Real_Estate_Data_Subscription_-_JOFOC_(redacted).pdf

TDF-76-01.6

(1/2014)

Attachment 2

TDF-76-01.6 (12/10)

Prescribed by DTAR Part 1006 (Previous Edition Obsolete)

DEPARTMENT OF THE TREASURY

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

I recommend that the U.S. DEPARTMENT OF THE TREASURY use other than full and open competition for the acquisition of the following supplies or services. If this acquisition is to be made with only one source or a limited number of sources, negotiations will be conducted with the indicated proposed supplier(s):

1. DESCRIPTION OF SUPPLIES OR SERVICES

Purchase of: CoStar Property Professional subscription (CoStar Property), a real estate data subscription that provides a nationwide listing of current available inventory and an analysis of each of the markets.

Period of Performance: Base Year – 7/01/2014 – 06/30/2015 Option year 1 – 07/01/2015 – 06/30/2016 Option year 2 – 07/01/2016 – 06/30/2017 Option year 3 – 07/01/2017 – 06/30/2018 Option year 4 – 07/01/2018 – 06/30/2019

2. REQUISITION NO.

141102 – Base Year Only

4. NAME(S) OF PROPOSED SOURCE(S)

CoStar Group Inc., PO Box 791123 Baltimore, MD 21279-1123 1-888-226-7404

3. COST ESTIMATE

$ 90,000 for Base year $ 99,000 for Option year 1 $108,900 for Option year 2 $119,790 for Option year 3 $131,769 for Option year 4

Total: $549,459.00

THE COMPETITION IN CONTRACTING ACT OF 1984 (P.L. 98-369)

5.

X

41 USC 253(c)(1) – Only one responsible source; or brand name specification (FAR 6.302-1) This authority shall be used in preference to the Public Interest justification. It shall not be used when any of the other circumstances is applicable.

6.

41 USC 253(c)(2) – Unusual and compelling urgency (FAR 6.302-2) This authority applies in those situations where (1) an unusual and compelling urgency precludes full and open competition, and (2) delay in award of contract would result in serious injury, financial or other, to the Government. Note: The total period of performance under this authority is limited to the minimum contract period necessary to meet the requirements and to enter into another contract through the use of competitive precedures, and may not exceed one year unless the head of the agency entering into the contract determines that exceptional circumstances apply. The determination is in addition to the approval of the justification.

7.

41 USC 253(c)(3) – Industrial mobilization, engineering, developmental, or research capability; or expert services (FAR 6.302-3) This authority applies when it is necessary to award the contract to a particular source or sources in order (1) to maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve industrial mobilization, or (2) to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally funded research and development center, or (3) to acquire the services or an expert for any current or anticipated litigation or dispute.

8.

41 USC 253(c)(4) – International agreement (FAR 6.302-4) This authority may be used when the acquisition is to be reimbursed by a foreign country that requires the product to be obtained from a particular firm as specified in official written direction such as a Letter of Offer and Acceptance; or, when services are to be performed, or supplies are to be used in the sovereign territory of another country and the terms of a treaty or agreement specify or limit the sources to be solicited.

9.

41 USC 253(c)(5) – Authorized or required by statute (FAR 6.302-5) This authority may be used when a statute expressly authorizes that the acquisition be made through another agency or from a specified source or the agency’s need is for a brand name commercial item for authorized resale. Note: While this statutory exception includes the small disadvantaged business 8(a) set-aside program, a JOFOC is not required for this type of procurement unless the amount exceeds $20 million.

10.

41 USC 253(c)(6) – National Security (FAR 6.302-6) This authority may be used for any acquisition when disclosure of the Government’s needs would compromise national security. It will not be used merely because the acquisition is classified, or merely because access to classified matter will be necessary to submit a proposal or to perform the contract.

11.

41 USC 253(c)(7) – Public Interest (FAR 6.302-7) This authority may be used when none of the other authorities above apply. Individual justification, Secretarial approval, and Congressional notification 30 days before award of the contract are required.

12. JUSTIFICATION

A. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED.

The Office of the Comptroller of the Currency (OCC) requires a solution that meets three criteria: 1) provides a listing of current available listings of office and rental properties, 2) provides market data and survey information, and 3) covers all of the markets the OCC leases buildings (i.e., nationwide).

CoStar Property (proprietary software only provided by CoStar Realty) provides an inventory of office and rental properties in all markets through out the United States. Since the OCC is located in various markets, it needs a product that help with its search for space in those areas. The real estate leasing team currently uses this product to identify space for lease, to evaluate leasing and sales opportunites, and to value its assets.

While there are other sources that can provide similar data, they cannot meet all three criteria.

