5TX0767

U.S. General Services Administration
GSA Region 7
Public Buildings Service
Justification for Other than Full and Open Competition
Lease Number: GS-07B-14431
Project Number: 5TX0767
Agency Name: Environmental Protection Agency (EPA)
Estimated Contract Value:
1.IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED.

Approval is requested to negotiate a lease extension without competition for a term of 24 months, 0 months firm.

2.DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED.

Lease GS-07B-14431, expires on February 8, 2017. The space is located in the Fountain Place at 1445 Ross Avenue in Dallas, TX and is currently occupied by EPA. The current Lessor is 1445 Ross Ave, LLC.

The current lease includes office and related space for the tenants.

This proposal will extend the current lease 24 months to provide sufficient time to deliver a long term replacement lease.

3.IDENTIFICATION OF STATUTORY AUTHORITY.

GSAM 570.405 (c) specifies that FAR 6.302-1 applies to lease extensions in certain situations related to protecting the Governments current occupancy until replacement space is ready for occupancy. FAR 6.302-1 is the implementing regulation for 41 U.S.C. 253 (c)(1) - Only one responsible source and no other supplies or services will satisfy agency requirements.

4.DEMONSTRATION THAT THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED.

An extension is required to protect the Government's occupancy until the replacement space is occupied. It is not reasonable to duplicate the tenant's existing space at another location while replacement space is being acquired.

5.DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICABLE.

Exception to Advertising: GSAM 570.106(d) provides that the contracting officer need not publicize the proposed acquisition of a leasehold interest in real property by lease extension under the conditions defined in 570.405.

6.DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE.

GSA is currently paying per RSF, fully serviced 1445 Ross Avenue in Dallas, TX. The estimated square footage to be acquired under the lease extension is RSF (217,906 ABOA). On October 20, 2016, a Bullseye report provided market research within the Dallas CBD Submarket area using CoStar, REIS, and CBRE data. According to Bullseye market data, the target rate is per RSF. If GSA exercises the two-year extension the anticipated rate will not exceed 10% above the Bullseye target, or per RSF.

7.DESCRIPTION OF THE MARKET SURVEY CONDUCTED.

Bullseye report provided market research within the Dallas CBD Submarket area using CoStar, REIS, and CBRE data.

8.OTHER FACTORS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION.

The current Lessor is responsive and is meeting the requirements of the lease. The current leased location meets the agency's requirements.

9.LIST OF OTHER SOURCES THAT EXPRESSED AN INTEREST IN THE ACQUISITION IN WRITING.

NONE.

10.STATEMENT OF ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION.

The lease action to provide long term replacement space provides the opportunity for full and open competition where alternative space is available and seeking competition is in the best interest of the Government. The Government continually strives to improve processes which will minimize the need for extensions