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Award - 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-62100 PROJECT NUMBER:6GA0295 Agency Name: Federal Emergency Management Agency (FEMA) 1.IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 59,649 ANSI BOMA Office Area square feet (ABOA) with a Common Area Factor (CAF) of 1.14, yielding 68,000 Rentable Square Feet (RSF) along with 274 parking spaces at 3003 Chamblee Tucker Rd. Atlanta GA under lease GS-04B-62100 for the Federal Emergency Management Agency (FEMA). The current lease expires April 09, 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. FEMA is currently housed under several leases, including the one noted above, within the Atlanta/Chamblee area. FEMA submitted its long term requirement during July 2015; the requirement was to consolidate several leases into one procurement and attain approximately 60k square feet of space within their specified delineated area, for the area is strategic to the FEMAs mission, specifically, in terms of accessibility to multiple freeways in case of an emergency. FEMA delivered its initial requirement during July 2015 but continued to modify the requirement up until February 2016. During July 2015 and February 2016, FEMA increased its initial space requirement by fifty percent, from approximately 60k to approximately 90k sqare feet. After several requirement changes, the FEMA procurement was run through the Advanced Automated Acquisition Program (AAAP) to identify a low bid offeror. During late March 2016 a low bid offeror was identified, one who could meet the requirement of the client agency, and an award was made to such offeror during October 2016. The newly awarded building will require a full renovation in order to be compliant with the requirements of the GSA lease. The building will consolidate four FEMA leases and one DOD lease (Army North) into one lease yielding approximately 90k square feet. The new space will meet the programatic space utilization requirement of 150 square feet / person of office space for both the FEMA and Army North, will bring efficiency into FEMAs operations, and will remove burdensome internal lease management and tracking of multiple lease contracts. In order to protect the agencys occupancy during the short run and until the buildout of the new 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: $24.02 rate/RSF (rounded) x 68,000 RSF = $1,633,297.68 (Annual Rent) x 1 year = $1,633,297.68 Soft Term: $24.02 rate/RSF (rounded) x 68,000 RSF = $1,633,297.68 (Annual Rent) x 4 year = $6,533,190.72 Total Contract Value: $8,166,488.40 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 FEMA 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. FEMA has occupied the above-referenced space under Lease No. GS-04B-62100 since April 10, 2012, it remains active and has not been previously extended beyond the original term of April 09, 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 3003 Chamblee Tucker Rd. Atlanta, GACurrent Rate - $21.02/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 FEMA 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 $24.02/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 LGA62100DTD 060917

Place of Performance

Rutgers Building, 3003 Chamblee Tucker Road, Atlanta, Georgia, 30341, United States
Link: FBO.gov Permalink
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