Executed J and A MCS Stand Alone - 8-6-2020 v2.pdf

Justification for Other than Full and Open Competition United States Department of Agriculture

Federal Acquisition Regulation (FAR) Part 6.3

1. Identification of the agency and the contracting activity.

Rural Development (RD) Procurement Management Office (PMO) is the contracting activity for the services required by the National Financial and Accounting Operations Center (NFAOC), Default Management Branch.

2. The nature and/or description of the action being approved.

A second protest from incumbent contractor, on June 5, 2020 against the property preservation services related USDA contract that was awarded under Solicitation / RFP #12SAD119R0003. Under the Competition in Contract Act 31 U.S.C. Sec. 3551, et seq. (CICA) Stay Order was placed against the awarded contract. This CICA Stay Order prevents the awarded contractor from performing work under this contract until GAO makes a determination on the protest, resulting in the coverage reverting to being performed by the incumbent contractor.

The awarded contract provides nationwide property preservation and inspections services for RD. As a result of the referenced GAO CICA Stay Order, NFAOC has a requirement for a sole source, standalone contract for nationwide property/asset management support services. The award of these mission critical services under this short term contract are essential to the RD Portfolio and the Single Family Housing (SFH) Properties throughout the United States (US).This contract will provide the necessary continuity of services during the span of the GAO protest review and resolution.

Services for the GAO Stay Period commenced effective June 5, 2020 and was covered and funded under the old task order which will expire August 10, 2020. This new standalone task order will cover the remainder the GAO Stay period from August 11, 2020 to October 18, 2020. The task order will include the option to extend clause. The option clause will allow the contract to be extended for an additional 90 days for the transition period, which cannot be affirmatively determined until the GAO decision is rendered. However, it will be exercised anytime during the base period of performance of the task order.

The proposed sole source contractor is:

Mortgage Contracting Services LLC, (MCS) 350 Highland Drive Suite 100, Lewisville, TX 75067

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The estimated cost is $8,477,926. Out of this amount, $3,728,212 is dedicated towards the transition period. FY20 Program Loan Cost Expense (PLCE) Funds are available for the effort.

The purpose of this task order is to assist Rural Development (RD) in providing nationwide property/asset management support services for the RD Portfolio SFH Properties throughout the US during the continuance of the GAO Protest Stay Order. Until a GAO decision is rendered, the contractor will manage the nationwide portfolio and provide all the services necessary to determine vacancy and preserve properties as valuable security. The contractor will provide nationwide integration services as follows:

Inspections Contractor will provide inspection services to assist RD in managing SFH security properties.

Inspections shall determine vacancy status.

Property Preservation Contractor will provide the full line of property preservation services typically required to protect and preserve the single-family housing security property at the minimally acceptable requirements specified in RD handbooks, rules, regulations and statutory authorities, along with maintaining property compliance with applicable local and state laws, ordinances, codes. The contractor will account for local and seasonal conditions impacting the properties. This includes but is not limited to securing/rekeying, winterizing, health hazard removal, debris/trash removal and/or initial cleaning, boarding, screening, appropriate seasonal yard maintenance including appropriate trimming, auto lawn cut system, snow removal, eviction assistance, personal property and abandoned vehicle storage and disposition, roof repair/patch/tarp, property repairs, pool and/or sump pump maintenance, vermin and pest control, securing and allowing access for necessary utility turn-off/on, marketing, testing/cleaning/treating/maintaining/boarding, sales/monthly cleaning, posting, signage, lockbox, lead based paint/mold/meth testing and abatement/remediation.

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

41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1, titled "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

Mortgage Contracting Services LLC, (MCS) is the current provider of the USDA’s property preservation and inspection services and they are the only company that can immediately fulfill the identified national requirements without degraded performance.

