DR-4273-WV_Signed_Class_JA_for_Pad_Leases.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 6.303-2 as follows:

1. Agency and Contracting Activity:

The Department of Homeland Security, Federal Emergency Management Agency (FEMA), proposes to enter into two (2) or more contracts on a basis other than full and open competition with commercial mobile home parks.

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

a. Type of action: Firm Fixed-Price Contracts

b. Amount: Not-To-Exceed $2,400,000.00

c. Type of funding: Disaster Relief Fund

d. Year of funding: FY 2016 and FY2017

e. All mobile home parks will be located in the State of West Virginia

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), 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.

Direct assistance may be provided for a period of up to 18 months from the date of a Presidentially-declared major disasters. In response to the West Virginia Severe Storms, Flooding, Landslides and Mudslides, the state received a Presidential Major Disaster Declaration on 25 June 2016 (DR-4273-WV). 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)) under FEMA DR-4273-WV on 30 June 2016. Based on the damage resulting from the incident, FEMA has determined a lack of available housing resources exist in and around the declared area, and authorized temporary direct housing assistance for eligible applicants on 5 July 2016. The contracts covered under this Class J&A are for the rental of pad sites at various commercial mobile home parks and campgrounds located in the declared counties. The total combined value of all contracts issued under this class justification will not exceed $2.4 million. In addition to the monthly rent of the pad site (including utilities), the price of each contract may include expanding and improving commercial sites including 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 five 3-month options, for a total of 21 months to cover possible extensions beyond the 18-month program.

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:

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-4273-WV, there are currently only two approved counties:

Greenbrier and Kanawha and DHAT identified a total of 44 sites in Greenbrier County and 34 sites in Kanawha County.

• Greenbrier County o 30 are not feasible for the following reasons:

Management could not be located/contacted No lots available In Flood Zone Does not want to do business with FEMA o 6 are “maybe” feasible due to extensive electrical upgrades being required o 8 sites are also possibly feasible pending additional inspections. It is anticipated that FEMA would contract with one or more of these 8 sites, depending on survivors’ need

• Kanawha County o 28 are not feasible for the following reasons:

Age Restricted In flood zone Not actually located in the state Management could not be located No pads available Sites no longer exist o 6 are maybe feasible pending additional inspections. It is anticipated that FEMA would contract with one or more of these 6 sites, depending on survivors’ need

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

Sources as is Practicable:

In addition to the site assessments described in the section above, the Contracting Officer posted a Sources Sought notification on FedBizOpps on 11 July 2016. No responses were received.

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. Fair market rent for Greenbrier and Kanwaha counties varies from a low of $554 for a 1-bedroom and a high of $973 for a 3-bedroom.

8. Description of Market Research:

See paragraphs 5 and 6.

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

See paragraph 5.

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

A Sources Sought was issued on FedBizOpps on 11 July 2016, requesting that parties express their interest in writing to the contracting officer. No responses were received.

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 will be performed for each household on basis prior to being determined to have a continued need for direct housing assistance. FEMA, in coordination with the State of West Virginia, will work with applicants 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 after the end of the approved period of assistance in accordance with 44 C.F.R Section 206.117(b)(1)(ii)(H).

12. 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.

Lilian Hutchinson, Contracting Officer Date

13. 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.

Technical Representative Date

APPROVAL:

Lilian Hutchinson, Contracting Officer Date

Tyuana Bailey, Competition Advocate Date