Exercising of Renewal Option

 

 

 

General Services Administration/ Public Buildings Service
North Service Center

SSA/LNJ90487

Cherry Hill, New Jersey

 

Proposed Action:  To exercise a five year renewal option at the existing leased location with termination rights after the third year. The exercising of the renewal option will include replacement of all finishes throughout the leased premises.

 

Description of Requirement:

 

The General Services Administration (GSA) leases part of the first floor of the building known as Five Executive Campus, Cherry Hill, New Jersey under lease No. GS-03B-90487 which expires on May 15, 2010 but it contains one five-year renewal option.  The Social Security Administration occupies 22,860 rentable square feet (19,878 ANSI BOMA Usable Square feet) on part of the first floor of the leased building which is in an office park setting.

 

The lease contains the right to renew; <redacted>.

 

On January 15, 2010, the Lessor's representative submitted a proposal to lower the renewal rental rate <redacted>.  The Lessor has also agreed to a detailed scope of work to replace the finishes (vinyl wall covering, paint and carpeting) as part of the rental rate for the renewal.  <redacted>

 

The aggregate cost to the Government for this renewal option will be <redacted> (see excel spreadsheet for rent calculation) at the rate of <redacted> per rentable square foot.

 

<redacted> The lease required the option to be exercised on 90 days written notice; however, the lease rider contains a clause which states in part... ." the Lessor shall notify the Contracting Officer, in writing, at least 30 days and no more than 60 days prior to the time the option must be exercised. In the event the Lessor fails to notify the Government, as required by this paragraph, the Government shall have the right to exercise the option at anytime prior to the expiration of the lease." <redacted>

 

Identification of Statutory Authority:

 

41 USC 253 (c) (1)

 

Unique Qualifications of Proposed Contractor:

 

SSA provides daily service to the public and occupies part of the first floor. SSA greatly prefers first floor space due to their high amount of visitors. In addition, the current building can fully meet all of SSA's requirements with minimal cost and disruption.

 

 

Efforts to Ensure Solicitation from Maximum Sources Practical:  

 

A notice was placed on the fedbizopps website on April 14, 2010. <redacted>.

 

Determination that anticipated cost will be fair and reasonable:  

 

A search was conducted on April 15, 2010 in Co-Star in Cherry Hill, NJ.  Co-Star is a web based, real estate source of market data. <redacted>.

 

In addition, a search was also conducted on Co-Star for Camden County. <redacted>..

 

<redacted>

 

Therefore, the new renewal rate of <redacted> per rentable square foot including replacement of finishes is fair and reasonable. It is supported by market data.

 

Description of Market Survey:   

 

Although a web-based survey was conducted, a formal market survey was not performed for this action.

Other Factors Supporting Justification for other than full and open competition:

 

•1)     <redacted>

•2)     <redacted>

•3)     <redacted>

•4)     <redacted>

•5)     <redacted>

•6)     <redacted>

 

 

Listing Sources Expressing Interest in Solicitation:

<redacted>

 

Future Actions to Overcome Barriers to Full and Open Competition:,

A competitive leasing action will be conducted prior to the expiration of the renewal option in 2015.

 

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