JA Sole Source ORR Property Storage at Starr__Redacted.pdf

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FEDERAL

ACQUISITION REGULATION (FAR) 13.5

On the basis of the following justification, I, as the Contracting Officer hereby approve the use of a sole-source proposed contractual action pursuant to the authority of 41 U.S.C.

1901 and 41 U.S.C. 3304(a)(1).

Procurement Request Number: ACF294008

1. Identification of the agency and contracting activity, and specific identification of the document as a “Sole Source Justification Under Simplified Procedures for Certain Commercial Items (Federal Acquisition Regulation (FAR) 13.5)”

The U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF), Office of Refugee Resettlement (ORR) and Government Contracting Services (GCS), proposes to enter into a sole-source contract with Starr Commonwealth under simplified procedures for certain commercial items included in

FAR 13.5.

2. The nature and/or description of the action being approved, sole source under procedures for certain commercial items in accordance with FAR 13.5.

New action under FAR 13.5 for property storage facility at the Starr Commonwealth complex, located at 13725 Starr Commonwealth Road, Albion, Michigan 49224. A firm fixed price contract with a three (3) month base period and seven (7) option months for a total of ten (10) months is contemplated for this action.

3. A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

Secured 4,500 square feet of physical, temperature-controlled storage space for government property (UC hygiene kits, clothing items, etc.) remaining from the Starr Commonwealth Emergency Intake Site (EIS) in Albion, Michigan post-demobilization of operations.

Storage of government owned items at Starr’s Albion campus in the Building. Total = 4,522 sq ft. The contract would be a base of three (3) months and seven

(7) option months at a cost of $ a month. The three (3) month base would cost $ and the seven (7) month options would cost .

Base: May 1, 2022 – July 31, 2022 Option 1: August 1, 2022 – August 31, 2022 Option 2: September 1, 2022 – September 30, 2022

DEPARTMENT OF HEALTH & HUMAN SERVICES

Administration for Children Families

GOVERNMENT CONTRACTING SERVICES

https://www.acquisition.gov/far/part-13#FAR_Subpart_13_5 https://www.acquisition.gov/far/part-13#FAR_Subpart_13_5

Option 3: October 1, 2022 – October 31, 2022 Option 4: November 1, 2022 – November 30, 2022 Option 5: December 1, 2022 – December 31, 2022 Option 6: January 1, 2023 – January 31, 2023 Option 7: February 1, 2023 – February 28, 2023

4. The statutory authority permitting sole source.

FAR 13.501 Special Documentation Requirements, FAR 13.501(a)(1)(ii) Sole source acquisitions. Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. However, Contracting Officers must prepare sole source (including brand name) justifications using the format at 6.303-2, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C. 1901.

Simplified Acquisition Procedures.

(a) When Procedures Are To Be Used. To promote efficiency and economy in contracting and to avoid unnecessary burdens for agencies and contractors, the Federal Acquisition Regulation shall provide for special simplified procedures for purchases of property and services for amounts-

(1) not greater than the simplified acquisition threshold; and

(2) greater than the simplified acquisition threshold but not greater than $5,000,000 for which the contracting officer reasonably expects, based on the nature of the property or services sought and on market research, that offers will include only commercial products or commercial services.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

In support of the Unaccompanied Children's (UC) program, the Office of Refugee Resettlement (ORR) opened the Starr Emergency Intake Site (EIS) in Albion, Michigan to support an influx of UC in the Summer of 2021. The Starr EIS operation was demobilized in and a significant amount of Government property remains to include children's shoes, clothing and hygiene items. This property remains useful for UC operations in other locations however, the additional facilities will not be available to receive this property until The contract will continue to store Government property at the Starr Commonwealth Facility’s specifically UC clothing, shoes, hygiene items and other needs for UC housed at an ORR facility.

