HG Properties A, L.P., B-280652, November 2, 1998

B-280652 Nov 02, 1998 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Protest that solicitation for offers for the lease of space unfairly favors offerors proposing new construction is denied where the protester has not shown that the claimed competitive advantages are the result of unfair action by the government or do not represent the government's actual requirements. The leased space is used as an outpatient medical clinic for eligible veterans. The current lease will expire March 31. The VA specified the amount of space it sought and delineated the geographic area in which the space is to be located. Which met or were determined to have the potential to meet the VA's basic requirements were informed that they would receive the SFO. The new lease will be for a term of 15 years with a 5-year renewal option. View Decision Matter of: HG Properties A, L.P. File: B-280652 Date: November 2, 1998 DIGEST Attorneys DECISION HG Properties A, L.P. protests solicitation for offers (SFO) No. 541-184-003-98 issued by the Department of Veterans Affairs (VA) for the lease of space for its outpatient medical clinic in Canton, Ohio. We deny the protest. Since April 1, 1980, the VA has occupied space--currently 47,662 net usable square feet--on the first and second floors of a building owned by HG in Canton's central business area under a General Services Administration (GSA) lease. Agency Report at 1; Contracting Officer's (C.O.) Statement at 1. The leased space is used as an outpatient medical clinic for eligible veterans. Report at 1. The current lease will expire March 31, 2000. Id. In the Fall of 1997, the VA advertised that it would be conducting a competition for alternative space for a new lease term commencing April 1, 2000. /1/ Protester Comments, Exhibit 5. The VA informed potential offerors that it would relocate "if advantageous to the Government," and that the cost of moving, alterations, and other factors would be considered when determining whether to relocate. Id. The VA specified the amount of space it sought and delineated the geographic area in which the space is to be located. Id. The VA requested interested offerors to submit information concerning their properties by November 21, 1997. Id. In early April 1998, VA again advertised its need for the new lease and sent HG a copy of the advertisement. Report at 2; C.O. Statement at 1. On May 19, HG sent the contracting officer a complete set of plans and a land survey of its facility. Protester Comments, Exhibit 1. According to the contracting officer, on May 27 and 28, a VA market survey team conducted a market survey of properties in Canton, including the existing HG facility, to determined their suitability as a potential location for a new lease. C.O. Statement at 1. The contracting officer states that potential offerors of those properties--including the existing facility--which met or were determined to have the potential to meet the VA's basic requirements were informed that they would receive the SFO. Id. The VA issued the SFO on June 25 and established July 27 as the due date for offers. Report at 2; SFO at 8. Under the SFO, VA proposes to lease a minimum of 40,680 to a maximum of 42,715 occupiable square feet of space located within Canton's central business area. Report at 2; SFO at 8. The delineated area includes the existing clinic location. C.O. Statement at 2. The new lease will be for a term of 15 years with a 5-year renewal option. SFO at 8. The SFO further specifies that the space must be adjoining and be on no more that two contiguous floors, and can be provided by new construction or modification of existing space. Id. The SFO requires that if the space offered is not located in a new or modern office building, it must be in a building that has undergone, or will undergo, restoration or adaptive reuse so that the office space contains modern conveniences. Id. at 12. If the restoration work is underway or proposed, then architectural plans acceptable to the contracting office must be submitted as part of the offer. Id. The SFO established that the evaluation of offers and subsequent selection of the offer representing the best value to the government will be made on the basis of the following factors listed in order of descending importance: (1) the annual price per occupiable square foot, including any option period; (2) the quality of the building and design concept; (3) the quality of the site; (4) the offeror's qualifications and past performance; and (5) the adequacy and efficiency of the operation and maintenance plans required to be submitted. Id. at 14. According to the SFO, when combined, the technical evaluation factors ((2) through (5) above) are approximately equal to the price factor ((1) above). Id. The SFO requires offerors to submit with their offers various specified plans, elevations, and drawings, including: One-eighth inch (1/8") scale full floor plans of the space offered.