538.7104-3 Federal Supply Schedule Sole Source Justification_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: Frank Hagel Federal Building

1221 Nevin Avenue

Richmond, CA 94801

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 (OAM), Facility Management Contracting Division - West is executing a Limited Sources Justification for the emergency procurement of Operations, Maintenance and Vertical Transportation Equipment (OMVTE) Services for the Frank

Hagel Federal Building located at 1221 Nevin Avenue, Richmond, CA 94801.

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

PBS has an urgent and compelling need Operations, Maintenance and Vertical Transportation Equipment (OMVTE)

Services and this action is to award a 12-month base (04/01/2026 - 3/31/2027), 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, Maintenance and Vertical Transportation Equipment (OMVTE) at the following location:

Frank Hagel Federal Building

1221 Nevin Avenue

Richmond, CA 94801

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 (47PK0225A0007 / 47PK0225F0012) was awarded with a 6-month base period plus 4 option year periods of performance on 8/6/2025 to LOGZONE, INC for a total value (TCV) of $7,260,702.00. The requirement was competitively solicited as a total small business set-aside. Since the initial award, there has been one modification for the 6-month base period in the amount of $816,594.00. A total of 0 BPA call orders have been placed for standard and above standard services.

Docusign Envelope ID: D853C75A-6E13-4B06-B65A-CE937E0D8D76

The Government has elected not to exercise its unilateral right to extend the upcoming option period, which would have commenced on April 1, 2026. This decision is based on the contractor's documented unsatisfactory performance, which will be detailed in their latest CPARS evaluation. Pursuant to FAR 17.207(c)(6) and (c)(7), which require acceptable performance for option exercise, the Contracting Officer (CO) has determined that the necessary standard has not been met. Despite multiple attempts by the Government to address and remedy deficiencies, the current contractor has a repeated history of unsatisfactory performance under this contract and has failed to rectify these critical issues.

Base Period Performance Evaluation Summary:

Since October 2025, the contractor has consistently lacked proactivity and urgency in fulfilling contractual obligations at the Frank Hagel Federal Building. Despite monthly and bi-weekly partnering meetings since 11/18/2025, and repeated COR reminders, critical problems persist. Examples of operational failures include a piping clog was identified during the January/February 2026 timeframe. Following this incident, LOGZONE informed the Contracting

Officer's Representative (COR) of an intent to increase building inspections to mitigate future clogging and flood occurrences. Notwithstanding this stated preventative measure, a significant flood attributable to clogging occurred in the east side basement on March 17, 2026, during normal operational hours. Furthermore, on March 24, 2026, also during normal operational hours, an additional clog, reportedly due to a motor failure, transpired in the east side basement.

Significant proposal delays for repairs include a west basement flood (September 29, 2025 (2-days prior to contract start), remediation proposal requested October 1, 2025, but not submitted until March 4, 2026), auditorium leak remediation (brought to attention October 7, 2025, with no proposal to date), Nevin ADA door (proposal requested

January 26, 2026, submitted February 20, 2026), and scissor and man lift repair (proposal requested December 19, 2025, submitted February 10, 2026). Additionally, electrical testing due in November 2025 remains incomplete.

Staffing and accountability issues are also particularly concerning: on January 30, 2026, the Chief Engineer displayed an unwillingness to remain onsite during an emergency, instructing staff not to come in and inquiring about leaving despite being an Emergency Response Team member. With the Chief Engineer's resignation planned for March 20, 2026, the situation is compounded by the proposed replacement's resume (submitted March 11, 2026) failing to meet

PWS experience requirements, and no CO approval has been granted. Despite COR and CO requests on March 10 and 11, 2026, respectively, LOGZONE provided no response regarding this critical vacant position. Furthermore, an administrative staff position, hired approximately two months after contract start to support critical NCMMS and work orders, reportedly prioritized NCMMS updates over work orders (requiring COR intervention), and there is a consistent lack of backup when key personnel are out.

The persistent performance issues, pending repairs, delayed response times, and critical Chief Engineer vacancy collectively pose a significant risk to facility services and life safety, leading the East Bay Field Office to intend to issue "marginal" CPARS ratings across all evaluation criteria for the Base Period (October 1, 2025 – March 31, 2026).

This history of unsatisfactory performance under the contract strongly indicates that existing issues are unlikely to be remedied, thereby escalating the risk of mission-essential service failures. Given that FAR 17.207 mandates acceptable performance for option exercise, the CO cannot exercise the next option, which precludes re-procurement

ScottEHaubert Highlight

ScottEHaubert Highlight

ScottEHaubert Highlight or a bridge contract with the current contractor. Consequently, GSA must immediately secure replacement services to avert irreparable harm and substantial costs to building systems. These urgent and compelling circumstances necessitate GSA pursuing a vendor through other than full and open competition to obtain OMVTE services, ensuring proper building maintenance and uninterrupted mission-critical operations.

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 Frank Hagel Federal Building, 1221 Nevin

Avenue, Richmond, CA 94801. 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 $1,996,659.60 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 the Ronald V.

Dellums Federal Building and U.S. Courthouse located at 1301 Clay St, Oakland, CA 94612. These locations are in close proximity to the Frank Hagel Federal Building, allowing PGI to leverage its workforce at those locations to provide immediate service to the Frank Hagel Federal Building. 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 OMVTE 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 Frank Hagel Federal Building 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 47PG5226A0007 to provide OMVTE services for the Frank Hagel Federal Building.

6. A determination by the ordering activity CO that 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 3/31/2026.

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 OMVTE services until the new contract can be competitively procured.

Review & 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.

Prepared by:

Andrew Heads

Date

GSA PBS Contract Specialist

Approved by:

Scott Haubert Date

GSA PBS Contracting Officer

Steven Jeffers Date

GSA PBS Branch Chief/

Contracting Officer

04/03/2026

4/6/2026

4/7/2026