JA FAR 13.5 SAP Dallas Lodging Sole Source Redacted.pdf

Control No.: MICC 2020-04-01 Contractor: Omni Hotels & Resorts Dallas

Version – March 2020 FOR OFFICIAL USE ONLY

Justification Review Document

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS –

SOLE SOURCE JUSTIFICATION AND APPROVAL

URGENCY FOR COVID-19

Program/Equipment: Lodging in Support of Task Force 46 COVID 19 Operations Dallas, Texas

Authority: Special Emergency Procurement Authority, 41 U.S.C. 1903; Simplified Procedures for Certain Commercial Items as implemented by FAR Subpart 13.5.

Amount: $9,668,430.00

Prepared by:

Contract Specialist Date:

Contracting Officer:

Contracting Officer COM: 0

Date: 03APR2020

Technical:

TF 46 G3/5 Log Plans Officer Date:

Requirements:

OCSIC OIC Date:

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager:

Control No.: MICC 2020-50 Contractor: Omni Hotel & Resorts Dallas

Services: Task Force 46 Lodging

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS - SOLE SOURCE JUSTIFICATION AND APPROVAL

URGENCY FOR COVID-19

Program/Equipment: Lodging in Support of Task Force 46 COVID 19 Operations Dallas, Texas

Authority: Special Emergency Procurement Authority, 41 U.S.C. 1903; Simplified Procedures for Certain Commercial Items as implemented by FAR Subpart 13.5.

$9,668,430.00

Date:

Version – March 2020 FOR OFFICIAL USE ONLY

Small Business Specialist, Small Business Program:

Legal Counsel:

Deputy Director, MICC-Fort Hood:

901st CBN

Assistant Director, Small Business Program:

Control No.: MICC 2020-50

Services: Task Force 46 Lodging

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

URGENCY FOR COVID-19

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command – (MICC)-Fort Hood, 36000 Darnall Loop, Room 1300B, Fort Hood, TX 76544-5095.

2. Description of Action: Task Force 46 requests approval for a new lodging contract. The contract type is firm fixed price funded by Operation and Maintenance funds.

3. Description of Supplies/Services: Lodging for approximately for a duration of approximately 90 days in support of Navy medical personnel operating the Dallas COVID-19 center.

Base Period: 03 APR 2020 to 01 JUL 2020 Value: $3,222,810

Far Clause 52.217-8 option: 02 JUL 2020 to 28 DEC 2020 Value: $6,445,620

Total Value: $9,668,430

4. Authority Cited: Special Emergency Procurement Authority, 41 U.S.C. 1903;

Simplified Procedures for Certain Commercial Items as implemented by FAR Subpart 13.5.

5. Reason for Authority Cited: 41 U.S.C. 1903 Special Emergency Procurement authority is authorized because the President of the United States made an emergency determination under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121-5207 (the "Stafford Act") in response to the COVID-19 pandemic on 13 March 2020.

Task Force 46 has a public responsibility to comply with the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC) guidance to prevent further spread of COVID-19. They are also required to comply with Department of Defense guidance to implement plans to ensure compliance with directed force health protection measures throughout the area of operations in order to prevent an outbreak of COVID-19 within U.S. personnel (service members, civilians, contractors, and dependents) or confine it to as small a population as possible. In order to comply and put protective measures in place, Task Force 46 has an urgent need for lodging services. These services are required in order to protect the public from the spread of (or isolate people infected with) COVID-19. This requirement will provide lodging for the approximate Navy Doctors and Nurses. These medical professionals have a responsibility to abide by WHO and CDC guidance and prevent the further spread of

COVID-19.

Control No.: MICC 2020-50

Every day that passes, confirmed COVID-19 cases spike and the death toll increases.

It is imperative that these services are obtained as quickly as possible to protect public health. The U.S. Government cannot apply standard procurement times to an acquisition of this urgent nature. Even the short time-lines of 30-60 days to award, could result in hundreds of thousands more being infected and thousands more dying.

This contract action procures lodging for which consist of Navy Doctors and Nurses, who will provide medical services to the City of Dallas in support of COVID-

19. The identified contractor for this action is the Omni Hotels & Resorts Dallas.

This hotel has the capability to provide lodging for all under one location. It also has the capability to provide a segregated occupancy section in order to minimize the spread and exposure of the virus between medical staff, hotel staff, and hotel guest.

6. Efforts to Obtain Competition: Due to the mission requirement, this action will be procured as sole source. The selected hotel has the capability to provide lodging for all under one location. It also has the capability to provide a segregated occupancy section in order to minimize the spread and exposure of the virus between medical staff, hotel staff, and hotel guest. Based on the market research, other hotels were unable to provide lodging for all required personnel under one location as well as lacked the ability to provide a segregated occupancy section in order minimize the spread of the virus. This requirement was not synopsized in accordance with FAR 5.202(a)(2).

7. Actions to Increase Competition: In order to increase competition before any subsequent acquisition of this service, further mission analysis will be execute to identify alternate plans that allow for the lodging of medical staff across separate hotels if necessary. A detailed analysis of the corresponding transportation requirement will also be executed in order to increase competition from other hotels that are located physically distant from the operations center.

