Justification for Other Than Full and Open Competition for TCMA Bridge Contract.pdf

U.S. GENERAL SERVICES ADMINISTRATION

Public Buildings Service - National Capital Region

Justification for Other Than Full & Open Competition

1. Nature and or Description of the Item Being Approved

The U.S. General Services Administration has an ongoing requirement for trade center management services at the Ronald Reagan Building and International Trade Center located at 1300 Pennsylvania Avenue, NW, Washington, DC.

The current trade center manager contract expires on September 7, 2022. GSA is currently in the process of awarding a new International Trade Center Manager (ITCM) contract pursuant to competitive procedures.

Unfortunately, the ITCM procurement will not be completed prior to September 7, 2022. The long-term ITCM contract is now expected to be awarded by March 7, 2023 and will require a 90-day transition period with any new contractor. To ensure there will be no break in trade center manager services, GSA seeks to enter into an interim bridge contract with Trade Center Management Associates LLC (TCMA), the incumbent trade center manager. This interim contract will consist of a six-month base period with a three-month option, allowing GSA the time to award and implement the ITCM contract. .

The period of performance is:

Base Period: 9/8/2022 to 3/7/2023 Option Period 1: 3/8/2023 to 6/7/2023

The total estimated value is $19.910 Million, including options.

2. Description of Supplies or Services Required

The Triangle Service Center has an immediate need for a bridge contract to fulfill the following services:

a. International Trade Promotion - working directly with international trade associations, organizations and agencies to develop and promote programs in the international community to create and enhance opportunities for American trade commerce, communications and cultural exchanges with other nations.

b. Commercial Property Management Services - management of public spaces, conference centers, office space, retail space, food court and loading docks.

c. Construction Management Services - required for on-going projects and to-be-scheduled projects related to tenant space and build outs.

d. Operations and Maintenance - services related to the maintenance and upkeep of the building and grounds.

e. Parking Garage Management - management of valet parking, issuance of permits, collections of funds, offsite parking arrangements.

f. Event sales, event production management and event setup/ tear down services.

g. Food and beverage catering.

h. Leasing services (office and retail) - identify tenants, promote available space, negotiate and finalize leases.

i. Marketing and promotional services.

j. Lease administration - collect rents, apply escalation terms, enforce terms.

k. Security coordination services - matches security requirements of the building to scheduled events and other usage of the building.

l. Concierge services.

m. Business center services - arranges for computer access, fax services, all IT requirements for each event.

n. Maintain equipment, membership promotions, fee collection, and provide member services.

o. Inventory stewardship and records management services.

p. Financial and auditing services - performs parking audit, cash-collection audit, and contract audit.

q. Managing WiFi and other cable and telecommunications requirements.

DocuSign Envelope ID: 09FEAF30-E060-401B-9F75-AABD790353DD

As mandated by Congress through the Federal Triangle Development of Act of 1987 (Public Law 100-113), the International Trade Center (ITC), housed in the Ronald Reagan Building (RRB), was created to facilitate and support a Federal Trade Program (the "Program") to enhance the exchange of American goods and services in the international marketplace. The legislation required the RRB to house an ITC that included private and public trade promotion activities on site and be self-sustaining as a result of generating revenue from Program activities. The intent was to bring together the resources of the U.S. Government, in partnership with state and local entities, regional organizations, trade associations, world trade centers, representatives of foreign governments, and the private sector to assist American companies in competing successfully in the international marketplace. The Program includes assisting American companies in the global marketplace and provides facilities that promote all business sectors, with special attention to small and medium-sized businesses.

The contractor must effectively integrate the delivery of all these services with the legislative goals for the ITC to effectively fulfill its mandate.

3. Identification or Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is 41 U.S.C. Section 3304(a)(1) as implemented by FAR 6.302-1, which permits limiting competition when services are available from only one responsible source and no other supplies or services will satisfy agency requirements. The agency’s minimum needs for interim trade center management services can only be satisfied by TCMA which has demonstrated a unique, innovative concept and capability to provide ITCM services for the current requirements.

4. Demonstration that the Acquisition Requires Use of the Authority Cited

As discussed above, the requisite services are currently being performed by the incumbent contractor, TCMA, and the performance period expires on September 7, 2022. For the following reasons, TCMA is presently the only vendor who can capably ensure ongoing performance of the Agency’s ITCM requirement without degradation in the quality of services:

a. TCMA is the only vendor who has performed the services. Since 1995, when GSA first had a requirement for these services, GSA has performed three procurements issuing solicitations for these services pursuant to full and open competition procedures. Despite the use of these full and open competition procedures, GSA received only one proposal during each procurement, and the sole offeror in each procurement is the current contractor, TCMA.

