U.S. General Services Administration GSA Region 7 Public Buildings Service Justification for Other than Full and Open Competition Lease Number: GS-07P-LTX14420 Project Number: 7TX3043 Agency Name: Social Security Administration (SSA) Human Health Services (HHS) Estimated Contract Value: $13,788,369.50* *RSF to be leased, 309,851 x $22.25 per RSF = $6,894,184.75 x 2 years = $13,788,369.50 1.IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. Approval is requested to negotiate a lease extension to the above referenced lease withoutcompetition for a term of 24 months, 0 months firm, with partial termination rights. 2.DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED. Lease GS-07P-LTX14420 for 315,649 RSF / 274,477 ABOASF, expires on September 30, 2017.The space is located at 1301 Young St, Dallas, TX and is currently occupied by SSA and HHS.The current Lessor is HPI/GSA-2B, L.P. The current lease includes office and related space for the tenants. This action will extend the current lease for 24 months in order to provide sufficient time to deliverthe long term replacement lease. 3.IDENTIFICATION OF STATUTORY AUTHORITY. GSAM 570.405 (c) specifies that FAR 6.302-1 applies to lease extensions in certain situationsrelated to protecting the Governments current occupancy until replacement space is ready foroccupancy. FAR 6.302-1 is the implementing regulation for 41 U.S.C. 253 (c)(1) - Only oneresponsible source and no other supplies or services will satisfy agency requirements. 4.DEMONSTRATION THAT THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED. An extension is required to protect the Government's occupancy until the replacement space is ready for occupancy. It is not reasonable to duplicate the tenant's existing space at another location while replacement space is being acquired. 5.DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICABLE. Exception to Advertising: GSAM 570.106(d) provides that the contracting officer need notpublicize the proposed acquisition of a leasehold interest in real property by lease extensionunder the conditions defined in 570.405. 7TX3043/Dallas, TX Justification For Other Than Full And Open Competition PAGE 2 OF 4 Last Revised 2/5/15 6.DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. GSA is currently paying $20.39 per RSF/23.45 ABOA consisting of $13.19 per RSF/$15.17ABOA for shell (inclusive of parking) and $7.20 per RSF/$8.28 ABOA for operating rent. Thecurrent rate provides a fully serviced lease for 315,649 RSF at 1301 Young St in Dallas, TX. The estimated square footage to be acquired under the lease extension is 309,851 RSF (269,435ABOA) a reduction of 5,798 RSF of space that is currently vacant. A Bullseye report providedmarket research within the Dallas CBD Submarket area using CoStar, REIS, and CBRE data.According to Bullseye market data, the target rate for a lease in this delineated area is $24.56 perRSF. Based on preliminary exchanges between the Project Manager and the Lessor an anticipatedrate for the lease extension was quoted at $22.25 per RSF. Therefore, the estimated cost of theextension is expected to meet and exceed the BullsEye measure. Once the JOTFOC is approved, the Contracting Officer with engage the lessor in negotiations toreduce the rate further. 7.DESCRIPTION OF THE MARKET SURVEY CONDUCTED. Bullseye report provided market research within the Dallas CBD Submarket area using CoStar,REIS, and CBRE data. 8.OTHER FACTORS SUPPORTING THE USE OF OTHER THAN FULL AND OPENCOMPETITION. Not Applicable 9.LIST OF OTHER SOURCES THAT EXPRESSED AN INTEREST IN THE ACQUISITION INWRITING. NONE. 10.STATEMENT OF ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANYBARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION. The lease action to provide long term replacement space provides the opportunity for fulland open competition where alternative space is available and seeking competition is in the bestinterest of the Government. The Government continually strives to improve processes which willminimize the need for extensions. The long term replacement lease for HHS provided for full and open competition and has beenawarded. The long term replacement lease for SSA also provided for full and open competitionand is anticipated for award in March 2017. Please see attached approved prospectus documentthat cites interim leasing. 7TX3043/Dallas, TX Justification For Other Than Full And Open Competition PAGE 3 OF 4 Last Revised 2/5/15 1/30/2017XJTrevinoLeasing DirectorSigned by: JANICE TREVINO1/26/2017XNick Porter Project Manager1/31/2017XMatthew MadisonCompetition Advocate (Approver $) Signed by: MATTHEW MADISON1/31/2017XHCA(Approver $) Signed by: JAMES WELLER 11.CONTRACTING OFFICER CERTIFICATION I certify that by signature on this Justification for Other than Full and Open Competition, the information herein is accurate and complete to the best of my knowledge. 1/26/2017X Kristine DeltortoContracting Officer(Approver $) Signed by: KRISTINE DELTORTO 12.TECHNICAL 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. Signed by: NICHOLAS PORTERREVIEW, CONCURRENCE, AND APPROVAL 1/30/2017XTed TaliaferroLegal CounselSigned by: TED TALIAFERRO 1/31/2017X(Approver $) Signed by: JAMES WELLER 7TX3043/Dallas, TX Justification For Other Than Full And Open Competition PAGE 4 OF 4 Last Revised 2/5/15 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>$650,000, by the RC where TCV>$12.5M 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