MCS (as the incumbent contractor) has knowledge of the RD portfolio as well as an extensive network of rural subcontractors. MCS is the only contractor at this time that can immediately provide property preservation maintenance to RD’s portfolio of properties. MCS currently has the capacity to handle the unique rural location of the properties in order to keep the properties from violating local ordinances and from preventing property damages which can adversely reduce neighboring property values.

The failure to award this short-term contract to MCS for the identified effort, would result in a lapse of service, leading to mission failure and irreparable damage to government-owned or secured property.

This lapse of service would create a loss in property value that USDA would not be guaranteed to capture back in the foreclosure process. In addition, creating a higher cost to the government for maintenance as well as creating public relations issues for the Agency as the homes depreciate into disrepair in their local communities during the current lawn mowing season. Currently the government is not outfitted to manage the numerous subcontractors needed to upkeep the RD portfolio of nationwide properties. The

Without having a property preservation services contract in place, approximately 9,864 accounts in 34 States would be left without maintenance. This would place $685,832,112 of value at risk to deterioration and vandalism to these properties.

6. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

This requirement will provide critical Property Inspection and Preservation services required by the National Account and Financial Operations Center (NFAOC), Default Management Branch to protect and preserve the USDA RD SFH portfolio. Nationwide, immediate and comprehensive performance of these services is critical to maintaining the value of the single-family property portfolio, reducing the potential loss to the federal government during the disposition of the property.

MCS, with its network of subcontractors, is currently the only company with the capacity to support this effort during this extension. MCS has current knowledge of the location of our properties, and the many intricacies associated with servicing in the relevant rural areas. (While this information can be transferred to another company, it would require the transition time of up to three months). The capacity of the incumbent also extends to include emergency services after a major storm (flood, tornadoes).

Transition to another contractor would require time to allow them to develop the network and/or transition portfolio properties into their active network for required services. MCS’ vendors are also currently insured/bonded and have the capabilities to quickly respond to all of our portfolio’s needs.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer anticipates that the incumbent’s prices will be consistent with its current negotiated GSA Schedule pricing on its GSA Schedule; and will be reviewed against their respective Schedule, along with a discount from their Schedule requested.

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

Market research was in fact conducted for the ongoing competition currently under GAO protest. While the commercial market has numerous companies in the property management business, per sections 5 and 6, awarding to another vendor is not in the best interest of the government.

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

N/A

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

There were no sources identified that would meet the immediate mission critical need required by the Government at this time.

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

The subsequent follow on award was in fact competed and currently under GAO protest. Due to unforeseen events relating to the GAO protest, and in order to avoid a break in a mission critical service, the Government must award a sole source task order to Mortgage Contracting Services LLC.

MCS is the only available supplier that can immediately provide this service to the Agency without disruption to the program. Any other source would require significant transition-in time leading to mission degradation and long-term costs to the government.

The base POP will begin on August 11, 2020 and expire October 18, 2020. The task order will include an option to extend services clause for a 90-day transition extension, with period of performance cannot be determined until the GAO decision is rendered. However, it is anticipated that it will be exercised anytime within the base period of performance timeframe of August 11, 2020 to October 18, 2020.

NATASHA

JENKINS

Digitally signed by

NATASHA JENKINS

Date: 2020.08.06 11:15:08 -05'00'

JAMES

SOWDEN

Digitally signed by JAMES

SOWDEN

Date: 2020.08.06 09:29:06 -07'00'

LORI LLOYD Digitally signed by LORI LLOYD Date: 2020.08.07 14:36:18 -04'00'

Certifications & Approvals

Supporting data that form the basis for and included in this justification are certified accurate and complete.

Natasha Jenkins Contracts Program Manager

The information contained in this Justification for Other Than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

James Sowden Contracting Officer

In accordance with FAR 6.304(a)(2) and agency procedures, proposed actions exceeding $700,000, but not exceeding $13.5 million, must be approved by the Procuring Activity Competition Advocate. This authority is not delegable.

Lori Lloyd, Mission Area Senior Contracting Officer (MASCO) Competition Advocate