Inactive

GENERAL SERVICES ADMINISTRATION JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER LMN18364 PROJECT NUMBER: 7MN2157 1314 N. Hiawatha Pipestone, MN 56164-2282 This request for approval... GENERAL SERVICES ADMINISTRATION JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER LMN18364 PROJECT NUMBER: 7MN2157 1314 N. Hiawatha Pipestone, MN 56164-2282 This request for approval is submitted in accordance with FAR 6.304(2) and GSAM 570.405 c (2) Lease Extension. 1. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED The General Services Administration currently leases 3,654 ABOA/ 3,654 rentable square feet (RSF) of office space at the 1314 N. Hiawatha, Pipestone, MN 56164-2282 under lease number LMN18364 for the The current lease expires 9/30/2019. Approval is requested to negotiate an extension of the current lease with the incumbent Lessor without full and open competition to enable continued occupancy at this leased location. In order to comply with the Commissioner of GSA's initiative to save taxpayer dollars through rental savings we have been prioritizing our procurements based on the overall value of the contract and the potential for rental savings. In situations where the space currently occupied has been confirmed by the GSA Property Manager to be capable of meeting the government's continued needs and agencies continued mission need Region 5 is extending the lease based on the small financial risk to the government. Moving actions forward through extensions will allow the region to focus on deals with higher financial impact, realign our expiring workload in a phased manner and realize the organization's goal of longer term strategic planning. At this time, we have not received long term requirements from the agency. An extension would allow us time to firm up requirements and set long term housing needs for the agency. 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY'S NEEDS (iNCLUDING ESTIMATED VALUE). is currently located at 1314 N. Hiawatha, Pipestone, MN 561654- 2282 under lease number LMN18364 in 3,654 ABOA/ 3,654 rentable square feet (RSF) of office space. This 3 year firm term lease is due to expire on September, 30, 2019. In order to meet the agency's ongoing mission requirement an extension of the lease is required. GSA in Region 5 has been faced with agency delays in providing requirements for long term procurements for years creating delays in our ability to address agencies longer term space needs timely. Extending of this lease for a 3 year firm term commencing on 10/1/2019 is estimated to be $16.65 per rental square foot resulting in a total cost of $182,517.30 for the total contract value. 3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION. 41 U.S.C. 253 (c) (1) 4. DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. It would be cost prohibitive and not in the best interest of the government to move the agency for the short term of this extension. The cost to replicate the tenant improvements and move the agency would be approximately $50.24 per rentable square foot prior to considering the rental rate or operating costs. The current space is capable of meeting the agencies current mission needs for the short term of this extension and can be extended without the expenditure of replication cost. Expending the funds to replicate space to be used for only 3 years would be a waste of taxpayer dollars and is not in the best interest of the government. It is GSAs intention to finalize a long-term procurement concurrent to the expiration of this proposed extension term. 5. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE. After discussion with the GSA Property Management office it was confirmed that the location is acceptable to meet the housing needs of the agency for the extension period. With that information it was determined that proceeding with an extension was in the best interest of the government and therefore no additional sources were contacted. The long term procurement to be conducted during the term of this extension will consider all buildings that fall within the delineated area of said procurement. GSA Region 5 currently has this project on the 36 month planning cycle and it is projected that this project's long term housing solutions will be completed during this extension term. 6. DEMONSTRATION BY THE CONTRACTING OFFICE THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE. On 07/8/2019 market research was conducted by using the following source(s) CoStar. The market research identified 0 potential buildings within the delineated area. With noting for lease in the market areas, the nearest location of similar size is Sioux Falls, ND. With Sioux Falls, being 48.2 miles outside of the market area, there are currently no available markets in the immediate area to provide a fair market price. Additionally, a general search of the Pipestone, MN area was conducted and the search reflected that spaces are currently being sold with no current properties that meet the customer criteria as a leased space. The general search also provided details that Pipestone, MN is a small town of 4,000 people that host hotels and the community is largely an extension of the Pipestone National Park. A search in Rexus of other federal leased spaces located in Pipestone, MN was conducted and the concluding results provided that the current customer of is the only federal agency leasing space in the area. The leased space is being rented from a local community college and after conversing with colleagues who have worked with similar markets, the current rate of $15.14 RSF, is a fair rate. As for the base cost of operations the current lease reflects that the lease isn't subject to operating costs or real estate taxes. Looking at the current rate there doesn't appear to be any red flags regarding the rate of $15.14 RSF. As such the rate for operating costs is inconclusive. 7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS. A formal market survey was not conducted for this lease extension as moving the agency for the short term of this extension would be cost prohibitive and disruptive to the agency but will be conducted during the long term replacement procurement that will be conducted during the extension period. 8. OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION. In order to comply with the Commissioner of GSAs initiative to save taxpayer dollars through rental savings we have been prioritizing our procurements based on the overall value of the contract and the potential for rental savings. In situations where the space currently occupied has been confirmed by the GSA Property Manager to be capable of meeting the government's continued needs and agencies continued mission need Region 5 is extending the lease based on the small financial risk to the government. Moving actions forward through extensions will allow the region to focus on deals with higher financial impact, realign our expiring workload in a phased manner and realize the organization's goal of longer term strategic planning. 9. LISTS OF SOURCES, IF ANY THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION. Not Applicable 10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION. Through continued focus on longer term strategic planning with our clients and negotiating longer lease terms GSA will be able to better manage our inventory and reduce the need for short term non competitive lease extensions. 11. CONTRACTING OFFICER CERTIFICATION I, the Lease Contracting Officer, certify that the above information is accurate and complete to the best of my knowledge. ____________ Nikita Jones Leasing Specialist Approved by: _____________ Thomas Nisivaco Lease Contracting Officer (LCO)