The General Services Administration Public Buildings Service Central Office has awarded contract GS-02B-19045 on a sole-source basis for a one-year extension of the USDA office lease at 654 Munoz Rivera Avenue, Hato Rey, Puerto Rico (Lease No. LPR18955), with an estimated annual cost of $556,984.97.

GSA cites 41 U.S.C. 3304(a)(1), implemented through FAR 6.103-1 and GSAR 570.405, as authority for sole-source contracting. The extension commences September 1, 2026, and spans twelve months beyond the current lease expiration of August 31, 2026. GSA justifies the extension on grounds of organizational and relocation planning delays; a concurrent new/replacing lease (LPR00477) with the incumbent lessor will consolidate space requirements from 35,558 rentable square feet to 29,301 rentable square feet—an 18 percent reduction—and the one-year extension provides necessary time to complete lease award and tenant improvement buildout. The contracting officer Eduardo Vidal certified that remaining at the current location avoids operational disruption and that the extension represents the government's best interest, as switching lessors would impose unrecoverable relocation and replication costs. Market research dated January 5, 2026, conducted by JLL, established Hato Rey rental rates between $28.00 and $40.00 per rentable square foot; the proposed extension rate is below this market range. The leased space encompasses 12,192 assignable building occupancy area and 14,875 rentable square feet.

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