Description
DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K) Acquisition Plan Action ID: VA261-R-3128 Contracting Activity: Department of Veterans Affairs, Network Contracting Office 21 on behalf of the Veterans Affairs San Francisco Health Care System (VASFHCS) located at 1001 Sneath Lane, Suites 309 & 310, San Bruno, CA 94066. Nature and/or Description of the Action Being Processed: This two-year lease extension action is being requested on behalf VASFHCS subsequent to their submission of a memorandum requesting a Lease Extension of the existing space for a period of two (2) years. The purpose of the Lease Extension is, for uninterrupted and continued services to veterans which are currently provided by the San Bruno Community Based Outpatient Clinic (CBOC) until a replacement lease location is ready for beneficial occupancy. Description of Supplies/Services Required to Meet the Agency s Needs: This requirement if for 9,950 NUSF of space for a two (2) year, one (1) firm term lease extension, commencing August 1, 2017. The estimated annual cost of this lease space is $XXXXX per year for fully serviced space (excludes power-gas and interior janitorial), with a total value of $XXXXX. The original San Bruno CBOC lease, V261R-3128, was executed on August 1, 2005 as a five (5) year firm term lease with five (5) one year consecutive options and a hard termination date of July 31, 2015. The five (5) option periods were subsequently converted to one five (5) year option. Prior to the expiration of the firm term a two (2) year extension with one (1) year firm, was executed. This two year extension was requested in order to provide enough lead time to complete a new 10 year lease on the San Bruno CBOC. The Construction and Facilities Management (CFM) is handling the new lease and has yet to fully complete. This new two year lease extension would eliminate any major disruptions of medical services to our current patient s healthcare and prevent costly expenses for: tenant improvements, purchasing and installing new phone / IT systems, equipment and the relocation of employees and their workstations and equipment. 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. Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): 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. The Cost-Benefit Analysis in Item 7 below shows an overall estimated cost savings to the Government of $XXXX for the two year requested period of this extension, if the current facility is used versus moving to another location. By negotiating with the current lessor, there would not be potential disruption in medical services provided to our veterans. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The LCO conducted market research and a cost-benefit analysis to determine the feasibility of locating alternate space, but determined that there was no fiscally sound alternative to the present location. This requirement is for 24 months only and, after conducting the market research and cost-benefit analysis and considering the overall benefits inherent to remaining in place, the LCO determined that advertising for space was highly unlikely to produce cost-effective results or alternatives. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost for obtaining similar space from a different lessor to provide 9,950 NUSF required by 7/31/2017 is not reasonable. The additional cost to the Government is estimated to be estimated $XXXXX over the same two year term. Issuing a 2 year Lease Extension at its current location is cost effective and is in the best interest for the Government. Cost Benefit Analysis Results: Cost-benefit Analysis Acquisition of 9,950 Rentable Square Feet (NUSF) Two-Year (Firm Term) Analysis: Present Location Alternate Location 2-yr. Total rent / annual NUSF rate $XXXX $XXXX New Amortized Tenant Improvements $0 $XXXX Cost of physical move $0 $XXXX Voice & Data move $0 $XXXX Duplication of Reimbursable Work Authorization (RWA) alterations $0 $0 Total 2-year cost / annual NUSF rate $XXXX $XXXX Total of T.I./Move & IT/Phone costs Two year savings for lease extension $ .00 $XXXX $XXXX Transportation Sufficient Buses and BART A new location could present access issues A recent market survey, which is contained in the table below, showed the rental rate within the area ranging from ($XXXX to $XXXX] per NUSF. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The LCO conducted Market Research using LoopNet, a recent MAI Appraisal and Realtor.com. The results of the market research are contained in the table below. Two of the properties used, are in the same building the VA leases space in. In addition, an appraisal has been done on the subject. See table below for market survey results. Market Survey Report Building Rental Rate 1001 Sneath Lane, San Bruno, CA 94066 $XXXX/NUSF 881-903 Sneath Lane, San Bruno, CA 94066 $XXXX/ NUSF 1001 Sneath Lane, Suite 100, San Bruno, CA 94066 $XXXX/NUSF 801 Traeger Avenue, San Bruno, CA 94066 $XXXX/ NUSF Any Other Facts Supporting the Use of Other than Full and Open Competition: Other than as stated in Paragraph 4 above, not proceeding with a Lease Extension may trigger Holdover which may subject the Government to significantly higher costs and a less secure tenancy at the subject site. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Not Applicable. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: Consistent with the Competition in Contracting Act, Full and Open Competition will be undertaken in future requirements as opportunities are available. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ XXXXXX Date Director San Francisco VA Medical Center Approvals in accordance with the VHAPM, Volume 6, Chapter VI: OFOC SOP. Contracting Officer or Designee s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ XXXXXXX Date Contracting Officer Network Contracting Office 21 Director of Contracting /Designee (Required over $XXXXK but not exceeding $XXXX): I certify the justification meets requirements for other than full and open competition. _____________________________ ________________________ XXXXXXXX Date Director of Contracting Network Contracting Office 21 VHA SAO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $XXXX) or approve ($XXXX to XXXX million) for other than full and open competition. _____________________________ ________________________ XXXXXXX Date Director, SAO West VHA Head of Contracting Activity