1.5.1 JA For Direct Lease.pdf

FEMA

JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION/ SOLE SOURCE JUSTIFICTION

FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements, 41 U.S.C. 3304(a)(1)

J&A Control Number: 2025-051 Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303- 2 as follows:

1. Agency.

Department of Homeland Security (DHS), Federal Emergency Management Agency (FEMA), Hurricane Helene, Disaster# DR-4827-NC.

2. Nature and/or description of the action being approved.

On September 28, 2024, the President signed a disaster declaration for the State North Carolina as a result of damage caused by Hurricane Helene. FEMA seeks to award a contract to Direct Lease homes to provide direct housing assistance as authorized under Section 408 of the Robert T. Stafford Disaster Relief and Emergency Act to survivors of Hurricane Helene in the State of North Carolina.

a. Type of action: Direct Lease

b. Amount: Total Estimated not to exceed $4,000,000.00

c. Type of funding: Disaster Relief Fund (DRF)

(a) Proposed Contractor: Lima Charlie, Inc.

2104 Park Ridge Dr. Riverbank CA 95367-9653

3. Description of the services required to meet the agency's needs (including the estimated value).

Section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub.

L. No. 93-288, as amended (the "Stafford Act"), codified at 42 U.S.C. 5121 et seq., authorizes FEMA to Direct Lease homes to house survivors of a major Declared Disaster by the President. FEMA intends to coordinate all actions on this action with the Small Business Administration, not to exceed $4,000,000.00.

4. Identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C 1901 as implemented by the Federal Acquisition Regulation (FAR) Subpart 13.501(a), Sole Source based on only one source with capacity to fulfill requirement, FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements, 41 U.S.C.

3304(a)(1).

5. Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited.

As a result of Hurricane Helene, FEMA has housed over 4900 individuals in shelter, hotels, and group settings. These individuals have been forced to leave their homes due to damage caused by hurricane Helene until repairs can be made. Others have suffered the entire loss of a home due to flood waters and mud slides requiring long term housing. In addition, many bridges and roads were washed away and water supplies were contaminated and will require months if not years to rebuild roads, bridges, and homes before their lives begin to return to a normal state.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

The Contracting Officer post a Sources Sought notification on SAM.gov due to the efforts of the FEMA disaster assessment team which is responsible for working with the State's housing department to locate all property managers, real estate brokers and commercial companies to find long term suitable housing. FEMA intends to issue a small business solicitation within the 60 days to include multiple vendors to participate in the Direct Lease Program.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

The contracting officer determines that the anticipated prices will be fair and reasonable based on market research, current price lists, Fair Market Value (FMR) and comparison with similar items. FMR is defined by the Department of Housing and Urban Development (HUD) and are primarily used to determine payment standard amount for various housing assistance programs. FMRs are gross rent estimates that include the cost of rent plus all tenant- paid utilities, except telephones, cable or satellite television service, and internet service. HUD uses the most accurate and current data available to develop the FMR estimates every fiscal year. FMRs are intended to be housing market- wide rent estimates that provide housing opportunities throughout the geographic area in which rental units are in direct competition. HUD publishes FMRs in the Federal Register, first as proposed estimates for public comment and then for final effect. The purpose of the public comments process is to identify areas where local government officials or residents believe the FMRs are too high or too low. All Direct Lease payments must be in line with the FMR for that specific parish. The IGCE is based on HUD FMR.

8. Description of the market research conducted and the results or a statement of the reason market research was not conducted.

Market Research was conducted for multiple countries to include an industry day sponsored by the HQ Industry Specialist to broadcast the Direct Lease housing program to the western region of North Carolina. This reached out to over 200 individuals and business. A sources sought notification was also published at SAM.GOV which generated over 500 inquiries from individuals and multiple Property Management and Real Estate business. FEMA's assessment team is responsible for working with the State's housing department to all local business to get maximum participation.

