Redacted Justification

U.S. GENERAL SERVICES ADMINISTRATION LEASING DIVISION J USTIFICATION FOR OTHER THAN FU LL AND OPEN COMPETITION 5PR0072, GS-02B-I 9067, Hato Rey, PR 4500 - Equal Employment Opportunity Commission (EEOC) PROPOSED ACTION: A twelve (12) month Lease Extension, with thirty (30) days prior written notice to the Lessor of Lease termination. DESCRIPTION OF R EQUIREMENTS: The Equal Employment Opportunity Commission (EEOC) currently occupies approximately 5,996 Rentable Square Feet (RSF)/5,536 Square Feet ANSI BOMA Office Area (ABOA) of office space and one structured parking- space at Torre de la Plaza, at 525 F.D. Roosevelt Avenue, Hato Rey, Puerto Rico 00918-8001, under Lease No.GS-02B-19067, which expires on August 14, 2016. GSA intends to negotiate a twelve (12) month extension with cancellation rights during the term of the extension at an anticipated rate of $35.62/RSF. This extension will be needed to protect client agency's occupancy until the current lease procurement is completed and ready for occupancy. The Government recently completed negotiations of a New/Replacing procurement under, project number 3PR0098, which expects occupancy to occur on or before the end of the proposed one (1) year extension term ending August 14, 2017 and have a term that runs for a total of ten (10) years with a five (5) year firm term ending on or about August 14, 2022. The annual rental under the current Lease is $213,622.06. IDENTIFICATION OF STATUTORY AUTHORITY: 41 U.S.C 3304(a)(1) UNIQUE QUALIFICATIONS: The space is located at Torre de la Plaza. 525 F.D. Roosevelt Avenue. Hato Rey, Puerto Rico 00918-8001 and is already constructed to meet the agencies' needs. A lease procurement action is currently underway with an expected occupancy date of on or before August 14, 2017. If GSA were to conduct a competitive lease procurement for this one-year Lease extension, additional Tenant Improvements would be required in the amount of $305,353.36 to duplicate the existing space and additional costs to replicate telecommunications service and physical move of the agency. However, it is expected that the Lessor will agree to extend the current Lease with no additional increase in annual rent that is currently at approximately $35.63/RSF. In addition to this, the EEOC is currently a candidate to back-fill Federal space. Remaining in place until a move to Federal space will serve to reduce the excessive cost of a double move to duplicate an already existing- and functioning office, which would not be in the best interest of the Government. EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES PRACTICAL: Not required. DETERMI NATION THAT ANTI C I PATED COST W I LL BE FAI R AND R EASONABLE: The proposed/current annual rental of $213,622.06 ($35.63/RSF) includes all services and utilities. Based upon the attached market research, the current market rental rates range from a low of $45.69/RSF and a high of $57.26/RSF (includes TI improvement amortization). If GSA were to conduct competitive lease procurement for this one-year Lease extension requirement , additional Tenant Improvements would be required in the amount of $305,353.36 to duplicate the existing space and additional costs would also be required to replicate telecommunications service and physical move of the agency, not currently reflected in the ranges provided. Therefore, the anticipated cost of no change in the annual rental rate of $35.63/RSF is determined to be fair and reasonable. DESCRI PTION OF MARKET SURVEY AND RESULTS: See attached market analysis created on 6/30/2016. OTHER FACTORS SUPPORTING JUSTI FICATION: EEOC is a candidate to back-fill into Federal space in Hato Rey, PR in the year on or about 2021-22. LISTING SOURCES EX P RESSIN G INTEREST IN SOLIC I TATION: NIA FUTURE ACTIONS TO OVERCOME BARRI ERS TO FULL AND OPEN COMPETITION: This Lease extension will protect the Government's occupancy until the agency can complete its current New/Replacing procurement. Remaining in the same location would reduce its financial outlays in renovation, new furniture and move outlays. It will also have the effect of continuing to serve its original mission-design expectations for this location as well as serve to reduce the excessive cost of a double move to duplicate an already existing and functioning office, which would not be in the best interest of the Government. CONTRACTING OFFICER CERTIFICATION: I hereby certify that this justification for other than full and open competition is accurate and complete to the best of my knowledge and belief. __________________________ __________ Joseph Pena, (2PRC) Date Lease Contracting Officer