Main Storage area with storage racks – 50’ x38’ = 1,900 sq ft Adjacent room with racks of shoes – 36’ x 21’ = 756 sq ft Small Storage Space attached to shoe storage room – 5’ x9’ = 45 sq ft Loading Dock Attic Area – 13’ x 21’ = 273 sq ft

Hygiene Products Room #1 (below loading dock storage attic) – 12’ x 10’ = 120 sq ft https://www.acquisition.gov/far/part-6#FAR_Part_6 https://www.acquisition.gov/far/part-6#FAR_6_303_2

Hygiene Products Room #2 (below loading dock storage attic) – 12’ x 10’ = 120 sq ft

Loading Dock area – 24’x 21’ = 504 sq ft Sensory Area 2nd Floor Storage (Attic) – 30’ x 34’ = 1,020 sq ft Square footage of the spaces in the Total = 4,522 sq ft

Maintaining the existing storage space at the facility alleviates the additional cost of moving and storing the items elsewhere until the future Government facility is available so the items will be moved once instead of multiple times. Maintaining the existing space also reduces the administrative cost of purchasing new property in support of UC Operations. ACF anticipates awarding lease agreements for Influx Care Facilities (ICF) in the stored items can then be packed and moved to the new sites. The contract which covers Starr services and demobilization activities expires on April 30, 2022 therefore a new vehicle needs to be in place and effective on May 1, 2022.

6. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The Contracting Officer anticipates prices will be fair and reasonable based on current storage price in the marketplace. The contract would be a base of three (3) months and seven (7) option months at a cost of $ a month. The three (3) month base would cost $ and the seven (7) month options would cost $ .

A review of commercial storage facilities was also conducted near within a five (5) mile radius of the The review identified six (6) facilities, four (4) had websites that provided pricing, size/capacity and availability information. Of the facilities reviewed, there were no available units and the largest unit size available amongst the facilities to rent was 300 square feet with an average price of $ per square foot. By signing the justification, the Contracting Officer anticipates the price to the government is expected to be fair and reasonable; the determination will be made using the FAR 15.404-1(b) price analysis techniques.

7. A description of the market research conducted and the results or the reason market research was not conducted.

Market research was conducted by reviewing potential sources on the HHS SBCX website as well as SBA’s Dynamic Small Business Search. Additionally, in accordance with non-competitive requirements, a notice of intent to sole source was posted on the Government's point of entry website, www.sam.gov. The search criteria included geographic region and NAICS.

A review of SBCX returned three (3) vendors under the applicable NAICS (493110 - General Warehousing and Storage; size standard: $30M); while a review of the SBA's website returned no vendors. Though covered under the NAICS the vendors were not located in the Michigan area and did not provide storage space but logistics planning services.

A review of commercial storage facilities was also conducted near Albion, Michigan, within a five (5) mile radius of the Starr Commonwealth facility. The review identified six (6) facilities, four (4) had websites that provided pricing, size/capacity and availability information. Of the facilities reviewed, there were no available units and the largest unit size available amongst the facilities to rent was 300 square feet with an average price of $ per square foot.

In response to the Notice of Intent posted on April 13, 2022, no responses were received capable of providing a comparable storage space for the property.

The current Contractor, Star Commonwealth, is the only suitable source capable of completing the tasks under the Scope of Work. The current Contractor can effectively mitigate concerns and ensure that with the demobilization of the site the Government can continue to store it’s UC materials until new sites come online. Once the new sites are on-line the material can be moved.

To contract for moving services and storage would not be cost effective to the government. The current contractor can store the items for up to 12 months at a cost of $ per month. Given the the Government will enter into a 10-month contract with the facility.

8. Any other facts supporting the use of sole-source.

In support of the Unaccompanied Children's (UC) program, the Office of Refugee Resettlement (ORR) opened the Starr Emergency Intake Site (EIS) in Albion, Michigan to support an influx of UC in the Summer of 2021. The Starr EIS operation was demobilized in and a significant amount of Government property remains to include children's shoes, clothing and hygiene items. This property remains useful for UC operations in other locations however, the additional facilities will not be available to receive this property until Therefore, the Starr facility presented the Government with the opportunity to keep the property in place in a 4,500 square foot temperature controlled, secured building until the property can be packed and moved for future use at future Government leased facilities.

9. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Starr Commonwealth, 13725 Starr Commonwealth Road, Albion, Michigan 49224.

10. A statement of any actions the agency will take to remove or overcome any future barriers to competition.

Consistent with the Competition in Contracting Act, full and open competition will be undertaken in future requirements for the U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF), Office of Refugee Resettlement (ORR) and Government Contracting Services (GCS), as similar future opportunities are available, such as the property packing and transportation requirement.

Certification

Acquisition Initiator:

I certify that the facts and representations under my cognizance that are included in this justification and that form a basis for this justification are complete and accurate.

Signature Date

Program Senior Official (or designee):

I certify that the facts and representations under my cognizance that are included in this justification and that form a basis for this justification are complete and accurate.

Reviews and Approval

Contracting Officer:

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