JA - RD_Property Preservation - Bridge_HCA_signed.pdf

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

Federal Acquisition Regulation (FAR) Part 6.3

Total Estimated Value (with all options): $34,888,021.00.

Period of Performance: July 1, 2022, to November 30, 2023

1. Identification of the agency and the contracting activity.

United States Department of Agriculture (USDA), Rural Development (RD), Procurement Management Office (PMO) 1400 Independence Avenue, S.W.

Washington, DC 20250

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

The Servicing Office, Default Division has a continuing need for mission critical Property Preservation and Inspection Services, on its $13B asset loan portfolio. The USDA-RD proposes to enter into a task order from a GSA schedule contract on a basis other than full and open competition and negotiate a sole source firm fixed-price bridge task order. The proposed sole source contractor is Mortgage Contracting Services, LLC (MCS), 350 Highland Drive, Suite 100, Lewisville, TX 75067. This task order will be awarded to the incumbent contractor on their GSA IDIQ contract (GS-00F-107GA). Prices have already been determined fair and reasonable.

The follow on Property Preservation services are included in the National Default Management Services (NDMS) Acquisition, which has an anticipated award of September 2022 and currently the draft RFP is posted on SAM.gov.

In order to avoid a lapse of mission critical services, the agency requires a sole source task order with the incumbent provider to bridge into the future NDMS contract. The task order is to cover time to NDMS award, and the resulting transition-in period of that contract.

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

The estimated cost is $34,888,021.00. FY22 Program Loan Cost Expense (PLCE) Funds are available for the effort. The period of performance is July 1, 2022, through November 30, 2023. As shown below full Property Preservation and Inspection Services will diminish throughout the period of performance as the service is transferred to the NDMS contract. A nine (9) month period is included due to the possibility of a protest to the NDMS contract.

• July 1 – October 2022 – Full services

• Nine (9) One-Month Options - Full services (if a protest stay is put in place)

• Four (4) one-month options – Diminishing Services

The purpose of this task order is to assist Rural Development (RD) in providing nationwide property/asset management support services for the RD Portfolio single family housing (SFH) Properties throughout the US during the NDMS solicitation and award process. 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.

This acquisition is conducted under the authority of 41 United States Code (U.S.C.) 3304(a)(1) as set forth in Federal Acquisition Regulation (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-RD’s property preservation and inspection services and they are the only company that can immediately fulfill the identified nationwide, to include the territories, 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.

MCS, with its network of subcontractors, is currently the only company with the capacity to support this effort during the NDMS acquisition. MCS has current knowledge of the location of USDA-RD 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’ subcontractors are also currently insured/bonded and have the capabilities to quickly respond to all USDA-RD portfolio needs.

The failure to award this task order 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-RD 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.

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 Preservation and Inspection services required by the Servicing Office, Default Division to protect and preserve the USDA RD SFH portfolio. Competing this bridge requirement at this time creates a risk of loss in value to the SFH property portfolio. Property preservation services are currently being competed under the NDMS solicitation with an anticipated award of September 2022.

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

The contractor's GSA Professional Services Schedule (PSS) pricing was used in the original award and has already been determined by GSA as "fair and reasonable" (FAR 8.404(d)). The contractor did not request an adjustment in the rate.

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

The Government anticipates an award of the NDMS contract by September 2022. A competitive action could not be completed prior to that award for the reasons stated in paragraph 5.

Consequently, additional market research was not conducted.

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

The uniqueness of Rural Developments Single Family Housing rural locations adds to the challenge protecting the Governments investment. Market Research reflected no proven nationwide vendors with appropriate sub-contractor network to handle the property preservation for this bridge contract. The Government would incur the burden of training it’s staff on new systems and processes only to retrain once the NDMS is awarded.

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

There were no sources sought or 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.

These services are included in a competitive solicitation currently in the NDMS posted draft RFP

(12SAD222R0001).

DEMETRI HARPER HARPER

Digitally signed by DEMETRI

Date: 2022.03.15 09:06:28 -05'00'

JAMES SOWDEN SOWDEN

Digitally signed by JAMES

Date: 2022.03.15 14:09:55 -07'00'

Certifications & Approvals

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

Demetri Harper Acquisition Program Manager, Business Center, Servicing Office

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

Additional Reviews & Approvals

Signatures are required at each threshold up to the total estimated dollar value of the acquisition

Advocate for competition for the procuring activity (if over $750,000, but not exceeding $15 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Therefore, unless additional approvals are required as prescribed below, as advocate for competition for the procuring activity, I hereby approve this justification.

Lori Lloyd

MASCO

Procuring Activity Advocate for Competition

Head of the procuring activity (if over $15 million, but not exceeding $75 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as Head of the Procuring Activity, I hereby approve this justification.

Donald W. Baker, Jr.

Deputy Director Head of the Procuring Activity United States Department of Agriculture