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FBO DAILY - FEDBIZOPPS ISSUE OF SEPTEMBER 20, 2014 FBO #4683
DOCUMENT

X -- VISN 19 Building Leases - Justification and Approval (J&A)

Notice Date

9/18/2014
 

Notice Type

Justification and Approval (J&A)
 

NAICS

531120 — Lessors of Nonresidential Buildings (except Miniwarehouses)
 

Contracting Office

Department of Veterans Affairs;Network Contracting Office;NCO 19;4100 E. Mississippi Avenue, Suite 900;Glendale CO 80246
 

ZIP Code

80246
 

Solicitation Number

VA25914R0442
 

Archive Date

12/23/2014
 

Point of Contact

Richard Kern
 

E-Mail Address

richard.kern@va.gov
(Richard.Kern@va.gov)
 

Small Business Set-Aside

N/A
 

Award Number

VA259-14-L-0286
 

Award Date

9/24/2014
 

Description

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION, SUCCEEDING LEASE DEPARTMENT OF VETERANS AFFAIRS VISN 19 Rocky Mountain Network Contracting Center 4100 E. Mississippi Avenue, Suite 510 Glendale, CO 80246 Lease Number: VA259-14-L-0286 Suite 510, Mountain Towers GREX Number: DCO04133 Upon the basis of the following justification, the use of other than full and open competition for the proposed contractual action is hereby approved pursuant to the authority of 41 U.S.C. 253(c)(1), and FAR 6.302-1, which states, "Each justification shall contain sufficient facts and rational to justify the use of the specific authority cited. As a minimum, each justification shall include the following information:" Only one responsible source and no other supplies or services will satisfy agency requirements. JUSTIFICATION 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. The VISN 19 and Rocky Mountain Acquisition Center (RMAC), currently leases 4,110 Net Useable Square Feet (NUSF) at 4100 E. Mississippi Avenue, Glendale, CO 80246 under lease number VA259-R-0301. The current lease expired 1 Sep 2014 and has a standstill agreement in place reflecting current guidance from the VA. Delegation from GSA for this action has been received. Approval is requested to negotiate a succeeding lease with the incumbent lessor without full and open competition for continued occupancy at this leased location. 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. VISN 19 and the RMAC proposes to enter into a sole source acquisition with Mountain Towers Properties, LLC, for the purpose of acquiring 4,110 net useable square feet of office/administration space at Mountain Towers located at suite #510, 4100 East Mississippi Avenue, Glendale, CO 80246. Lease will be negotiated sole source based on most efficient organization criteria and as such, there is only one responsible source and no other supplies or services will satisfy agency requirements, therefore, full and open competition is determined inappropriate for this acquisition. The estimated average annual rental cost is $ 52,814.00 yearly average cost $ 12.85 per RSF 3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. This space is required to accommodate the VISN 19 Leadership and Staff through 2019. The organization currently leases space in the facility, but the movement and disruption of operations by relocating to other leased space would adversely impact the efficiency and operations of the VISN-19 leadership. This acquisition is below the threshold for action at the VACO Real Property Services level. The lease will be negotiated for a three-year, firm fixed-price term with seven (7) non-firm years for a total of ten years and will not exceed this lease term. The estimated rental rate will be $8,220.00 per month for a total annual rental rate of $92,475.00 or $22.50 per square foot "fully serviceable." The un-serviced amount is estimated at $51,425.19. This qualifies this acquisition as a simplified lease action. 4. IDENTIFICATION OF STATUTORY AUTHORITY. 41 U.S.C. 253(c)(1): Only One Responsible Source and no Other Supplies or Services will Satisfy Agency Requirements. 5. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. GSAM 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. It is the determination of the Contracting Officer that this particular lessor is in very unique position based on the Cost Benefit Analysis conducted to determine the VA's most efficient method of acquiring a lease for general office space. This analysis was conducted to determine the economics of negotiating a sole source agreement with the current landlord verses issuing a solicitation for full and open competition. VISN 19 has a requirement for 4,110 square feet of space to accommodate the VISN-19 OI&T Staff and data room. The building owned and operated by Mountain Towers Properties is a 19-story building, constructed in 1984, located within a prime real estate business district of Denver, Colorado, and is very accessible in all directions. In conducting the cost benefit analysis, the Contracting Officer looked at key elements in order to make a sound and reasonable determination as to the VISN's most efficient method of acquisition. These areas of consideration include; (1) Responses to Space Requirement Announcement, (2) Location/Condition of Building and Offerors Compliance