SIGNED JOTFOC_Redacted.pdf

Revised 10-23-2023

Justification for Other Than Full and Open Competition, Superseding Lease

U.S. General Services Administration

GSA Region 7

Leasing Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 4NM0160

Agency Name: Department of Energy (DOE)

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

The General Services Administration currently leases 79,000 ABOA / 90,850 rentable square feet (RSF) of office space at the Skeen-Whitlock Building, 4021 National Parks Hwy., Carlsbad, NM under lease number GS-07P- LNM14421 for the Department of Energy (DOE). The current lease expires 08/31/2025. Approval is requested to negotiate a superseding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a superseding lease are detailed in GSAR 570.404: Superseding Leases.

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

(INCLUDING ESTIMATED VALUE).

GSA sent a Unilateral Lease Amendment (ULA) to terminate GS-07P-LNM14421 effective 08/31/2025. GSA sought to rescind the termination, but the Lessor refused. The DOE has a continuing, long-term need for 79,000 ABOA SF of office and related space.

This requirement is for 79,000 ABOA / 90,850 RSF of space for a 10-year term to commence on 09/01/2025. The estimated cost of this lease is per rentable square feet per year for an annual cost of and a total contract value of . This estimated cost is based upon an informational quote provided by the Incumbent Lessor. The delineated area is the city limits of Carlsbad, NM. 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 570.402-1(b)(2), 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 the DOE to incur significant move and replication costs. Additionally, no potentially acceptable locations were found to house the DOE. Extensive market research was conducted, the GSA LCO reviewed properties in Carlsbad, NM and beyond by expanding the search area approximately 200 miles beyond the city limits of Carlsbad and no potential alternative locations were found.

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

POTENTIAL SOURCES AS IS PRACTICABLE.

Per the requirements of GSAR 570.106, the GSA LCO placed an advertisement on the Contracting Opportunities domain of SAM.gov on 04/09/2025 for 12 days. In addition, the GSA LCO conducted market research using CoStar, however no properties were found that would meet the requirements of DOE.

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

GOVERNMENT WILL BE FAIR AND REASONABLE.

Unable to locate rental information in Carlsbad, NM, the GSA LCO expanded the search area to El Paso, TX, where comparable market data revealed rental rates ranging from to per RSF. CoStar and LoopNet.

Therefore, the proposed rental rate for this superseding lease of RSF, is within the current market range for this submarket and are deemed fair and reasonable by the GSA LCO.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS.

On 03/27/2025, the GSA LCO conducted market research using Costar and the online real estate resource Loopnet.com and identified 1 potentially acceptable location which is the Incumbent Lessor. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on 04/09/2025. The incumbent Lessor’s expression of interest indicated that the rate would be per

RSF.

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

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

4021 National Parks Hwy. (Incumbent Lessor) EOI

Figure 1: Market Research Comparables

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

The current location fully meets the mission requirements of the agency.

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.

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 award of a superseding lease of 90,850 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.

__ __________________________________ Date_____________________ 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.

__ __________________________Date______________________

13. REVIEW, CONCURRENCE, AND APPROVAL

Reviewed by:

__ ________________________________Date_____________________

, LD7 Legal Counsel

Concurred by:

___ _______________________________Date_____________________

, Leasing Director

Concurred by:

___ ____________________________Date_____________________ , Competition Advocate

Approved by:

____ __________________________Date_____________________

, HCA (Acting Regional Commissioner)