Exhibit 1 - JA PP Cost Estimating Services.pdf

J&A Control No. 23-23

“Source Selection Information – see FAR 2.101 and 3.104”

For Official Use Only

JUSTIFICATION & APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

UNDER FAR PART 6

1. Identification of the agency, contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

a. Federal agency: The U.S. Department of Housing and Urban Development (HUD).

b. Contracting activity: HUD, Office of the Chief Procurement Officer (OCPO), Housing

Support Division.

c. Specific identification of the document: This document serves as a “Justification for

Other Than Full and Open Competition” under the authority of 41 U.S.C. § 3304(a)(2) as prescribed by Federal Acquisition Regulation (FAR) Subpart 6.302-2, unusual and compelling urgency. The Office of Single Family Housing (SFH) is currently without

Preservation and Protection (P&P) cost estimating services due to a Government Office of Accountability (GAO) protest (B-421344.1) which included a Competition in

Contracting Act (CICA) automatic stay of performance. The CICA automatic stay prevents the contract awardee from performing work while the protest is being litigated.

This break in service is currently hindering performance on all Mortgagee Compliance

Manager (MCM) and Field Service Manager (FSM) contracts throughout the United

States, Puerto Rico, the Caribbean, Guam and the Northern Marianna Islands. Therefore, services are urgently needed, supported by the J&A, to resume performance.

2. Nature and/or description of the action being approved.

a. Acquisition purpose and objectives. The acquisition objective is to obtain access to an automated Preservation and Protection (P&P) cost estimating application via a web-based

Software as a Service (SaaS) online subscription service for HUD employees and contractors. It is anticipated that this application will be utilized to create and verify cost estimates for P&P reimbursement requests.

b. Project background: On December 22, 2022, a GAO protest was received as a result of contract award 86615623C00003 made to The Bluebook International, Incorporated

(Bluebook) under solicitation number 86615622Q00003. The Government took corrective action on January 4, 2023, and decided to reassess proposals and to make a new award decision, consistent with the updated evaluation, if applicable. On May 23, 2023, a new award decision was made, and a contract (86615623C00003) was awarded to P4 Management LLC (P4). On June 2, 2023, a new GAO protest (B-421344.2) was filed by Bluebook. The GAO filing invoked an automatic stay of contract performance which lasts until a decision is made by GAO. On June 5, 2023, a stop work order was issued to P4 and services have lapsed since then. There are currently no services in place and there has been ripple effect to the Single Family Housing (SFH) mission as a result of the lapse.

• Previous award: 86543F18P00001: The incumbent contract, 86543F18P00001, was awarded to Bluebook International, Inc. on 02/12/2018, as a total small business set-aside and was for a period of 1-year with four 1-year option periods.

A summary of the contract price is as follows:

Description Performance Dates LIN Type Total

Base 02/13/2018 to 02/12/2019 FFP $139,800.00

Option 1 02/13/2019 to 02/12/2020 FFP $139,800.00

Option 2 02/13/2020 to 02/12/2021 FFP $139,800.00

Option 3 02/13/2021 to 02/12/2022 FFP $139,800.00

Option 4 02/13/2022 to 02/12/2023 FFP $139,800.00

10 Day No-Cost

Ext 02/13/2023 to 02/23/2023 FFP $0.00

FAR 52.217-8 02/24/2023 to 05/23/2023 FFP $34,950.00

Total $733,950.00

• Recent awards and protests: The following table provides information regarding the recent GAO protests:

Protesting firm Solicitation/Contract number

GAO file number

Status of the protest

P4 Management LLC 86615622Q00003/

86615623C00003

B-421344.1

12/22/2022

Dismissed: Corrective action taken

The Bluebook

International, Incorporated

86615622Q00003/

86615623C00012

B-421344.2

06/02/2023

Open: Corrective action taken

On June 14, 2023, the Contracting Officer decided to cancel the procurement in its entirety and on June 16, 2023, a notice of corrective action was filed with GAO to this effect. As a recompete of the procurement is underway, immediate services are needed in the interim.

The new anticipated award date of the long-term contract will be September 20, 2023. It is in the best interests of the Government and the taxpayers to award an interim contract utilizing a limited competition between responsible sources (P4 and Bluebook) pursuant to FAR Part 6.302-2, Unusual and compelling urgency. The period of performance shall be for a period of three (3) months with up to an additional six (6) months (if needed) under FAR Clause 52.217-8, Option to Extend Services. This will allow HUD to continue servicing HUD users and contractors for the duration of the recompete.

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

a. Project title. Preservation and Protection (P&P) Cost Estimating Services.

b. Project description. The Contractor shall provide P&P cost estimating services to the

U.S. Department of Housing and Urban Development, Office of Single Family Housing

(SFH) and Office of Public and Indian Housing (PIH) located in Washington DC. P&P cost estimating services shall be provided via commercially available Federal Risk and

Authorization Management Program (FedRAMP) authorized web-based SaaS subscription access service.

c. Scope, Magnitude, and Complexity of the Requirement.

• Requirement type.