Accordingly, TCMA is the only vendor that has performed the ITCM services since 1995 and, in doing so, has demonstrated an extensive knowledge and business expertise required to properly manage the Program. No other contractor can meet the Agency’s immediate requirement without this background or a phase-in period.

b. The Program is unique. The Program is the first and only federal building dedicated to both Government and private use. Further, the ITCM services are unique because they do not operate separately within the ITC. These services when procured individually may be commercial services, but for the operation of the ITC, the services are uniquely combined and not commercially available by any one source. To procure each service separately and to manage multiple separate entities and contracts within the same shared space would be difficult to coordinate and burdensome and costly for GSA to administer. As a result, GSA hires one manager who is required to operate all of the services in a coordinated and harmonious manner. TCMA is the only vendor that has the knowledge and experience to continue performing this unique combination of services.

c. The ITCM services are unique, non-commercial services. As demonstrated above, the ITCM services, which are a combination of a variety of commercial services, must be performed by one vendor. However, most vendors are not capable of providing/performing all of the ITCM services. For example, a vendor that performs parking services would not also have the technical capability, prior experience and personnel to create and enhance opportunities for American trade, commerce, communications, and exchanges with other nations. Nor would a vendor who performs information technology and electronic services also have the technical capability, prior experience and personnel to perform conference center operations such as sales, booking, event setup/tear-down services or to provide exclusive catering services on site for all event holders requiring food and beverage and event services. Add to this mix construction management services, and you have a requirement that is not readily performed by market sources, particularly on an immediate basis without unacceptable risk to ongoing operations. Accordingly, TCMA is the only vendor that has the knowledge and experience to perform this unique and varied combination of services.

d. The ITCM services require unique, non-commercial terms in the contract. In addition to the unique nature of the Program and its mission, the ITC mandate to be self-sustaining requires the ITMC services be performed pursuant to unique and non-commercial terms in the contract. Most vendors performing similar services expect to be paid a fixed price once the services have been performed. However, in this case, due to the ITC’s self-sustaining mandate, GSA has been requiring TCMA to accept contract terms that are not customary for commercial items. Specifically, the current contract for the ITCM services requires TCMA to meet certain minimum guaranteed revenues that if not met trigger monetary penalties for TCMA. The contract resulting from this action will contain terms and conditions materially similar to those in the current contract. As a result, TCMA is the only vendor that is positioned to immediately accept and comply with the unique and non-commercial terms of the proposed contract action.

5. Description of Efforts to Solicit as Many Offers as Practicable

On August 5, 2022, GSA published the notice required by FAR sections 5.201 and 6.302-1(d)(2) in the Governmentwide point of entry via sam.gov. The closing date for submission of capability statements, proposals, or quotations is September 2, 2022.

6. Demonstration that the Anticipated Cost will be Fair and Reasonable

The Contracting Officer determines, by certifying this document, that the anticipated cost to the Government for this contract action will be fair and reasonable. The anticipated cost, over a period of not to exceed nine months, is approximately $19.910 million dollars. These costs are within the range of the government estimate which is based on historical pricing for these unique services used in the past. The funding will be provided by BA61.

7. Description of the Market Survey

No market survey was conducted as this interim contract requires the use of intimate knowledge of the program that only the current contractor possesses.

8. List any other facts supporting the use of other than full and open competition

The trade center manager contract is critical in conducting GSA’s mission at the Ronald Reagan Building and International Trade Center. Failure to continue these services would disrupt agency operations and expose the Government to potential financial and legal liability. It is the Government’s responsibility to provide an environment that protects and supports the agency’s mission and their tenants and failure to perform the required services would be an egregious failure by GSA.

9. List of Sources that Expressed Interest in the Acquisition

As discussed, on August 5, 2022, GSA published a Notice of Intent to Issue a Sole Source Contract for Trade Center Manager Services at the Ronald Reagan Building and International Trade Center located in Washington, DC as required by FAR sections 5.201 and 6.302-1 in the Governmentwide point of entry via sam.gov with a response date of September 2, 2022. GSA did not receive any bids, proposals, quotations, or capability statements in response to that notice.

A redacted copy of this justification and approval will be posted to the Government point of entry at beta.SAM as a notice to improve small business access to acquisition information and enhance competition by identifying contracting opportunities. FAR 5.201(c)

10. Statement of Actions to Overcome Barriers to Competition

There are no barriers to competing future awards. As discussed above, this interim contract serves as a bridge to a competitive award of the new ITCM contract.

Certification:

I, the Contracting Officer, certify that this justification is accurate and complete to the best of my knowledge and belief.

Jose Nativisegovia Date Contracting Officer Public Buildings Service

I certify that the supporting data used to form the basis of this justification is accurate and complete to the best of my knowledge and belief.

Vance Robbs Date ITC Manager Technical Requirement Personnel

Concurrence:

Miranda Webster Date Competition Advocate

Approval:

Aimee Whiteman Date Head of Contracting Activity PBS RegionalNCR Commissioner (Acting) National Capital Region

DocuSign Envelope ID: 09FEAF30-E060-401B-9F75-AABD790353DD

8/29/2022

8/30/2022

9/6/2022

9/8/20229/8/2022