Gov Lease - Extension

U.S. General Services Administration GSA Region 7 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER: GS-07P-LTX14888 PROJECT NUMBER: 7TX3096 Agency Name: Internal Revenue Service (IRS) and United States Coast Guard (USCG) 1. Nature and/or description of the action being approved. Approval is requested to negotiate a strategic lease extension without competition for a term of 14 months, 6 months firm to accommodate each agencies move out schedule. 2. Description of the supplies or services required to meet the agency's needs (including estimated value). Lease GS-07P-LTX14888 for 23,894 RSF expires on May 31, 2017. The space is located at 555 Carancahua, Corpus Christi, TX and is currently occupied by the IRS and a US Coast Guard. The current Lessor is T2 Building LP, 555 Carancahua, Ste. 220, Corpus Christi, TX. The current lease includes office and related space for the tenants. This proposal will extend the current lease 14 months, with 6 months firm to provide sufficient time to accept the long-term replacement leases and move into the new facilities. 3. Identification of the statutory authority 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 proposed contractor's unique qualifications or nature of the acquisition requires use of the authority cited. A strategic 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 made to ensure that offers are solicited from as many potential sources as is 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. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. A similar property was found at 500 N Shoreline Blvd, Corpus Christi, TX, having 31,000 RSF available for rental at a rate of $16.00-17.50/RSF. This information was sourced via Loop-Net. The current rental rate is $15.10 per rentable square foot $9.74 shell rent, and $5.36 operating rent. Based on the market data this extension is considered to be within the market range and therefore deemed fair and reasonable. 7. Description of the market research conducted Market research conducted May 15, 2017 via CoStar reflects that there are no available buildings with the amount of space needed within the delineated area. Additional research conducted using Loop-Net uncovered two properties. Increasing the delineated area would encompass residential and warehouse properties, and neither would be acceptable. Documentation to support the market research is attached. 8. Other facts supporting the use of other than full and open competition None. 9. List of any sources that expressed in writing an interest in the acquisition None. 10. Statement of actions the agency may take to remove or overcome any barriers to competition 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. 11. CONTRACTING OFFICER CERTIFICATION: By signature on this Justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of an extension of 23,894 RSF is in the Government's best interest and that this Justification is accurate and complete to the best of my knowledge and belief. 12. TECHNCAL REQUIREMENTS PERSONNEL CERTIFICATION: I certify that by signature on this Justification for Other than Full and Open Competition, the supporting data used to form the basis of this Justification is accurate and complete to the best of my knowledge and belief. FAR Part 6.303 requires that information on which the Justification is based be certified as complete and accurate by the technical or requirements personnel. FAR Part 6.304 specifies that the justification must be approved in writing by a specified designee (position title from FAR used above) based on TCV. No additional guidance is included in GSAM Part 506.3. *Regional practice requires concurrence by the Leasing Director and Legal Counsel where TCV>$700,000, by the RC where TCV>$13.5M and by all lower level approvers. M=Million NAR=Net Annual Rent (Annual Rent less Operating) TCV=Total Contract Value HCA=Head of Procuring Activity SPE=Senior Procurement Executive