Notice of Intent to Renew 8,911 sq ft ABOA office space using other than full and open competition

GENERAL SERVICES ADMINISTRATION (GSA) North Branch, Real Estate Acquisition Division Justification for Other than Full and Open Competition - REDACTED Project #3PA0353 - Lease #LPA12189 Social Security Administration Easton, PA 1. Nature and/or description of the action being approved. The Social Security Administration (SSA) currently occupies 8,911 ANSI/BOMA Office Area Square Feet (ABOA SF) or 10,072 Rentable Square Feet (RSF) of office space at 134 S. 4th Street in Easton, Pennsylvania 18042-4581. The current lease is set to expire on August 31st, 2026. GSA intends to exercise the unevaluated five year renewal option that is incorporated into the lease. Therefore, approval is requested to exercise the five (5) year renewal for continued occupancy at the above-referenced location. The renewal option will be exercised in accordance with the General Services Administration Acquisition Manual (GSAM) 570.401, - Renewal Options. 2. Description of the supplies or services required to meet the agency's needs (including estimated value). On October 17th, the SSA confirmed their continuing need for office space. The agency expressed interest in relocating to a space with a minimum of 7,208 ABOA square feet. After completing market research and Cost Benefit Analyses for potential locations in the CBD of Easton, it was determined that it is in the best interest of the Government for SSA Easton to stay in place. In effort to provide uninterrupted occupancy for SSA, the Government intends to exercise the existing unevaluated 5 year renewal option that is incorporated in the lease and no Tenant Improvements were requested. The renewal term begins after the current lease expires on August 31st, 2026. The current rental rate for Lease LPA12189 is $/RSF rounded ($/ABOA SF rounded). This rate is broken down accordingly: Current REXUS rate: $ (shell: $ + operating: $ rounded) x 10,072 RSF = $ x 10 years = $ The current lease contains a five (5) year renewal option, which was not evaluated at the time of award. The renewal option rate is estimated below: Lease Renewal rate: $ (shell: $ + operating: $ rounded) x 10,072 RSF = $ x 5 years = $ Negotiated Renewal Rate: $ (shell: $ + operating: $ rounded) x 10,072 RSF = $ x 5 years = $ The total contract value of this fully serviced lease action is approximately $ 3. Identification of the statutory authority permitting other than full and open competition. 41 U.S.C. 3304(a) (1). Only one responsible source and no other supplies or services will satisfy agency requirements. This statutory authority is implemented through GSAR 570.401. In accordance with GSAR 570.401, use of the sole source authority is appropriate where it is determined that award to any other offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition. 4. Demonstration that the proposed contractor's unique qualifications or nature of the acquisition requires use of the authority cited. It is in the best interest of the Government to remain at the current location. Awarding to other than the current Lessor would require relocation and build out of the entire requirement and would cause the Government to incur move and replication costs that would not be recovered through competition for this lease renewal period. A cost-benefit analysis was completed following the procedures set forth in GSAR 570.402-6 and this justification demonstrates a cost savings to the Government by remaining in place (Filed Tab 1 in Grex- Other: Requirements Development and Due Diligence). Exercising a lease renewal will protect occupancy and allow the agency to continue their mission without disruption and allow the agency to establish long term requirements. 5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. A Notice of Intent to Renew advertisement was published on SAM.gov from March 7th, 2024 to March 25th, 2024. No expressions of interest were received. 6. Demonstration by the contracting officer that the anticipated cost to the Government will be fair and reasonable. Online market research conducted by the GSA Leasing Specialist on 11/13/23, indicates the average rental rate in the Easton market is $32.21/RSF. Through multiple discussions between the LCO and the lessor, the lease terms were negotiated to a reduced rental rate. The original shell rate of $ was reduced to $. The anticipated renewal rate of $/RSF (shell: $ + operating: $ rounded) is within the market range for this submarket and is deemed fair and reasonable by the GSA Lease Contracting Officer. 7. Description of the market research conducted On November 16th, 2023, the GSA Leasing Specialist conducted market research using CoStar and identified 1 potential location located in the delineated area that could satisfy the agency's square footage requirement, other than the incumbent. After reviewing market research, it was apparent that the availability in office and related space decreased significantly as the square footage requirement increased. This supports the limited findings in our market research, since the agency requires 8,911 ABOA SF. In addition to the limited market, move and replication costs for this office are estimated to cost the Government approximately $. The cost savings for remaining at the incumbent location support the Government's decision to not compete this procurement. See GREX file for market research. 8. Other facts supporting the use of other than full and open competition The agency is satisfied with their current location and lessor's performance under their current lease agreement. A Tenant Satisfaction Survey was distributed in 2019 and the overall satisfaction percentage was 60% based on the responses received by 5 of the 22 respondents. The lessor was made aware of the feedback and has put forth efforts to resolve any concerns. In accordance with the requirements of GSAM 517.207(b), the lessor's performance under this lease has met the Government's expectations for quality performance. There are no outstanding lease administration issues. 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. There are no systemic barriers to competition. If the agency has a continuing need for space upon lease expiration, GSA will follow all authorities, regulations and policies applicable to lease acquisition. Should there be remaining useful life in the Government's tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action. Additionally, objective scrutiny will be given to the customer agency's mission and security requirements (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive. 11. CONTRACTING OFFICER CERTIFICATION. By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a renewing this lease of 10,072 RSF is in the Government's best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer's knowledge and belief. Lowanda H'bert______________________________Date: 4/26/2024_____________________ Lowanda H'bert, Lease Contracting Officer 12. PREPARER'S TECHNICAL CERTIFICATION. I certify that the supporting data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief. Brynn Ceschan_______________________________Date:4/26/2024______________________ Brynn Ceschan, Leasing Specialist