Service

Supply

Information technology (IT)

Construction

Architect-engineer (A & E) services

Design-build

Other (specify): ____________________

• Type of action.

New requirement

Follow-on

Other (specify): ______________________

• Proposed contract/order type.

Firm Fixed Price (FFP)

Other fixed price___________________

Cost-Plus-Fixed-Fee

Other Cost Reimbursement

Time & Materials/Labor Hour

Indefinite delivery or quantity, definite quantity, or requirement

Hybrid (specify): _______

Other (specify): _______

d. Acquisition identification number: RCS-HU-2023-00326 / UPP-2023-HU-00090.

e. Total estimated dollar value and performance/delivery period. The total estimated dollar value of the interim contract is $25,000.00 and is broken down as follows:

Funding Year Period Begin POP End POP $ Value

Base 3-Months 6/20/2023 9/19/2023 $25,000.00

FAR 52.217-8, if exercised 6-Months 9/20/2023 3/19/2024 $50,000.00

4. Identification of the statutory authority permitting other than full and open competition.

This acquisition is conducted under the authority of 41 United States Code

(U.S.C.) 3304(a)(2), as implemented by Federal Acquisition Regulation (FAR)

6.302-2, Unusual and compelling urgency.

This acquisition is conducted under the authority of section 4202 of the Clinger-

Cohen Act of 1996.

This acquisition is conducted under the authority of the Services Acquisition

Reform Act of 2003 (41 U.S.C. 428a).

This acquisition is conducted under the authority of 41 U.S.C. 1901 as set forth in

FAR Subpart 13.5 - Simplified Procedures for Certain Commercial Items.

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Names and addresses of the proposed contractors:

• The Bluebook International, Inc.

23441 S. Pointe Dr, Ste 150

Laguna Hills CA 92653

• P4 Management, LLC.

6244 Notre Dame Blvd

Washington, MI 48095

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

HUD has an unusual and compelling urgency for cost estimating services which precludes full and open competition, and a delay in award would result in serious injury to HUD. Ongoing cost estimating services for repairs are required to protect and preserve the FHA’s portfolio of real estate assets. The P&P cost estimating tool is utilized by FHA’s Management and Marketing (M&M) Contracts, including the

Mortgagee Compliance Manager contract and the numerous Field Service Manager contracts nationwide. The current break in service is having significant impact with respect to HUD’s unoccupied assets, to include adverse occupants, theft, vandalism, and neighborhood blight. The M&M contractors depend on these services to manage FHA’s portfolio to avoid these impacts, and, in the absence of these services, those contractors will incur significant additional costs which may be passed on to HUD. Indeed, the agency is already facing serious delays in performance from contractors who rely on access to the P&P tool to perform their tasks.

Based on the protested competitive procurement, both P4 and Bluebook have technically acceptable solutions for providing the cost estimating services. Additionally, because

Bluebook was the incumbent contractor and P4 had already provided training on its tool before the stop work order was issued, there will be no need for a transition in period for either contractor. As such, these contractors have the unique capability to perform these services within the time frame required with an immediate end to the degradation in

HUD's mission. Therefore, a limited competition between responsible offerors will ensure there is no continued break in service while the recompete is underway.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a SAM.gov notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

In accordance with FAR 5.202(a)(2), the proposed contract action will be made under the conditions described in FAR 6.302-2 and, for the reasons articulated above, the Government would be seriously injured if the agency complies with the time periods specified in 5.203 for publicizing a notice. Through a recent competition, responsible sources are available to participate in a limited competition that would result in an expedited award to quell the current lapse in service. There are no other similarly situated potential sources that have technical solutions that have been evaluated as acceptable and for which no additional training would be required. HUD is currently taking corrective action to allow for full and open competition of this requirement. Greater competition is not practicable for this interim contract given the current break in services.

7. Determination by the Contracting Officer that the anticipated price to the Government will be fair and reasonable.

The Government will evaluate the Contractor’s total price utilizing price analysis techniques in accordance with FAR 15.404-1(b). The estimated value for the contract action, based on the

IGCE is $25,000.00 and will be used as the primary basis of analyzing the Contractor’s price to determine if it is fair and reasonable. Therefore, I hereby determine that the anticipated price for this contract action will be fair and reasonable.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

Market research efforts involved the following:

• Reviewing data from previous and recent acquisitions; and

• Consulting with the acquisition team, knowledgeable acquisition, and program officials in government and industry regarding market capabilities

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

a. Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available. Not Applicable.

b. When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived. Not Applicable.

c. When 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government. See sections 2(b) and 5 above.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition. No sources have expressed interested in this short-term, interim contract. Two (2) of the three (3) offerors who participated in the protested procurement are identified in 5a above. The third offeror was not deemed technically acceptable and was not eligible for award under the protested procurement. As such, they are not identified as a responsible source and were therefore not included in this limited competition.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.

HUD is unaware of any barriers to competition. The procurement at issue in this J&A is a short-term, interim contract to prevent a lapse in service while the long-term contract is recompeted subject to full and open competition.

12. Contracting Officer’s Certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

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

Signature: ________

Name: Che Uche Logan

Title: June 20, 2023