GS04PLGA60166

Justification for Other Than Full and Open Competition, Succeeding Lease U.S. General Services Administration GSA Region 4 Leasing Division - Branch 4PR1B JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER: GS-04B-44010 PROJECT NUMBER: 3GA0286 Agency Name: REDACTED 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. Redacted Information currently occupies 37,282 Rentable Square Feet (RSF) with a Common Area Factor of 1.45 yielding 32,560 ANSI BOMA Office Area Square Feet (ABOA) The current lease expires April 30, 2014. Approval is requested to negotiate a 5 year/2 year firm term succeeding lease with the incumbent Lessor for continued occupancy at this leased location in accordance with the cost benefit analysis' findings. 2. DECSRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. GSA received space requirements for a new/replacing lease on November 1, 2012, for 51,894 rentable square feet of space. In November 2012 there was not sufficient space to satisfy the requirements of 51,894 Rentable Square Feet (RSF). The GSA Leasing Specialist and GSA Contracting Officer met with REDACTED and conducted the TMP for a new/replacing lease on November 29, 2012. During the meeting GSA was made aware that the requirements submitted were incomplete, and not vetted by the REDACTED -. GSA requested clarification and complete program requirements. REDACTED officially resubmitted requirements on July 25, 2013, for 37,282 RSF. The project was reassigned to REDACTED GSA Leasing Specialist and he proceeded with an extension project to follow sufficient time to the Leasing Division to compete the long term requirements. However, prior to the Government 2013 Shutdown the Portfolio Asset Manager made the Leasing Specialist aware of potential available space previously offered to the REDACTED. The availability of space was contingent on the REDACTED acceptance of space. Therefore the lease extension project was placed on hold and the REDACTED requirements were subsequently reassigned to the Federal Team. REDACTED The agency has been made aware of the strategy and in effort to maximize the limited time before the current lease expires. 3. IDENTIFICATION OF 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 ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. As demonstrated herein, "Only One Responsible Source" available in the best interest of the Government. This one source is uniquely qualified as the space is immediately available and is already constructed to meet the agency's unique requirements, and with no disruption to the agency or associated moving costs. The current market rent for the Smyrna, Georgia area ranges from $17.00 to $20.00 PRSF fully serviced lease. Cost Benefit Analysis A. Local Construction Index State REDACTED City Construction Index 0.0 B. Current Location Building Name REDACTED Street City, State Shell Rate (ABOA SF) $ REDACTED Operating Rate (ABOA SF) $ REDACTED Square Footage (ABOA SF) REDACTED Operating Rate Escalation 2.50% Discount Rate 5.00% Amortization Rate (TI) 5.00% Lease Term (years) 5 Estimated TI Buildout Costs (calculated from Section B) $ REDACTED TI Amortization Term (years) 2 **If TI Amort. Term is 0. All TI Costs will be evaluated as an upfront lump sum cost. Tenant Improvement Rate per usable square foot REDACTED C. Necessary Tenant Improvements for Current Location Yes (Y) / No (N) Cost * Tenant Improvements Costs are calculated based on the FY10 Budgetary Estimates Tab New Phone system n $ - Carpet (broadloom) n $ - Carpet (tile) n $ Vinyl Wall Base n $ - Paint n $ VCT n $ - Vinyl Wallcovering n $ - Remove Carpet with System Furniture in place n $ - Space Planning n $ - Programing n $ - Government DID's n $ - Enter # needed Miscellaneous TI Costs Enter Actual Cost ($) $ - $ - Unamortized (Lump Sum) TI Costs Enter Actual Cost ($) $ - $ - Total Upfront Costs $ - Total Costs Amortized into Rent $ D. Available Building with lowest rental rate Building Name Street City, State REDACTED Square Footage (ABOA SF) Shell Rate (ABOA SF) $ Operating Rate (ABOA SF) $ REDACTED Operating Escalation Rate REDACTED Discount Rate REDACTED Amortization Rate (TI) REDACTED Lease Term REDACTED Estimated TI Buildout Costs (Use OA Tool Allowance Calculator) 0 Tenant Improvement Rate per usable square foot TI Amortization Term (years) **If TI Amort. Term is 0. All TI Costs will be evaluated as an upfront lump sum cost. Yes (Y) / No (N) Cost E. Move Costs Building to Building Furniture & Systems Move n $ - Floor to Floor Furniture & Systems Move n $ - Building to Building telephone systems move n $ - Miscellaneous Move Costs Enter Actual Costs ($) $ - $ - $ - $ - *Based on TMP Level 1 Estimate Sheet Total: $ - F. Cost Benefit Analysis Summary Gross Aggregate Contract Value of Current Location REDACTED Gross Aggregate Contract Value of Available Building with lowest rental rate REDACTED Aggregate Cost Expenditures associated with Staying in Place REDACTED Aggregate Cost Expenditures / ABOA SF associated with Staying in Place REDACTED Gross Contract Value of Current Location (Present Value terms) REDACTED Gross Contract Value of Available Building with lowest rental rate (Present Value Terms) Aggregate Cost Expenditures associated with Staying in Place (Present Value Terms) REDACTED Aggregate Cost Expenditures / ABOA SF associated with Staying in Place (Present Value Terms) REDACTED Breakeven Shell Rate (Current Location) REDACTED Breakeven FS Rate (Current Location) #VALUE! REDACTED 5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. In accordance with FAR, Section 5.502 and GSAM, Section 570.106 a notice of intent to use "Other than Full and Open Competition" was posted in FedBizOpps on December 3, 2013 and amended on December 17, 2013 to reflect the change in lease term. No expressions of interest were received. The market survey revealed no acceptable locations within the delineated area. 6. DESCRIPTION OF MARKET RESEARCH CONDUCTED. Market research was conducted utilizing Costar, Loopnet and the GSA Succeeding Lease Tool, resulting in the determination that the market range for office space in REDACTED is between REDACTED per rentable square foot. 7. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. The current lease expires April 30, 2014, a succeeding lease of 5 years/24 months firm term is necessary to provide continuity of operations for the agency. REDACTED The cost benefit analysis completed and included in Section 4 of this JOTFOC demonstrates that negotiating a new succeeding lease with the current Lessor is in the best interest of the United States Government and provides substantial cost savings. 8. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUISITION. Not applicable. 9. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION. By this action the Government will save unnecessary moving, telecommunications/data and tenant improvements costs. The current space meets the agency's requirements. Therefore, due to the above, the Government will not be seeking competition with this succeeding lease action. REDACTED 10. TECHNICAL REQUIREMENTS PERSONNEL CERTIFICATION. I certify that the supporting requirements data used to form the basis of this Justification are complete and accurate to the best of my knowledge and belief. Prepared By: REDACTED 11. CONTRACTING OFFICER CERTIFICATION AND DETERMINATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. Recent market research conducted by the GSA Leasing Specialist in Atlanta, GA for comparable properties showed that the rental rate within the area for those properties ranges from $17.00 - $20.00 PRSF. CERTIFIED: REDACTED Concurrence: REDACTED REDACTED Legal Review: Regional Competition Advocate: REDACTED