MODIFICATION
X -- Renewal
- Notice Date
- 4/16/2024 12:41:09 PM
- Notice Type
- Justification
- NAICS
- 53112
—
- Contracting Office
- PBS R4 OFFICE OF LEASING ATLANTA GA 30303 USA
- ZIP Code
- 30303
- Solicitation Number
- 3KY0248
- Archive Date
- 05/16/2024
- Point of Contact
- Michael P. Monaghan, Phone: 301-502-6898
- E-Mail Address
-
michael.monaghan@gsa.gov
(michael.monaghan@gsa.gov)
- Award Number
- LKY62357
- Award Date
- 04/16/2024
- Description
- Revised 10-23-2023 Justification for Other Than Full and Open Competition, Renewal U.S. General Services Administration GSA Region 4 PBS, Leasing Division JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION PROJECT NUMBER: 3KY0248 Agency Name: Internal Revenue Service (IRS) 1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED. The General Services Administration currently leases 361,308 ABOA SF / 413,446 rentable square feet (RSF) of office space at Gateway Center, 333 Scott Boulevard, Covington, KY 41011, under Lease LKY62357, for the Internal Revenue Service (IRS). The current lease expires July 31, 2024. Approval is requested to negotiate a lease renewal with the incumbent Lessor without full and open competition for continued occupancy at this leased location. The procedures for pursuing a lease renewal are detailed in GSAR 570.401: Lease Renewals. 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY�S NEEDS (INCLUDING ESTIMATED VALUE). The Internal Revenue Service (IRS) submitted a continuing need letter on December 8, 2019, for 413,446 rentable square feet of office and related space. To satisfy the IRS� mission requirements, the facility must be within a walkable distance of the nearest public transit stop. Prospectus Number PKY-01-CO21, was submitted to the Office of Management and Budget (OMB) on August 25, 2020, was approved by the House Committee on Transportation and Infrastructure on March 24, 2021, and the Senate Committee on Environment and Public Works on May 26, 2021. The prospectus provides approval of up to a maximum twenty (20) years and up to 413,446 maximum rentable square feet (RSF) with a rent rate of $23.86/RSF. While the approved rent rate is $23.86 / RSF, we anticipate should the effective date of the lease not commence by FY 2024, the prospectus authorizes a rental rate increase of two (2%) percent annually to account for inflation. This renewal requirement is for 361,308 ABOA SF / 413,446 RSF of space for a four (4) years firm term to commence August 1, 2024. The estimated cost of this lease renewal is $23.91 per rentable square feet per year for an annual cost of $9,886,405.21 and a total contract value of $39,545,620.80. The delineated area is: North: Ohio River South: Martin Luther King Jr. Boulevard East: Scott Boulevard West: Railroad Tracks ?????????????????????????????????????????????????????????? Revised 10-23-2023 DELINEATED AREA MAP There is no vacant Federal Space available. 3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION. 41 U.S.C. 3304(a)(1): Only one responsible source and no other supplies or services will satisfy agency requirements. This statutory authority is implemented through GSAR 570.401. In accordance with GSAR 570.401, use of the sole source authority is appropriate where it is determined that award to any other offeror would result in substantial duplication of costs to the Government that are not expected to be recovered through competition. ?????????????????????????????????????????????????????????? Revised 10-23-2023 4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR�S UNIQUE QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. It is in the best interest of the Government to remain at the current location. Award to other than the current Lessor would require relocation of the entire requirement and would cause the IRS to incur move and replication costs that would not be recovered through competition. Relocation costs are estimated to be $54,189,487.00. Additionally, this allows the Government to make use of existing tenant improvements, avoiding replication costs of $35,711,734.00. This IRS location is an FSL Security Level IV facility requiring extensive security measures. Additionally, as a processing mission, the IRS has extraordinary IT/Cabling requirements. In accordance with GSAR 570.402-4, there are no potential acceptable locations within the delineated area. A SAM.gov solicitation for offers was placed on September 28, 2022, for the long-term housing requirement. Only the incumbent Lessor responded with an expression of interest. An RLP was issued to the incumbent Lessor on August 5, 2023, with an initial response deadline of September 5, 2023. The IRS required a comprehensive test fit to determine if the incumbent Lessor�s offered facility can accommodate the IRS� long-term requirement. In order to allow sufficient time to complete the design test fit to determine if the offered location is feasible, it is necessary to renew the current lease since there are no potential acceptable vacant or available alternatives within the delineated area. 5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE. Per the requirements of GSAR 570.402, the GSA Lease Contracting Officer placed an advertisement on the Contracting Opportunities domain of SAM.gov on January 3, 2024, for 23 days. In addition, a CoStar Market Research Report was conducted on December 19, 2023, which indicated there are no other vacant office space locations within the delineated area with a sufficient amount of space to accommodate the Government�s minimum requirements. There is no available vacant federal owned space that can meet the minimum requirement. 