U.S. General Services Administration GSA Region 3 South Service Center Justification for Other than Full and Open Competition LEASE NUMBER: GS-03B-30078 PROJECT NUMBER: 2WV0098 Agency Name: Department of Veterans Affairs (VA) 1. Nature and/or description of the action being approved. The General Services Administration currently leases 35,085 ANSI/BOMA Office Area (ABOA) square feet (40,348 Rentable square feet) at Spring Mills Office Park, 882 TJ Jackson Drive, Falling Waters, WV, under lease number GS-03B-30078. This lease houses the US Department of Veterans Affairs (VA) and includes both a 24/7 operating data center and office support functions. This lease expires on March 24, 2014. Approval is requested to renew the current lease for 35,085 ABOA SF, with the incumbent lessor without full and open competition, for continued occupancy at this leased location to allow for the development of long term space requirements. While there has been an agency-wide initiative for the VA to reduce space at the national level, additional time is needed to determine the impact of these revised workplace standards on the efficacy of agency operations at the Falling Waters, WV office. The existing lease contains one (1) three-year lease renewal option (two years firm) with full termination rights for the Government upon ninety (90) calendar days written notice. 2. Description of the supplies or services required to meet the agency's needs (including estimated value). The VA confirmed its interest in pursuing execution of the existing three-year renewal option to allow for development of long term space requirements. By pursuing a lease renewal, the VA's operations would not be interrupted while these long term space needs are being confirmed and finalized. The VA is satisfied with its current space and the lessor's performance. The requirement is to exercise a three (3) year renewal option, two (2) years firm. The estimated cost is: Term: $19.00 rate/rsf x 40,348 rsf = $766,612.00 (Annual Rent) x 3 years = $2,299,836.00 Total Contract Value: $2,299,836.00 3. Identification of the statutory authority. 41 U.S.C. 253(c) (1) and FAR 6.302-1: 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. In accordance with 41 U.S.C. 253 (c) (1), the agency's minimum needs can only be satisfied by unique supplies or services available from only one responsible source and no other type of property or services will satisfy the needs of the agency. GSAM 570.402-4, "No potential acceptable locations," allows for negotiation with the incumbent lessor if no acceptable locations are identified through the advertisement or the market research. An advertisement (notice of intent) was posted on the Federal Business Opportunities Web site (febizopps.gov) on November 13, 2013. As a result of this posting, zero (0) offerors contacted the Government with a formal interest in housing the Government's space need in Berkeley County, WV, by the closing date of November 21, 2013. Also, additional market research was performed utilizing and on October 29, 2013. However, this research demonstrated that there are no available properties within the agency's delineated area that could potentially satisfy their requirements. Nonetheless, vacant properties in Berkeley County, WV, which did not have the ability to meet the minimum agency square footage requirement, were identified and further analyzed as a comparable for market rental rates purposes only. Due to the fact that there are no alternate locations that can meet the agency's square footage requirement, a cost benefit analysis cannot be performed. Furthermore, a cost benefit analysis is not required under GSAM 570.402-4, "No potential acceptable locations." Thus, it is in the best interest of the Government to renew the current lease at the existing location. This procurement strategy will ensure that the Government will meet the agency's requirements. See Attachment 1, Market Research Memorandum 5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. An advertisement (notice of intent) for this requirement was placed on Fedbizopps on November 13, 2013. On October 29, 2013, a database market search was also conducted in addition to which yielded zero (0) potential alternative space options to house the agency's requirements. See Attachment 1, Market Research Memorandum 6. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. data for this market is unavailable. Based on the aforementioned factors, the anticipated fully-serviced rental rate of $19.00/RSF is determined to be fair and reasonable. 7. Description of the market research conducted. See Attachment 1, Market Research Memorandum, 8. Other facts supporting the use of other than full and open competition. The VA has indicated its desire to remain at its current location while long term space requirements are being developed. The agency and GSA are satisfied with the lessor's performance on lease administration issues. By securing a renewal, disruption of the VA's daily activities would be minimized. There are no potential alternatives within the Berkeley County market that can meet the agency's requirements. 9. List of any sources that expressed in writing an interest in the acquisition. No other source has expressed in writing a formal interest in the acquisition. 10. Statement of actions the agency may take to remove or overcome any barriers to competition. At the end of the proposed lease renewal term, a fully competitive lease action, if appropriate, will be initiated to fulfill the agency's long term requirements. Contracting Officer's Certification: I hereby certify that the above information is accurate and complete to the best of my knowledge. Prepared by: ____________________________ Caitlin O'Donnell Date Leasing Specialist Concurred by: ____________________________ Cathleen Ryer Date Lease Contracting Officer Concurred by: ____________________________ Stacy C. Keefer Date Realty Section Chief Concurred by: ____________________________ Luann Caruso Date Real Estate Acquisition Branch Chief Approved by: ____________________________ Dorothy Baratta Date Regional Competition Advocate
