Justification for Other than Full and Open Competition

U.S. General Services Administration GSA Region 7 Leasing Division Justification for Other than Full and Open Competition Lease Number: GS-07B-17239 Project Number: 0TX2796 Agency Name: Internal Revenue Service (IRS) Total Contract Value: $x,xxx,xxx.xx 1. Identification and Description of Action Being Approved: The General Services Administration currently leases 11,163 rentable square feet (RSF) of office space at 909 E. SE Loop 323 Tyler, TX 75701 under lease number GS-07B-15124 for the Internal Revenue Service (IRS). The current lease expires June 11, 2013. Approval is requested to negotiate a succeeding lease with the incumbent lessor without full and open competition for continued occupancy at this leased location with and anticipated occupancy date in March of 2014. 2. Description of Supplies or Services Required: IRS submitted requirements on September 4, 2012 for 7,010 ABOA (ANSI/BOMA office area) square feet of office and related. To satisfy the IRS mission requirements, the facility must be within the delineated area. This requirement is for approximately 8,062 RSF of space for a ten (10) year term, with five (5) years firm, to commence on March 25, 2014. The rate was established as follows: shell $xx.xx/RSF, OPEX $xx.xx/RSF, $xx.xx/RSF for tenant improvement allowance. The estimated annual cost for years 1-5 is $xx.xx per BOMA rentable square foot per year for an annual cost of $xxx,xxx.xx. The estimated annual cost for years 6-10 is $xx.xx per BOMA rentable square feet per year for an annual cost of $xxx,xxx.xx which combines for a total contract value of $x,xxx,xxx.xx. The delineated area is: Central Business District (CBD) of Tyler, TX: North - East Gentry Pkwy; East - North Center Ave; South - West Front Street; West - North Palace Place 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 use of the Authority Cited: GSAM 570.402-4 allows for negotiation with the incumbent lessor if the contracting officer does not identify any potentially acceptable locations through the advertisement or the market survey. GSA placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities Web site (fedbizopps.gov) on February 7th, 2013 and received no responses. Further market research was also conducted using Loopnet and Bullseye, however of the properties listed, there was only one (1) that appeared to have the square footage available. When they were contacted they indicated they would not be able to satisfy the agency's requirements. 5. Description of Efforts to Solicit as Many Offers as Practical: GSA conducted market research using Loopnet and Bullseye and identified two potentially acceptable locations (one plus the incumbent) that might meet the agency's needs within the delineated area. After contacting the other location it was determined that they could not meet IRS's requirements therefore leaving GSA with only the incumbent lessor to work with. In addition, an advertisement was placed in FedBizOpps on February 7th, 2013. GSA received zero (0) expressions of interest to the advertisement. Incumbent: xxxxxxx Other: xxxxxxx 6. Demonstration that the Anticipated Cost will be Fair and Reasonable: In accordance with Federal Acquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines by certifying this document that the anticipated cost to the Government of $xx.xx/RSF for the entire requirement ($xx.xx/RSF including tenant improvement costs in years 1-5, $xx.xx/RSF in years 6-10) is fair and reasonable. The rate in years 1-5 includes a fully serviced market rate of $xx.xx (shell $xx.xx/RSF and OPEX of $xx.xx/RSF) plus the agency tenant improvement allowance of $x.xx per square foot for a total of $xx.xx/RSF. Recent market research conducted by GSA in Tyler, TX showed NNN & Gross Net rental rates within the delineated area ranges from $xx.00-$xx.00 per RSF. 7. Description of the Market Survey Conducted: In December 2012, GSA conducted a market survey that identified the following one location including the incumbent: Market Data for the Area Address Asking Full Service Rental Rate a. xxxxxxxx (incumbent) $xx.xx b. xxxxxx 8. Other Facts Supporting the use of Other Than Full and Open Competition: Not Applicable. 9. List of Sources that Expressed an Interest in the Acquisition: Incumbent lessor located at xxxxxxxxxx xxxxxxxxxxx 10. Statement of Actions to Overcome Barriers to Competition: Not Applicable. 11. CONTRACTING OFFICER CERTIFICATION By signature on this justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of a succeeding lease of 8,062 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. 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 and belief. REVIEW, CONCURRENCE AND APPROVAL 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