Justification for Extension in Hampton Va

1 GENERAL SERVICES ADMINISTRATION South Branch, Real Estate Acquisition Division Justification for Other than Full and Open Competition Project 8VA2605 Hampton, Virginia 1. Nature and/or description of the action being approved. The action being approved is to procure an extension for a period of 24 months at the current location for . The currently occupies 89,250 ABOA sf (97,490 RSF) of office space at in Hampton, VA. 2. Description of the supplies or services required to meet the agency's needs (including estimated value). The currently occupies 89,250 ABOA sf (97,490 RSF) of office space at in Hampton, VA under lease LVA05388, which expires May 31, 2018. The current rental rate for Lease LVA05388 is For the past 6 months, GSA has been diligently working with towards the termination of lease LVA05388. The estimated rental rate for the extension rate is as follows: 3. Identification of the statutory authority 2 41 U.S.C 3304(a)(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.3304 (a)(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. Given the investment of tenant improvements at this location, it is in the best interest of the Government to make use of the existing improvements and remain at the current location. Additionally, it would be economically infeasible to relocate the agency for a short period of time. In addition there is no other space available in the market that meets the agency's space requirement. 5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. Per the requirements of GSAM 570.106, the contracting officer need not publicize the proposed acquisition of a leasehold interest in real property for lease extensions. The conditions defined in GSAM 570.405 permit contracting without providing for full and open competition when the property or services needed by the agency are available from only one responsible source and no other type of property or services will satisfy the needs of the agency. A search on March 20th provided no viable options. This authority may apply to lease extensions in situations where the agency occupying the leased space is scheduled to move into other federally controlled space, but encounters unexpected delays in preparing the new space for occupancy. 6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. For the purpose of establishing market averages for the Hampton, VA area, the Lease Contracting Officer and Leasing Specialist referenced the listing rates of 4 buildings within the delineated area. All vacancies were smaller than the minimum needed for this requirement. 3 REIS data for the Norfolk/Hampton Roads, Hampton Roads submarket for 2018 shows an average rate of $19.88/RSF for this type of space. With a 2.5% escalation each year, this equates to an average rate of over the anticipated 2 year lease period. Therefore, the proposed rental rate for this lease renewal of is within the current market range per the REIS data for this submarket and deemed fair and reasonable by the Contracting Officer. 7. Description of the market research conducted On March 20th, 2018 market research was conducted using . The market research identified no buildings within the delineated area that could potentially satisfy the client agency's square footage requirement. Please refer to the attached Market Research Report for detailed information. 8. Other facts supporting the use of other than full and open competition The Lessor's performance under the existing lease has consistently met the Government's expectation for quality performance. The GSA Property Manager in the Norfolk Field Office, confirmed the Lessor has been responsive to building issues and the agency is satisfied with the current location. The latest GSA Tenant Satisfaction Survey for this leased location was recorded in 2014. There are no known ABAAS concerns or Fire/Life Safety concerns with the existing space. 9. List of any sources that expressed in writing an interest in the acquisition No other source has expressed in writing an interest in the acquisition. 10. Statement of actions the agency may take to remove or overcome any barriers to competition The follow-on housing action for this tenant shall be in the . The current lease will be terminated once the relocates to federal space at the . Contracting Officer's certification I hereby certify that the above information is accurate and complete to the best of my knowledge. 4 Prepared by: 5/1/2018 X Zuleima Vaughan Zuleima Vaughan Leasing Specialist Signed by: ZULEIMA VAUGHAN Concurred by: 5/2/2018 X Joe Beck Joe Beck Lease Contracting Officer Signed by: General Services Administration Concurred by: 5/2/2018 X Stacy C. Keefer Stacy Keefer Realty Section Chief Signed by: STACY KEEFER Concurred by: 5 5/2/2018 X Laurie Ney Real Estate Acquisition Branch Chief Signed by: LAURA NEY Approved by: 5/8/2018 X Dorothy Baratta Competition Advocate Signed by: DOROTHY BARATTA Reviewed for legal sufficiency: 5/9/2018 X Robert J. McCall Robert McCall Regional Counsel (L3) Signed by: ROBERT MCCALL