Redacted_LMI17994_Justification_for_Other_Than_Full_and_Open_Competition_(JOFOC)_or_SLAT-level_Memo_to_File_and_Supporting_Documentation_Signed_OFOC_5_30_2024 (2)_Redacted.pdf

GENERAL SERVICES ADMINISTRATION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LEASE NUMBER LMI17994

PROJECT NUMBER 2MI0360

This request for approval is submitted in accordance with FAR 6.304(2) and GSAM 570.401 Lease Renewal.

1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED

The General Services Administration currently leases 8,696 rentable square feet (RSF) / 7,764 ABOA of office space at under lease number LMI17994 for the The current lease expires on 11/7/2025 and a succeeding lease was originally planned to fulfill the agency’s long-term requirements. However, GSA was notified that this location’s camera security system is failing, which creates safety and security concerns. A renewal will allow the fastest method of extending this lease. During the renewal term, the agency’s long-term requirements can also be solidified. Therefore, approval is being requested to add the renewal option to enable continued occupancy at this leased location.

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

NEEDS (INCLUDING ESTIMATED VALUE).

The lease for is due to expire on 11/7/2025. The agency will require funding to replace their failing security system, which will be provided separately after the renewal is put into place.

Exercising such a renewal of this lease for 5 years, 3 years firm commencing on 11/8/2025 is estimated to be per rental square foot resulting in an annual cost of for the 5-year renewal.

3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION.

41 U.S.C. 253 (c) (1)

4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS

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

Following the procedure described in 570.401 it was determined that it would be cost prohibitive and not in the best interest of the government to move the agency for the term of this renewal.

The cost to replicate the tenant improvements and move the agency would be approximately per rentable square foot prior to considering the rental rate or operating costs. The current space is capable of meeting the agencies current mission needs for the term of this renewal and can be extended without the expenditure of replication cost. Expending the funds to replicate space to be used for only 5 years would be a waste of taxpayer dollars and is not in the best interest of the government. It is GSAs intention to finalize a long-term follow-on procurement concurrent to the expiration of this proposed renewal term.

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

AS MANY POTENTIAL SOURCES AS IS PRACTICABLE.

After discussion with the GSA Property Management office, it was confirmed that the location is acceptable to meet the housing needs of the agency for the renewal period. An ad was also posted on SAM.gov to solicit offers from interested parties other than the incumbent and no responses were received. With that additional information it has been determined that inserting the renewal is in the best interest of the government. The long-term procurement to be conducted during the term of this renewal will consider all buildings that fall within the yet to be determined delineated area.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The current rate for this location is . The anticipated rate for the renewal in the current location is per RSF. CoStar research show fully serviced rates in the market to be between . This CoStar market range doesn’t factor in tenant improvement (TI) or move costs. TI was added in the chart below for comparison.

The anticipated rate of includes 23 structured parking spaces, which along with the shorter-term lease commitment, accounts for a slightly higher rate than the current market research reflects. Negotiations will also aim to bring the rate down closer to the current market range. Based on this information, the anticipated cost for this renewal period falls close to market range and well below the cost to move to an alternative location, and therefore should be found to be fair and reasonable.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

A formal market survey was not conducted for this lease renewal as moving the agency for the term of this renewal would be cost prohibitive and disruptive to the agency but will be conducted during the long-term replacement procurement that will be conducted during the renewal period.

Current Location Alternate Location

Shell Rent

Real Estate Tax Base

Operation Rent* (*as currently escalated)

Parking

Antenna

Tenant Improvements

Total Annual Rent

An ad was posted on SAM.gov to solicit offers from interested parties other than the incumbent and no responses were received.

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

COMPETITION.

In order to comply with the PBS Commissioner’s initiative to save taxpayer dollars through rental savings we have been prioritizing our procurements based on the overall value of the contract and the potential for rental savings. In situations where the space currently occupied has been confirmed by the GSA Property Manager to be capable of meeting the government's continued needs and agencies continued mission need Region 5 is renewing the lease based on the small financial risk to the government. Moving actions forward through renewals will allow the region to focus on deals with higher financial impact, realign our expiring workload in a phased manner and realize the organization's goal of longer-term strategic planning.

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

ACQUISITION.

Not Applicable

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

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION.

Through continued focus on longer term strategic planning with our clients and negotiating longer lease terms GSA will be able to better manage our inventory and reduce the need for non-competitive lease renewals.

11. CONTRACTING OFFICER CERTIFICATION

I, the Lease Contracting Officer, certify that the above information is accurate and complete to the best of my knowledge.