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FBO DAILY - FEDBIZOPPS ISSUE OF MAY 09, 2015 FBO #4914
DOCUMENT

X -- SAN BRUNO CBOC 2 YEAR LEASE EXTENSION - Justification and Approval (J&A)

Notice Date

5/7/2015
 

Notice Type

Justification and Approval (J&A)
 

NAICS

531120 — Lessors of Nonresidential Buildings (except Miniwarehouses)
 

Contracting Office

Department of Veterans Affairs;VA Sierra Pacific Network (VISN 21);VA Palo Alto Health Care System (90/NCA);3801 Miranda Ave;Palo Alto CA 94304-1207
 

ZIP Code

94304-1207
 

Solicitation Number

NA
 

Archive Date

4/12/2015
 

Point of Contact

Nick Rustia
 

Small Business Set-Aside

N/A
 

Award Number

V261R-3128
 

Award Date

4/7/2015
 

Description

Justification and Approval (J&A) For Other Than Full and Open Competition (>$500K) Lease Number V261R-3128 San Francisco VA Health Care System San Francisco, CA 1.Identification and Description of Action Being Approved: The San Francisco VA Health Care System (SFVAHCS) San Bruno Community Based Outpatient Clinic (CBOC) is a 9,950 Net Usable Square Feet (NUSF) clinical space located 1001 Sneath Lane, San Bruno, California. This lease contract number V261R-3128 is set to expire on July 31, 2015. Approval is requested to negotiate a two year lease extension with the incumbent landlord without full and open competition for continued occupancy at this leased location. 2.Description of Supplies or Services Required: GREX approval up to 36 months and VACO RLP delegation authority not to exceed 24 months was received for the San Bruno CBOC two year lease extension request. This requirement is for 9,950 NUSF of space for a 2 year 1 firm term lease extension to commence on August 1, 2015. The estimated annual cost of this lease extension is $275,026.20 per year for partially serviced rent plus 5% escalation per year, with a total value of $563,803.71. The original SF CBOC lease (# V261R-3128) (9,950 NUSF) was established in August 1, 2005 as a five (5) year firm term lease with five (5) one year consecutive options that has a hard termination date of 7/31/2015. Upon completion of the five (5) year firm term, the fore mention lease contract was amended to convert the five (5) one year options to a five (5) year firm term. Without a two year lease extension with the current lessor, there will be major service disruptions for many veterans which solely dependent on the numerous services provided by the San Bruno CBOC which include but not limited to Social Work services, Mental Health, HUD/VASH, Tele-Health, Audiology, PRRC, Substance Abuse and Pharmacy services. A two year lease extension would eliminate major disruptions of medical service to our current patient's healthcare and prevent costly expenses for: tenant improvements to a new location, purchasing and installing new phone / IT systems, and relocating expenses of existing employee workstations and equipment. 3.Identification of Statutory Authority: Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1 4.Demonstration that the Acquisition Requires 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. 5.Description of Efforts to Solicit as Many Offers as Practicable: In January 2015 we conducted a market survey and identified five potentially acceptable locations (four plus the incumbent) that might meet the agency's needs within the delineated area. Only the existing location (1001 Sneath Lane) was found to be acceptable fiscally and logistically for meeting the time requirements for occupancy by the before the current lease contract expire on July 31, 2015. The four locations identified in the market survey would require costly tenant improvement, relocation, purchasing and installation of both IT and phone systems which Government would not be able to recover through competition. The market survey was conducted within the established delineated below. North - South Canal Street & Valencia Drive South - Highway 380. East - Highway 101 West - Highway 280 6.Demonstration that the Anticipated Cost will be Fair and Reasonable: The anticipated cost for obtaining similar space from a different lessor to provide 9,950 NUSF required by 7/31/2015 is not reasonable. The additional cost to the Government to compete this Lease Extension would be $563,803.71 over the two year term. Issuing a 2 year Lease Extension at its current location is cost effective and is in the best interest for the government. Recent market surveys showed the rental rate within the delineated area ranges from ($28.44 to $46.20] per NUSF. 7. Description of the Market Survey Conducted: Market Survey Report Building Rental Rate a. 715 El Camino Real San Bruno, CA 94066 $28.44/NUSF b 1150 Bayhill Drive San Bruno, CA 94066 $37.80/ NUSF c. 999 Bayhill San Bruno, CA 94066 $39.00/ NUSF d. 999-1001 Bayhill Drive San Bruno, CA 94066 $46.20/ NUSF 8.Cost Benefit Analysis Results: Cost-benefit Analysis Acquisition of 9,999 Rentable Square Feet (NUSF) Five-Year (Firm Term) Analysis: Present LocationAlternate Location 2-yr. Total rent / annual NUSF rate$275,026.20/ $27.64$ 284,371.56/ $28.44 New Tenant Improvements$0$553,740.00 Cost of physical move$0$25,000.00 Voice & Data move$0$30,000.00 Duplication of Reimbursable Work Authorization (RWA) alterations$0$0 Total 2-year cost / annual NUSF rate (present location with 5% escalation included)$563,803.71/ $56.66$ 581,478.56 / $58.30 Total of T.I./Move & IT/Phone costs Two year savings for lease extension $.00 $626,414.85$1,190,219.56 TransportationSufficient Buses and BARTA new location could present access issues Veterans ServicesNo Interruption of ServicesMoving would involve interruption of services how extensive is unknown 9.List of Sources that Expressed an Interest in the Acquisition: 1001 Sneath Lane, San Bruno (incumbent) 10.Justification for Other Than Full and Open Competition: As per the GSA Leasing Desk Guide, Chapter 7: Lease Extension, Section 1 part b, which states that the Lease Contracting Officer may enter into a contract without providing for full and open competition when the property or services needed by the agency are available from only one responsible source, no other type of property or services will satisfy the needs of the agency, and the action is supported by a Justification for Other Than Full and Open Competition (Justification). Under Scenarios: (In part) the Government encounters unexpected delays outside of its control in acquiring replacement space, a lease extension is warranted. In addition, 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 within the two year lease extension. 11.Contracting Officers Determination and Certification: By signature on this Justification for Other Than Full and Open Competition, the Contracting Officer certifies that the award of a Lease Extension of 9,950 NUSF is in the Government's best interest and that this justification is accurate and complete to the best of my knowledge and belief.
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/spg/VA/VAPAHCS/VAPAHCS/NA/listing.html)
 

Document(s)

Justification and Approval (J&A)
 

File Name: V261R-3128 P00006 V261R-3128 P00006_2.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2032601&FileName=V261R-3128-P00006001.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2032601&FileName=V261R-3128-P00006001.docx

 

Note: If links are broken, refer to Point of Contact above or contact the FBO Help Desk at 877-472-3779.
 

Record

SN03723985-W 20150509/150507235307-02b454bc32595363ba404a6050374519 (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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