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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 - EXTENSION U.S. General Services Administration GSA Region 04 Leasing Division - Branch 4PR1B JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER: GS-04B-61141 PROJECT NUMBER: 6GA0293 Agency Name: Federal Emergency Management Agency (FEMA) 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 4,877 ANSI BOMA Office Area square feet (ABOA) with a Common Area Factor (CAF) of 1.15, yielding 5,609 Rentable Square Feet (RSF) at 2965 Flowers Rd. Atlanta GA under lease GS-04B-61141 for the Federal Emergency Management Agency (FEMA). The current lease expires January 31, 2017. Approval is requested to negotiate a one-time three-year/one-year firm term extension in accordance with the Leasing Desk Guide, Chapter 3, Extensions, Section 1, Para. (b). The Government is consolidating five (5) active FEMA leases and needs to extend the terms of the leases to establish a common expiration. Further, for the long-term action, the government awarded a new/replacing lease under AAAP on 10/19/2016 and requires sufficient time to prepare construction drawings (currently underway) and complete construction of the space(s) for occupancy on or about 4/1/2018. 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 five (5) leases into one procurement and attain approximately 113,607 rentable square feet of space within their specified delineated area. The delineated 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 60,000 ABOASF to approximately 90,000 ABOASF. After several requirement changes, the FEMA procurement was run through Justification for Other Than Full and Open Competition 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 92,600 ABOASF. The new space will meet the programmatic 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 build out of the new space has been completed, it is imperative, and in the best interest of the Government, to complete a three(3) year; one (1) year firm term extension. It is not in the best interest of the government to extend the lease to avert paying relocation and replication costs two (2) times prior to taking occupancy of the long-term AAAP new/replacing lease awarded 10/6/2016. Each of the 5 extension(s) will be co-terminated with acceptance and occupancy of the new space to avert over-lapping rents. The extension period for this lease has an estimated annual rent as follow: Firm Term: $22.96 rate/RSF (rounded) x 5,609 RSF = $128,782.64 (Annual Rent) x 1 year = $128,782.64 Soft Term: $22.96 rate/RSF (rounded) x 5,609 RSF = $128,782.64 (Annual Rent) x 2 years = $257,565.28. Total Contract Value: $386,347.92 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. Justification for Other Than Full and Open Competition 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-61141 since February 29, 2012, it remains active and has not been previously extended beyond the original term of January 31, 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 one (3) years; one (1) year extension 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. The extension will avert relocation and replication costs twice at a significant savings to the government. 8. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUISITION 2965 Flowers Rd. Atlanta GA Current Rate - $19.96/RSF Justification for Other Than Full and Open Competition 9. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION. The lease extension will be co-terminus with the substantial completion and occupancy of the new long-term Lease LGA60348 located at 3005 Chamblee Tucker Road, Atlanta, GA 30341. The newly procured space is anticipated to be completed and available by April 1, 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. Michael Monaghan, Lease Contracting Officer Signed by: MICHAEL MONAGHAN 11. CONTRACTING OFFICER CERTIFICATION AND DETERMINATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. Recent market research conducted by the prior GSA Lease Contracting Officer, Jaskamal Tucker, in the Atlanta/Chamblee, GA area for comparable properties did not yield any results. In addition, there were no responses to the FedBizOps ad, other than the incumbent Lessor, that was posted on September 21, 2016 with a response closing deadline of October 12, 2016. 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. michael p monaghanMichael MonaghanLease Contracting OfficerSigned by: MICHAEL MONAGHAN

Original Point of Contact

POC Michael P. Monaghan, Phone: 404-215-6763CNT LGA61141DTD 060817

Place of Performance

Cambridge Building, 2951 Flowers Road, S, Atlanta, Georgia, 30341, United States
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