JOFOC_for_Olympics_Accommodations.docx

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

ACQUISITION OF HOTEL ACCOMMODATIONS IN SUPPORT OF SENIOR HIGH LEVEL USG VIP VISIT

1. It is recommended that the Department of State use other than full and open competition for the acquisition of hotel rooms for this Senior High Level USG VIP visit. The estimated cost is $250,000.

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

Acquisition of hotel accommodations for a Senior High Level USG Principal traveling with a delegation inclusive of support elements in security, communications, logistics, and operations.

3. A description of the supplies or services required to meet the agency’s needs.

KR Hospitality & Events Co. Ltd Gangneungsi, Gangwondo, Korea 100 hotel rooms required from approximately February 1, 2018 through February 12, 2018.

4. An identification of the statutory authority permitting other than full and open competition

41 U.S.C. 253 (c) (2), FAR 6.302-2; Unusual and Compelling Urgency; (Based on the available time and urgency of the requirement as detailed below).

Security concerns prohibit sufficient advanced notification of VIP travel to allow for sufficient time to conduct full and open competition. The Department of State can only communicate with the staff at Posts abroad when authorization is given due to security concerns. As a result, Posts have an extremely short turnaround time when authorization has been granted for negotiations to commence and site selections to be finalized with both the local vendors and Posts before the actual Senior High Level USG VIP visit occurs. Security and logistical teams make determinations during the site survey as to which hotels are most suitable for the Senior High Level USG VIP and his traveling staff to remain overnight. Considerations of the Senior High Level USG Principal and the location are determining factors in the final decision.

The types of events, meetings, locations and availability of venues to support the Senior High Level USG VIP and the delegation are often times designated by the host countries.

Unique requirements for communications support are under severe time limitations and always a determining factor in the selection process as its capacity to be augmented to the unique requirements necessary to support certain Senior High Level USG Principals.

Many of the arrangements for hotel and transportation are often not confirmed until just before the actual visit. In addition to supporting a large delegation within a short time frame, last minute and frequent changes of itineraries for supporting personnel often result in significant changes in how Posts work with the vendors. With the exception of a few trips, contracts are not permitted to be signed until the Department of State (Post) has written confirmation from all supporting agencies, which enables collection of funds from said agencies in the event of cancellation. This results in an unusual and compelling urgency in accordance with 41 U.S.C. 253 (c) (2), FAR 6.302-2.

These unique Senior High Level USG VIP travel requirements result in only a single or a very limited number of responsible sources with no other supplies or services capable of satisfying agency requirement in accordance with 41 U.S.C. 253 (c ) (2), Far 6.302-2.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

2018 Winter Olympic Games will be held in Republic of Korea from February 9, 2018 through February 25, 2018 at Pyongchang and Gangneung City, approximately 120 miles from Seoul. Due to the influx of VIP delegations from participating counties, accommodations availability at the game venues is extremely limited. KR Hospitality & Events Co., Ltd. provides professional lodging services with proven track record, and is the only contractor that has secured sufficient number of rooms at the location that meet the USG needs and is willing to comply with the terms and conditions of USG-issued contract.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Due to urgency and exception in FAR 25.401(a)(5) this solicitation cannot be posted but the JOFOC will be published in FedBizOpps.

Twenty-two hotels and lodging services were contacted during the market survey. Most indicated that room availability and event space were unavailable and security requirements were deemed insufficient. Furthermore, most hotels required advance payment for the full price of the hotel rental upon signing of the contract and indicated that they could not accept U.S. Government purchase orders and the terms of payment. Most hotels were not registered in SAM.

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

During the market research, 22 hotels and lodging services in the area where the Olympics venues are located, and all offered comparable standard room rates ranging from $350 to $700 per night. However, most of the hotels contacted did not have room availability that meets the USG requirements. The Contracting Officer determines that accommodations provided by KR Hospitality & Events Co. is cost effective and the quoted price is fair and reasonable.

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

None.

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

None.

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

None.

CERTIFICATIONS

I certify that the information in this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition to the best of my knowledge and belief.

I certify that this justification is accurate and complete to the best of my knowledge and belief. Based on my assessment, I conclude that other than full and open competition is justified and the proposed price is fair and reasonable.

Contracting Officer