A4e_VOAD_Material_Program_DR-4339-PR_JA_1RespSource_(003).pdf

Mission Support Bureau Office of the Chief Procurement Officer Acquisition Operations Division

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. 3304(a)(1)

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-1 as follows:

Agency and Contracting Activity:

The Department of Homeland Security, Federal Emergency Management Agency

(FEMA) Joint Field Operations (JFO), San Juan, PR, DR-4339-PR

Nature and/or Description of the Action being Approved:

Type of Action: Contract Amount: $25,000,000.00 Cumulative Type of Funding: Disaster Relief Funds Year of Funding: FY 2018 Award of contract with Caribbean Lumber and Hardware, Inc.

Section 403 Section B of the Robert T. Stafford Act, 44 C.F.R. 206.117 authorizes FEMA to facilitate the Volun Organizations Active in Disaster (VOAD’s) minor repair program by supplementing their contraction material inventory through the mission of the Voluntary Agencies Leading and Organizing Re (VALOR) program.

Description of Supplies/Services:

The Government to purchase building material to augment the VOAD’s inventory for minor repairs authorized under the VALOR program. Repairs approved under the program are as follows;

Weatherproofing of Roofs, walls and windows, Securing broken windows, and repairing and replacing nonfunctional exterior and necessary interior doors Interior and/or exterior work to provide sage access (e.g. stairs, ramps) to the home Work necessary to ensure safe shelter for individuals with disabilities and access and functional needs.

The repairs are in an effort to return Survivors to their home expeditious manner once they are made safe and secure by the temporary minor repairs.

4. Identification of Statutory Authority permitting Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is 41 U.S.C.

3304(a)(1), implemented by FAR Subpart 6.302-1(a)(2) entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Additionally, the procedures in FAR Subpart 13.5 will be used in accordance with 41 U.S.C 1901.

5. Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited:

Background:

At 6:15 a.m. on the morning of Wednesday, September 20th, Hurricane Maria made landfall just south of Yabucoa Harbor in Puerto Rico. The storm hit with maximum sustained winds of 155 miles per hour which qualified Maria as a Category 4 hurricane.

Parts of the island received 30 inches of rain in a 24 hour period. Currently, there are 1,085,031 registrations for Individual and Household Program assistance.

It’s estimated more than 3.4 million people were without power due to the storms impact.

Additionally, as a result of the devastation caused by the storm, over 50 housing shelters throughout Puerto Rico were opened. There are 1,090,848 registrations for Individual and Household Program assistance.

In response to the enormity of the storm’s negative impact on the availability of safe habitable housing for survivors, FEMA is initiating its Voluntary Agencies Leading and Organizing Re (VALOR) program. The VALOR program enables survivors to return to their homes which are safe and habitable through the efforts of the VOADs which includes minor repairs regardless of the survivor’s eligibility to receive FEMA assistance.

To accomplish this goal, FEMA utilizes its authority provided by Section 403 (Category B Emergency Protective Measures) of the Stafford Act to provide various forms of operation support to voluntary agencies in the performance of this mission. FEMA facilitates the VOAD efforts y augmenting their building material inventory hus allowing the VOAD to return more home to “clean and secure” status in a shorter period of time.

Why considered alternatives will not work?

The devastation and the need for the VALOR program is spread across the entire island of Puerto Rico, FEMA requires a supplier who has the logistical network and sufficient resources to support an island wide response of up to 5,000 temporary home repairs.

FEMA requires the contractor to logistically provide materials on a daily bases to numerous locations in each of the FEMA Branches located in Puerto Rico. The contractor shall provide sufficient amount of inventory to support up to twenty (20) VOADs working concurrently on multiple projects each day.

c. Which authority applies and why?

The statutory authority permitting other than full and open competition is 41 U.S.C.

3304(a)(1), implemented by FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This authority applies because only Caribbean Lumber and Hardware, Inc., a local company with 52 stores throughout Puerto Rico, has the logistical infrastructure and financial capability required to support the VALOR minor repair program on up to 5,000 homes.

d. Explain the impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided?

