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: PJKK Federal Building and U.S. Courthouse

300 Ala Moana Blvd

Honolulu, HI 96850 (HI0011ZZ)

Fort Armstrong Parking Lot

Papu St and Forrest Ave

Honolulu, HI 96850 (HI0013ZZ)

Hilo Federal Building and U.S. Post Office

154 Waianuenue Ave

Hilo, HI 96720-2452 (HI0001ZZ)

U.S. Customs Warehouse

29 Kuhio Street

Hilo, HI 96720-4726 (HI0002ZZ)

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 and Maintenance and Vertical Transportation

Equipment Services for the PJKK Federal Building and U.S. Courthouse, Fort Armstrong Parking Lot, Hilo

Federal Building and U.S. Post Office, and U.S. Customs Warehouse located in Hawaii.

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 one (1) 12-month option period (5/1/2026 - 4/30/2027), 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:

PJKK Federal Building and U.S. Courthouse

300 Ala Moana Blvd

Honolulu, HI 96850 (HI0011ZZ)

Fort Armstrong Parking Lot

Papu St and Forrest Ave

Honolulu, HI 96850 (HI0013ZZ)

Hilo Federal Building and U.S. Post Office

154 Waianuenue Ave

Hilo, HI 96720-2452 (HI0001ZZ)

U.S. Customs Warehouse

29 Kuhio Street

Hilo, HI 96720-4726 (HI0002ZZ)

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 (47PK0222A0005/47PK0222F0017) was awarded with a base period plus 4 option year periods of performance on 4/1/2022 to King & George, LLC (“K&G”) for a total value (TCV) of

$7,802,977.68. The requirement was competitively solicited as a total small business set-aside. Since the initial award, there have been four modifications for wage adjustments that bring the current TCV to

$8,612,183.04. A total of 99 BPA call orders have been placed for standard and above standard services.

The Government has elected to process a bilateral No-Cost Settlement Agreement for complete termination effective April 30, 2026, per FAR 49.603-6. This decision stems from a documented history of unsatisfactory performance and K&G’s inability to pay subcontractors, as noted in recent CPARS and email correspondence. Despite multiple attempts to remedy these deficiencies, the contractor has failed to rectify critical issues.

Since March 2025, the contractor has lacked proactivity and urgency at the Honolulu and Hilo Federally

Owned Buildings. Critical operational failures discovered during GSA inspections include a long-term outage of Condenser Pump, a Cooling Tower VFD fire, and an unresolved failure of Server Room Split

Units. Additionally, multiple leaks persist in stairwells and the E2 fan room, and all mechanical rooms remain in poor condition.

Outstanding subcontracting non-payments have stalled several awarded projects, including Chiller

Emergency Repairs (currently being cancelled and re-solicited), Backflow Preventer Repairs, E2 Domestic

Water Repairs, and Storm Drain Repairs. Furthermore, GSA has identified several upcoming repair projects that the current contractor is deemed incapable of completing.

Staffing and accountability issues also persist. Internal communications indicate that while on-site staff identify building issues, management fails to address them or report them to GSA. This lack of proactive management requires excessive GSA follow-up and delays resolution.

The contractor's performance history indicates that these issues are unlikely to be resolved, posing a significant risk to mission-essential services. Given the mutual agreement for termination on April 30, 2026, GSA must immediately secure replacement services to prevent irreparable harm to building systems. Due to these urgent and compelling circumstances, GSA is pursuing O&M services through other than full and open competition to ensure uninterrupted 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, supplies (shipping & handling), permits, including any associated fees, and shall be responsible for the efficient, effective, economical, and satisfactory operation, scheduled and unscheduled maintenance, repair of equipment and systems, including vertical transportation and all related services, located within the property line of the following locations:

• PJKK U.S. Courthouse & Federal Building, [HI00011ZZ] 300 Ala Moana Blvd, Honolulu, HI, and the Fort Armstrong Parking Lot (HI0013ZZ) Buford and Forrest, Honolulu, HI

• Hilo Federal Building & U.S. Post Office [HI0001ZZ] 129 Kuhio St, Hilo, HI

• U.S. Customs Building (HI0002ZZ) 154 Waianuenue Ave, Hilo, HI

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 $3,138,168.00 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 zone 7 quality facility operations, maintenance, and related services for many years. The 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 aforementioned buildings 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 47PG5226A0008 to provide O&M services for the Courthouse.

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.

To mitigate potential damages and minimize the service gap caused by the short-notice procurement of this location, GSA has determined that a full and open solicitation is not feasible. Due to the urgency of the requirement, market research was limited to reviewing existing contracts and contacting PGI regarding their interest in submitting a quote under their awarded BPA. PGI was selected for this limited solicitation due to their familiarity with these buildings and their understanding of the GSA O&M VTE Services requirement.

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 started on 04/01/2026. 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 O&M VTE 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.

Approved by:

___________________ 4/27/2026

Amal Budul Date

GSA, PBS Contracting Officer https://docs.google.com/spreadsheets/d/1nZhpqCrh-8FyP0H4_qc7LGZqPGXg6Ox_n0vcZOCCz0I/edit?gid=1880355495#gid=1880355495 Amal Budul Highlight

Amal Budul Highlight

Amal Budul Highlight

Amal Budul Highlight

Amal Budul Highlight