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Lease Extension

General Information

Document Type:PRESOL
Posted Date:Aug 17, 2017
Category: Lease or Rental of Facilities
Set Aside:N/A

Contracting Office Address

General Services Administration, Public Buildings Service (PBS), R4 Leasing Division (47PE99), 77 Forsyth Street, SW, Atlanta, Georgia, 30303-3427, United States


Justification for Other than Full and Open Competition, Addition of a One-Time Lease Renewal Option U.S. General Services Administration GSA Region 04 Leasing Division - Branch 4PR1B JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER:GS-04B-62273 PROJECT NUMBER:6GA0297 Agency Name: Department of Army/Army North (Army North) 1.IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 1,305 ANSI BOMA Office Area square feet (ABOA) with a Common Area Factor (CAF) of 1.15, yielding 1,501 Rentable Square Feet (RSF) at 2872 Woodcock Blvd. Atlanta GA under lease GS-04B-62273 for the Army North. The current lease expires April 30, 2017. Approval is requested to negotiate a one-time five-year/one-year firm unevaluated renewal option with the incumbent Lessor, in accordance with the Leasing Alert dated May 20, 2014 and Chapter 9 of the Leasing Desk Guide. The time allotted in the unevaluated renewal option will allow for the long-term action, currently underway, to be fully procured and the agency to be relocated to a new facility. 2.DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. Army North submitted its long term requirement on December 16, 2015. Army North is currently co-located with the Federal Emergency Management Agency (FEMA), within the Atlanta/Chamblee area. Per conversations with both FEMA and Army North, Army North will continue to be co-located with FEMA in the near future and anticipates housing within FEMAs new location. Because Army North will be co-located with the FEMA, Army Norths long term procurement is driven by completion of FEMAs long term action. As such, a FEMA lease procurement award was made during late October 2016. The award was completed through the Advanced Automated Acquisition Program (AAAP). The anticipated occupancy date for FEMA, at their new location, is expected to be during April 2018. Per conversation with both Army North and FEMA, FEMA has allocated approximately 2500 square feet of space for the Army North. Army Norths space is expected to meet FEMAs utilization rate of 150 square feet / person of office space and will follow the same open floor structure as FEMA. As noted above, a long term procurement award was completed during late October 2016 but in order to project the Agencys occupancy during the short run, and until the buildout of the new FEMA/Army North space has been completed, it is imperitive, and in the best interest of the Government, to complete a five-year/one-year firm unevaluated renewal option. Again, the short term requirement is to add a five-year/one-year firm unevaluated renewal option with an estimated annual rent as follow: Firm Term: $21.92 rate/RSF (rounded) x 1,501 RSF = $28,412,43 (Annual Rent) x 1 year = $28,412,43 Soft Term: $21.92 rate/RSF (rounded) x 1,501 RSF = $28,412,43 (Annual Rent) x 4 year = $131,661.72 Total Contract Value: $164,557.15 3.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 requirements. 4.DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. GSAM 570.402-4- No potential acceptable locations- allows for preparation of a written justification to negotiate directly with the incumbent Lessor if the contracting officer does not identify any potential acceptable locations through advertisement or through the market survey. Therefore, this justification is prepared based on findings from the market research and lack of interest in the advertisement. The advertisement was posted on September 21, 2016 and closed on October 12, 2016, with no responses. 5.DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. In accordance with GSAM 570.106 and Chapter 9 of the Leasing Desk Guide, the requirement was advertised on the Federal Business Opportunities Web site (fedbizops.gov) on September 21, 2016 and no responses were rendered. Market research was performed using Loopnet, in order to solicit potential interested parties, but nothing was available in the delineated area which could meet the Army North needs; therefore, no further attempt, beyond Loopnet, was made to solicit additional offers for a short-term lease action. 6.DESCRIPTION OF MARKET RESEARCH CONDUCTED. On September 21, 2016 GSA conducted market research utilizing CoStar and Loopnet, but also placed an Fed Biz Ops advertisement posting in order to identify possible comparable buildings within the delineated area of Atlanta/Chamblee, GA. The properties listed could not meet the agencys space requirement or did not show interest due to the short term of the renewal option. Therefore, a cost-benefit analysis is not required according to GSAM 570.402-4. 7.OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. Army North has occupied the above-referenced space under Lease No. GS-04B-62273 since May 1, 2012, it remains active and has not been previously extended beyond the original term of April 30, 2017. The incumbent Lessor, DRA CRT Chamblee Center, LLC is responsive and is meeting and performing all the requirements of the current lease. This request for a one-time unevaluated renewal option is not anticipated to change the square footage of the current lease but could potentially increase the current rental rate, and bring closer to market. There are no existing fire and life safety deficiencies. It is in the best interest of the Government to enter into negotiations with the current Lessor for the addition of a one-time renewal option at the existing location. The current location is immediately available and is already constructed to meet the agencys needs without disruption. This procurement strategy will ensure the Government will meet the agencys housing requirements while the long term action can been fully procured and becomes available for occupancy. 8.LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUISITION 2872 Woodcock Blvd. Atlanta, GACurrent Rate - $18.93/RSF 9.STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION. Prior to the end of the proposed unevaluated lease renewal term, a longer term action will be completed and the Army North will be housed in a new facility. The newly procured space is anticipated to be completed and available by April 2018. The agency has been advised and is in agreement with this procurement strategy. 10.TECHNICAL REQUIREMENTS PERSONNEL CERTIFICATION I certify that the supporting space requirements data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief. 11.CONTRACTING OFFICER CERTIFICATION AND DETERMINATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. Recent market research conducted by the GSA Lease Contracting Officer in the Atlanta/Chamblee, GA area for comparable properties did not yield any results. In addition, there were no responses to the ad that was run in September 2016. Without requesting or discussing the current rental rate with the incumbent, a $21.92/rsf rate can be anticipated. The anticipated increase is primarily attributable to a tighter real estate market for the Atlanta/Chamblee area, thus driving higher rates. The Contracting Officer has determined that the unevaluated renewal option is in the best interest of the Government and the above quoted rate would be fair and reasonable. Concurrence: Legal Review: Regional Competition Advocate:

Original Point of Contact

POC Michael P. Monaghan, Phone: 404-215-6763CNT LGA62273DTD 060917

Place of Performance

Duke Building, 2872 Woodcock Blvd., Atlanta, Georgia, 30341, United States
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