The potential humanistic impact on the mental state of the thousands of applicants, currently staying in shelters cannot be measured in numbers. Survivor’s health, both physical and metal, are being negatively impacted by the stress of remaining in shelters.

FEMA is facilitating the VOADs efforts to enable the return of survivors to homes which are safe and habitable.

6. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable:

Market Research indicates there is no other local building material provider on the island with the capacity to provide the level of material required to keep up to twenty (20) VOADs working at full capacity and the logistical infrastructure to distribute the material daily to multiple sites across Puerto Rico.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

The contracting officer determines the anticipated prices shall be fair and reasonable because the fixed prices of the materials included under the contract will be compared to current commercial pricing on Puerto Rico which takes into account the scarcity of the items on the list.

FEMA is undertaking a concerted effort to counter the risks of over pricing by ensuring the pricing structure of this contract is consistent to current pricing on the Island of Puerto Rico.

Description of Market Research:

Market research was conducted to find potential sources of building material that could meet FEMA’s VALOR program. Market research was done utilizing Small Business Dynamic Research, SAM, Goggle and Telephone canvasing. It showed the only local building supply company on Puerto Rico with wide spread distribution sites (stores), logistical infrastructure and financial capability to provide the material was National Lumber and Hardware, Inc. (a.k.a. Caribbean Lumber and Hardware, Inc.) Furthermore, Caribbean is the only certified small business per the SBA dynamic search with the capability to support this requirement here in Puerto Rico.

Market research has concluded the only building supplier on the island which services over 52 communities on the island is National Lumber and Hardware, Inc.

Any Other Facts Supporting the Use of Other Than Full and Open Competition:

There is a clear emphasis shared by all levels of the agency and its partners to expedient the return of displaced disaster survivors to their homes in a safe manner. To facilitate this goal, FEMA’s augmentation of the VOADs’ building material inventory will allow them to complete more repairs in a shorter period of time. Which in turn will allow more survivors to return to a more normal existence.

Caribbean Lumber and Hardware, Inc. (Caribbean) has 52 stores on Puerto Rico through the island by which to distribute the material and sufficient internal controls to track and distribute the inventory for up to twenty (20) independent VOADs. FEMA requires a source with sufficient distribution centers which would allow multiple VOADs to pick up material at locations which are close to the areas they are conducting repairs. Nation umber is the only provider with widespread coverage across the entire Island of Puerto Rico.

A Listing of the Sources, if Any That Express, in Writing, an Interest in the Acquisition:

Home Depot of Puerto Rico expressed interest, but a review of their distribution sites revealed they only had five store located on the island. The lack of widespread distribution sites would cause the VOADs to shift valuable repair time to transportation/ material pick up. In summary, Home Depot does not have sufficient stores/distribution sites to support this requirement.

11. A Statement of the Action, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services is Required:

Competition is a major player in driving costs down ensuring the government receives materials at a reasonable price. The purpose of this requirement is to aid and expedite the VOADs mission by allowing them to focus their resources to the completion of repairs by augmenting their supplies and increasing their building material distribution footprint and decreasing their transportation time

12. Technical/Requirements Personnel Certification:

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Miriam G o Technical Representative

13. Contracting Officer’s Certification:

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Marianne McCallum, Contracting Officer

Concurrence

Nathaniel Greeson, Attorney OCC

Concurrence

Sharon Edwards, Contracting Manager, DR-4339-PR

MIRIAM M GELO

Digitally signed by MIRIAM M

GELO

Date: 2017.12.27 09:01:11 -04'00'

MARIANNE S

MCCALLUM

Digitally signed by MARIANNE S

MCCALLUM

Date: 2017.12.27 09:22:24 -04'00'

SHARON D EDWARDS

Digitally signed by SHARON D

EDWARDS

Date: 2017.12.27 10:41:06 -04'00'

Concur w/comment

APPROVAL:

Tyuana Bailey, Competition Advocate

APPROVAL:

Bobby McCane, Head of Contracting Activity, FEMA 01/05/2018