redacted OKC OK.pdf

Revised 05-20-2021

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 7

Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 1OK2063

Agency Name: Social Security Administration (SSA)

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

The General Services Administration currently leases 20,505 ABOA / 22,780 rentable square feet (RSF) of office space at 12301 N Kelley Ave, Oklahoma City, OK under lease number GS-07P-LOK17005 for the

SSA. The current lease expires 9/11/2024. Approval is requested to negotiate a succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location.

The procedures for pursuing a succeeding lease are detailed in GSAR 570.402: Succeeding Leases.

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

ESTIMATED VALUE).

SSA submitted a continuing need letter on 6/14/2022 for 22,780 rentable square feet of office and related space.

This requirement is for 20,505 ABOA / 22,780 RSF of space for a 10 year / 5 year firm term to commence on 9/12/2024. The estimated cost of this lease is $20.04 RSF per year (years 1-5) for an annual cost of

$456,511.20 and $21.04 RSF per year (years 6-10) for an annual cost of $479,291.20. The total contract value (TCV) is $4,679,012.00 (Note: estimated cost per RSF based upon an informational quote received from the incumbent lessor on 6/30/22, provided by written email in response to outreach by the GSA

Project Manager) The delineated area is:

NORTH: NW 150TH ST, W 33RD ST.

SOUTH: IH40

WEST: N. COUNTY LINE RD, W. WILSHIRE BLVD, N. COUNCIL RD.

EAST: IH35

There is no vacant Federal Space available.

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 570.402. In accordance with GSAR

570.402, use of the sole source authority is appropriate where 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.

Revised 05-20-2021

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 SSA to incur move and replication costs that would not be recovered through competition. Physical relocation / move costs are estimated to be $191,373.00. Additionally, this allows the Government to make use of existing tenant improvements, avoiding tenant improvement and security replication costs of $3,092,919.00. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating SSA using the low-cost quote exceeds the cost of remaining at 12301 N Kelley Ave. The total savings to the Government is $3,478,298.00.

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

POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.402, the GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on 6/14/2022 for 24 days. In addition, PBS conducted market research using CoStar and were able to identify potential properties that may meet the SSA requirements.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market research conducted by GSA in Oklahoma City, OK showed the average asking rental rate within the delineated area range from $19.50-$24.50 RSF fully serviced.

Therefore, the proposed rental rates for this succeeding lease of $20.04 RSF 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.

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.

On June 14, 2022 PBS conducted market research using CoStar and identified 10 potentially acceptable locations plus the incumbent that might meet the agency’s needs within the delineated area. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of

SAM.gov website on June 14, 2022. The incumbent Lessor’s expression of interest indicated that the rate would be $20.04 per RSF (years 1-5) and $21.04 per RSF (years 6-10).

See Figure 1 below for the results of the market research and SAM.gov advertisement, including the incumbent. Address

Source [EOI/CoStar, etc.] Asking Full Service Rental

Rate

12301 N Kelley Ave

[incumbent]

EOI $20.04 (yrs 1-5)

$21.04 (yrs 6-10)

9400 N Broadway Ext Costar $19.50

6000 N Classen Blvd CoStar $21.96

6300 N Classen Blvd CoStar $22.47