538.7104-3 Federal Supply Schedule Sole Source Justification 2_18_2026_Redacted.pdf

MEMORANDUM TO FILE (TAB 4)

SUBJECT: SOLE SOURCE JUSTIFICATION under GSAM 538.7104-3, Federal Supply Schedule (FSS)

Sources on Orders Exceeding the Simplified Acquisition Threshold

PROJECT: U.S. Courthouse

350 W 1st Street Los Angeles, CA 90012 (CA0323ZZ)

1. This justification is prepared in accordance with GSAM 538.7104-3(b)(i), sole source justification on orders exceeding SAT on the basis that the need is of such unusual urgency that following the procedures would result in unacceptable delays in fulfilling that need;Identification of the agency and the contracting activity:

General Services Administration (“GSA”), Public Buildings Service (“PBS”), Office of Acquisition

Management (“AMD”), Facility Management Contracting Division - West is executing a Limited

Sources Justification for the emergency procurement of Operations and Maintenance Services for the U.S Courthouse (“Courthouse”) located on 350 W 1st Street, Los Angeles, CA.

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

PBS has an urgent and compelling need for Operations and Maintenance Services and this action is to award a 3-month base (03/01/2026 - 5/31/2026) with one (1) 12-month option period

(6/1/2026 - 5/31/2027), and include FAR 52.217-8 (up to 6 month extension) “bridge” Blanket

Purchase Agreement (BPA) to Pundir Group, Inc under their Federal Supply Schedule (FSS) for

Operations and Maintenance (O&M) at the following location:

U.S. Courthouse

350 W 1st Street

Los Angeles, CA 90012 (CA0323ZZ)

The recurring service requirement will be awarded and funded as a Firm-Fixed Price (FFP) call order pursuant to this justification and approval in accordance with GSAM 538.7104-3(b)(i) to avoid a lapse in essential building services.

3. Relevant History:

The current BPA (47PK0223A0005 47PK0223F0015) was awarded with a base period plus 9 option year periods of performance on 3/1/2023 to King & George, LLC (“K&G”) for a total value (TCV) of

$15,990,980. The requirement was competitively solicited as a total small business set-aside. Since the initial award, there have been two modifications for wage adjustments that bring the current TCV to $16,136,154.44. A total of 66 BPA call orders have been placed for standard and above standard services.

The Government is exercising its unilateral right not to exercise the next option (that would have been effective March 1, 2026) due to unsatisfactory performance that has been documented in their latest

CPARS. Per Federal Acquisition Regulation (FAR) 17.207(c)(6) and (FAR) 17.207(c)(7) states “The contractor’s past performance evaluations on other contract actions have been considered; and

The contractor’s performance on this contract has been acceptable, e.g., received satisfactory ratings.

that the contracting officer (“CO”) may determine not to exercise an option.” There has been a repeated history of unsuccessful performance with the current contractor, despite multiple attempts by the Government to remedy such. The contractor not only has failed to rectify its poor performance but also presents a risk of insolvency. Below is the summary D&B Risk Assessment:

OVERALL BUSINESS RISK - MODERATE-HIGH

Overall assessment of this organization over the next 12 months:

SOME-STABILITY-AND-PAYMENT-BEHAVIOR-CONCERNS

Based on the predicted risk of business discontinuation: MODERATELY HIGHER THAN

AVERAGE RISK OF FINANCIAL STRESS DISCONTINUED OPERATIONS OR BUSINESS

INACTIVITY

Based on the predicted risk of severely delinquent payments: VERY HIGH POTENTIAL FOR

SEVERELY DELINQUENT PAYMENTS.

GSA completed a responsibility determination at the time of award which showed the current contractor as a Moderate Risk overall with score vs the now Moderate-High Risk score along with a maximum credit line recommendation of . This illustrates the financial situation accelerating rapidly towards potential insolvency. Regardless of if this contractor were to become insolvent in the near future, which would necessitate the Government executing an emergency bridge contract on an even shorter and less feasible timeline, the contractor’s history of unsuccessful performance suggests that these issues are unlikely to be remedied. The risk of lapse in mission essential services at this location would be further exacerbated. Lastly, the aforementioned performance issues necessitated an out of cycle below satisfactory CPARS rating. FAR 17.207 Exercise of Options requires the contractor’s performance to be acceptable or better. Therefore, the CO cannot comply with the requirements in

FAR 17.207 to exercise the option to allow for a re-procurement or issue a stand-alone bridge contract to the current contractor. Because the current building services contract must be terminated, GSA must obtain replacement services immediately or risk irreparable harm to the building systems that would incur substantial cost for repair and replacement. These urgent and compelling circumstances require GSA to pursue a vendor by means other than full and open competition to obtain O&M services within this building in order to properly maintain the building and continue mission critical operations without any disruptions or loss.

