Final approved_JOFOC_for_Internation Trade Center.pdf

U.S. GENERAL SERVICES ADMINISTRATION

PUBLIC BUILDING SERVICE - NATIONAL CAPITAL REGION

Justification for Other than Full and Open Competition for Interim Contract for Trade

Center Manager at the Ronald Reagan Building & International Trade Center

1. Nature and or Description of the Item Being Approved

The current Trade Center Manager (“TCM”) contract expires December 7, 2023. The U.S.

General Services Administration (“GSA”) is currently working on a procurement for the new long-term contract that will not be completed prior to the expiration of the current contract. GSA seeks to enter an interim bridge contract with Trade Center Management Associates LLC (“TCMA”).

This interim contract will consist of a twelve-month base period with two six-month option periods, allowing GSA the time to formulate a new strategy, solicit and award a new contract, and transition any new contractor into the TCM role. Therefore, it is necessary to award this interim bridge contract to ensure there is no break in service at the Ronald Reagan Building and International Trade Center located at 1300 Pennsylvania Avenue, NW, Washington, DC

(“RRB/ITC”).

2. Description of Supplies or Services Required

GSA has an immediate need for an interim bridge contract to fulfill the following TCM 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.

DocuSign Envelope ID: F6A88112-F137-4673-A669-D4CFDBE14199

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.

As mandated by Congress through the Federal Triangle Development of Act of 1987 (Public Law 100-113), the RRB/ITC, was created to facilitate, and support a Federal Trade Program to enhance the exchange of American goods and services in the international marketplace. The legislation required the RRB/ITC to be self-sustaining, which means that GSA must generate sufficient revenue from the RRB/ITC’s activities to financially support the RRB/ITC. Congress intended the RRB/ITC program 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 RRB/ITC 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 TCM must effectively integrate the delivery of all these services with the legislative goals for the RRB/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 TCM services can only be satisfied by TCMA which currently provides the services.

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

The requisite services are currently being performed by the incumbent contractor, TCMA, and the performance period which has been extended by six months pursuant to FAR 52.217-8 “Option to Extend Services,” expires on December 7, 2023. As a result, there is a need to enter an interim bridge contract to explore the best ways to structure the new long-term contract and engage industry to identify possible strategies to maximize competition. For the following reasons, TCMA is presently the only vendor who can capably ensure ongoing performance of the TCM 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 four procurements issuing solicitations for the requirement pursuant to full and open competition procedures. However, GSA has not been able to generate significant interest in the TCM contract; it was only in the most recent procurement that GSA received proposals from vendors other than TCMA. The main issue that negatively impacts competition has been the Congressionally-mandated self-sustaining requirement. This requirement means that a typical, firm, fixed-priced contract does not work because GSA, through its TCM, must ensure that the costs to run the RRB/ITC (including the cost of the TCM contract) do not exceed the revenue generated from the program. As a result, GSA has historically used contract terms and conditions to shift the risk of meeting the self-sustaining requirement to the TCM. GSA attempted to structure the contract in the most recent procurement as a cost-reimbursement type with additional terms to shift the risk of cost-overruns to the contractor. When that risk became apparent to the vendors, all vendors other than TCMA refused to accept the risk. GSA decided to cancel the solicitation since the expected benefit of the contract structure was to generate competition and that benefit was not realized. Since TCMA is the only vendor currently willing and able to accept the risk, no other vendor can meet GSA’s immediate needs.

b. The Program is unique. The Program is the first and only federal building dedicated to both Government and private use that is mandated to support the objectives of the Federal Triangle Development of Act of 1987. Further, the TCM services are unique because they do not operate separately within the RRB/ITC. These services provided by the TCM may separately be considered as commercial services, but when combined for the operation of the RRB/ITC, the TCM services are unique and not commercial. 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 contracts with one TCM to operate all the services in a coordinated and harmonious manner.

TCMA is the only vendor that currently has the knowledge and experience to provide immediate performance of the unique combination of services that supports the mandates of the Federal Triangle Development Act.

c. The TCM services are unique, non-commercial services. As demonstrated above, the TCM 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 the TCM 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 the unique and varied combination of ITC services without interruption because they have been doing so since 1995.

d. The TCM services require unique, non-commercial terms in the contract. In addition to the unique nature of the RRB/ITC and its mission, federal law mandates the RRB/ITC to be self-sustaining, which requires the TCM to perform work pursuant to non-standard 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 requires TCM to accept contract terms that are not customary for commercial items.

Specifically, the current contract requires the TCM to meet certain minimum guaranteed revenues (“MRGs”). If the TCM fails to meet these MRGs, the TCM is required to compensate GSA for the difference between MRGs and the revenue generated.

The contract resulting from this action will contain the same terms and conditions like 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 contract.

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

On October 30, 2023, 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 is November 30, 2023.

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 twenty-four months, is approximately $48 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 immediate 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 TCM contract is critical in conducting GSA’s mission at the RRB/ITC. At this time, it is in the best interest of the Government to continue these services to allow the time to strategize the new TCM contract structure. It is the Government’s responsibility to provide an environment that protects and supports the agency’s mission and their tenants. Failing to perform the required services would have adverse consequences on the RRB/ITC that would impact GSA and the tenants of RRB/ITC, including other federal agencies and private entities.

9. List of Sources that Expressed Interest in the Acquisition

As discussed, on October 30, 2023, GSA published a Notice of Intent to Issue a Sole Source Contract for TCM Services at the RRB/ITC as required by FAR sections 5.201 and 6.302-1 in the Governmentwide point-of-entry at SAM.gov with a response date of November 30, 2023.

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 Governmentwide point-of-entry at SAM.gov as a notice to improve access to acquisition information and enhance competition by identifying contracting opportunities.

10. Statement of Actions to Overcome Barriers to Competition

To overcome some barriers to competition for the long-term contract, GSA intends to engage industry in the beginning of solicitation process, developing a fixed-price award fee incentive type contract with coordinating the release of information on the program to allow potential offerors to assess risk and price their proposals accordingly. This will allow GSA to procure these services in a manner that generates more competition while still ensuring GSA fulfills its statutory mandate.

As discussed above, this interim contract serves as a bridge to the competitive long-term award of the TCM contract.

Certification:

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

Ingrid Blair Date Contracting Officer

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:

Tikelia Murphy Date Division Director

12/1/2023

Concurrence for Legal Sufficiency:

Claire A. Wakins Date Supervisory Senior Assistant Regional Counsel

Michael Spriggs Date Competition Advocate

Shanta Cardiel Date OOA Division Director

Approval:

Melanie F. Gilbert Date Regional Commissioner

12/1/2023

Certificate Of Completion Envelope Id: F6A88112F1374673A669D4CFDBE14199 Status: Completed

Subject: Complete with DocuSign: JOFOC for International Trade Center Manager 2023 12 01.pdf

Source Envelope:

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Washington DC, DC 20405 ingrid.blair@gsa.gov

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Vance Robbs vance.robbs@gsa.gov

US General Services Administration

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Tikelia Murphy tikelia.murphy@gsa.gov

Supervisory Contract Specialist

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Claire A. Watkins. Sr. Ass. Reg.Counsel claire.watkins@gsa.gov

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Shanta Cardiel shanta.cardiel@gsa.gov

US General Services Administration

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Melanie Gilbert melanie.gilbert@gsa.gov

Regional Commissioner, NCR

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