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FBO DAILY - FEDBIZOPPS ISSUE OF JUNE 05, 2015 FBO #4942
DOCUMENT

X -- Dallas CMOP lease of building & parking lot - Justification and Approval (J&A)

Notice Date

6/3/2015
 

Notice Type

Justification and Approval (J&A)
 

NAICS

531190 — Lessors of Other Real Estate Property
 

Contracting Office

Department of Veterans Affairs;National CMOP;3450 S. 4th St. Trafficway;Leavenworth KS 66048-5581
 

ZIP Code

66048-5581
 

Archive Date

7/5/2015
 

Point of Contact

Frank Tarara
 

E-Mail Address

4-1346<br
 

Small Business Set-Aside

N/A
 

Award Number

549-28-02R
 

Award Date

6/5/2015
 

Description

Chapter VI: Other Than Full and Open Competition (OFOC) SOP Attachment 3: Request for Sole Source Justification Format >$150K 2237#: 763-15-1-117-0004 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K) 1.Contracting Activity: Department of Veterans Affairs, VISN 15, CMOP Contracting Team 2, 2237 # 763-15-1-117-0004. 2.Nature and/or Description of the Action Being Processed: The action being proposed in this justification is the extension of Lease # 549-28-02R for two years beginning December 1, 2014 and ending November 30, 2016. The action will be awarded as a Supplemental Lease agreement to the above lease. Rent will remain at the same level it is today firm fixed at $49,858.67 per month, however CPI increases to the operating costs will continue pursuant to the original terms of the lease. In addition, the Tax base will be reset at the level of 2014 Taxes. This will result in a reduction of the Tax base from the original $93,928.00 to the current $57,554.00. The subject is a CMOP, Consolidated Mail Outpatient Pharmacy. This facility utilizes advanced automation to produce approximately 13 Million prescriptions per year serving our nation's veterans. The facility is 83,707 Net Usable Square Feet of light industrial space. Approximately 6,260 square feet are used as administrative offices. Current lease expiration date is November 30, 2014. This action is being pursued in order to avoid holdover and to provide the time necessary to negotiate a new or succeeding lease. Rent for this lease has been paid through a Standstill Agreement which expired on March 31, 2015. Real Property Services (RPS) and General Services Administration (GSA) both have approved, and provided delegations of authority to the local Contracting Officer in order to proceed with this action. 3.Description of Supplies/Services Required to Meet the Agency's Needs: As stated in item #2 above this facility dispenses approximately 13 million prescriptions per year to the nations Veterans. As such, this Statement of continuing need, if applicable; "The facility is 83,707 Net Usable Square Feet of light industrial space. Approximately 20,000 square feet are used as administrative offices. "Required Lease Term: 2 years, December 1, 2014 thru November 30, 2016. "The estimated annual un-serviced lease amount over the term is $529,807.40 per year for a total of $1,059,614.80. This is the current base rent; no increase in rent will be included in the extension. 4.Statutory Authority Permitting Other than Full and Open Competition: ( x) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1; ( ) (2) Unusual and Compelling Urgency per FAR 6.302-2; OFOC SOP Revision 03Page 1 of 4 Revision 03 Date: 10/27/2014 PAGE 1 Chapter VI: Other Than Full and Open Competition (OFOC) SOP Attachment 3: Request for Sole Source Justification Format >$150K 2237#: 763-15-1-117-0004 ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3; ( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5; ( ) (6) National Security per FAR 6.302-6; ( ) (7) Public Interest per FAR 6.302-7; 5.Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Only one responsible source: The CMOP is a very unique and sophisticated operation that uses technology to circumvent the need for physical labor in a task that is very labor intensive. This merger of mechanical, electrical, and information technology with the use of a minimum of personnel creates a tremendous cost savings for the Government. The construction/relocation of this system is very expensive, and therein lies the reason that there is only one responsible source for the lease extension. A detailed estimate of the cost of relocation was provided by the CMOP Chief engineer, and estimates the cost of relocating this operation at $10 million. This cost far exceeds the cost of the two year extension that we are seeking. In addition, what was not calculated is the cost of lost production in the event that the CMOP is required to move. Procurement, installation and testing of a CMOP assembly line system can take as long as two years. At a production rate of approximately 13 Million prescriptions per year, the cost of down time is very high. 6.Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An extensive market survey of the Lancaster TX area was conducted in 2011 in which a number of opportunities were identified for the potential relocation of this operation. The market at that time was very active, and rental rates were found to be very competitive. The following sources: Loop net, Costar, CBRE 2nd quarter 2014 market report, market discussion with two brokers. 7.Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The current rental rate will be extended by the lessor for the additional two years. Although, the lessor initially attempted to raise the rate, after negotiations they conceded that the current rate is consistent with market pricing. The current rental rate was previously determined to be fair and reasonable. Recent market survey data that has been compiled indicates that the current lease rate is still in line with market prices. The anticipated cost to the Government will be fair and reasonable. 8.Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The following sources: Loop net, Costar, CBRE 2nd quarter 2014 market report, market discussion with two brokers. OFOC SOP Revision 03Page 2 of 4 Revision 03 Date: 10/27/2014 PAGE 2 Chapter VI: Other Than Full and Open Competition (OFOC) SOP Attachment 3: Request for Sole Source Justification Format >$150K 2237#: 763-15-1-117-0004 All of the above sources indicated that market base rents are lower than the current base rent at the subject. The Costar reports which were compiled in 2011 indicated that rents for Light Industrial Space were in the $4 range. This is when the preliminary market survey was conducted for this requirement. More recently, in the past 4 months we looked at the market again via LoopNet, CBRE and discussion with brokers and the base rent range has ticket up indicating the Dallas/South Dallas is a very active market. In addition, we discussed the specifics of this requirement with two local brokers to get some sense of what the final rent would be with operating expenses and construction. Finally, we obtained a detailed estimate from the CMOP Engineering group for relocation and construction costs, these costs were significant ($7 Million). The CMOP is a unique requirement that involves expensive automated equipment which assembles drug prescriptions as indicated above. Customary terms and conditions for this type of requirement in this market are 10 year term, base rent, estimated expenses which include RE Taxes, Insurance and CAM, estimate for Operating Expenses, and allowance for initial tenant improvements. 9.Any Other Facts Supporting the Use of Other than Full and Open Competition: As indicated in paragraph 8 above, the customary terms and conditions for this type of requirement in this market are 10 year term, base rent, estimated expenses which include RE Taxes, Insurance and CAM, estimate for Operating Expenses, and allowance for initial tenant improvements. A two year term represents a short period of time to obtain return on investment. Consequently, there is a lack of lessors interested in providing space under a short-term lease. 10.Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: BROKERS: "Deleted "Deleted 11.A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: N/A 12.Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief. OFOC SOP Revision 03Page 3 of 4 Revision 03 Date: 10/27/2014 PAGE 3 Chapter VI: Other Than Full and Open Competition (OFOC) SOP Attachment 3: Request for Sole Source Justification Format >$150K 2237#: 763-15-1-117-0004 13.Approvals in accordance with the VHAPM, Volume 6, Chapter VI: OFOC SOP. a.Contracting Officer's Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. DELETED Title: Contracting Officer Facility: Northeast CMOP DELETEDDate Director, CMOP Acquisitions Facility: NCO - 15, CMOP Contracting OFOC SOP Revision 03Page 4 of 4 Revision 03 Date: 10/27/2014
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/48176199424b4bdb90601d511e4b0946)
 

Document(s)

Justification and Approval (J&A)
 

File Name: 549-28-02R P00015 549-28-02R P00015_1.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2083272&FileName=549-28-02R-P00015000.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2083272&FileName=549-28-02R-P00015000.docx

 

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

Record

SN03752220-W 20150605/150603235501-48176199424b4bdb90601d511e4b0946 (fbodaily.com)
 

Source

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

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