AWARD
X -- Florence, SC JOTFOC Notice - Cost Benefit Analysis
- Notice Date
- 11/6/2013
- 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 (4PR), 77 Forsyth Street, SW, Suite 500, Atlanta, Georgia, 30303-3427, United States
- ZIP Code
- 30303-3427
- Archive Date
- 11/8/2013
- Point of Contact
- Lester J. Harris, Phone: 4045263161
- E-Mail Address
-
lester.harris@gsa.gov
(lester.harris@gsa.gov)
- Small Business Set-Aside
- N/A
- Award Number
- LSC62696
- Award Date
- 8/13/2013
- Awardee
- Stephen E Vanourny, 215 3rd Loop Rd, Florence, South Carolina, United States
- Award Amount
- $2,242,951.20
- Description
- Cost Benefit Analysis IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 10,696 Rentable Square Feet (RSF) with a Common Area Factor (CAF) of 1.11965%, yielding 9,553 ANSI BOMA Office Area square feet (ABOA) and 77 surface reserved parking spaces at 215 3 rd Loop Road, Florence, SC 29501 under lease number GS-04B-43136 for the USDA. The current lease expires August 31, 2013; although it has a 10 year firm renewal option it would not be in the best interest of the Government to exercise the option because the option rate is higher than the current market rate. Approval is requested to negotiate a 10 year succeeding lease with the incumbent Lessor without full and open competition for continued occupancy at this leased location. 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. USDA-RD, UDSA-NRCS, NRCS-FSA submitted a continuing need letter on January 22, 2013 for 10,696 rentable square feet of office and related space. To satisfy USDA mission requirements, the facility must be within a reasonable distance of the major US and State Highways. The office is currently located in an area that maximizes the three Agencies ability to serve both the local and rural customers. The location affords valuable resources to Dillon, Florence, Horry, Marion, Marlboro, Chesterfield, Darlington, Kershaw and Lee Counties. In order to provide a one stop shop experience the three agencies signed a collocation agreement that requires an exception to policy approval at the national level to de-collocate. As a part of the transformation, the information technology Structure of the three offices are also designed to be interdependent which includes the computer network environment and the telephone system to further streamline the process and provide a one stop shop. The cost of rewiring and reconfiguring the information technology system would cost approximately $90,000 for all three offices. This requirement is for 10,696 RSF of space with a Common Area Factor (CAF) of 1.11965% yielding 9,553 ANSI BOMA Office Area square feet (ABOA) for a 10-year, 10-year firm term to commence on September 1, 2013. The estimated annual cost of this lease is $20.97 per RSF per year for an annual cost of $224,295.12 for the first year and a total contract value of $2,242,951.20 incorporating expected rental adjustments over the term of the lease, excluding CPI adjustments. The delineated area is: North: 2 nd Loop Road East: S Marsh Avenue South: 3 rd Loop Road West: HWY 52/301 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. Award to other than the current Lessor would require relocation of the entire requirement and would cause USDA-RD, USDA-FSA, and USDA-NRCS to incur move and replication costs that would not be recovered through competition. The three Agencies have aligned operations to act as a “one Stop Shop” to service the customer base of Florence and surrounding counties. The information technology infrastructure of the three agencies have been interconnected and controlled by a common server along with telephone services. The OCIO/IT requirements are unique to the USDA Service Center. According to USDA to duplicate the wire setup for one agency would be approximately $30,000 which would equate to $90,000 estimate to duplicate the current alignment at a new location. It is also vital for all three agencies to be collocated since they use the same telephone service and computer system and has a collocation agreement in place. The cost of relocating USDA-RD, USDA-FSA, and USDA-NRCS using the low cost quote exceeds the cost of remaining at 215 3 rd Loop Rd. Florence, SC. The savings to the Government is $446,688.17. 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. The Cost to exercise the current 10 year option in the lease will be $27.11 per rentable square feet or $289,968.56 which totals $2,899,685.60 over the full term of the lease. The research conducted has shown this rate to be higher than the current market rate, thus to exercise the 10 year option is not in the best interest of the Government. The savings to the Government not to exercise the option and negotiate a succeeding lease with the incumbent lessor would be $656,734.40. 5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. The incumbent lessor’s expression of interest indicated that the rate would be $20.97 per RSF. On April 26, 2013, GSA conducted market research and identified no potentially acceptable locations other than the incumbent that might meet the agency’s needs within the delineated area. A recent Bullseye Report for the Florence, SC market, which was inconclusive, and the cost benefit analysis reveals and supports that it is in the best interest of the Government to negotiate a succeeding lease with the current lessor. It is more cost effective not to relocate the agency, as the Government will save unnecessary costs for moving, data/telecommunications and duplicating tenant improvements at another location. In addition, GSA placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities Web site (fedbizopps.gov) on March 12, 2013 and received zero expressions of interest responses. GSA received only 1 response from the incumbent.
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