signed Jotfoc_Redacted.pdf

Justification for Other Than Full and Open Competition, Succeeding Lease

U.S. General Services Administration

GSA Region 4

Leasing

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 9NC2247

Agency Name:

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

The General Services Administration currently leases 19,929 ABOA/23,370 rentable square feet (RSF) of office space at 129 West Trade Street, Charlotte, NC, under lease number GS-04P-LNC46103 for the

The current lease expires February 28, 2023. 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).

submitted a continuing need letter on January 15, 2021 for a reduction in space for 17,074 rentable square feet of office and related space and would like to remain in their current location. To satisfy the mission requirements, the facility cannot be located in close proximity to Department of Homeland Security or Department of Justice.

This requirement is for 14,847 ABOA/17,074 RSF of space for a 15 year, 10 year firm - term to commence on March 1, 2023. The anticipated rate based upon the existing rent being paid under existing lease GS-04P-LNC46103 and market research with supporting negotiation objectives provides an estimated cost of this lease at per rentable square feet per year for an annual cost of and a total contract value of the firm term (15 years) of The estimated TI cost to reduce the current footprint at the current location is . The delineated area is the Central Business District of Charlotte, NC. 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.

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 to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be in move costs and in estimated buildout costs for new space. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6. The cost of relocating using the low-cost quote exceeds the cost of remaining at 129 West Trade Street, Charlotte, NC. 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 November 22, 2021 for 21 days. In addition, the broker contractor conducted market research using CoStar and local market outreach.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by the broker contractor in Charlotte, NC showed the rental rate within the delineated area ranges from per RSF based upon the market analysis conducted, CoStar available properties, and research reports. All of these reports/analysis have been made a part of the project file and have been uploaded into GREX.

Therefore, the proposed rental rates for this succeeding lease of /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.

As outlined above, market research was conducted by searching CoStar. All research led to the same conclusion that an award to an offeror other than the present lessor would result in substantial relocation costs or duplication of costs to the Government, and the Government cannot expect to recover such costs through competition. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on November 22, 2021.

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 * please note these rates are not inclusive of Government TI

201 S College Street CoStar

301 S College Street CoStar

227 W Trade Street CoStar

101 S Tryon Street CoStar

Figure 1: Market Research Comparables

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

is satisfied with their current location. The lessor is responsive to their needs and keeps this site will maintained.

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

ACQUISITION.

None

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

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

In advance of an existing lease contract’s expiration, considerations will be given to allow for sufficient time to conduct a full and open procurement. The Government will consider the time and cost of moving from the existing location, and the time and cost to build out new space when deciding whether it is economically advantageous to stay at the existing building or undergo a competitive action.

Additionally, consideration will be given to the customer agency’s mission and security requirements (if applicable) to include limiting any agency space requirements that may be deemed unduly restrictive and thus favor the incumbent. The Government will remain conscious of the effort to continuously encourage competition when practicable.

11. CONTRACTING OFFICER CERTIFICATION.

By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a succeeding lease of 17,074 RSF 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.

3/7/2022

CONCURRENCE/APPROVAL BY:

Concurred by:

3/8/2022

3/8/2022

Reviewed by:

3/17/2022

Approved by: