SOLICITATION NOTICE
X -- Lease of space in St. Louis, Missouri
- Notice Date
- 2/2/2016
- Notice Type
- Justification and Approval (J&A)
- NAICS
- 531120
— Lessors of Nonresidential Buildings (except Miniwarehouses)
- Contracting Office
- General Services Administration, Public Buildings Service (PBS), Realty Services Division (6PRW), 2300 Main St, Kansas City, Missouri, 64108, United States
- ZIP Code
- 64108
- Solicitation Number
- 4MO0174
- Point of Contact
- Steven T. Freund, Phone: 816-926-7348, Lee I Williams, Phone: 816-926-1106
- E-Mail Address
-
steven.freund@gsa.gov, lee.williams@gsa.gov
(steven.freund@gsa.gov, lee.williams@gsa.gov)
- Small Business Set-Aside
- N/A
- Award Number
- LMO41019
- Award Date
- 1/7/2016
- Description
- JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION U.S. General Services Administration GSA Region 6 Real Estate Acquisition Division JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER: GS-06P-00025 PROJECT NUMBER: 4MO0174 Agency Name: Social Security Administration 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 11,265 rentable square feet (rsf) of office space at 717 N 16 th St, under lease number GS-06P-00025 for the Social Security Agency. The current lease expires January 31, 2015. Approval is requested to negotiate a succeeding lease with the incumbent landlord without full and open competition for continued occupancy at this leased location. 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. The Social Security Agency (SSA) submitted a continuing need letter on May 18, 2014 for approximately 19,000 rentable square feet of office and related space. The continuing need represented an office consolidation that would result in the closure of at least one of their offices. A full and open competition was conducted, but SSA canceled the project on February 2, 2015, citing a lack of authorizations to close an existing office in St. Louis. While SSA works to secure the proper approvals for a St. Louis office consolidation, a new requirement for their smaller offices for a short-term duration was requested. This resulting requirement is for 11,265 rsf of space for a five-year term (three years firm) to commence on January 1, 2016. The estimated annual cost of this lease is $394,995.25 and a total contract value of $1,974,976.25. The delineated area is: North: Dr. Martin Luther King Dr./Cole St./Carr St.; East: Mississippi River; South: Lafayette Ave./Chouteau Ave.; West: Compton Ave. 3. IDENTIFICATION OF STATUTORY AUTHORITY. 41 U.S.C. 253(c) (1): Only one responsible source and no other supplies or services will satisfy agency requirements. 4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. 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 September 29, 2015 and received no responses. The incumbent lessor's expression of interest indicated that the rate would be $40.74 rsf. Award to other than the current Lessor would require relocation of the entire requirement and would cause Social Security Administration to incur move and replication costs that would not be recovered through competition. Cost-benefit Analysis Acquisition of 11,265 Rentable Square Feet (RSF) Three-Year (Firm Term) Analysis: Present Location Alternate Location 3-yr. shell rent / annual RSF rate $812,431.80 / $24.04 $ 661,030.20 / $19.56 3-yr. operating rent / annual RSF rate $162,553.95 / $4.81 $222,371.10 / $6.58 New amortized tenant improvements / RSF Rate $350,000 / $11.89 (6%) $448,743.61 / $15.24 (6%) Cost of physical move $0.00 $48,588.88 Voice & Data move $0.00 $45,349.63 Total 3-year cost $1,324,985.75 $1,426,083.42 Firm term lease savings $101,097.67 The cost of relocating SSA using the low cost quote exceeds the cost of remaining at 717 N 16 th St. The savings to the Government is $101,097.67. 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. 5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. On July 24, 2014, Jones Lang LaSalle conducted a market survey on the original project requirements and three potentially acceptable locations (two plus the incumbent) that might meet the agency's needs within the delineated area. These three locations were solicited, negotiations were conducted and multiple offers were received for each location prior to SSA cancelling the project - it is worth noting that only one location, the incumbent, has proven its ability to comply with the seismic requirements in the standard GSA Request for Lease Proposal (RLP). In addition, an advertisement was placed in Fedbizopps on September 29, 2015 on the smaller, shorter requirement. GSA received no responses other than that of the incumbent, which is: 717 N. Main St. (incumbent) 6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. In accordance with Federal Acquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines by certifying this document that the anticipated cost to the Government of $1,974,976.25 ($40.74 / rsf) for the entire requirement is fair and reasonable. Recent market surveys conducted by Jones Lange LaSalle in St. Louis, MO showed the rental rate within the delineated area ranges from $18.25 - $36.61 per RSF; note that those ranges anticipate a seven-year amortization rather than this project's three-year amortization. It should also be noted that a stay-in-place solution may or may not have tenant improvements involved (to bring office up to current SSA standards), but a move to a new location guarantees a large tenant improvement outlay. If tenant improvements were removed from the calculation, the comparable market range would be $9.19 - $28.45, with the anticipated cost for staying in place at $28.85 for the only seismically-compliant location identified in the market. 7. DESCRIPTION OF MARKET SURVEY CONDUCTED. On July 24, 2014, Jones Lang LaSalle conducted a market survey of six locations that identified three potentially acceptable locations including the incumbent. The rental rates shown below represent the rates offered at the latest round of offers prior to cancellation of the original project scope. Only the incumbent Lessor was able to satisfy the RLP seismic requirements at that point in the negotiations, and only the incumbent Lessor had met those requirements prior to solicitation (one additional Offeror was considering seismic upgrades but had not committed, nor included any associated costs in an offer). Although the values for square foot and term were different under the original project requirements, the market and type of space was the same and provide a much better source of comparable rates than a market survey or published market data: Address Asking Full Service Rental Rate Redacted $18.25/rsf Redacted $36.61/rsf 7Redacted $30.04/rsf Figure 1: Market Comparables 8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. After a thorough look at available market alternatives, only the existing leased location is certified as being seismically-compliant per the standards of the RLP. 9. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUSITION. 717 N. 16 th St. (incumbent) 10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION. Consistent with the Competition in Contracting Act, full and open competition will be undertaken in future requirements for the Social Security Agency, as future opportunities are available, which is expected to be in 18 to 36 months in this market. 11. CONTRACTING OFFICER CERTIFICATION. By signature on this Justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of a succeeding lease of 11,265 rsf is in the Government's best interest and that this justification is accurate and complete to the best of my knowledge and belief. Steven Freund __________________________ Date 2/1/2016 Steven Freund, Contracting Officer 12. TECHNICAL REQUIRMENTS PERSONNEL CERTIFICATION I certify that the supporting data used to form the basis of this justification is complete and accurate to the best of my knowledge and belief. Steven Freund ____________________________ Date 2/1/2016 Steven Freund, Realty Specialist
- Web Link
-
FBO.gov Permalink
(https://www.fbo.gov/spg/GSA/PBS/6PEE/4MO0174/listing.html)
- Record
- SN04007201-W 20160204/160202234401-68dc7330e96bb06af0185df41eb9dd3d (fbodaily.com)
- Source
-
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