X1DB--Succeeding Lease Sarasota CBOC
Overview
Buyer
Place of Performance
NAICS
PSC
Set Aside
Original Source
Timeline
Qualification Details
Fit reasons
- NAICS alignment with historical contract wins in similar service areas.
- Scope strongly matches core technical capabilities and delivery model.
Risks
- Past performance thresholds may require one additional teaming partner.
- Potential clarification needed on staffing minimums before bid/no-bid.
Next steps
Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.
Quick Summary
The Department of Veterans Affairs (VA) has published a Justification for Other Than Full and Open Competition (JOTFOC) for a succeeding lease for the Sarasota Community-Based Outpatient Clinic (CBOC). The VA intended to negotiate a sole-source lease with the incumbent Lessor for medical clinic space at 5682 Bee Ridge Rd, Sarasota, Florida. This lease was subsequently awarded to KNS DEVELOPMENT CORPORATION for $3,401,301.00 on March 2, 2026.
Purpose & Scope
The VHA Bay Pines VA Healthcare System required 18,068 rentable square feet (RSF) of medical office and related space to succeed the current Sarasota CBOC lease, which was set to expire on July 31, 2025. The new lease was for a five-year term, with three years firm, commencing August 1, 2025. The estimated annual cost was $505,904 ($28 per RSF), with a total estimated contract value of $2,637,520, including $108,000 for tenant improvements.
Justification for Sole Source
The sole-source negotiation was justified under 41 U.S.C. 3304(a)(1) and GSAR 570.402 (Succeeding Leases). Market research, including searches on SAM.gov, CoStar, and Loopnet, did not identify any alternative locations that met the agency's minimum square footage requirements within the defined geographic boundaries. The anticipated rental rate of $28 per RSF was deemed fair and reasonable, falling within the current market range of $26.00 - $37.00 per RSF. The incumbent Lessor's performance was satisfactory, and the building was in acceptable condition.
Contract Details & Outcome
This notice served as a justification for a sole-source action and was not a solicitation for proposals. The associated solicitation number was 36C24825R0158. The lease was awarded to KNS DEVELOPMENT CORPORATION on March 2, 2026, for an amount of $3,401,301.00. The Product/Service Code is X1DB (Lease/Rental Of Laboratories And Clinics), and the NAICS code is 531120 (Lessors of Other Commercial Buildings).
Set-Aside
Not applicable, as this was a justification for other than full and open competition, leading to a sole-source award.
Notes
The VHA Lease Contracting Officer confirmed no acceptable alternative locations were found through market surveys. A cost-benefit analysis was not required per GSAR 570.402-4.