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DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER NORFOLK

1968 GILBERT STREET SUITE 600

NORFOLK VA 23511-3392

IN REPLY REFER TO

28 May 2020

J&A#20161

JUSTIFICATION & APPROVAL

OTHER THAN FULL AND OPEN COMPETITION

(SOLE SOURCE)

1. Requiring and Contracting Activity:

Requiring Activity: Naval Service Training Command (NSTC)

Great Lakes, IL 60088

Contracting Activity: NAVSUP Fleet Logistics Center Norfolk (FLCN) Contracting Department, Code 245 Norfolk, Virginia 23511-3392

Requisition Number: N0763A20RCA4534

2. Description of the Action Being Approved: This is a sole source Firm, Fixed-Price (FFP) type contract to SHG IL Two, LLC d/b/a Hampton Inn of Gurnee to fulfill the requirements directed by NSTC for lodging support services.

3. Description of Supplies/Services: The scope of this requirement is to provide lodging support services to NSTC for 178 Navy reporting recruits and eight (8) Military Liaison Officers. NSTC is charged with temporarily lodging recruits while they are in transit between Military Entrance Processing (MEPs) and Recruit Training Command (RTC) during the Coronavirus (COVID-19) Pandemic. Sailors must lodge in no more than triple occupancy rooms in order to follow Center for Disease Control (CDC) guidance of COVID-19. Eight (8) single occupancy rooms are required to lodge the Military Liaison Officers providing oversight of the recruits.

Performance consists of one 42-night period to include an option period for one 30-night period in accordance with FAR 52.217-8 Option to Extend Services. The following table illustrates the period of performance and the Government estimate:

Period Dates Amount Base 06 July 2020 – 16 August 2020

Option 1 17 September 2020 – 15 September 2020

TOTAL

4. Statutory Authority Permitting SOLE SOURCE: 41 U.S.C. 1901, as implemented by FAR 13.501(a). The statutory authority permits use of other than full and open competition when only one responsible source is available and no other type of property or services will satisfy the need of the executive agency, and also when the requirement is of unusual and compelling urgency.

5. Rationale Justifying Use of Cited Statutory Authority: The support to be provided under the authority requested by this J&A is critical and necessary in order for the Navy to continue adhering to policies established to the COVID-19 outbreak. The traditional NSTC berthing/housing arrangements for reporting recruits violate the guidelines of the CDC’ social distancing efforts to prevent the spread of this

J&A# 20161 virus. COVID-19 continues to spread worldwide with recent outbreaks throughout the United States.

Constant vigilance for potential exposure of unit personnel to COVID-19 together with aggressive sequestration of exposed personnel and (when appropriate) quarantine of symptomatic personnel will be the core tenets of an effective response. Therefore, it is imperative to meet the guidelines of social distancing by providing adequate lodging to help prevent the spread of COVID-19. The requirement to immediately award this contract and thus to ensure compliance with CDC guidelines is urgently needed to mitigate risk to the recruits and public health.

RTC experiences a yearly influx of recruits entering the naval service during the summer months. Navy Recruiting Command (NRC) has forecasted three (3) periods in which the number of enlistees reporting to RTC for initial military training. The first influx occurred on 17 April 2020 when the training ban was lifted and the number of enlistees reporting to RTC increased from 0 to 524 per week. The second influx occurred on 25 May 2020 in which the number of enlistees reporting increased from 524 to 750 per week. The third influx will occur on 06 July 2020 in which the number of enlistees reporting increases from 750 to 1,234 per week. The number of enlistees reporting is consistent until 5 October 2020. Due to overlapping 14-day observation periods, NSTC has a requirement for a total temporary lodging capacity 2,607 recruits and personnel during the summer influx periods.

NSTC is pursuing a long-term solution in utilizing Fort McCoy’s facilities to fulfill the temporary lodging requirement. Fort McCoy is an Army Reserve training base that reserve and National Guard units conduct their annual combat training. Fort McCoy has prior commitments to various Army Reserve and National Guard units that prevent partially transitioning this requirement until 16 August 2020. On 16 August 2020, it is anticipated that Fort McCoy can accommodate a total of 2,000 recruits and personnel. At this time, it is anticipated that the requirement of using commercial temporary lodging will begin decreasing until the requirement is fully transitioned to Fort McCoy on 31 August 2020.

