19JA8021D0004 - JOFOC for Palace Hotel.pdf

Reference DOSAR 606.303-2

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION, PRICE

JUSTIFICATION (JOFOC)

ACQUISITION OF HOTEL ACCOMMODATIONS IN SUPPORT OF SENIOR

HIGH LEVEL USG VIP VISIT

1. I recommend that the Department of State use other than full and open competition for the acquisition of hotel rooms for this VIP visit. The total amount is for 2 contract awards to 2 different contractors. The estimated NTE for both contracts combined is $1,407,201.

Contract No. 19JA8021D0004 (Palace Hotel) – NTE $636,972 USD

Contract No. 19JA8021D0005 (The Prince Park Tower Tokyo) – NTE$770,229 USD

Estimated NTE for both contracts combined: $1,407,201.

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

Senior High Level USG Principal traveling with a delegation inclusive of support elements in: Security, Communications, Logistics and Operations.

3. A description of the supplies or services required to meet the agency’s needs.

Palace Hotel

1 Chome-1-1 Marunouchi, Chiyoda City, Tokyo 100-0005, Japan

The Prince Park Tower Tokyo

4 Chome-8-1 Shibakoen, Minato City, Tokyo 105-8563, Japan

Provide sleeping and dual use occupancy rooms with a combined maximum estimated

3,200 room nights. These contracts also include conference rooms and A/V equipment as needed to support the VIP visit.

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

[X] 41 U.S.C. 253 (c) (2), FAR 6.302-2; Unusual and Compelling Urgency;

(Based on the available time and urgency of the requirement as detailed below)

Security concerns prohibit sufficient advanced notification of VIP travel to allow for sufficient time to conduct full and open competition. The Department of State can only communicate with the staff at Posts abroad when authorization is given due to security concerns. They have an extremely short turnaround time when authorization has been granted for negotiations to commence and site selections to be finalized with both the local vendors and Posts before the actual Senior High

Level USG VIP visit occurs. Security and logistical teams make determinations during the site survey as to which hotels are most suitable for the Senior High

Level USG VIP and their traveling staff to remain overnight. Consideration of the

Senior High Level USG Principal and the location are taken into consideration as a determining factor.

The types of events, meetings, locations and availability of venues to support the

Senior High Level USG VIP and the delegation are often times designated by the host countries.

Unique requirements for communications support are under severe time limitations and always a determining factor in the selection process as its capacity to be augmented to the unique requirements necessary to support certain Senior

High Level USG Principals.

Many of the arrangements for hotel and transportation are often not confirmed until just before the actual visit. In addition to supporting a large delegation within a short time frame, last minute and frequent changes of itineraries for supporting personnel often result in significant changes in how Posts work with the vendors.

With the exception of a few trips, contracts are not permitted to be signed until the

Department of State (Post) has written confirmation from all supporting agencies, which enables collection of funds from said agencies in the event of cancellation.

This results in an unusual and compelling urgency in accordance with 41 U.S.C.

253 (c) (2), FAR 6.302-2.

The following hotels will be contracted for services during this visit:

Palace Hotel

1 Chome-1-1 Marunouchi, Chiyoda City, Tokyo 100-0005, Japan

The Prince Park Tower Tokyo

4 Chome-8-1 Shibakoen, Minato City, Tokyo 105-8563, Japan

These unique Senior High Level USG VIP travel requirements result in only a single or a very limited number of responsible sources with no other supplies or services capable of satisfying agency requirement in accordance with 41 U.S.C.

253 (c ) (2), Far 6.302-2.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Security and logistics are the Department of State’s primary considerations when procuring hotel rooms. The Department of State must be able to provide a safe and secure environment for VIP visitors. Frequently VIP visits are not announced or confirmed in sufficient time to conduct a competition, creating an urgent and compelling need. At other times, the security requirements and/or requirements of the host country government limit the acquisition to one or a small number of predetermined hotels.

(Check all that apply.)

