SOLICITATION NOTICE
X -- Lease Extension
- Notice Date
- 11/19/2009
- Notice Type
- Justification and Approval (J&A)
- NAICS
- 531390
— Other Activities Related to Real Estate
- Contracting Office
- General Services Administration, Public Buildings Service (PBS), Caribbean Acquisition Unit (2POA-C), Federico Degetau Federal Building, Room 210, 150 Carlos Chardon Avenue, Hato Rey, Puerto Rico, 00918-1746
- ZIP Code
- 00918-1746
- Solicitation Number
- 9PR2056
- Archive Date
- 11/27/2009
- Point of Contact
- Jeannette Rios, Phone: 787.766.5414, Jeannette Y Rios, Phone: 787.766.5414
- E-Mail Address
-
jeannette.rios@gsa.gov, jeannette.rios@gsa.gov
(jeannette.rios@gsa.gov, jeannette.rios@gsa.gov)
- Small Business Set-Aside
- N/A
- Award Number
- 9PR2056
- Award Date
- 11/9/2009
- Description
- REAL ESTATE ACQUISITION DIVISION FINDING AND DETERMINATION LEASE NO. LPR18896 P ROPOSED ACTION: This memorandum serves to justify the need to enter into a lease extension for a period of two years to continue to house the Internal Revenue Service (IRS) under a lease at the Mercantil Plaza Building, Ponce de Leon, Hato Rey, Puerto Rico totaling 20,794/rsf or 16,777/usf. The annual rent for this lease extension is expected to be approximately $623,820.00 or $30.00/rsf for an aggregate of $1,247,640.00 for the two year lease term. The Government will have a 6 month firm term with cancellation rights at anytime thereafter on ninety (90) days prior written notice to the Lessor. DESCRIPTION OF REQUIREMENT: The IRS currently occupies approximately 35,902/rsf or 29,381/usf of office and related space under Lease No. LPR18896 at a current annual rental rate of $1,004,537.96 per annum ($27.98/rsf) which will terminate on December 14, 2009 with no further renewal options. The IRS will vacate a total of 15,108/rsf or 12,604/usf effective September 30, 2009 and will need to extend the lease for the rest of the space. A competitive procurement to relocate the IRS into new premises is currently underway, with the Solicitation for Offers issued April 2009. Negotiations are currently underway. The two year lease extension (with cancellation rights) will ensure that GSA has sufficient time to complete the competitive procurement process and the build out of the new space, while protecting occupancy in the current premises. IDENTIFICATION OF STATUTORYAUTHORITY: 41 U.S.C. 253 © (1). UNIQUE QUALIFICATIONS: The current space has alterations and costly installations, including special data and telephone connections, newly installed security features, and recently altered areas that fully meet only the IRS operational requirements permitting them to carry out their current mission assignments and serve their customers. EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES PRACTICAL: N/A DETERMINATION THAT ANTICIPATED COSTS WILL BE FAIR AND REASONABLE: The anticipated annual rental rate is considered fair and reasonable based on the availability of leased space in the San Juan Metropolitan Area and the Realty Specialist's knowledge of the rental rates in this market for office space. The Market data provided represents high quality, modern, professional space in this market. The comparables show rents in the greater San Juan Metro Area in Puerto Rico ranging from $21.50 to $27.50/rsf for shell rate plus approximately $8.00/rsf to $13.00 /rsf for operating services. Therefore, the estimated range for fully serviced rental rates would be $32.00 to $40.50 under a new lease in this rental market. Since IRS requires no alterations to their current space, no tenant improvement costs have been included in this market rental range. The proposed rental rate of $30.00/rsf for a fully serviced lease without tenant improvements would be below current rental rates, and is considered to be fair and reasonable. OTHER FACTORS SUPPORTING JUSTIFICATION: Allowing the IRS to continue at their current location will allow the agency to continue providing their services without interruptions. IRS does not require any tenant alterations to be performed at their current location.
- Web Link
-
FBO.gov Permalink
(https://www.fbo.gov/spg/GSA/PBS/2PMCC/9PR2056/listing.html)
- Place of Performance
- Address: Mercantil Plaza Building Ponce De Leon Ave., San Juan, Puerto Rico, 00918, Puerto Rico
- Record
- SN02007603-W 20091121/091119235943-0e563f0b809f85e24f91f172a47e8d26 (fbodaily.com)
- Source
-
FedBizOpps Link to This Notice
(may not be valid after Archive Date)
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