CoStar’s current primary competitor, Xceligent, produces CDX, which has data on only thirty-five markets in the United States. The Washington DC-area, where the OCC leases three buildings, is not among the thirty-five markets that are covered by Xceligent. Additionally, Xceligent does not cover several other key markets where the OCC leases buildings including Houston, Texas; Chicago, Illinois; and New York, New York. CoStar, on the other hand has a database of approximately 4 million properties in the US (covering all of the markets where the OCC leases buildings), the UK, and France. If the OCC were to use Xceligent’s software, it would need to use additional software for the markets not covered by Xceligent, which would increase costs.

Another similar company, Reis, produces Reis Subscriber Edition, which provides reports for market trends and benchmarking, but does not provide an inventory of office and rental properties, which is necessary for the OCC to determine what properties are available.

Two companies (Rofo and RealUp) were found to have products that could provide nationwide real estate listings; however, they cannot provide an analysis of the market. The OCC needs this information to become familiar with each market before negotiating any transaction with a landlord.

While there are other products available that provide similar solutions, only CoStar Property provides a one-stop solution – a product that provides an inventory of office and rental properties, provides market data and survey information, and covers all of the markets the OCC where leases buildings.

All other similar solutions meet only two of the three criteria.

B. DESCRIBE THE EFFORTS TAKEN TO ENSURE OFFERS WERE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A GPE NOTICE WAS

OR WILL BE PUBLISHED AS REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION

UNDER 5.202 APPLIES.

A sources sought notice published in Federal Business Opportunities (FBO) by AQM on February 3, 2014. See section 12D below for additional information regarding the responses to the sources sought.

C. DEMONSTRATION THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR

AND REASONABLE

Based on past contracts with CoStar Realty, the OCC is antipicating a 10% increase each year on this contract. As long as the contract stays within the 10% the Government will consider the price fair and reasonable.

D. DESCRIBE THE MARKET SURVEY THAT WAS CONDUCTED AND THE RESULTS OF THAT

SURVEY. IF ACTIONS WERE TAKEN BY PROCUREMENT PERSONNEL TO SATISFY THIS

REQUIREMENT SUCH AS A GPE SOURCES SOUGHT SYNOPSIS, PLEASE SPECIFY.

The OCC searched the internet to see if there were any other sources that could provide this service.

As mentioned above in section 12A, none of the other sources found during market research could provide the same service. The other sources either did not cover the necessary markets, did not provide an inventory of the properties available, or did not provide market data and survey information. All three critera are necessary aspects of this requirement and provided for by CoStar Property.

Additionally, AQM posted a sources sought on FBO. Three companies provided responses:

Definitive Logic Corporation; Counterpointe Solutions, Inc.; and FM:Systems, Inc. The software programs they described, however, are only capable of maintaining the OCC’s current lease portfolio (e.g., maintaining CADD drawings and managing lease contracts), and do not to provide a list of available buildings.

E. DESCRIBE ANY OTHER DOCUMENTATION TO SUPPORT THE JOFOC.

CoStar Group, Inc. provides services that the real estate leasing team can readily access from their office PCs for current lease data for the locations where OCC has expiring leases. The real estate leasing team has to compete OCC’s expiring leases and, in order to do so effectively, they have to know those markets extremely well. This subscription provides them access to accurate information quickly. Otherwise, the real estate listing team is on the phone with brokers and various internet sites to obtain the information. Additionally, the real estate leasing team often has to confirm the data provided by these organizations. CoStar is an independent third party that can provide a one-stop solution, which saves time and money by meeting all three criteria.

F. LIST SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION

Three sources responded to the sources sought posted on FBO. Those three sources were determined to not be able to provide an adequate solution.

G. LIST THE ACTIONS THE BUREAU WILL TAKE TO PROMOTE THE COMPETITION ON ANY

SUBSEQUENT ACQUISITIONS FOR SIMILAR SUPPLIES OR SERVICES

The agency will continue to research to find out if there are any other companies that can provide the nationwide service when it is time to re-compete this contract. Additionally, since Xceligent is working on broadening the real estate markets they cover, especially Washington, D.C., a search will be conducted at the time of each option exercise to see whether or not the real estate information market has changed.

H. STATEMENT THAT REQUIREMENT DOES NOT RESULT FROM A LACK OF PLANNING OR

THE EXPIRATION OF FUNDS.

This requirement does not result from a lack of planning or the expiration of funds.

EXECUTIVE (Name & Title)

[ ] DISAPPROVE (Date)

NOTE: Each review must be preceded by lower level approval(s). e.g., over $62.5 million all approvals are required. IN NO CASE WILL AN INDIVIDUAL SIGN MORE THAN ONE

APPROVAL LEVEL.