Class_Justification_DR-4332-TX_Pad_Leases_dgd_(002).pdf

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

CLASS JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. 3304(a)(7)

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:

1. Agency and Contracting Activity:

The Department of Homeland Security, Federal Emergency Management Agency (FEMA) Joint Field Operations (JFO), Austin TX, DR-4332-TX

2. Nature and/or Description of the Action being Approved:

a. Type of action: Firm Fixed-Price Contracts

b. Amount: Not-To-Exceed a total estimated amount of $63,270,180.00

i. Manufactured Housing Units (MHU): $48,420,180.00

ii. Recreation Vehicles (RVs): $14,850,000.00

c. Type of funding: Disaster Relief Fund

d. Year of funding: FY 2018

e. All mobile home parks are located in the State of Texas. The contracts covered under this Class J & A will be for the rental of pad sites at various commercial mobile home parks located in the DR-4332-TX declared counties.

3. Description of Supplies/Services:

Section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. No. 93-288, as amended (the “Stafford Act”), codified at 42 U.S.C. 5121 et seq., authorizes FEMA to provide manufactured housing units (MHUs), Recreation Vehicles (RVs) acquired by purchase or lease, directly to individuals or households, who, as a result of a major disaster, lack available housing resources and would be unable to make use of financial assistance. Moreover, direct assistance may be provided for a period of up to 18 months from the date of a Presidentially-declared major disasters. Additionally, the contracts covered under this Class J&A will be for the rental of pad sites at various commercial mobile home parks and campgrounds located in the declared counties which are required for installation of MHUs and RVs. The total combined value of all contracts expected to be issued under this class justification is estimated not to exceed $63,270,180.00. In addition to the monthly rental of the pad sites (including utilities), the price of each contract may include expanding and improving commercial sites such as upgrading utility services, to develop usable pad sites for MHU placement. The period of performance for each contract will be for a base period of six (6) months with two (2), three (3)-month options, for a total of 12 months for RVs and a base period of six (6) months with two (2), six (6)-month options, for a total of 18 months for MHUs.

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 the FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

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

a. Background information about the requirement. In response to Hurricane Harvey, the state received a Presidential Major Disaster Declaration on August 25, 2017 (DR-4332- TX). The Governor requested a direct housing program under the Housing Assistance Provision of the Individuals and Households Program (42 U.S.C 5174 (c)(1)(B)), FEMA DR-4332-TX on 24 Aug 2017. Based upon the damage resulting from the incident, the declaration authorized FEMA to provided financial assistance and direct services, under Section 408 of the Stafford Act, to individuals and households “who, as a direct result of a major disaster, have necessary expenses and serious needs in which the individuals and households are unable to meet such expenses, or needs through other means.” FEMA determined a lack of available housing resources existed in and around the declared area, and authorized temporary direct housing assistance for eligible survivors on September 11, 2017.

b. Why considered alternatives will not work? In accordance with FEMA Recovery Standard Operating Procedures (SOP), the requirement for survivor wrap around services is the primary limiting factor. The Mobile Home Park requirement is not a service that is based on competition, but rather it’s is based upon the geographical location with respect to each survivor’s damaged home. Wrap around services, which takes into consideration the survivors proximity to home, school, shopping, hospital, etc.… is based on twice the commuting distance within the affected areas in accordance with the census data and identified available feasible pads for lease in the IA disaster declared area.

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 the FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This authority applies because the availability for the services required can only be obtained from a limited number of responsible sources based on each survivor’s home geographical location. As a result, no other services would satisfy the survivor’s need other than the ones within the designated radius. To have full and open competition for each survivor would be extremely costly in terms of administration and also ineffective in terms of timely delivery to the survivors.

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? Thousands of displaced survivors would not receive timely housing assistance and it is necessary to approve and execute this J&A to continue supporting the response and recovery efforts as a result of the disaster. Additionally, without this class J&A, FEMA would not be able to continue providing immediate emergency temporary housing needs to disaster survivors.

6. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable:

The Contracting Officer did not post a Sources Sought notification on FedBizOpps due to the large number of MHU and RV site owners identified the Disaster impacted area from market research by the Logistics Program Office. However, a FedBizOpps notice will be publicized, as required by FAR Subpart 5.102(a)(6) and 5.2. Additionally, based upon the large number of MHU and RV pads required by FEMA, it estimated that all the sites determined feasible will be utilized. Therefore, each will be negotiated on a sole source basis based upon identification of survivor need.

7. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable:

The contracting officer determines that the anticipated prices will be fair and reasonable based on market research, current price lists, and comparison with similar items. Fair Market Rent (FMR) is defined by the Department of Housing and Urban Development (HUD) and are primarily used to determine payment standard amount for various housing assistance programs. FMRs are gross rent estimates that include the cost of rent plus all tenant-paid utilities, except telephones, cable or satellite television service, and internet service. HUD uses the most accurate and current data available to develop the FMR estimates every fiscal year. FMRs are intended to be housing market-wide rent estimates that provide housing opportunities throughout the geographic area in which rental units are in direct competition. HUD publishes FMRs in the Federal Register, first as proposed estimates for public comment and then for final effect. The purpose of the public comments process is to identify areas where local government officials or residents believe the FMRs are too high or too low. All pad lease payments must be in line with the FMR for that specific county.

8. Description of Market Research:

FEMA’s Disaster Housing Assessment Teams (DHAT) is responsible for working with the State’s housing department to locate all commercial mobile home parks and campgrounds in the declared counties. The DHATs then visit each site to perform feasibility assessments to determine if FEMA MHUs can be placed on site. When considering the placement of MHUs, FEMA must follow the abbreviated eight-step decision process for sites as outlined in 44 CFR Section 9.13, which states that no mobile home may be placed on a floodplain. Close coordination with the Environmental Planning and Historic Preservation Program and Hazard Mitigation is also required. In addition, each site must be capable of accepting 1, 2 or 3 bedroom units of various sizes and must be utility-ready or able to have utilities upgraded to meet the specifications of FEMA’s MHUs. For DR-4332-TX IA declared counties, there is currently 4,532 feasible sites comprised of 1,513 MHUs, and 2,995 RVs. It is anticipated that FEMA will contract for all available resources but at this time, the estimated number is 3,009 which could increase.

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

None

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

Potential Commercial Sites were determined and identified based on locations, needs, impacted population and the availability of pads.

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:

FEMA will continue to perform casework in coordination with the Individual Assistance Division to maximize the use of available existing housing resources based on a reasonable commuting distance of 50 miles. This is performed for each household prior to being determined to have a continued need for direct housing assistance. FEMA, in coordination with the State of Texas, work with survivors to identify and achieve a permanent housing plan. If necessary, because of extraordinary circumstances, at the written request of the State, FEMA may extend the 18 month period of assistance for temporary direct housing assistance if an extension in the public’s interest. FEMA will assess penalty fees for occupants who remain in or maintain possession of the MHU or RV after the end of the approved period of assistance in accordance with 44 C.F.R Section 206.117(b)(1)(ii)(H).

The park owners selected are all small businesses with the majority of them doing business with the Government for the first time. By contracting with these parks FEMA is generating a network of new vendors, thereby, increasing the market pool and allowing future competition.

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.

11/3/17 R. Scott Erickson 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.

Dennis C. Clements, Contracting Officer 11/3/17

APPROVAL:

Dennis C. Clements, Contracting Officer 11/3/17

Tyuana Bailey, Competition Advocate 11/3/17