Sole source Justification

GENERAL SERVICES ADMINISTRATION North Branch, Real Estate Acquisition Division Justification for Other than Full and Open Competition Project #: 0PA2108 U.S. Court of Appeals, U.S. Marshals Service, U.S. District Court Easton, PA 1. Nature and/or description of the action being approved. This justification is for a 10 year, 5 year firm term succeeding lease and 4 surface parking spaces. 2. Description of the supplies or services required to meet the agency's needs (including estimated value). The U.S. Court of Appeals (COA), U.S. Marshal Service (USMS), and U.S. District Court (USDC) currently occupy 10,191 Rentable Square Feet (RSF) or 8,862 ANSI/BOMA Office Area (ABOA) Square Feet of space at the L&D Holmes Plaza, 101 Larry Holmes Drive, Easton, PA under lease contract number LPA09046. The lease will expire on November 30, 2012 and contains no renewal options. The agencies confirmed that they do not require any improvements or renovations to the space. The breakdown of space is as follows: Agency ABOA SF U.S. Court of Appeals 3,104 U.S. District Court 3,607 U.S. Marshal Service 2,151 The space consists of courtrooms and judge's chambers with adequate support area for the USMS. Because of the mission of these agencies, proper security is required within the space and the perimeter. Based on the agencies' mission this facility is a security level . Performing a succeeding lease at this location will allow the government to forego the extensive build-out costs associated with rebuilding all of the tenant improvements required by each agency. The courtrooms and related space are not typical improvements of normal office space. These improvements are unlikely to be duplicated in any other office building and therefore would have to be reconstructed as an additional cost to the government. The estimated value of this action is as follows: Firm Term: $22.00 rate/RSF x 10,191 RSF = $224,202.00 (Annual Rent) x 5 years = $1,121,010.00 Soft Term: $22.00 rate/RSF x 10,191 RSF = $224,202.00 (Annual Rent) x 5 years = $1,121,010.00 Total Contract Value Firm Term Total $1,121,010.00+ Soft Term Total $1,121,010.00= $2,242,020.00 3. Identification of the statutory authority 41 U.S.C. 253 (c) (1) and FAR 6.302-1. 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. 253 (c) (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. At the current location there are two Courtrooms, each with related space for judges and support area for associated tenants (i.e., U.S. Marshal Service). The U.S. District Court has one courtroom and the U.S. Court of Appeals has the second courtroom. The courtrooms and associated judges' chambers are fitted out with . In addition, the USMS has existing security infrastructure that would have to be duplicated. The costs to reconstruct this space would likely prove prohibitive. The agency does not require any tenant improvements or renovations to the space. The space is completely satisfactory for the next term of the lease. Therefore, it is in the best interest of the government to remain in the current location. Please reference the attached Cost-Benefit Analysis which outlines the estimated cost savings by remaining at the current location. 5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable On April 20, 2012, a search was conducted utilizing and . Zero properties were identified that could potentially satisfy the COA, USDC and USMS space requirements within the delineated area. Please reference the attached Market Research Memorandum, which details the search of and a review of current locations in the Easton area through . In accordance with Leasing Desk Guide Chapter 5, page 5-5, an advertisement is not required for actions below 10,000 ABOA SF. Further, after conducting a thorough search of the market and delineated areas, using multiple resources, it is unlikely that posting an advertisement would provide any qualified available locations. 6. Determination by the contracting officer that the anticipated cost to the government will be fair and reasonable The government anticipates that the cost of performing a succeeding lease action will be fair and reasonable. The current rental rate of $22.00/RSF is within the range of to for available market comparisons. During the succeeding lease negotiations a rental rate at or below the current rental rate will be sought. Therefore when considering the costs to move and rebuild the current tenant finishes, including chambers and courtrooms, the costs to do so are prohibitive and unlikely to be recouped. 7. Description of the market research conducted See attached Market Research Memorandum and Cost Benefit Analysis. 8. Other facts supporting the use of other than full and open competition All agencies within this current lease have stated that the current location is satisfactory and that they wish to remain. The GSA field office has indicated that this lessor is responsive to requests and has an overall satisfactory history of past performance. Remaining in the current location will allow the agencies to continue their missions without any disruption. In addition, the tenant build-out required by these agencies is typically over the TI allowance. This overage would have to be paid for if reconstructing the space at a new location. 9. List of any sources that expressed in writing an interest in the acquisition No 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 At the end of the proposed lease term, a fully competitive leasing action, if appropriate, will be initiated.