U.S. General Services Administration GSA Region 7 Dallas/Fort Worth Service Center JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER: GS-07B-15107 PROJECT NUMBER: 0TX2153 AGENCY: DHS UNITED STATES SECRET SERVICE - 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 45,774 rentable square feet (RSF) of office space at 125 East John Carpenter Freeway, Suite 300 Irving, Texas under lease number GS-07B-15107 for the DHS United States Secret Service. The current lease expired July 31, 2012. GSA will execute a Standstill Agreement. Approval is requested to negotiate a succeeding lease with the incumbent lessor without full and open competition for continued occupancy at this leased location. - 2. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED. DHS United States Secret Service submitted a continuing need letter on November 3, 2011 for 45,774 rentable square feet of office and related space. To satisfy the DHS United States Secret Service mission requirements, the facility must be within the delineated area. This requirement is for 45,774 RSF of space for a ten year lease term with a five year firm term to commence on August 1, 2012. The estimated annual cost of this lease is $27.93 per rentable square feet, for an annual cost of $1,278,238.95 and total contract value of $12,782.389.50. The delineated area is Northern Boundary Starting from the intersection of Highway 121 and Interstate 635 and traveling in an easterly direction along Interstate 635 to the intersection of Interstate 635 and Interstate 35E/Loop 12. Eastern Boundary From the intersection of Interstate 635 and Interstate 35E/Loop 12 and traveling in a southbound direction along Interstate 35E/Loop 12 to the intersection of Interstate 35E/Loop 12 and Highway 114. Southern Boundary From the intersection of Interstate 35E/Loop 12 and Highway 114 and traveling in a westbound direction along Highway 114 to the intersection of Highway 114 and Highway 121. Western Boundary From the intersection of Highway 114 and Highway 121 and traveling in a northbound direction along Highway 121 and ending at the intersection of Highway 121 and Interstate 635 and is within the central business area. - 3. IDENTIFICATION OF STATUTORY AUTHORITY. 41 U.S.C. 253 (c) (1) - Only one responsible source and no other supplied or services will satisfy the agency's requirements. - 4. DEMONSTRATION THAT THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED. GSAM 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. GSA placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities website (fedbizopps.gov) on May 8, 2012 and received no responses. Award to other than the current Lessor would require relocation of the entire requirement and would cause DHS United States Secret Service to incur move and replication costs that would not be recovered through competition. The agency has many security items that will be costly to replicate, such as ballistic windows and doors. Enhanced security, HVAC and ventilation systems are required. These items would have to be replicated if the agency were to move. Cost-benefit Analysis Acquisition of 43,338 ANSI/BOMA Office Area (ABOA) Square Feet 10-Year (Full Term) Analysis: Present Location Alternate Location 10-yr. Total rent / annual ABOA rate $12,782,389.50/$29.50 $12,099,969.60/$27.92 New amortized tenant improvements 200,000.00 $1,799,424.09 Cost of physical move N/A $68,661.00 Voice & Data move N/A $137,322.00 Duplication of Reimbursable Work Authorization (RWA) alterations N/A N/A Total 10-year cost / annual ABOA rate (no escalations included) $12,982,389.50/$29.96 $14,105,376.69/$32.55 10 Year lease savings $1,122,987.19 The cost of relocating DHS United States Secret Service using the low cost quote exceeds the cost of remaining at 125 East John Carpenter Freeway. The savings to the Government is $1,122,987.19. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, the Government intends to negotiate a succeeding lease and remain at its current location. - 5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICABLE. May 4, 2012, UGL Services conducted a market survey and identified nine potentially acceptable locations (eight plus the incumbent) that might meet the agency's need within the delineated area. The eight locations are potentially acceptable locations with the ability to possibly meet the basic requirements for this project, which are: 125 East John Carpenter Freeway (Incumbent) 400 East Las Colinas Blvd 1507 LBJ Freeway 6363 North State Hwy 161 6363 North State Hwy 161 6565 North MacArthur Blvd 222 West Las Colinas Blvd 6031 Connection Drive 5221 North O'Connor Blvd In addition an advertisement was placed in FedBizOpps on May 8, 2012; GSA received no responses to the advertisement. - 6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. In accordance with Federal Acquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines by certifying this document that the anticipated cost to the Government of $27.93 / RSF for the entire requirement is fair and reasonable. Recent market surveys conducted by UGL Services in Irving, Texas showed the rental rate within the delineated area ranges from $26.34 - $34.21 per RSF. - 7. DESCRIPTION OF THE MARKET SURVEY CONDUCTED May 8, 2012 UGL Services conducted a market survey that identified the following locations including the incumbent. Address Asking Full Service Rental Rate 125 East John Carpenter Freeway (Incumbent) $27.49 400 East Las Colinas Blvd $26.70 1507 LBJ Freeway $26.34 6363 North State Hwy 161 $27.42 6363 North State Hwy 161 $27.02 6565 North MacArthur Blvd $27.73 222 West Las Colinas Blvd $30.40 6031 Connection Drive $29.94 5221 North O'Connor Blvd $34.21 - 8. OTHER FACTORS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION Not applicable. - 9. LIST OF OTHER SOURCES THAT EXPRESSED AN INTEREST IN THE ACQUISITION IN WRITING. NONE, other than identified above. - 10. STATEMENT OF ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION. Not applicable. - 11. TECHNICAL/REQUIREMENTS CERTIFICATION I certify that supporting data used to form the basis of this justification are complete and accurate to the best of my knowledge and belief. _____________________________________ Date ______________ Cynthia M. Kirby, Project Manager - 12. CONTRACTING OFFICER CERTIFICATION. I certify that this justification is complete and accurate to the best of my knowledge and belief. ______________________________________ _____________ David Garrison, Leasing Specialist Date Concurred By: Pearl Summers-Garza, Lease Contracting Officer Date Concurred By: Sherrie Y. Johnson, Realty Services Officer Date Concurred By: Janice M. Trevino, Date Director, Real Estate Acquisition Division Concurred By: Cass Taliaferro, Legal Counsel Date Concurred By: James M. King, Competition Advocate Date Approved By: Victoria Hartke, Regional Commissioner Date Attachments: Acquisition Plan Market Data
