jofoc_redacted.pdf

SINGLE SOURCE DETERMINATION USING

SIMPLIFIED ACQUISITION PROCEDURES (SAP) UNDER THE

SIMPLIFIED ACQUISITION THRESHOLD (SAT)

AUTHORITY: FAR 13.106-1(b)(1)

SOL #D15PS00422

1. Contracting activity/agency.

Requiring Agency: Department of the Interior (DOI) Office of Valuation Services 1849 C St. NW – Room 1319 Washington, DC 20240

Ordering Activity: Department of the Interior Interior Business Center/Acquisition Services Directorate (AQD) 381 Elden Street, Suite 4000 Herndon, VA 20170

2. Description of supplies or services required to meet agency needs.

This requirement is for non-personal services for a 75 day contract to provide an update to The Appraisal Foundation’s (TAF) independent, external review and validation of valuation methodologies to be used by the Office of the Special Trustee for American Indians (OST), Office of Appraisal Services (OAS), in a complex valuation situation. The estimated value of this acquisition is $XXXXX. The vendor will be asked to evaluate and report on the implementation of valuation methods and techniques – and recommendations – identified for use by OST-OAS in terms of their appropriateness and adherence to the Uniform Standards of Professional Appraisal Practice and other applicable recognized industry standards and valuation requirements under the Indian Land Consolidation Act.

OST-OAS is two years into the task of expeditiously providing a large volume of valuations on tracts and parcels held in restricted fee status. The interests to these tracts/parcels are partial interests owned by multiple owners, each holding an undivided, fractionated interest that is transferrable upon approval by the Secretary of the Interior. The 200,000 tracts/parcels are located across 10 OAS regions and are typically located within the exterior boundaries of Indian Reservations and are comprised of over 4 million fractionated interests. These tracts/parcels will have varied estates involved in the ownership, i.e., surface estate, surface and mineral estate, and mineral estate. Some properties may have improvements ranging from typical ranch improvements to high-valued commercial buildings supporting retail and Indian gaming operations.

Given the magnitude of the valuation challenge before OAS, the Department requested that TAF, an independent quasi-governmental body with authority to establish appraisal standards, evaluate the plan OST-OAS developed for handling valuations for the Land Buy Back Program. The external review provided an extensive report covering: a) review of the overall plan; b) evaluations and recommendations to strengthen the models to be used in completing mass appraisals; c) recommendations for improvements to the plan to ensure that appraisal results are compliant with the Uniform Standards for Professional Appraisal Practice (USPAP); and d) an overall evaluation of the adequacy of the plan to meet the objectives of the Land Buy Back Program in compliance with USPAP.

With two years of experience now gained in actually implementing the valuation program, it is timely for an interim review to be completed of the work done to date.

This interim review will include: a) a review of overall real estate valuation practices for the Land Buy Back Program for Tribal Nations, with special attention to the implementation of recommendations from the original report; and b) further recommendations to strengthen the valuation processes for the Program, recognizing that these values are foundational to the success and integrity of the Program. It is anticipated that the external reviewer will provide a written report, with further recommendations, for the consideration of OAS and the Land Buy Back Program Office.

3. Identification of the single source to be solicited.

The Appraisal Foundation 1155 15th Street NW Suite 1111 Washington, DC 20005

POC: Cathy Johnson, (202)347-7722

4. Reason for authority cited. The contracting officer has determined the circumstances of the contract deem only one source reasonably available.

Urgency – The nature of the requirement has been deemed urgent and following competitive procedures would result in unacceptable delays.

Exclusive Licensing Agreement Brand Name – The particular brand name is essential to the requirement and market research indicates similar products do not meet or cannot be modified to meet agency needs. If the justification is to cover only the portion of the buy which is brand name, then it should so state; the approval level requirements will then only apply to that portion.

Industrial Mobilization

5. Rationale.

TAF is authorized by Congress as the source of appraisal standards. The foundation is dedicated to promoting professionalism and ensuring the public trust in the valuation process. TAF conducted the initial independent review and validation of valuation methodologies to be used by the OST-OAS in a complex valuation situation. TAF is the only choice to provide the update to its initial report because of their unique authority to establish appraisal standards and because TAF has held a formative role in the OAS plan under which complex valuations will be completed.

