RFO PART 6 JOFOC - JAAC Ceiling Increase 20260914 - Redacted.pdf

FAR Overhaul Part 6 JOFOC JAAC Ceiling Increase - MIQ M-26-A44-R-000094

United States Department of Justice United States Marshals Service

Asset Forfeiture Division

Revolutionary FAR Overhaul (RFO) 12 Justification for Other Than Full and Open Competition

(Negotiated Procurements) This acquisition follows the procedures presented in Revolutionary FAR Overhaul (RFO) Parts 6.103 and 6.104 as authorized by 41 U.S.C 3304(a) (1). This justification authorizes the use of other-than-full-and-open competition for this requirement in accordance with RFO Parts 6.103 and 6.104 as authorized by 10 U.S.C.

3204(a)(1) or 41 U.S.C. 3304(a)(1).

MIQ Request Number M-26-A44-R-000094

Contract Specialist’s Name Millie Thomas

Contracting Officer’s Representative Christine Vo-Barnert

The United States Marshals Service (USMS) is seeking to increase the funding ceiling availability to existing

Nature or Description of Action

Description of Supply or Service contract 15M50022DA4400016 in accordance with Revolutionary Federal Acquisition Regulation Overhaul (RFO) 6.103-1.

This requirement includes national and international transportation, storage, appraisal, and disposal services of seized and forfeited assets falling under the Jewelry, Art, Antiques and Collectibles (JAAC) for the United States Department of Justice (DOJ) Asset Forfeiture Program (AFP). The contract supports the DOJ and components that participate in the DOJ Asset Forfeiture Fund (AFF) by providing services for the maintenance of custody management control, and disposal of property and money seized or forfeited. Assets may include jewelry, art, antiques and collectibles, clothing and accessories, collector coins/currency, colored stones and gems, furniture, and miscellaneous personal property.

The required performance encompasses a one-year Period of Performance (PoP) of July 1, 2026, to June 30, 2027.

Estimated Total Value

Contract # 15M50022DA4400016 currently has a ceiling of $11,738,950.00. The total estimate value of the proposed modification to increase the contract ceiling is

$4,500,000.00 which brings the total estimated value of the contract to $16,238,950.00.

Vendor’s Name

Indicate Statutory Authority for Contracting without Full and Open

Competition

Gaston & Sheehan Auctioneers, Inc.

1420 FM 685, Pflugerville, TX 78660-2901

CAGE: 3BAD8

6.103-2 Unusual and Compelling Urgency

Authority 41 USC 3304(a)(1).

Contractor’s unique qualifications

In Fiscal Year (FY) 2022, the United States Marshals Service (USMS) Asset Forfeiture Division (AFD) solicited the initial requirement for this contract as a 100% small business set-aside using full and open competition, and Gaston & Sheehan Auctioneers, Inc. was ultimately awarded the current contract. The effort was awarded as an Indefinite Delivery Indefinite Quantity (IDIQ) with a twelve (12) month base and four (4) option periods of twelve (12) months each, in addition to including the FAR clause 52.217-8 Option to Extend Services for an additional six (6) months. The award inception is July 1, 2022, and the contract is currently in Option Year 4 with a period of performance that started July 1, 2026, to June 30, 2027. The current Jewelry, Art, Antiques and Collectibles (JAAC) contract encompasses services for assets identified nationally and internationally and provides life cycle management to include pre-seizure services, transportation, storage, appraisal, maintenance of custody management control, and disposal services.

The services are executed via twenty-three (23) separate Contract Line Items (CLINs), which are tiered under 1.

Transportation, 2. Travel, 3. Storage, 4. Disposal, and 5.

Appraisals Services. As mentioned in the previous paragraph, these services are critical in nature and encompass the maintenance of custody, management control, and disposal of property and money seized or forfeited pursuant to any law enforced or administered by the DOJ, when the property is seized by the USMS or delivered to the USMS in accordance with regulations;

and administer the Department of Justice Asset Forfeiture Funds (see 28 CFR § 0.111 - General functions.(i)).

According to the Comprehensive Crime Control Act of 1984, the USMS has responsibility for management of assets seized by the agencies participating in the United States Department of Justice Asset Forfeiture Fund, and for the disposal of such assets after forfeiture action has been completed or after other instruction by the Federal Court in relation to disposal (e.g., an interlocutory sale).

Due to the unpredictable nature of this requirement and market fluctuations, the USMS can only estimate the volume and asset type seized, and asset value based on current inventory, history of JAAC seizures, previous contracts, and market demands. As a result of a higher frequency of unanticipated events, inventory levels and operating activity expanded beyond initial projections, resulting in funding requirements that exceeded those originally projected over the term of the contract from Option Year 2. More specifically, the five (5) factors identified below have had a significant impact on the estimated contract costs:

1) Increase in overall inventory volume.

