AWARD
W -- Lease Extension Award Justification for Other than Full and Open Competition
- Notice Date
- 4/23/2018
- Notice Type
- Award Notice
- NAICS
- 531120
— Lessors of Nonresidential Buildings (except Miniwarehouses)
- Contracting Office
- General Services Administration, Public Buildings Service (PBS), R4 Leasing Division (47PE99), 77 Forsyth Street, SW, Atlanta, Georgia, 30303-3427, United States
- ZIP Code
- 30303-3427
- Solicitation Number
- 6GA0196
- Archive Date
- 5/24/2018
- Point of Contact
- Michael P. Monaghan, Phone: 404-215-6763
- E-Mail Address
-
michael.monaghan@gsa.gov
(michael.monaghan@gsa.gov)
- Small Business Set-Aside
- N/A
- Award Number
- GS-04P-LGA36040
- Award Date
- 3/15/2018
- Awardee
- Garber Sugarman LLC, 617 Loridans Drive, Atlanta, Georgia 30342, United States
- Award Amount
- $15,830,696.55
- Description
- 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-LGA36040 PROJECT NUMBER: 6GA0196 Agency Name: Food & Drug Administration (FDA) A/B Code: 7605 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 51,141 rentable square feet (RSF) of office space with a Common Area Factor (CAF) of 1.15, yielding 44,470 ANSI BOMA Office Area square feet (ABOA) at 60 Eight Street, Atlanta, GA under lease number GS-04B-LGA36040 for the Food & Drug Administration (FDA). The current lease expires December 30, 2017. Approval is requested to negotiate a lease extension with the incumbent Lessor without full and open competition for continued occupancy of this location for a five (5) years; four (4) years firm term. 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. The current lease agreement for the Food & Drug Administration (FDA), located in Atlanta, Georgia, will expire on December 30, 2017. The Food & Drug Administration (FDA) submitted a mission related justification to remain in a modified delineated area for ten(10) years, five(5) years firm in the form of a prospectus submital. Prospectus PGA-01-AT17 was fully approved by both the House and Senate on July 12, 2017 for 162,000 RSF with a Common Area Factor (CAF) of 1.15 yielding a minimum of 134,491 ANSI BOMA Office Area square feet (ABOA), with 27 parking spaces for a twenty (20) years firm term. The FDA needs to remain at the current location until the full and open competition prospectus Project 6GA0193 can be completed. The project may result in either a Succeeding or New/Replacing lease. Regardless, either scenario will result in significant construction, alterations and relocation(s)/swing space. The current location requires no significant tenant improvements. Implementing a lease extension will avert extensive and costly build-out associated with a relocation to another facility. There is no vacant Federal space (laboratory) available. The FDA improvements and laboratory requirements for this specialized type of space (i.e., IT/Communication systems; vacuum containment units; training facilities; an indoor auto-clave for sterilizing scientific equipment; storage; room size freezers; high ceiling plenum clearances; and lab venting hood systems) are more extensive than typical improvements found in standard office space. These improvements would have to be reconstructed in any alternate location which will cause the government to incur unreasonable move and replication costs for a short term solution. The FDA facility is an ISC Level III secured property that dictates a freestanding, single-tenant building. Considering the special build-out requirements, disruptions to operations, move and replication expenses, it is not in the government's economic interest to relocate the agency for the short-term while the long term prospectus requirement is fulfilled. The Congressionally approved Prospectus PGA-01-AT17 long-term agency requirement is: Term: 20 years Projected Occupancy: December 2020 Maximum Rental Rate: $37.00 PRSF Proposed Total Annual Rent: $5,994,000.00 The current annual cost of this Lease LGA36040 is $54.74 per RSF; Total Annual Rent is $2,799,458.34 of which both the Shell and Operating Rents are subject to annual CPI Adjustments. The negotiated extension lease rental rate and projected annual adjustments apply:4 Year Firm Term: $61.911 PRSF x 51,141 RSF = $3,166,139.31 x 4 years = $12,664,557.24 1 Year Non-Term: $61.911 PRSF x 51,141 RSF = $3,166,139.31 x 1 year = $3,166,139.31 For a Total Contract Value for 5 years = $15,830,696.55 1Composite Rate = Shell + Parking Lot + Operating Cost (rates annually escalate 1.5%) 3. IDENTIFICATION OF STATUTORY AUTHORITY. a. FAR 6.302.1 / 41 U.S.C. 253(c)(1): Only one responsible source and no other supplies or service will satisfy agency requirements. b. GSAM 570.402-4: No Potential Acceptable locations. c.Justification for Other Than Full and Open Competition 4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. GSAM 570.402-4 allows for negotiation with the incumbent Lessor when a cost-benefit analysis cannot be provided due to the fact comparable sources in the delineated area are not available. The Public Building Service (PBS) placed an advertisement conforming to GSAM 570.402-2 on the Federal Business Opportunities Web site (fedbizopps.gov) on February 28, 2017 and received only one legitimate response. The incumbent Lessor's expression of interest indicated that the composite rate would be as follows $61.91 per RSF. The rate