No other entity holds the same congressional authority to validate the Department’s efforts through a review of valuation processes and methodologies to date. No other entity can convey the benefits afforded by TAF’s organizational knowledge as the body that reviewed the original Departmental plan to provide valuations that are in compliance with the Indian Land Consolidation Act. Allowing TAF to prepare the update will provide a consistent level of standardization and uniformity in evaluating implementation of the valuation process and methodologies.

Valuation services for Cobell Trust Land Consolidation work must be compliant with the USPAP. Congress authorized TAF to establish the USPAP Standards as well as the minimum qualifications required to complete appraisal assignments within the United States. No other organization or body has similar standing relative to the content and implementation of USPAP.

TAF also has prior experience with DOI issues, having undertaken a review of bureau appraisal practices in 2002 that led to the formation of the Appraisal Services Directorate (now the Office of Valuation Services), and in 2003 an evaluation of OST- OAS operations that led to the development of mass appraisal capacity within OAS.

These evaluations were completed as specific assignments contracted for by the Department of the Interior.

To undertake a project such as that contemplated for the Land Consolidation program, TAF will, as they have with past DOI assignments, contract with industry experts to serve on the evaluation team. The issues involved are not so general that industry subject matter experts would volunteer their time, particularly not within the required timeframe.

As the Congressionally authorized body to promulgate the standards, a definitive review by the Appraisal Foundation of the plan for valuations under the Cobell Settlement will carry significant weight in assuring the relevant public that the valuation process is defensible and appropriate. In other words, acceptance of methodologies and techniques by The Appraisal Foundation will provide the strongest and most defensible endorsement of the DOI approach to handling the Cobell Settlement. There is no other contractor who has equivalent standing to provide this evaluation and attestation to compliance with USPAP.

6. Market Research.

Market research revealed only one source, TAF, as possessing the capability of meeting the needs of the program. The Government reviewed a list of potential GSA schedule holders that offer valuation services. The OAS acknowledges that a small number of the vendors identified on the GSA schedule offer real estate valuation services, but none have experience with projects of this magnitude. Additionally, there is no other entity that offers the unique benefits discussed in Section 4 above.

The OAS has also reviewed other entities involved in establishing standards for valuation, including individual professional organizations in the United States (the

International Association of Assessing Officers, and the Appraisal Institute, both of which promulgate supplemental standards to USPAP for use by their members) and international organizations (the International Valuation Standards Committee, which develops standards for financial reporting as well as supplemental standards for use outside the United States, and the Royal Institution for Chartered Surveyors, which establishes global standards. In the case of the U.S. organizations, no other entity has the breadth of valuation experience that TAF inherently holds, and their standards are supplemental to USPAP. A similar concern applies with the international organizations. Their standards are subordinate to USPAP as promulgated by TAF.

Market research shows that TAF generates the aforementioned USPAP that are applicable to this case. Because they undertook the initial evaluation of the valuation protocols for the Program, and author the standards for practice, a direct evaluation by TAF would be the most advantageous option for the Government.

Additionally, TAF has prior experience evaluating appraisal programs within the Department of the Interior, including reviews of OAS appraisal methodologies as well as appraisal methodologies of other Departmental offices, including the Office of Valuation Services. TAF’s documented expertise in these evaluations speaks to the range of assignments previously undertaken by the foundation; all are similar to what is expected for this assignment, i.e., an evaluation of the program to handle appraisals.

CERTIFICATION

In accordance with FAR 13.106-1(b), the below signatures certify that this order represents the best value and results in the lowest overall cost alternative to meet the Government’s needs.

Requiring Activity Technical Requirements Personnel Certification:

I certify the above information is complete and accurate:

______________________________________________ _____5/06/15___ Printed Name: XXXXX Date Title: OVS Director

Concurrence:

The undersigned hereby determines the circumstances of this contract action deem only one source is reasonable available as supported herein.

Signature:_______________________________________ ____5/08/15 ____ Printed Name: Craig Heggestad Date Title: Contract Specialist

Signature:_______________________________________ ____5/14/15_____ Printed Name: Kevin Woody Date Title: Contracting Officer

Signature:_______________________________________ ____5/22/15_____ Printed Name: Shannon Griffin Date Title:Division Contracting Officer/Branch Chief, Acquisition Management Division I, Branch III

Approval:

Signature: _______________________________________ ______5/26/15 __ Printed Name: Katherine Valltos Date Title: Division Chief