SSA_Lancaster_-_JOFOC_Redacted.pdf

Memo to File

GENERAL SERVICES ADMINISTRATION

North Branch, Real Estate Acquisition Division Justification for Other than Full and Open Competition

7PA2306 – Memo to File Social Security Administration

Lancaster, PA

1. Nature and/or description of the action being approved.

The General Services Administration (GSA), Public Buildings Service, seeks authority to enter into a sole source leasing action for the Social Security Administration (SSA) at their current location located along 1809 Olde Homestead Lane, Lancaster, PA for a period of 24 months with 90 day termination rights.

2. Description of the supplies or services required to meet the agency’s needs (including estimated value).

SSA currently occupies 13,633 ANSI BOMA Office Area (ABOA) Square Feet or 14,400 Rentable Square Feet (RSF) of office space located at in Lancaster, PA under Lease GS-03B-02387. SSA pays a fully serviced rental rate of $ or $ . The existing lease expires on November 17, 2017. GSA needs to secure a 24 month extension to allow time to finish a competitive procurement for to satisfy SSA’s long term space needs. The estimated rental rate for the renewal is $ .

The estimated aggregate cost to the Government for this action is estimated to be:

Year 1-2: 14,400 RSF X 2 Year X =

3. Identification of the statutory authority

• 41 U.S.C. 253 (c) (1) and FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

4. Demonstration that the proposed contractor’s unique qualifications or nature of the acquisition requires use of the authority cited.

Securing a 24 month extension is in the best interest of the Government to protect the Government’s occupancy while completing a competitive procurement to find SSA space. GSA plans to award a lease, through a fully competitive procurement, within the next 6 months. Extending the existing lease allows the government to deliver an economically viable housing solution until the new facility is completed. In accordance with the requirements of GSAM

517.207(b), the lessor’s performance under this lease has met the Government’s expectations.

5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable

On April 7, 2017, a market research was conducted by using the following source: CoStar. Market research identified 2 potential office or retail space within the Lancaster market that could satisfy SSA’s requirement. One of those spaces is the existing SSA location and the other space is owned by existing lessor.

Because this is a short term extension, no ad on FedBizOpps is required.

6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The current rental rate for this lease is $ . There is no SIOR or REIS data for Lancaster or the surrounding area. A fully competitive procurement is occurring simultaneously with the extension. The extension will allow SSA the time needed to relocate if a better offer is found through competition. The average market rates for shell and operating costs, excluding TI, ranges from $ based on the two available buildings in the market. The proposed extension rate of $1 is at the low end of the market.

Extending the existing lease protects the Government’s occupancy while causing the least amount of disruption to SSA. If a short term extension was competed, SSA would have to be moved twice causing extensive relocation costs and disruption to the agency and their clients.

7. Description of the market research conducted

A competitive market survey was conducted in April 2017. Two viable options, including the agency’s current landlord, were solicited. GSA is currently reviewing offers through a competitive process to determine which location is advantageous for SSA. In order to finalize these requirements, the Government needs an additional 24 months at the current location.

The lessor has proposed a fully serviced rate of $ which is considered slightly lower than the average market rate for Lancaster. A cost benefit analysis (attached) showed that SSA will save over $ in duplicated costs by remaining in place for the 24 month period while a permanent location can be found.

8. Other facts supporting the use of other than full and open competition

A market survey showed that the existing lessor owns the only two available buildings that meet the Government’s requirements. The owner will also void the current lease when the new space is prepared so the agency has time to move and avoids paying double rent.

9. List of any sources that expressed in writing an interest in the acquisition

No other source has expressed in writing an interest in the acquisition.

10. Statement of actions the agency may take to remove or overcome any barriers to competition

GSA will award a competitive lease within 6 months of granting the 2 year extension for the follow on action to this lease. This extension allows time to finalize build out of the new space.

Contracting Officer’s certification

I hereby certify that the above information is accurate and complete to the best of my knowledge.

Prepared and Approved by:

7/27/2017

X Meghan Kang

LCO

Signed by: MEGHAN KANG