The Government awarded contract N0018920P0256 on 17 April 2020 to provide short-term housing for 1,333 recruits and personnel. The single facility is unable to lodge the additional recruits reporting during the second influx for a total requirement of 1,611 recruits and military staff.

The Government awarded contract N0018920P0372 on 25 May 2020 to provide short-term housing for an additional 298 recruits and personnel. These facilities are unable to lodge the additional recruits reporting during the third influx for a total requirement of 2,607 recruits and military staff.

Market research indicates that there are eight (8) other facilities within a 1-mile radius of the largest contracted facility that can accommodate a portion of the total requirement. Of these eight (8) facilities, only six (6) meet the FEMA, quality and force protection requirements outlined in the Performance Work Statement.

To meet the total temporary lodging requirements for 2,607 recruits and military staff, the Government will need to award a contract to all six (6) of these facilities. These six (6) facilities along with the two

(2) facilities already contracted with have a combined capacity of being able to accommodate 2,654 recruits and staff members. The state of Illinois is now opening back up to the public and the Government has determined that any delay associated with potentially competing the remaining lodging requirements amongst these hotels would jeopardize the Government’s ability to secure the required amount of rooms to cover the influx of recruits. Given the critical nature of the services required, and the urgent need to ensure sufficient lodging is available for recruits, the Government has determined that such a competition is not feasible.

The Government considered a multiple-award IDIQ to FEMA-cleared hotels within a fifteen mile radius of RTC, but determined geographical separation of recruit groups would logistically create an

J&A# 20161 unsustainable situation, with multiple laundry and food drop-offs, wellness checks, force protection and possible medevac locations spread over 300 square miles.

It is in the government’s best interest to issue a sole source award to Hampton Inn of Gurnee.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable:

The required services in the proposed acquisition will be used to provide immediate lodging of 178 reporting recruits plus eight (8) military staff members in one facility. NSTC has requested that this requirement be immediately processed to ensure the health and safety of the recruit population. Thus, in accordance with:

FAR 5.202(a)(2): a synopsis will not be posted to the GPE because of unusual and compelling urgency precludes completion to the maximum amount possible and the Government would be seriously injured if the agency complies with the advertisement time periods and such delay would compromise the health and safety of recruit personnel;

Though this will not be posted to the GPE, robust market research was conducted by the Government immediately upon the identification of the need. The Government contacted many area hotels, and found that the Hampton Inn of Gurnee combined with the other seven (7) other facilities in the area are the only contractors that has the available occupancy to immediately provide support over the next 42 days without a negative impact to the Navy.

7. Determination of Fair and Reasonable Cost: A determination of fair and reasonableness of price will be based on the Contracting Officer’s price analysis of the contractor’s proposal and/or a comparison of previous pricing history and published price lists of the same or similar items in accordance with FAR 15.404-1.

8. Actions to Remove Barriers to Future Competition: As stated herein, Hampton Inn of Gurnee combined with the other seven (7) other facilities in the area are the only contractors that have the available occupancy to immediately provide support of the required services without a negative impact to the Navy.

This requirement has been narrowly tailored to meet the urgent needs of the Government and the Navy will continue to assess opportunities to allow for greater competition if a longer term contracting solution (e.g., a multiple award IDIQ with local area hotels) is required in the next thirty to sixty days.

9. CONTRACTING POINT OF CONTACT:

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTSCERTIFICATION

I certify that the facts and representations under my cogniz.a.nce which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

LEGAL SUFFICIENCY REVIEW

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A/LSJ value is between $250K and $700K, the Contracting Officer's signature below also represents approval of the J&A/LSJ.

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A/LSJ value is between $700K and $13.5M, the Competition Advocate's signature below also represents approval of the J&A/LSJ.