4. Description of the supplies and/or services required to meet the agency’s needs

(including estimated dollar value).

The Contractor shall provide management, supervision, labor, materials, equipment, and supplies and is responsible for the efficient, effective, economical, and satisfactory operation, scheduled and unscheduled maintenance, and repair of equipment and systems located within the property line of the building U.S. Courthouse 350 W 1st Street Los Angeles, CA 90012 . The aforementioned urgent and compelling circumstances for this requirement exempt GSA from the full and open competition requirements under the identified statutory authority. The estimated value of this acquisition is $2,910,000 for the contemplated period of performance.

5. Authority and Supporting Rationale:

This justification is written in accordance with 538.7104-3(b)(i) “The need is of such unusual urgency that following the procedures would result in unacceptable delays in fulfilling that need”. The CO has identified Pundir Group Inc. (PGI) as a contractor capable of performing the required services at a high standard of performance within the truncated timeline necessary for this procurement. PGI has consistently provided quality facility operations, maintenance, and related services for many years and is currently providing GSA similar services at (name the buildings across the street). These locations are in close proximity to the Courthouse, allowing PGI to leverage its workforce at those locations to provide immediate service to the Courthouse. These employees have gone through the HSPD-12 clearance process and are approved to immediately support GSA buildings. PGI has consistently demonstrated its unique understanding of GSA O&M requirements to commit the necessary resources for immediate phase-in of services while maintaining compliance with contract requirements. It has the necessary resources readily available for systems operations and immediate equipment assessment at the Courthouse and would provide a smooth transition while a new contract is procured. Due to the urgent and compelling circumstances for services to begin immediately, a BPA Call will be issued under BPA 47PG5226A0006 to provide O&M services for the Courthouse.

6. A determination by the ordering activity COthat the order represents the best value

The anticipated cost to the Government for this bridge is considered Fair and Reasonable as GSA has already determined the prices of fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing). By placing an order against a schedule contract using the procedures in GSAM 538.71, the ordering activity has concluded that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs. Although GSA has already negotiated fair and reasonable pricing, ordering activities may seek additional discounts before placing an order against the BPA contractor. Additionally, the Government may request additional discounts in accordance with GSAM 538.7102-2(c)2. Along with a new IGE, pricing from the previously competed

BPA will be used to determine fair and reasonable price.

7. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

In an effort to mitigate potential damages and to minimize the unavoidable gap in service caused by the short-notice of the procurement of this location, GSA has determined that a full and open solicitation is not feasible. The urgency of the requirement compelled market research to be limited to reviewing existing contracts and contacting PGI of their interest in submitting a quote under their awarded BPA due to their current presence in the local area and their expertise in facilities maintenance for GSA buildings.

8. Any other facts supporting the limited source justification:

The typical lead time for an acquisition of this magnitude would be a minimum of 12 months. Finding additional capable and responsible sources would require additional time for market research.

Sources sought notices would need to be posted for a minimum of 30 days. The current contract’s

Option Period ends on 02/28/2026.

GSAM 538.7104-3(b)(3)(i)(A) For justifications made under paragraph (b)(1)(i) of this subsection, which must be posted within 30 days after contract award.

This action is only intended to continue the current Operations and Maintenance services until the new contract can be competitively procured.

Reviews & Approvals

9. GSAM 538.7104-3 - Ordering Activity Justification and Approval IAW NCFR Review Matrix:

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

__________________________________________________ Date: _____________________

STEVEN JEFFERS

GSA, PBS, Office of Acquisition Management, Facility Management Contracting Division - West, Branch

Chief, Contracting Officer

2-18-2026 https://docs.google.com/spreadsheets/d/1nZhpqCrh-8FyP0H4_qc7LGZqPGXg6Ox_n0vcZOCCz0I/edit?gid=1880355495#gid=1880355495