TO POST on SAM - FBI PA Extension REDACTED JOTFOC.pdf

U.S. General Services Administration

GSA Region 9

PBS – Real Estate Acquisition Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PROJECT NUMBER: 0CA3140

Agency Name: Federal Bureau of Investigation (FBI)

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

The General Services Administration currently leases 6,860 ABOA/7,890 rentable square feet (RSF) of office space at 2475 E Bayshore Road, Palo Alto, CA under lease number GS-09B-01788 for the FBI.

The current lease expires 07/15/2020. Approval is requested to negotiate an extension with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The right to pursue an extension is detailed in GSAR 570.405: Lease Extensions.

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

(INCLUDING ESTIMATED VALUE).

This extension is necessary due to the delay in construction of the new/replacing lease. Because of COVID-19 and shelter in place restrictions, coupled with delays during the design phase, a two year lease extension is necessary to protect the occupancy of FBI while their new space is being built out.

This requirement is for 6,860 ABOA/7,890 RSF of space for a two-year term to commence on 07/16/2020. The estimated cost of this lease is $72.06 per rentable square feet per year for an annual cost of $568,543.93 and a total contract value of $1,137,087.87. The delineated area is W: 101 Freeway, N: Embarcardero Rd, E: Embarcardero Way, S: Embarcardero Way.

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. In accordance with FAR 6.302-1 and GSAR 570.402, 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 FBI to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $94,680.00. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $2,392,462.67. This figure includes several items specific to law enforcement buildoust, including a SCIF room, holding and interview rooms, and classified IT systems.

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

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

DocuSign Envelope ID: 214BE153-D597-452B-8332-8F087539ED89

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Per the requirements of GSAR 570.402, the GSA Lease Contracting Officer was not required to place an advertisement on betaSAM. Through the competitive lease process for the new/replacing lease under project 5CA0862, there was over two years of documented efforts to solicit as many sources as possible to relocate the FBI. That competitive procurement resulted in only one offer who was awarded the lease.

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

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Recent market surveys conducted by PBS in Palo Alto, CA showed the rental rate within the delineated area ranges from $71.24 to $107.86 per RSF per REIS and CBRE data for the San Jose-Palo Alto submarket.

Therefore, the proposed rental rate for this extension lease of $72.06/RSF, is within the current market range for this submarket and is 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 06/09/2020, PBS conducted market research using CoStar and identified 1 potentially acceptable location (the incumbent) that will meet the agency’s needs within the delineated area. The incumbent Lessor’s expression of interest indicated that the rate would be $72.06 per RSF. Research was also conducted using REIS and CBRE databases to identify average market rates.

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

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

No properties were identified via Co Star search Co Star

Figure 1: Market Research Comparables

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

Past performance of the Lessor has been addressed through the New/Replacing and subsequent pending move out of FBI to their alternate location under GSA project 5CA0862. This extension seeks to protect the Government's occupancy while the alternate space is being built out.

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

ACQUISITION.

None

DocuSign Envelope ID: 214BE153-D597-452B-8332-8F087539ED89

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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 to 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 lease extension of 7,890 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_____________________

Christina Dolan, Lease 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______________________

Christina Dolan, Lease Contracting Officer

CONCUR:

____________________________Date______________________

Peter Zepeda, Branch Chief

____________________________Date______________________

Pamela Collins, Director

Real Estate Acquisition Division

6/10/2020

6/10/2020

6/10/2020

6/19/2020

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___________________________Date______________________

Indrek Aasmaa, Reviewing Attorney

R9 Assistant Regional Counsel

APPROVED: ____________________________Date______________________

Jessica L. Escobedo, LAO

R9 Regional Competition Advocate

6/23/2020

6/23/2020

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