JA 24-09_FSM Extensions 11.2023.pdf

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

DocuSign Envelope ID: B175F2BB-C49E-4F52-926B-04BF77AE0804

Andress Williams

ANDRESS

WILLIAMS

Digitally signed by

ANDRESS WILLIAMS

Date: 2023.11.29 19:05:04 -05'00'

Federal Opportu t

DocuSign Envelope ID: B175F2BB-C49E-4F52-926B-04BF77AE0804

Digitally signed by: NICOLE JACKSON

DN: CN = NICOLE JACKSON C = US O = U.S. Government OU = Department of Housing and Urban Development, Office of the Chief Procurement Officer

Date: 2023.11.30 10:20:36 -05'00'

NICOLE JACKSON

ANDRESS WILLIAMS Digitally signed by ANDRESS WILLIAMS Date: 2023.11.30 11:49:14 -05'00'

Jimmy Fleming-Scott Chief Procurement Officer

11-30-2023

Exhibit 1 Class Justification and Approval (J&A) Justification for Other than Full and Open Competition for

Field Service Management Services for Areas 3A, 4A, 5A, 6A, 7A, 8A, 1D, 2D, 4D, 5D, 1P, 3P, 4P, 5P, 4S, and 6S

1. Identification of the agency and the contracting activity:

Agency: The U.S. Department of Housing & Urban Development, Washington, D.C.

Program Office: Office of Single-Family Housing, Office of Single-Family Asset Management Contracting Activity: Office of the Chief Procurement Officer, Atlanta Office - Southern Field Contracting Operations

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

HUD's Office of Single-Family Housing, Office of Single Family Asset Management has a need of unusual and compelling urgency to continue Field Service Management (FSM) services under FAR 6.302-2 Other than Full and Open Competition to provide services for an additional four (4) months. The current task orders and contract ordering periods both expire on November 30, 2023. The Agency will issue task orders prior to November 30, 2023, with a period of performance of December 01, 2023, through March 31, 2024. This J&A is being completed because the relevant base contracts (Hybrid Fixed Priced/Cost Reimbursable) were sole source contracts awarded pursuant to FAR 6.302-2, with a two-month base period and a six-month option period pursuant to FAR 52.217-8, and the new task orders will extend the total period of performance for an additional four (4) months and because additional funding is required for the new task orders due to two (2) post award protests. New task orders with a one-month base and three (3) one-month options will be issued.

Contract Areas:

Contract Area 3A (IL)

Contract Area 4A (IN & KY)

Contract Area 5A (NC & SC)

Contract Area 6A (MS, AL, & TN)

Contract Area 7A (GA)

Contract Area 8A (FL, PR, & VI)

Contract Area 1D (CO, NM, North TX, & UT)

Contract Area 2D (AR, KS, LA, MO, OK, & So. TX)

Contract Area 4D (WI, IA, NE, & SD)

Contract Area 5D (WY, MT, ND, & MN)

Contract Area 1P (MI)

Contract Area 3P (CT, MA, ME, NH, NJ, NY, RI, & VT)

Contract Area 4P (OH)

Contract Area 5P (DC, DE, MD, PA, VA, & WV)

Contract Area 4S (ID & NV)

Contract Area 6S (OR, WA & AK)

DocuSign Envelope ID: B175F2BB-C49E-4F52-926B-04BF77AE0804

The Federal Housing Administration (FHA), an organizational unit within HUD, administers the Single-Familymortgage insurance program. FHA insures approved lenders against the risk of loss on loans they finance for purchase or rehabilitation. When a borrower defaults on an FHA insured loan, the lender acquires title to the property by foreclosure, a deed-in-lieu of foreclosure, or other acquisition method, files a claim for insurance benefits, and conveys the property to HUD.

The FSM contractors provide vital property preservation and protection services for REO properties.

HUD has a critical need to issue a new task order against the current ordering agreements without delay in the referenced areas as a discontinuation in services would result in prolonged unoccupied assets posing increased risk of adverse occupants, theft, and vandalism, which in turn may result in blight on the communities in the specified areas. The FSM contractors also get REO properties in ready-to-show condition, which allows another contractor to market the properties for sale. HUD’s holding costs expected to result from not issuing a four (4) month task order is approximately $169,104,986.

These new task orders will involve no changes to the core services performed under the current contracts. The current task orders and Basic Ordering Agreements for the above-referenced areas expire on November 30, 2023. HUD has a critical need to issue task orders for four months to the incumbent contractor(s) to provide Field Service Management (FSM) services for properties until the GAO renders a decision on the protests against the 3.12 follow on awards.

Nationwide contracts for a base period of approximately 12 months and four Option periods of 12 months each were award on May 31, 2022, for contract areas: 3A/4A, 5A/8A, 6A/7A, 1D, 2D, 4D/5D, 3S/5S, 4S/6S and 5P and June 14, 2022, for contract areas 1P/4P and 3P.

The Agency received three GAO protests on June 28, 2022, and decided to take corrective action which included termination of the awarded task orders. As an administrative formality, the Parent contracts remained in place. The first corrective action was completed on February 01, 2023, confirming the original award decisions. The Contracting Officer notified all interested parties on February 01, 2023, that corrective action was completed and the resulting apparent awardees.