9. Any other facts supporting the use of other than full and open competition.

Approval of this SSJ is necessary to timely house displaced survivors currently waiting temporary housing assistance. FEMA will continue to perform casework in coordination with the Individual Assistance division to maximize the use of available housing resources based on reasonable commuting distance of 1 hour. The casework analysis is conducted for each household prior to being determined to have a continued need for direct housing assistance. FEMA in coordination with the State of North Carolina work with survivors to identify and achieve a permanent housing plan.

Overview: A sole-source contract is proposed to quickly secure rental housing for individuals and families affected by urgent circumstances, including cold weather, inadequate living conditions, and the severe strain on existing support systems. This approach ensures that vulnerable families, especially those with children, can stabilize and recover in safe housing as conditions worsen.

Urgent Need for Housing:

o Cold weather and current inadequate housing require immediate action.

o Traditional procurement processes would delay securing safe housing.

o Sole-source contracting allows for quicker placement in stable, warm housing.

Cold Weather Risks:

o Winter poses life-threatening risks, including hypothermia and frostbite.

o Immediate access to safe housing is necessary to protect vulnerable families.

o Sole-source contracting ensures families are housed before weather worsens.

Inadequate Current Sheltering Conditions:

o Many survivors remain in TSA hotels, or overcrowded shelters.

o These temporary solutions are unsafe, uncomfortable, and unsustainable, placing survivors at further risk.

o Such living situations require additional wrap-around services, which are already overtaxed due to the severity of the event.

o Strain on existing services (e.g., healthcare, mental health support, and food access) makes it even harder to meet survivors' needs.

o Renting additional units offers a more stable housing solution, reducing pressure on already overburdened services.

Availability of Suitable Housing:

o Limited housing options that meet the needs of families and survivors.

o Sole-source contracting allows for rapid access to suitable properties.

o Ensures families are placed in safe, accessible, and appropriate housing.

Market Challenges:

o Local rental market is competitive, and units are in high demand.

o Fluctuating rental prices and unreliable utilities add uncertainty.

o Sole-source contracting ensures stable, timely housing without market volatility.

Fostering Community Recovery:

o Stable housing helps families regain normal routines and stability.

o Children can return to school and regain a sense of security.

o Providing housing supports not just individuals, but community-wide recovery.

Conclusion: Sole source contracting for rental units is the most effective way to address urgent housing needs, protect vulnerable individuals from severe cold, and support families in recovering and rebuilding. It also alleviates the strain on human services that are already stretched thin due to the severity of the event. This approach provides timely, stable housing, helping families regain stability and well-being while fostering overall community recovery.

INA T CHAN

Digitally signed by INA T CHAN Date: 2024.11.27 15:05:25 -05'00'

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition.

None

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

FEMA will continue to perform casework in coordination with the Individual Assistance Division to maximize the use of available existing housing resources based on a reasonable commuting distance of 1 hour. The casework analysis is conducted for each household prior to being determined to have a continued need for direct housing assistance. FEMA, in coordination with the State of North Carolina, work with survivors to identify and achieve a permanent housing plan. If necessary, because of extraordinary circumstances, at the written request of the State, FEMA may extend the 18-month period of assistance for temporary direct housing assistance if an extension in the public's interest. approved period of assistance in accordance with 44 C.F.R Section 206. I I7(b)(I)(ii)(H).

The Vendor selected is a certified by the Small Business Administration (SBA) as a Service- Disabled Veteran Owned Small Business (SDVOB). FEMA intends to coordinate this action with both the Local SBA and the vendors SBA they are registered under. This Company has worked with FEMA on other Direct Lease programs in Guam, Hawaii, and Florida and has homes under assignment to offer to the Government on short notice, to ensure as many survivors are housed before the extreme cold weather arrives.

12. Technical Certification. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

COR Date Individual Assistance Branch Director, FEMA

13. Contracting Officer's Certification. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

14. Approvals (Over $700k)

Keecha Elliott Procuring Activity Advocate for Competition, FEMA

Date

RALPH LA ROSA Digitally signed by RALPH LA ROSA Date: 2024.12.02 08:42:37 -05'00'