JOFOC_for_Hilton_(June_2019).docx

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. It is recommended that the Department of State use other than full and open competition for the acquisition of hotel rooms for this VIP visit. The estimated cost is $220,000.

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.

Millennium Seoul Hilton 50, Sowon-ro, Jung-gu, Seoul, Korea 100-802 Approximately 300 hotel rooms required from approximately June 15 through July 14, 2019.

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. As a result, Posts 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 his traveling staff to remain overnight. Considerations of the Senior High Level USG Principal and the location are determining factors in the final decision.

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.

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.

|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 hotel.

|X| The proposed contractor has the following unique qualifications which meet the Department of State’s security and logistical requirements.

|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 everyone in one hotel) |X| Conference facilities (adequate space for meetings, press conferences) |X| Communications (able to install equipment/lines, command center) |X| Accommodating to security needs (hotel will allow DOS to occupy the desired top two floors of the hotel)

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.

The following other hotels were reviewed but were not adequate because of the following:

Grand Hyatt The Grand Hyatt was contacted but rooms and event space were unavailable for the support personnel. This hotel will accommodate the principal visitors and other support personnel directly participating in visit movements but does not have sufficient room availability to accommodate all personnel.

Lotte The Lotte was contacted but space and security requirements were deemed insufficient. The location and access to the Lotte presents vulnerability from a security standpoint, and is nearly impossible to secure the location. Furthermore, it presents issues with access control, and the hotel has insufficient space capacity to accommodate a large fleet of vehicles required to support the visit.

JW Marriott The JW Marriott was contacted but was deemed to be inappropriate for the principal visitors because the hotel does not meet the qualifications regarding the logistical requirements due to location, the travel route, and distance to and from the planned events. This hotel will be used to support other members of the traveling party that are not participating in visit movements.

Shilla The Shilla was contacted but room availability and event space were unavailable and security requirements were deemed insufficient. During the market research, it was determined that the venue could not support the number of rooms during the period of the visit. Additionally, the Shilla’s IT infrastructure cannot meet the communication requirements.

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

During the market research, five hotels – Hilton, Grand Hyatt, Lotte, JW Marriott, and Shilla – were compared. All five hotels offered comparable standard rooms at approximately $209. For executive suites, Hilton offered $409 per suite per night, Grand Hyatt $373, Lotte $450, JW Marriott $400, and Shilla $550. The standard room rate of $209 is also below the approved Foreign Per Diem maximum lodging rate for Seoul. There is not a significant cost advantage among the hotels, either for the rooms or for the functional spaces. The Contracting Officer determines the Hilton is cost effective and the price of $209 per night for a standard room is fair and reasonable.

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.

None.

CERTIFICATIONS

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.

Contracting Officer

DETERMINATION OF FAIR AND REASONABLE PRICING

Contracting Officers must determine that the proposed prices for hotels and conference accommodations are fair and reasonable. A fair and reasonable price is one that a prudent and competent buyer would be willing to pay considering market conditions such as supply and demand, competition, and general economic conditions.

The price of the hotel accommodations are considered fair and reasonable based on the following price analysis.

|X| Comparison with Other Hotel Room Rates: I reviewed the rates of comparable hotels and/or conference accommodations and these rates are reasonable in comparison.

During the market research, five hotels – Hilton, Grand Hyatt, Lotte, JW Marriott, and Shilla – were compared. All five hotels offered comparable standard rooms at approximately $209. For executive suites, Hilton and Grand Hyatt offered $409 per room per night, Lotte $450, JW Marriott $400, and Shilla $550. The standard room rate of $209 is also below the approved Foreign Per Diem maximum lodging rate for Seoul. There is not a significant cost advantage among the hotels, either for the rooms or for the functional spaces. The Contracting Officer determines the Hilton is cost effective and the price of $209 per night for a standard room is fair and reasonable.

Room Rates:

The room rates for the hotels are as follows:

|X| Comparison with Market Prices: I compared the present accommodation rates to the rates this hotel charged in the past competitive environment and found them to be reasonable.

|X| Per Diem Comparison: The hotel room rates are reasonable based on comparison with the approved per diem rates for this country.

|X| Compensation for Security Accommodations: The hotel included additional expenses for security needs. Security personnel concur that these measures are necessary and reasonable. These charges are similar to those encountered for other VIP visits.

|_| Restricted Competition: The hotel prices are higher than normal market due to the restricted competition created by unique security needs and infrastructure requirements and/or host nation allocation of hotel properties.

|X| Comparison with Government Estimate: The proposed hotel and conference rates are reasonable based on comparison and analysis of the government estimate by the office of Presidential Travel Support (A/PTS).

Christian Yun __ ______________________ ___________ Contracting Officer Name Signature Date

RESPONSIBILITY DETERMINATION

Contract Number:

Contractor Name: Millennium Seoul Hilton

In accordance with FAR 9.104-1, the contractor is determined to be responsible after consideration of the following:

(a) Financial Resources. The contractor appears to have adequate financial resources to perform the contract, or the ability to obtain them. This hotel has been a going concern in this country with adequate business.

(b) Compliance with Performance Schedule. The contractor appears to be able to meet the required performance schedule. Rooms and facilities have been determined to be available and adequate for this event.

(c) Performance Record. The contractor has a satisfactory record of performance history. Post has used this hotel before or is familiar with the hotel’s reputation for performance.

(d) Integrity. The contractor has a satisfactory record of integrity and business ethics. Post is unaware of any issues relating to integrity or business ethics.

(e) Organization and Skills. The contractor appears to have the necessary organization, experience, accounting and operational controls, and skills to perform this contract.

(f) Equipment and Facilities. The contractor appears to have the necessary equipment and facilities necessary for this contract, or the ability to obtain them.

1. Otherwise qualified. The contractor is otherwise qualified and eligible to receive an award under applicable laws and regulations. No records were found in the FAPIIS system and no exclusion records were found in the SAM for Millennium Seoul Hilton as of June 14, 2019. The contractor has no record of debarment or conviction of fraud. They are properly licensed to do business in this country as evidenced by copies of all licenses and permits required by local law

Christian Yun __ ______________________ ___________ Contracting Officer Name Signature Date