JOFOC_Posted_07-10-2015.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. Identification of the agency and contracting activity:

U. S. Department of Housing & Urban Development (HUD); Office of the Chief

Procurement Officer (Headquarters)

II. Nature and/or description of the action being approved:

The purpose of this action is to award a sole source contract to the incumbent contractor, Yardi Systems, Inc. for a 12 month period (7 month base period with one 3-month option, and one 2-month option). The contract will include FAR clause 52.217-8, Option to

Extend Services. The sole source contract will serve as an interim course of action while fostering competition. The current contract is scheduled to expire on June 30, 2015. This sole source contract will allow HUD OSFAM to continue services without interruption until a new contract is awarded and the BSP services can be transitioned to a new service provider.

III. A description of the supplies or services required to meet the agency’s needs

(including an estimated value):

HUD is the largest single seller of real estate in the U.S. In fiscal year 2012, HUD sold

112,807 single-family homes, valued at over sixteen (16) billion dollars with related expenses totaling over one (1) billion dollars.

OSFAM must have a business service provider in place and fully operational to manage the massive volume of assets that HUD sells. The BSP is expected to receive, store, display, manage and analyze data relative to single family real property management and disposition activities and provide current access (as required) to HUD’s Real-Estate

Owned (REO) portfolio for HUD employees and its designees. The BSP provides reports based on data input into P260 by HUD staff that enables OSFAM to monitor and oversee the performance of its 55 Management and Marketing (M&M) contractors, managing

HUD assets totaling over $3 billion.

The estimated value of the contract is $12,137,641.74.

IV. The statutory authority permitting other than full and open competition.

41 U.S.C. 3304(a)(1), only one responsible source and no other supplies or services will satisfy agency requirements.

V. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Pursuant to 41 U.S.C. 3304(a)(1) (see FAR 6.302-1), the award to Yardi System, Inc. as the only responsible source available to satisfy the agency’s requirements is based on the following:

This is a follow on to a contract which over the past nine (9) years required the contractor to substantially modify their commercial software product to meet HUD’s specific requirements. The service is unique as it requires the use of this modified software to provide HUD the needed services. The modified software, therefore, is unique, proprietary and cannot be easily duplicated by another vendor. This sole source action is to allow for the award and transition of the current contract to the successful offeror for solicitation DU100H-14-R-0002. Specifically, HUD requires the current contractor to transition its contract services to the government and the successor contractor.

HUD incorporated the following business requirements recommended for the

Department as a result of the service provided: programming and quality assurance for overall property processing specific to the new property disposition model M&M III for the Mortgagee Compliance Manager, Asset

Manager and Field Service Manager vendors; programming and quality assurance for pre-conveyance tracking for the Mortgagee Compliance

Manager; programming and quality assurance for the ability to upload documents; programming and quality assurance for allocations and fee calculations for the Mortgagee Compliance Manager, Field Service Manager and Asset Manager vendors; programming and quality assurance for the internet based portal for non Field Service Manager and Asset Manager vendors (i.e. appraisers, closing agents, mortgagees); programming and quality assurance for the development and implementation of a national listing and bidding site (www.HUDHomestore.com); updates for the Completion and

Approval documents for privacy assessment; and user testing and system documentation for all of the above.

VI. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not which exception under 5.202 applies.

None. This falls under exception 5.202(a) (2). The sole source justification for this requirement for a sole source contract to Yardi will be posted in accordance with Subpart

5.4 and any responses to the notice will be considered by the agency. It is impractical to attempt to competitively source the transition of a contract between the government and an incumbent contractor.

http://www.hudhomestore.com/

The follow-on requirement for the services to be provided was synopsized in accordance with Subpart 5.2. A competitive RFP was posted on FedBizOpps, June 11, 2014.

Response to the RFP was adequate and there are enough sources to ensure a competitive award with fair and reasonable pricing.

VII. A determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The contracting officer will compare the contractor’s proposed price to the IGCE and to historical costs to determine if the contractor’s prices are fair and reasonable. The anticipated cost to the Government will be fair and reasonable.

VIII. A description of the market research conducted and the results or a statement of the reason market research was not conducted.

None. This is an emergency action under 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirement”. This action is for a sole source contract to allow for the transition of services between the incumbent and the successor contract and for continued services until the new contract is awarded. It is impractical to have a third party transition the contract with the government.

IX. Any other facts supporting the use of other than full and open competition.

None.

X. A listing of sources, if any, that expressed, in writing, an interest in the acquisition.

No sources have expressed interest, in writing, for this sole source contract.

XI. A statement of the actions the agency will take to remove or overcome any future barriers to competition.

The follow-on requirement was synopsized on FedBizOpps, June 11, 2014. The solicitation was conducted under a full and open competition. Proposals are currently being evaluated. The need for a non-competitive contract is to allow for continued services until the new contract is awarded and for transition services to the winning contractor. The services associated with this action will no longer exist at the end of the period of performance for this contract.