AWARD
X -- Awarded lease GS-10B-07316
- Notice Date
- 3/4/2013
- Notice Type
- Award Notice
- NAICS
- 531120
— Lessors of Nonresidential Buildings (except Miniwarehouses)
- Contracting Office
- General Services Administration, Public Buildings Service (PBS), Real Estate Acquisition Division(10PR), 400 15th Street, SW, Auburn, Washington, 98001-6599, United States
- ZIP Code
- 98001-6599
- Solicitation Number
- 0AK2040
- Point of Contact
- Harry Lincoln Lewis, Phone: 253-931-7261
- E-Mail Address
-
lincoln.lewis@gsa.gov
(lincoln.lewis@gsa.gov)
- Small Business Set-Aside
- N/A
- Award Number
- GS-10B-07316
- Award Date
- 11/5/2012
- Awardee
- EPW Structures, P.O. Box 262, Kasilof, Alaska 99610-0262, United States
- Award Amount
- $581,410.50
- Description
- Memo to File: RE: 0AK2040 - Simplified Lease Model - Succeeding Lease Fish and Wildlife Service Ballard Building 43655 Kalifonsky Beach Road Soldotna, AK 99669-8218 The General Services Administration (GSA) currently leases 5,010 ABOA/RSF of office and warehouse space (see NOTE below re: square footage) on behalf of the above stated agency at the Ballard Building. The current lease expires on 11/4/2012. This memo is in furtherance of a succeeding lease action under the Simplified Succeeding Lease Model, with the incumbent lessor without full and open competition for continued occupancy at this leased location. The prevailing authority is GSAR 570.203-2(b): If soliciting only one source, document the file to explain the lack of competition. The U.S. Department of Interior Fish and Wildlife Service (FWS) operates a field office in Soldotna. Soldotna is a small Kenai Peninsula community and tourism destination with a population of 4,087 (2005). The facility is approximately 3.2 miles from the center of the primary Soldotna business center and has operated there since 1997. The agency has confirmed the continuing need for this facility and that the current location meets all of its requirements. In light of current budget constraints, relocation and related move costs are limited. Further, 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. A succeeding lease will insure that the FWS will remain at the current location and not interrupt operations, while also providing for the long term need. Award to other than the current Lessor would require relocation of the entire requirement and would cause the agency to incur move and replication costs that would not be recovered through competition, as more specifically detailed below. Cost-Benefit Analysis Acquisition of 5,010 Rentable Square Feet (RSF) 5-Year Analysis: Present Location Alternate Location Square Footage 5,010 RSF 5,010 RSF Annual Lease Rental Rate $ $ Total Estimated Rent for 5,010 RSF for five (5) years $ $ Tenant Improvements ($ /RSF3 ) for new/remodeled space. 5,010/ABOA $0 $ Estimated voice and data move costs - $ /USF4 $0 $ Physical Move Cost - $ /USF4 $0 $ TOTAL COST: $ $ SAVINGS TO REMAIN: $ or 54.2% 1 Rate (average) based on current rate (latest rate after CPI adjustments; $ psf) with 10% every 5 years using the full 20-year authority, or $ psf which represents the average rate over 20 years. The original rate was negotiated in 1997 with increases after each 5-year renewal option which included annual CPI and tax adjustments. The original annual rate was $7.90 psf or $39,600.00; Market conditions don't warrant an increase, however, there is limited supply of this type of facility and the lessor has consistently had increases every 5 years. 2 Rate based on local and comparable markets. Other GSA and State leases in the Kenai Peninsula as well as Anchorage areas were considered. 3 Tenant Improvement Allowance provided by the Project Manager, based on general and custom TI allowance. 4 Cost for physical move and Voice and Data are based on estimated local charges. Location Sq. Ft. Operating Taxes Shell Full Service Rate Term 608 Bridge Access RD 6,500 $ N/A $ $ Asking Cordova Bldg-NPS 4,887 N/A N/A N/A $17.04 10 year Huffman Bus Pk-State 5,800 N/A N/A N/A $15.71 N/A Fuller Ind Pk-State 2,098 N/A N/A N/A $15.39 N/A Arctic Bus Pk-State 1,835 N/A N/A N/A $16.20 N/A Average $15.24 (1) (1) 608 Bridge Access Rd is currently a listing in Soldotna. No other comparables were found in the immediate area. Therefore, Comps 2-5 were from the Anchorage area. Comp 1 included an estimated operating expense to determine a fully serviced rate. Comp 1 best represents the Soldotna market, and in this instance, $ psf fully serviced (rounded) is indicated for the analysis of an alternate location. The cost of relocating the FWS office/warehouse exceeds the cost of remaining at the Ballard Building. The savings to the Government is $, or 54.2% of the total contract value. Based on this cost-benefit analysis, the Government cannot expect to recover relocation and duplication costs through competition. Therefore, the Government intends to negotiate a succeeding lease and remain at its current location. This succeeding lease model provides a streamlined approach to succeeding leases where requirements have not changed and a stay in place solution is appropriate. Under this succeeding lease model, the space will be accepted in an "as-is" condition; however GSA requirements that include but are not limited to ABAAS, fire and life safety, and seismic criteria will remain constant. Date: June 10, 2011 Lincoln Lewis, Lease Contracting Specialist Date: Terria Heinlein, Lease Contracting Officer NOTE: same as the useable area. There is 2,010 USF of office (40%) and 3,000 USF of warehouse (60%). The lease states 7,500 sf of secured wareyard area, however in SLA 3, it indicates 7,000 sf. REXUS indicates that there is 5,020 USF and 5,773 RSF, which appears to have been imputed by GSA using approximately 15.2% as the core factor. In SLA 1, the useable square footage was corrected by adding 203 USF of office and reducing by 194 USF of storage. This would correct the total area to 5,019 USF, however, this was not reflected in the latest SLA (#3). For purposes of this analysis and future negotiations, the total area is 5,010 USF The square footage on the lease is 5,010 USF. The core factor is 1.0, therefore, the rentable area is the
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