2) Historic market valuation surges in the precious metals sector and influx of assets, such as coins, bullion, and silver. As this contract is largely predicated on jewelry, bullion, and coin assets, the shift in market conditions has significantly increased sales, resulting in high commission schedules. For example, in July 2021, gold value was trading between $1,800–$1,900 per ounce.

However, the precious metal markets broke though record territory trading surging over 100% in value in 2024 and 2025; trading between $2,300 to $2500 per ounce and between $3,300 to $3,500, respectively. Today, the average gold value is between $4,000 to $4,100 per ounce.

Similarly, silver values averaged roughly $25 per ounce in July 2021 and climbed to averages of $44 to $79 in 2025 and 2026. Silver prices reached an all-time high of over $121 in January 2026. For context, inventory of gold has doubled in value within the last twenty-four (24) months, which affects sales, disposal and liquidation fees.

3) Commodity price increases driven by carriers’ higher shipping rates and more stringent shipping regulations. These guidelines reduced the insurable dollar amount per shipment via common carrier, resulting in an increase in the number of parcels required for shipment, and, consequently, higher transportation costs.

4) Increased sales were driven by rising precious metal values and unprecedented appreciation in the value of designer brand goods, attributable to limited production and supply constraints that have persisted since the pandemic. Luxury handbags and accessories were among the strongest performing assets. Between 2021 to 2022, handbags and luxury accessories experienced the strongest appreciation driven by luxury price increases, market scarcity, and post-pandemic demand. For example, secondary market value for Chanel Classic Flap bags appreciated approximately 30% to 70%, driven by successive retail price increases. Likewise, Hermes Birkin and Kelly bags appreciated by approximately 20% to 50%, with market values influenced by factors including size, leather type, color, and rarity. Additionally, since 2021, the luxury watch market experienced significant volatility. In contrast to gold, which has generally appreciated throughout the period, luxury watches experienced a period of rapid market appreciation followed by subsequent correction.

Notwithstanding this correction, many iconic watch models continue to command values that exceed their 2021 levels, reflecting a sustained increase in overall market valuations. For example, Rolex values surged in 2022 and slowly softened between 2023 to 2024. However, presently many models such as the Daytona, GMT Master, Submariner, and DateJust have appreciated above original 2021 list prices.

Consistent with broader trends in the luxury watch market, the discontinued Patek Philippe Nautilus 5711 continues to trade in the secondary market at values significantly exceeding its original 2021 manufacturer’s suggested retail prices (MSRP). values are well above original 2021 list prices. As mentioned for other assets, significant rise in value affects sales, disposal and liquidation.

5) Increased appraisal expenses resulting from an unanticipated surge in assets.

Due to the continuous need for these services and with the current contract having entered its final option year, the USMS AFD initiated a re-competition effort which is underway, and it is expected to be completed by 2nd Quarter FY28. As a direct result, there is a critical need to ensure current performance is not interrupted and a ceiling increase is required to allow for continuity of services until the new award is in place and a potential transition between the incumbent and a new awardee can be properly executed, should the incumbent not be successful in the acquisition process.

Assuming all cost estimates will run in the expected increased monthly average recently experienced, the JAAC contract will require a ceiling increase of approximately $4,500,000.00. These costs represent conservative estimates when compared to the industry averages and will be incurred throughout the remaining period of performance as seizures are identified, legal steps are undertaken for custody proceedings and maintenance is performed.

Increasing the contract ceiling for the current contract with Gaston & Sheehan Auctioneers Inc. while the USMS is reprocuring these services competitively is necessary to ensure the continuity of essential services without interruptions and/or delays.

Gaston & Sheehan Auctioneers Inc. has consistently provided similar services to the private sector and to the Jewelry, Art, Antiques, and Collectibles contract area of operations for over 30 years and it is an established expert in life cycle management to include pre-seizure services, national and international transportation, storage, appraisal, maintenance of custody management control, and disposal services. The incumbent contractor successfully provides all required services under the JAAC contract current terms and has an existing infrastructure and organizational plan established to process this complex asset type. Additionally, the incumbent contractor has the capability to be at the required sites with law enforcement agencies at time of seizure or post investigative custody to take possession of the property in accordance with the existing guidelines for seizure and forfeiture. Its existing footprint in the auction and asset management industry can be used for immediate response, and when required, can mobilize immediately upon receipt of the Sub-Task Order (STO) and provide proper storage, transportation, and insurance per protocol. The USMS has saved substantial dollars on standard insurance costs from Gaston & Sheehan’s insurance coverage for FedEx and UPS overnight shipments.

Efforts made to Promote Competition

Any interruption to the required continuity of services would cause significant harm to the Government not only financially, but also in terms of adverse impact on the agency’s mission. Failure to procure the required services will also reduce operational effectiveness during future seizure and forfeiture operations, limit collection and liquidation capabilities, delay operational deployment timelines, and increase overall mission risk.