is broken out as $42.61 for Shell plus $3.10 per RSF for Parking Lot, plus an Operating rate of $16.20 per RSF (subject to annual CPI adjustments). Award to other than the current Lessor would require relocation of the entire mission and would cause FDA to incur move and replication costs that would not be recovered through competition. Within the current space, the agency has acquired the use on an existing building that has been greatly modified at the agency's expense in order to house personnel in office and laboratory space, conduct training, provide secured communications meet the requirements of housing personnel, training and provide secured communications within the Food and Drug Administration (FDA). Aside from requiring a sizeable built-to-suit walk in freezer, other amenities have been provided in maintaining the alertness of a FDA agents. The current building serves as a mini laboratory for a make-shift investigation unit that serves as a training scenario for future possible confrontational scenarios. The agency maintains a holding component to contain and secure violent strains of bacteria and germs from exposure to the general public while developing potential cures and vaccines. FDA must store their test subject food and drugs in a safe, humidity controlled environment. The current building has the concrete floor and steel walls that surround and secure the drugs and produce used in their mission. The safe requires separate Heating, Ventilation, and Air Conditioning (HVAC) to ensure the metal does not corrode or rust from exposure to the environment. The facility contains 82 laboratory vent hoods. The cost of a single hood decommissioning in 2015 cost the agency $23,520.00. Decommissioning 87 hoods currently in operation at 2015 pricing could result in a cost of $2.05 million alone. Due to the special nature of FDA's requirements, the agency's occupancy agreement is Non-Cancellable. REDACTED 5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. On February 28, 2017, Craig Thomas (GSA LCO) conducted a visual market survey and could not identify any potentially acceptable locations that could satisfy the agency's requirements within the short time needed nor within the delineated area identified by the agency. GSA placed an advertisement 6GA0196 conforming to GSAM 570.402-2 on the Federal Business Opportunities Web site (fedbizopps.gov) on March 8, 2016 with a closing deadline of March 29, 2016 and received no expressions of interest other than from the incumbent. 6. DESCRIPTION OF MARKET RESEARCH CONDUCTED. On February 28, 2017, market research using REIS and Loopnet only a warehouse was identified. There is no other available laboratory type space available other than the incumbent location. Justification for Other Than Full and Open Competition 7. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. In accordance with Federal Acquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines by certifying in this document the anticipated total contract cost to the Government of $15,830,696.55 is fair and reasonable for the five (5) years; four (4) years firm term extension of Lease LGA36040. 8. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUISITION - None 9. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION. Consistent with the Competition in Contracting Act, full and open competition will be undertaken in future requirements for Food and Drug Administration in Atlanta, GA, as future opportunities are available. 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. 4/23/2018Xmichael p monaghanMichael MonaghanContracting OfficerSigned by: MICHAEL MONAGHAN 11. CONTRACTING OFFICER CERTIFICATION AND DETERMINATION THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. Market research for comparable properties conducted in Mid-Town Atlanta, Georgia, by Craig Thomas, Leasing Specialist, in Mid-town Atlanta, Georgia, yielded no results for specialized laboratory/medical type space. The rental rates outside of the approved delineated area for quasi office warehouse/mixed use properties ranged from $25.00 to $29.50 per RSF excluding Operating and Tenant Imiprovement Allowances. Therefore, taking into account the lack of available space and the extraordinary move and replication construction costs associated with laboratory construction, the rate of $61.91 per RSF for five (5) years quoted by the existing Lessor to the Government falls slightly above the market range; however, construction of specialized laboratory space, moving, and replication costs significantly offset any potential savings for the extension period which the Contracting Officer has determined to be fair and reasonable. Justification for Other Than Full and Open Competition 4/23/2018Xmichael p monaghanMichael MonaghanLease Contracting OfficerSigned by: MICHAEL MONAGHAN Concurrence: Justification for Other Than Full and Open Competition XMaria DentDeputy Director, Leasing (4PL1) XLaSonya Duncan-GloverDirector, Leasing Division (4PR) Legal Review: XBenjamin LorberAssistant Regional Counsel (LD4) Regional Competition Advocate: XAlecia BondsCompetition Advocate, PBS Region 4 
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- Record
- SN04898095-W 20180425/180423230728-be62103c0a5bf355eb3bf1be03081bc8 (fbodaily.com)
- Source
-
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