Notice of Extension

GENERAL SERVICES ADMINISTRATION LEASING DIVISION JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION PROJECT # 6NY0573 DEPARTMENT OF JUSTICE, OFFICE OF INSPECTOR GENERAL (DOJ/OIG) MANHATTAN, NYC PROPOSED ACTION: A nine (9) month lease extension for the Department of Justice, Office of Inspector General at 24 State Street, New York, NY 10004. DESCRIPTION OF REQUIREMENTS (INCLUDING ESTIMATED VALUE): (DOJ OIG) currently occupies 10,651 Rentable Square Feet (RSF) yielding 7,620 ANSI BOMA Office Area square feet (ABOA) of office space at 24 State Street New York, NY under Lease No. GS-02B-23466. This lease expires on July 17, 2016. GSA conducted a full and open competitive lease procurement and the incumbent was identified as the lowest offeror. This extension will protect the Agency's occupancy while the new Lease is awarded and the new Tenant Improvement requirement build-out is complete. The annual rental rate under the current lease is $ The estimated aggregate rental rate for this extension is $ RSF multiplied by 10,651 RSF by 9 months). IDENTIFICATION OF STATUTORY AUTHORITY: 41 U.S.C. 3304(a) (1): Only one responsible source and no other supplies or services will satisfy the agency's requirements. This one source is uniquely qualified as the space is immediately available and is already constructed to meet both the Agency requirements for the short term and allows no disruption to their mission or associated moving costs. The economic benefit to remain in the space is to save relocation costs, disruption, and initial build out cost, which is not expected to be recovered through a Full and Open Competition, specifically during the short run. UNIQUE QUALIFICATIONS: GSAM 570.402-5 allows for negotiation with the incumbent Lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition. GSA placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities Web site (febizopps.gov) on May 13, 2016 for two weeks indicating its intent to enter into an extension with the incumbent landlord with Other Than Full Competition. GSA received zero responses to its advertisement. Moreover, award to other than the current Lessor would require relocation of the entire requirement and would cause the DOJ OIG to incur move and replication costs that would not be recovered through competition. Although no other location responded to the Government's advertisement, attached is a cost-benefit analysis for similar office space in the Downtown Financial Area. The current location is already constructed to meet the needs of the DOJ-OIG's office. If GSA were to conduct competitive lease procurement for this extension, approximately $420,302.14 ($55.16 per ABOA x 7,620/ABOA) worth of Tenant Improvements would be required to duplicate the existing space. Additional costs would be required to replicate telecommunications service and physically move the DOJ OIG Office. The cost of relocating DOJ OIG using the per RSF exceeds the cost of remaining at 24 State Street location. The savings to the Government is $ over the life of the extension term, see attached cost benefit analysis. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, the Government intends to negotiate an extension and remain at its current location. EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES PRACTICAL: Not required. DETERMINATION THAT ANTICIPATED COST WILL BE FAIR AND REASONABLE: The proposed rental rate of $ includes a fully serviced lease. On May 12, 2016, market data from identified ten class B buildings in the vicinity of DOJ OIG in the Financial District of Manhattan that could satisfy its requirement. Additionally, states a target rate of $ per RSF for this market. The asking rental rate range for this area is $, fully serviced. The anticipated extension rate of $ is within the market range for this area and, considering the short term nature of this extension, can be considered to be fair and reasonable. DESCRIPTION OF MARKET SURVEY/RESEARCH AND RESULTS: OTHER FACTORS SUPPORTING JUSTIFICATION: N/A LISTING SOURCES EXPRESSING INTEREST IN SOLICITATION: N/A