspection without delays due to a relocation.

This requirement is to add one five-year renewal option. The estimated cost of the option is REDACTED per RSF per year for an annual cost of REDACTED. The total contract value of this option 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 CBP, FDA, and USPS 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, restrooms, dry labs, interior dog kennel, and mail processing center including secure screening areas.

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 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 CBP, FDA, and USPS using the low cost estimate exceeds the cost of remaining at 20700 Denker Ave., Torrance, CA. The total savings to the Government is REDACTED.

Therefore, the proposed rental rates for this renewal of REDACTED 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 3 potentially acceptable locations (2 plus the incumbent) that might meet the agency’s needs within the delineated area. The potentially acceptable locations had available space to meet the agencies’ 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 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

20700 Denker Ave., Torrance, CA EOI REDACTED

1340 W. Storm Pkwy., Torrance, CA

CoStar REDACTED

20051-20101 S. Vermont Ave., CoStar REDACTED

First Industrial Harrisburg, L.P. (incumbent)

Torrance, CA

REDACTED

^adjusted for market based operating rent of REDACTED.

Figure 1: Market Research Comparables

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

CBP, FDA, and USPS are 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 has been one previous renewal option 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.

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 a second renewal option 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.

3/5/2024 REDACTED Date

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.

Eric Johnson, Leasing Specialist

CONCUR:

Peter Zepeda, Branch Chief

Jessica L. Escobedo R9 Leasing Advocate for Competition

3/11/2024

Pamela Collins, Director Real Estate Acquisition Division

3/11/2024

Marilyn Paik, Reviewing Attorney R9 Assistant Regional Counsel

3/12/2024

Amanda Sweeney Deputy Regional Commissioner

3/12/2024 APPROVED: REDACTED Date

Dan R. Brown, HCA Regional Commissioner Public Buildings Service Pacific Rim Region