Three GAO protests were filed on February 13, 2023, in response to the decisions resulting from the first corrective action. The Agency applied the necessary steps to honor the mandatory CICA Stay. The second corrective action was completed on October 27, 2023, confirming the original award decisions. The Contracting Officer notified all interested parties on November 03, 2023, that corrective action was completed and the resulting apparent awardees. Two GAO protests were received on November 13, 2023, for ten (10) of the eleven (11) contract Areas: 3A/4A, 5A/8A, 6A/7A, 1D, 2D, 4D/5D, 4S/6S, 1P/4P, 3P, and 5P. Contract Area 3S/5S was not protested. The Agency took the steps to honor the mandatory CICA Stay on November 14, 2023.

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

Subject to approval of this J&A action, the incumbent contractors will continue performance in the sixteen (16) contract areas through February 29, 2024 (if all options are exercised). The new task orders for these contract areas are a temporary measure urgently needed to avoid a break in services and serious injury to the government. The task orders, which operate in the Atlanta, Denver, Philadelphia, and Santa Ana Homeownership Centers, are critical because an inefficient transition of properties that have ratified contracts, will result in a disruption in stakeholder processes and additional holding cost.

The performance period will be from December 01, 2023, through March 31, 2024.

The Office of Single-Family Housing estimates that the one-month (1) base period, exclusive of the three (3) one-month options, for all contract Areas is $6,715,662.00. The total amount requested to cover the one-month (1) base and 3- one-month options is $26,862,648.00. Details per contract Area(s) are as follows:

Contractor Contract Areas Combined Estimated Value of All New Task Orders per Contract

DGG 3A, 4A, 5A, 8A, 1D, 2D,

4D, 5D, 1P, 3P, 4S, 6S

$19, 479,432.00

Alpine 7A $1,255,336.00

BLM 4P and 5P $4,156,720.00

Innotion 6A $1,971,160.00

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

41 USC 3304 (a)(2) (see FAR 6.302-2) Unusual and compelling urgency.

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

The current Task Orders will expire on November 30, 2023. Issuing another Task Order for four (4) months under FAR 6.302¬2(c)(2) will allow GAO time to render a decision for the current bid protests. In the absence of issuing another Task Order, HUD will have a break in service that will adversely impact stakeholders and increase losses to the FHA Insurance Fund. As indicated above, HUD has a critical need to issue these Task Orders without delay in the referenced areas, as a discontinuation in services would result in prolonged unprotected and unoccupied assets posing increased risk of adverse occupants, theft, and vandalism, which in turn results in blight on the communities in the specified areas.

The Performance Work Statement also requires the contractors to maintain a fully staffed and equipped office within the HOC jurisdiction. The incumbent contractors are currently performing in this capacity and have the necessary office space, staffing, and resources to provide these services immediately across the geographic areas without significant schedule delays and startup costs. Any new contractor would have to deal with the issues of on-boarding new employees and sub-contractors that have the resources and knowledge to begin work immediately.

Therefore, the incumbent contractors have unique capabilities to perform these services within the time frame required with no degradation to HUD’s mission.

6. A description of efforts made to ensure that offerors are solicited from as many potential sources as is practicable, including whether a notice was or will be published as required by Subpart, 5.2 and if not, which exception under 5.202 applies.

Only incumbent contractors were solicited, as the incumbent contractors are the only contractors with the capability to perform these services within the time frame required. HUD completed the second corrective action on the FSM 3.12 on October 27, 2023. Two new GAO protests followed on November 13, 2023. Under the circumstances, it is totally impracticable to solicit or evaluate other offerors beyond the incumbents before the contracts expire on November 30, 2023.

A notice will not be published for the Task Orders as required by Subpart 5.2 pursuant to FAR 5.202(a)(2) due to the proposed action being made under FAR 6.302-2. The Agency would be seriously injured if it complies with the time periods specified in 5.203, as complying with the requirements would result in a break in service. The Contracting Officer shall post this justification on the Government-Point-of-Entry, known as

SAM.GOV.

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

The Contracting Officer has determined that the anticipated prices will be fair and reasonable by doing a comparison of current contract pricing, previous Government contracts prices for like services, and proposed prices with the Independent Government Cost Estimates (IGCE).

8. A description of the market research conducted (see part 10) and the results or a statement of the reason market research was not conducted:

Market research was not conducted. The Contracting Officer completed market research for the long-term competitive FSM 3.12 procurement.

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

N/A

10. A list of the sources, if any, that expressed, in writing, any interest in the acquisition:

Because of the short-term nature of the requirement and significant startup costs associated with the effort, it is not practicable to solicit sources other than current contract holders. The following firms hold contracts for the following geographic areas.

Atlanta HOC 3A DGG/Guardian 4A DGG/Guardian 5A DGG/Guardian 6A Innotion Enterprises 7A Alpine Companies 8A DGG/Guardian

Denver HOC 1D DGG/Guardian 2D DGG/Guardian 4D DGG/Guardian 5D DGG/Guardian

Philadelphia HOC 1P - DGG/Guardian 3P DGG/Guardian 4P BLM Companies 5P BLM Companies

Santa Ana HOC

4S DGG/Guardian 6S DGG/Guardian

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

The timing of the protests relative to the end of the incumbent contracts severely limits the agency’s options. However, this action is specifically designed to allow HUD sufficient time for GAO to render decisions on the pending bid protests.

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

Mr. Dan Leader DGG RE Investments, LLC 2300 E Lincoln Hwy, Langhorne, Pa 19047

Mr. Brent Martin BLM Companies, LLC 204 Playa Della Rosita Ste A Washington, UT 84780

Mr. Ryan Gesinski Innotion Enterprises, Inc.

10650 Main St #303 Fairfax, VA 22030

Ms. April Cooper Alpine Companies, Inc 121 N Main Street Alpine, UT 84004