Redacted OTFO - 3TX1201.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 7

Greater Southwest Region

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 3TX1201

Agency Name: Social Security Administration (SSA)

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

The General Services Administration currently leases 14,576 ABOA/15,843 rentable square feet (RSF) of office space at 2901 Altamesa Boulevard in Fort Worth, TX under lease number GS-07P-LTX16561 for the Social Security Administration (SSA). The current lease expires January 19, 2026. 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 January 11, 2023 for 15,843 rentable square feet of office and related space. To satisfy the SSA’s mission requirements, the facility must meet the following requirements:

Contiguous space on a single floor or adjoining floors (including stacked space) is required.

Space should not be located near establishments whose primary operation is the sale of alcoholic beverages, firearms sold/discharged, or where there are tenants related to drug treatment or detention facilities.

Space must also not be located within 500 feet of an active, freight carrying railroad track.

Space must contain a public facing/lobby/waiting area.

This requirement is for 14,576 ABOA/15,843 RSF of space for a ten-year term, with a five-year firm term, to commence on January 20, 2026. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of . The delineated area is as follows:

North: Westdale Drive to South Drive to West Seminary Road;

East: Business 287;

South: North Dick Price Road to Everman Kennedale Road to Anglin Drive to East Enon Road to

Timberview Drive to Shelby Road to Everman Parkway to 35W to Sycamore School Road;

West: South Hulen Street.

There is no vacant Federal Space available.

Revised 10-23-2023

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.

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. Relocation costs are estimated to be

(Furniture Cost = ; Move Cost = ; Duplicate Rent during Move = ; IT Cost = ; and Cabling & Audio/Visual Cost = ). Additionally, remaining at the current location allows the Government to make use of existing tenant improvements and BSAC improvements, avoiding replication costs of . 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 2901 Altamesa Boulevard in Fort Worth, TX. The total savings to the Government is .

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 January 31, 2024 for 21 days. In addition, Public Properties conducted market research using the CoStar database and local/national broker outreach by phone and email.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by Public Properties in Fort Worth, Texas showed the rental rate within the delineated area ranges from . This data is supported by market research derived from CoStar and local market sources.

Therefore, the proposed rental rates for this succeeding lease of 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 February 27, 2024, Public Properties conducted market research using the CoStar database and outreach to local real estate brokers and identified two potentially acceptable locations, including 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 January 31, 2024. The incumbent Lessor’s expression of interest, the only expression of interest received, indicated that the rate would be .

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