8. Market Research: Based on the market research results from 31 March 2020 there is not a reasonable expectation that other hotels are able to meet this requirement within the required timeframe. On 29 March 2020, a total of eight (8) hotels were contacted near the Dallas, Texas area in regards to provide lodging for an estimated number of for an estimated 90 day period. The overall feedback was that the hotels did not have enough rooms to provide lodging for more than under one location. The location of other hotels within the area is further from the operations center resulting in an additional transportation contract requirement. Utilizing more than one hotel at a time and adding traveling requirements back and forth via

Control No.: MICC 2020-50 transportation presents a significant risk of contracting the virus to the general population as well as the medical personnel.

Market research was conducted from 29 March 2020 through 31 March 2020 by the requiring activity and contracting team:

Market research was minimal due to the urgent nature of this emergency procurement and the lack of requirements package and historical data for this requirement.

In December of 2019, an outbreak of COVID-19 was reported in Wuhan City, Hubei Province, China. The World Health Organization (WHO) states COVID-19 is the infectious disease caused by the most recently discovered coronavirus. They also state in humans, several coronaviruses are known to cause respiratory infections, ranging from the common cold to more severe diseases, such as COVID-19. The WHO states: “Around 1 out of every 6 people who gets COVID-19 becomes seriously ill and develops difficulty breathing. Older people, and those with underlying medical problems like high blood pressure, heart problems or diabetes, are more likely to develop serious illness. People with fever, cough and difficulty breathing should seek medical attention.”

The WHO declared the global COVID-19 outbreak a pandemic on 11 March 2020, stating it is a “public health crisis”. The following is information from the WHO website. The WHO is recommending all countries activate and scale up their emergency response mechanisms utilizing a four-pronged approach. First, prepare and be ready. In other words, prepare your people and your health facilities.

Second, detect, prevent, and treat. Utilize surveillance to find, isolate, test and treat every case in order to break the chain of transmission. Third, reduce and suppress.

Reduce transmission by finding and isolating as many cases as possible and quarantining their closes contacts. Protect health facilities, old age homes, and other vital areas. They recommend testing all suspected cases. Fourth, innovate and improve. Find new ways to prevent infection, save lives, and minimize impact.

Utilize personal protective equipment. Utilize the WHO training programs, technical guidance, studies, protocols, and preparedness and response plans.

This requirement directly supports the scale up of emergency response mechanism outlined above by providing medical personnel to run an improvised medical facility in support of COVID-19 operations. The procurement of lodging via the selected hotel provides medical personnel with a centralized and segregated area that minimizes the exposure and spread of the virus.

On January 31, 2020, the United States Department of Health and Human Services Secretary Alex M. Azar II declared a public health emergency (PHE) for the United States to aid the nation’s health care community in responding to COVID-19. On 13 March 2020, the President of the United States of America declared COVID-19 an emergency IAW 42 U.S.C. 5122 (the Robert T. Stafford Disaster Relief and Emergency Assistance Act) which allows for Special Emergency Procurement Authority IAW 41

Control No.: MICC 2020-50

U.S.C.1903. On 18 March 2020, the President invoked his authority IAW the Defense Production Act. The Act allows the President, where necessary to promote the national defense, may require acceptance and performance of contracts orders by any person he finds to be capable of performing them.

These services must be delivered on 03 April 2020 in order to provide lodging for the assigned medical personnel

9. Interested Sources: As shown in the market research, interest is limited as many Offerors cannot provide the required quantities of the supply/service within the required timeframes to meet the needs of the Government in order to protect public health.

Eight (8) vendors within the area were called to see if they could provide the required services in the amount necessary and they could not fulfill the requirement. Due to the COVID-19 outbreak and employees being unable to come to work, there is a shortage in these services within the area. These services are required urgently in order to provide lodging for the medical personnel responsible of operating the Dallas COVID 19 Center.

10. Other Facts:

a. Procurement history. This service is acquired via commercial hotels that provide a Government rate based on the daily Per Diem allowance.

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Version – March 2020 FOR OFFICIAL USE ONLY

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Technical:

TF 46 G3/5 Log Plans Officer

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

OCSIC OIC

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The daily rate for single occupancy meets the daily per diem rate for the Dallas, Texas area. Additionally, the daily rate provided includes amenities such as internet and parking which are not usual components of the daily rate. A price comparison of hotels comparable in capacity and location demonstrate that the cost for the Government under this action is fair and reasonable. Certified cost or pricing data will not be required in accordance the exception outlined in FAR 15.403(b)(3).

Contracting Officer

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

Contracting Officer

Control No.: MICC 2020-50

Control No.: MICC 2020-50

A pproval

Based on the foregoing justification, I hereby approve the procurement of lodging services on sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1903 Special Emergency Procurement as implemented by FAR Subpart 13.5. The estimated value of the contract is $9.67 million for a 90 day period of performance consisting of a base period and the inclusion of FAR 52.217-8, from approximately April 2020 through approximately December 2020. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Alternate to the Command Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX