SOLICITATION NOTICE
X -- Lease Extension
- Notice Date
- 7/27/2010
- Notice Type
- Justification and Approval (J&A)
- NAICS
- 531120
— Lessors of Nonresidential Buildings (except Miniwarehouses)
- Contracting Office
- General Services Administration, Public Buildings Service (PBS), Real Estate Acquisition Division (2PR), 26 Federal Plaza, Room 16-100, New York, New York, 10278, United States
- ZIP Code
- 10278
- Archive Date
- 8/13/2010
- Point of Contact
- Dmtiriy Betser, , Kazi Rizvi,
- E-Mail Address
-
dmitriy.betser@gsa.gov,
(dmitriy.betser@gsa.gov, ease)
- Small Business Set-Aside
- N/A
- Award Number
- 9NJ2147
- Award Date
- 7/22/2010
- Description
- JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION GS-02B-22452 165 PASSAIC AVENUE, FAIRFIELD, NJ EXTENSION OF TERM PROPOSED ACTION: This memorandum serves to justify the need to enter into a lease extension for a period of one year to continue to house the Internal Revenue Service (IRS) located at 165 Passaic Ave, Fairfield, NJ. The total contract aggregate rent for this lease extension is expected to be approximately $700,000.00 for the one year lease term. The Government will have cancellation rights on ninety days (90) days prior written notice to the Lessor at any time during the lease term. DESCRIPTION OF THE REQUIREMENT: The IRS currently occupies approximately 25,581 RSF of office and related space under Lease No. LNJ22452 at a current annual rental rate of $666,385.05 or $26.05 per RSF which will expire August 4 th, 2010 with no further renewal options. The IRS has submitted their new space requirements and the competitive procurement for a long-term lease is currently in the SFO phase. The one year lease extension (with cancellation rights upon ninety days (90) prior written notice) will insure that the Government has sufficient time to conduct a competitive procurement to effectuate the relocation of the IRS while the cancellation rights will allow the Government to terminate the lease prior to the lease term expiration date, if needed. IDENTIFICATION OF STATUTORY AUTHORITY: 41 U.S.C. 253 (c) (1). UNIQUE QUALIFICATIONS: The current space has alterations and costly installations, including special data and telephone connections that fully meet IRS's operational requirements, permitting them to carry out their mission assignments and serve their customers. Continued occupancy at the current location will allow IRS to avoid all costs associated with the disruption to their operations. Such a disruption would detract from the delivery of the IRS's mission-related services to their customers. Therefore, it is not in the best interest of the Government to relocate from the present location. By entering into a lease extension, the Government will avoid moving costs, as well as costs for relocating data and phone lines, and duplicating above standard alterations. EFFORTS TO ENSURE SOLICITATION FROM MAXIMUM SOURCES PRACTICAL: N/A DESCRIPTION OF MARKET SURVEY REPORT - Market information obtained for Fairfield, NJ has demonstrated a rental range for space in that area as follows: •1) 100 Passaic Avenue, Fairfield NJ This is a three-story office building built in 1988 in a campus setting owned by Accordia Realty. The building has approximately 15,532 RSF available on the 1 st floor and 30,506 RSF on the third floor. The triple net rental rate is approximately $21/rsf plus operating expenses and maintenance of approximately $7.00/rsf (exclusive of tenant alterations) for a total estimated fully-serviced rental of $28.00/rsf. •2) 130 Clinton Road, Fairfield NJ This is a two-story office building built in 1988 in a corporate park setting represented by Sheldon Gross Realty Inc. The building has approximately 20,000 RSF vacant on the first floor. The triple net rental rate is at approximately $18.50/rsf plus operating expenses and maintenance of approximately $7.00/rsf (exclusive of tenant alterations) for a total estimated fully-serviced rental of $25.50/rsf. 3) 383 Rt 46, Fairfield NJ This is a three-story office building in a corporate park setting owned by Daniel Glassman. The building has approximately 33,000 RSF of vacant space. The triple net rental rate is approximately $15.00/rsf plus operating expenses and maintenance of approximately $7.00/rsf (exclusive of tenant alterations) for a total estimated fully-serviced rental of $22.00/rsf. DETERMINATION THAT ANTICIPATED COSTS WILL BE FAIR AND REASONABLE: The anticipated annual rental rate is considered fair and reasonable based upon current market data which indicates that a fair and reasonable shell rental rate for office space in Fairfield, NJ is approximately in the range of $15.00 to $21.00 per rentable square foot plus operating expenses and maintenance of approximately $7.00 per rentable square foot. Thus, the market fully-serviced rental rent is in the range of $22.00 to $28.00 excluding tenant alteration costs. The proposed rental of approximately $27.50 per rentable square foot is within the market range for a fully serviced rental rate. OTHER FACTORS SUPPORTING JUSTIFICATION: Allowing the IRS to continue at their current location will allow the agency to continue providing their services without interruptions. IRS does not require any tenant alterations to be performed at their current location. LIST OF SOURCES EXPRESSING INTEREST IN SOLICITATION: N/A FUTURE ACTION TO OVERCOME BARRIERS TO FULL AND OPEN COMPETITION: It is expected that a full and open competition will be completed and a new lease awarded prior to the expiration of the Lease extension.
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- Record
- SN02219175-W 20100729/100727235508-5fb3bde40163f1a1ede035085c57445e (fbodaily.com)
- Source
-
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