[X] The VIP visit information was not available in sufficient time thereby creating an urgent and compelling need.

[ ] The host country government requires the use of this/these hotel(s).

[X] The proposed contractor has the following unique qualifications which meet the Department of State’s security and logistical requirements. (Check all that apply)

[X] Set-back (hotel is safe distance from the street)

[X] Location (able to secure building, travel route; distance to and from event)

[X] Size and number of rooms (able to house maximum number of guests per hotel)

[X] Conference facilities (adequate space for meetings, press conferences)

[X] Communications (able to install equipment/lines, command center)

[X] Accommodating to security and COVID-19 mitigation needs.

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

Due to urgency and exception in FAR 25.401(a)(5) this solicitation cannot be posted but the JOFOC will be published in FedBizOpps.

All other hotels that we reviewed for possible use had disqualifying reasons including lack of sufficient rooms, overly restrictive cancellation and minimum stay policies, security concerns, inflexible room use policies, etc. The following other hotels were also reviewed, and disqualifying reasons detailed below:

ANA Intercontinental –The ANA was not able to provide suitable suites for the principal where we could control both above and below spaces and isolate from public access. The parking areas did not allow space to stage a motorcade. Moverover, the

ANA wanted to charge approx. USD 15,000 just to remove furniture to create office rooms required to support the delegation.

Andaz Hotel – Price was reasonable but the minimum stay during the Olympics was

33-nights to get the special group rate to be competitive. We only needed approx. half that many nights. Moreover, the cancellation policy is extremely inflexible, requiring

100% payment once the rooms were reserved.

The Okura Hotel – The hotel rooms allotments are controlled by the International

Olympic Committee (IOC), which needed to approve all room assignments and imposed strict movement restrictions on guests. Due to the hotel’s use by the IOC, only

14 rooms were available on one floor, far less than the number of rooms needed to support the delegation.

The Ritz Carlton Hotel – The Ritz Carlton could not secure exclusive access to the basement because it is part of a large shopping mall complex and motorcade movements in and out of the hotel would be subject to coordination with the building owner, a different company. Moreover, the room cancellation policy was too strict, for cancellations 29 or less business days prior to arrival, 100% of the reserved room rates are due.

The Grand Hyatt – - Cancellation policy was too strict and costly. Cancellation charges incur from the date of agreement, and in case the entire group is cancelled, 100% cancellation charges incur from more than a week prior to the actual arrival. Also, minimum room reservation polices required that we take rooms for a longer time of period during the Olympics than needed for our VIP delegation.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Both hotels being contracted are in a high season during the Summer Olympics and

Paralympics. Competition for hotels that meet our security requirements and room availability are limited and being competed for by other countries’ delegations. The pricing has been negotiated from normal per diem to increased authorized per diem of $1,000 depending on the availability and type of room. A typical rate for these rooms during the Olympic time period is between $500 per night and $3,500 per night. We did a local survey of over 10 hotels to determine that the pricing can be considered reasonable. Both hotels are offering a discounted rate on sleeping and conference facilities to accommodate the VIP visit.

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

None

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

None

10. 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.

Given the short notice and availability challenges we experience with frequent VIP visits, we continue to survey hotels for best rates and informally negotiate with a range of hotels to ensure best market price. Post will continue to research and use multiple hotels to ensure best pricing.

CERTIFICATIONS

I certify that the information in this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition to the best of my knowledge and belief.

_July 6, 2021____ ___/signed/___________________

Date: Phong Ngo

Director

I certify that this justification is accurate and complete to the best of my knowledge and belief. Based on my assessment, I conclude that other than full and open competition is justified and the proposed price is fair and reasonable.

__July 8, 2021____ ____/signed/_________________

Date: Charles Hughes, S/GSO

Contracting Officer

(If over $500,000 add)

As the Competition Advocate at post, I approve this justification:

__July 8, 2021____ ____/signed/_________________

Date: Marjorie R. Phillips, MGMT

Management Officer

Signature Date