6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE. Recent BULLSEYE market research report conducted on September 9, 2022, showed the levelized rental rate within the delineated area is $25.00 per RSF for a full service lease. Therefore, the proposed rental rates for this succeeding lease of $23.91 / RSF, is within the current market range for this submarket and are deemed fair and reasonable by the GSA Lease Contracting Officer. 7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS. GSAR 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. Under this circumstance, there are no acceptable vacant/available alternatives identified that can accommodate the Government�s minimum requirements, therefore, a cost benefit analysis is not required. In addition, PBS posted an advertisement conforming to GSAR 570.402-2 on the Contract Opportunities domain of SAM.gov website on January 3, 2024, for 23 days. The incumbent Lessor�s expression of interest indicated that the rate would be $23.91 per RSF. The interested party that provided the lowest cost quoted a rate of $23.91per RSF in its expression of interest and was the only expression of interest received on January 10, 2024, in response to the solicitation. ?????????????????????????????????????????????????????????? Revised 10-23-2023 See Figure 1 below for the results of the market research and SAM.gov advertisement, including the incumbent. Address Source [EOI/CoStar, etc.] Asking Full Service Rental Rate Gateway Center 333 Scott Boulevard Covington, KY Incumbent Lessor Offer for 4 year renewal $23.91 / RSF Figure 1: Market Research Comparables 8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. The incumbent Lessor is diligently collaborating with the Government conducting a test fit of the current lease location to determine if the entire IRS mission will fit within one single building of two buildings. The long-term procurement is in the Revised RLP offer phase since August 9, 2023. The long-term prospectus procurement is adhering to the �pause and reflect� GSA initiative that will result in a significant downsizing of the agency�s leased footprint. The Lessor continues completing multiple facility maintenance projects, including a complete elevator renovation. 9. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION. Only the incumbent Lessor, ARCP OFC, COVINGTON, KY LLC. 10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION. There are no systemic barriers to competition. If the agency has a continuing need for space upon lease expiration, GSA will follow all authorities, regulations, and policies applicable to lease acquisition. Should there be remaining useful life in the Government�s tenant improvements, the Government will consider the cost of moving from the existing location, and the cost to build out new space when deciding whether to undergo a competitive action. Additionally, objective scrutiny will be given to the customer agency�s mission and security requirements (if applicable) to eliminate unnecessary agency space requirements that may be deemed unduly restrictive. 11. CONTRACTING OFFICER CERTIFICATION. By signature on this Justification for Other than Full and Open Competition, the GSA Lease Contracting Officer certifies that the award of a lease renewal of 413,446 RSF for 4 years is in the Government�s best interest and that this Justification is accurate and complete to the best of the GSA Lease Contracting Officer�s knowledge and belief. 2/5/2024 X michael p monaghan Michael Monaghan Contracting Officer (4P1L) Signed by: MICHAEL MONAGHAN ?????????????????????????????????????????????????????????? Revised 10-23-2023 12. PREPARER�S TECHNICAL CERTIFICATION. I certify that the supporting data used to form the basis of this Justification is complete and accurate to the best of my knowledge and belief. 2/5/2024 X michael p monaghan Michael Monaghan Contracting Officer (4P1L) Signed by: MICHAEL MONAGHAN CONCURRED BY: 2/5/2024 X Shontise Mangham Shontise Mangham Chief TN/KY Branch (4P1L1D) Signed by: General Services Administration CONCURRED BY: 2/5/2024 X Heather Driskell Heather Driskell Lease Acquisitions Officer (4P3) Signed by: HEATHER DRISKELL APPROVED BY: 2/5/2024 X for Gregory Trimble Sabina A. Sims Leasing Director (4P1L) Signed by: General Services Administration ?????????????????????????????????????????????????????????? Revised 10-23-2023 APPROVED BY: 2/6/2024 X Pamela Mitschke Pamela Mitschke Competition Advocate (4P3) Signed by: PAMELA MITSCHKE APPROVED BY: X Jeffrey M. Smith PBS Regional Commissioner (4P)
- Web Link
-
SAM.gov Permalink
(https://sam.gov/opp/511fcb5ed79241fea5abec739fc3c74b/view)
- Place of Performance
- Address: Covington, KY 41011, USA
- Zip Code: 41011
- Country: USA
- Zip Code: 41011
- Record
- SN07031471-F 20240418/240416230046 (samdaily.us)
- Source
-
SAM.gov Link to This Notice
(may not be valid after Archive Date)
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