Government operations in the AFD and Federal Court proceedings would be seriously compromised.

Due to the time constraints, necessity for continuity of services, and the existing successful operable contract with Gaston & Sheehan Auctioneers, Inc., a requirement to meet the urgent existing needs must be met to avoid financial and operational repercussions. At this time and while re-competition activities are underway, a funding increase in the current ceiling under the current period of performance is needed for the continued custody maintenance, and disposal of the JAAC assets in the USMS' inventory pending the re-procurement of these services.

Actions to foster competition are being duly pursued under the re-competition effort, which is currently underway. In addition, the notice to solicit and negotiate with only one source will be posted to the GPE/System for Award Management (SAM) https://www.sam.gov/ as per FAR Subpart 5.2.

https://www.sam.gov/

Method for Determining Fair and

Reasonable Pricing

The Government developed an Independent Government Cost Estimate (IGCE) in preparation of the request for ceiling increase and confirmed and identified prices expected to be paid for the required services are as per current schedule. Based on the above, the Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable, because there is substantial and accurate information available to conduct price analysis per RFO 15.404-1(b)(v).

Results of Market research

Any Other Facts Supporting the use of Other Than Full and Open

Competition

Market research (RFO Part 10) in support of the next competitive procurement is underway and is being conducted to identify potential sources.

Based on the above, this action to increase the current ceiling for the contract to the incumbent, Gaston & Sheehan Auctioneers, Inc., is the most advantageous method to meet the AFD’s current mission. This course of action is the most cost-effective acquisition strategy, and it will prevent unacceptable delays and service interruption to the critical support and services for the assets in custody and currently identified under this contract.

Without approval for this Justification, the AFD will be unable to support management operations for the sizable inventory currently in custody. Failure to ensure continuity of services will also reduce operational effectiveness during future seizure and forfeiture operations, limit collection and liquidation capabilities, delay operational deployment timelines, and increase overall mission risk.

The ceiling increase under the remaining period of performance time frame under the current contract is essential to provide the stability needed to execute mission critical functions while the USMS can duly prepare and execute a new competitive acquisition. It will also allow the requirement to be further refined and completely vetted against the existing regulatory framework and all applicable emerging guidelines.

Interested Sources This notice will be posted to the GPE/System for Award Management (SAM) https://www.sam.gov/ as per RFO https://www.sam.gov/

Subpart 5.2. All responses will be duly recorded as part of the contract action.

-04'00'

Certifications and Approvals

Technical Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.

CHRISTINE Digitally signed by

CHRISTINE VO BARNERT

VO BARNERT Date: 2026.09.10 07:02:44

Christine Vo-Barnert Technical Representative

Supervisory Contract Specialist Concurrence: In accordance with USMS Policy Directive 6.1, Section 7(c), I hereby concur with proceeding with this Justification for Other Than Full and Open Competition.

SHANDORA

ACREY

Shandora Acrey

Digitally signed by

SHANDORA ACREY

Date: 2026.09.10 10:37:31 -04'00'

Supervisory Contracting Officer

Office of General Counsel Review: In accordance with USMS Policy Directive 6.1, Section 2(a), I have reviewed this Justification for Other Than Full and Open Competition.

CHARLES

CARROLL

CHARLES CARROLL

Date: 2026.09.10 13:41:04 -04'00'

Joseph Carroll Office of General Counsel

Contracting Officer’s (CO) Certification and Approval: In accordance with RFO Part 6.104-1(a)(12), I hereby certify that the information provided in this Justification for Other Than Full and Open Competition is accurate and complete to the best of my knowledge and belief.

Additionally, in accordance with RFO Part 6.104-1(a)(12), I hereby determine that the circumstances described above apply to this requirement.

Pursuant to RFO Part 6.104(a)(12), my certification above serves as the approval of this Justification for Other Than Full and Open Competition.

ELIANA

YORK

Eliana York

ELIANA YORK

Date: 2026.09.10 07:37:47 -04'00'

Contracting Officer

Bureau Procurement Chief’s Concurrence: Pursuant to JAR 2806.304(a) I concur with this Justification for Other Than Full and Open Competition.

MICHAEL Digitally signed by

MICHAEL CAPOBIANCO

Date: 2026.09.14 16:44:36 -04'00'

Michael F. Capobianco Jr.

USMS Bureau Procurement Chief

Competition Advocate’s Approval: Pursuant to JAR 2806.304(b)I concur with this Justification for Other Than Full and Open Competition.

Date: 2026.09.14 12:32:13 -04'00'

Sara McFadden USMS Competition Advocate

Head of the Contracting Activity Approval: Pursuant to FAR 6.304(a)(3)(ii) I approve this Justification for Other Than Full and Open Competition.

Michael F. Capobianco Jr.

USMS Head of the Contracting Activity