with Space Requirements, (3) Price Per Square Foot and Anticipated Build-Out Costs, and (4) Relocation Costs and Benefits. Based on review of the above noted elements, it was determined that there would be a cost savings of approximately $60,000.00 reflected in build-out, moving cost and re-establishment of IT/Data telecommunication services and computer room. Based on the savings reflected above it was determined that the most efficient method for this acquisition would be to conduct sole source negotiations with the current landlord as full and open competition is shown not economical to the Government. A market survey was conducted and revealed that this facility is the best property that meets our existing needs. Some of the advantages for leasing this space include: the data connectivity costs are minimal ($2,500.00) as opposed to what it would cost at another location ($25,000); no build-out costs; no moving expenses; reasonable rates and low utility costs, on-site maintenance and close proximity to the Denver VAMC. Advertisements were not placed in local papers or FBO for the original SFO. No inquiries from other property management firms were received.. It is the determination of the Government that soliciting full and open competition for procurement of this space would not be advantageous to the Government and would create unnecessary hardships and delays. Cost Benefit Analysis REDACTED 6. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. Market research identified no potential locations that would be acceptable given the criteria and costs. An advertisement on the Federal Business Opportunities Web site (fedbizopps.gov) conforming to GSAM 570.402-2 was posted on July 14, 2014 and expressions of interest were due by 5:00 PM EST on July 21, 2014. There were zero expressions of interest. 7. DESCRIPTION OF MARKET RESEARCH CONDUCTED. A lease market survey was conducted by the contracting officer for the purpose of determining the economic value of relocating the VISN office using competitive procedures verses the savings that may be obtained should the VISN negotiate sole source with the current landlord. Date(s) market research conducted: 1/28/2014 - 2/3/2014. Companies/organizations contacted as part of the market included Newmark Grubb Knight Frank, Carolyn Martinez, Associate Director, ; Betance Construction, Cindy Lincicome, Pre-construction Director, American Automation Building Solutions, Inc., Lisa R. Buckley, CEO; The Nesbitt Group, Eric Nesbitt, CEO. The material was validated by using current pricing reviews, current lease reviews, and interviews with Real Estate professionals. 9. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. Additional factors supporting the use of other than full and open competition, is the fact that there are supplementary savings that will be realized by the Government through sole source negotiation with Mountain Towers Properties. Under the terms of the new lease, VISN 19 has negotiated the rental cost for all leased space at Mountain Towers to be the same as all the other leased space. In addition, the annual increases are consistent with the anticipated Consumer Price Index. The leases will include the current directed Termination clause. As such, VISN 19 has a requirement to re-establish a lease immediately and will be able to do so by re-negotiating the current lease and replacing it with a new lease. The property management office is located in the same building the VISN 19 and ECHCS offices are located and offer prompt on-site maintenance. Attachment 1 - P02 - Market Research Summary - Ste 510 succeeding Attachment 2 - VISN Lease Market Research for Office Space 4-18 Attachment3 - Actively Seeking Memo 10. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUISITION. Mountain Towers Properties, LLC 4100 E. Mississippi Ave, Glendale, CO 80246 (303) 843-1992 - Direct (303) 846-3184 - Fax Attention: John Miller 11. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION. Not applicable. 12. Certifications. TECHNICAL AND REQUIREMENTS PERSONNEL CERTIFICATIONS (FAR 6.303-2(b): I certify that this justification with supporting data is complete and accurate. Technical Personnel Certification: _________________________REDACTED _____ REDACTEDPhoneDate CONTRACTING OFFICER I certify that this justification is accurate and complete to the best of my knowledge and belief. __________________________REDACTED _______ REDACTED Date Lease Contract Officer, NCO19
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/spg/VA/VARMCCC/VARMCCC/VA25914R0442/listing.html)
 

Document(s)

Justification and Approval (J&A)
 

File Name: VA259-14-R-0442 VA259-14-R-0442_J A.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=1641300&FileName=VA259-14-R-0442-001.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=1641300&FileName=VA259-14-R-0442-001.docx

 

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

Record

SN03518607-W 20140920/140919000123-ff716b66e3c9cf09973b9d07d53a3875 (fbodaily.com)
 

Source

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

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