JOFOC HOTELS NATO MADRID V3.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION, PRICE JUSTIFICATION

(JOFOC)

ACQUISITION OF HOTEL ACCOMMODATIONS IN SUPPORT OF SENIOR HIGH

LEVEL USG VIP VISIT

1. I recommend that the Department of State use other than full and open competition for the acquisition of hotel rooms during the entire Advance Team and VIP visit. The estimated cost is Euros 2,470,086.40 (approximately $2,744,540.45) and the not to exceed amount is Euros 4,620,000.00 (approximately $ 5,133,333.34) . These totals will result in seven different contracts as shown below.

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

Acquisition of lodging is required for the various agencies providing support to the USG VIP Visit in connection to the NATO summit to be held in Madrid on June 29-30, 2022.

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

Hotel Intercontinental Castellana – Estimated €991,377.25, NTE €1,200,000.00 Hotel Westin Palace Madrid– Estimated €586,894.00, NTE €1,700,000.00 Hotel Barceló Emperatriz – Estimated €88,150.86, NTE €400,000.00 Hotel Meliá Madrid Serrano – Estimated €419,796.01, NTE €550,000.00 Hotel NH Collection Madrid Eurobuilding – Estimated €222,396.96, NTE €400,000.00 Hotel Meliá Castilla – Estimated €41,471.32, NTE € 170,000.00 Hotel Hyatt Regency Hesperia Madrid – Estimated €120,000.00, NTE €200,000.00

These hotels are not found to be on the Excluded Parties List dated March 17, 2022 and FAPIIS list dated March 17, 2022.

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

[X] 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. They 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. Consideration of the Senior High Level USG Principal and the location are taken into consideration as a determining factor.

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.

Security and logistics are the Department of State’s primary considerations when procuring hotel rooms. The Department of State must be able to provide a safe and secure environment for VIP visitors. Frequently VIP visits are not announced or confirmed in sufficient time to conduct a competition, creating an urgent and compelling need. At other times, the security requirements and/or requirements of the host country government limit the acquisition to one or a small number of predetermined hotels.

[X] The VIP visit information was not available in sufficient time thereby creating an urgent and compelling need.

[ ] The host country government requires the use of this/these hotel(s).

[X] The proposed contractor has the following unique qualifications which meet the Department of State’s security and logistical requirements.

[ ] Set-back (hotel is safe distance from the street)

[X] Location (able to secure building, travel route; distance to and from event) [X] Size and number of rooms (able to house everyone in one hotel) [ ] Conference facilities (adequate space for meetings, press conferences) [X] Communications (able to install equipment/lines, command center)

[X] Accommodating to security needs

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 16.505(b)(2)(i)(A) this solicitation cannot be posted but the JOFOC will be published in SAM.gov.

The following other hotels were reviewed but were not adequate because of the following:

a) Four Seasons. Hotel location is convenient but the hotel did not have enough rooms to accommodate the USG needs. In addition, rooms prices were significantly higher than the rates proposed by the selected hotels.

b) Villamagna Hotel. Hotel location is convenient but the hotel did not have enough rooms to accommodate the USG needs. In addition, rooms prices were significantly higher than the rates proposed by the selected hotels

c) Ritz Hotel. – Hotel location is convenient but the hotel did not have enough rooms to accommodate the USG needs. In addition, room prices were significantly higher than the rates proposed by the selected hotels.

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

Hotel Rooms/Cost per night € Suites/Cost per night €

Presidential Suites/ Cost per night €

Royal/Insignia Suites/Cost per night

Hotel Four Seasons 990.00 1980.00 N/A 26,400.00 Hotel Ritz Mandarin Oriental

891.00 2,134.00 12,232.00 18,766.00

Hotel Villamagna 627.00 924.00 N/A 22,000.00 Hotel Intercontinental Castellana

467.00

467.00

1,265.00 12,650.00

Hotel Westin Palace 440.00 4,400.00 8,800.00 16,500.00 Hotel Barceló Emperatriz

300.00 N/A N/A N/A

Hotel Meliá Madrid Serrano

315.00 N/A N/A N/A

Hotel NH Collection Madrid Eurobuilding

297.00 N/A N/A N/A

Hotel Meliá Castilla 250.00 N/A N/A N/A Hotel Hyatt Regency Hesperia Madrid

300.00 N/A N/A N/A

Based on cost comparison among all selected hotels, the Contracting Officer determines that the rates offered are fair and reasonable, and in the best interest of the USG.

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.

Post is considering competing various indefinite delivery/indefinite quantity contracts for hotel rooms to be utilized for VIP and special events for base plus multiple option years

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.

June 23, 2022 ___________________ Date: Phong C Ngo Director PTS

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.

June 23, 2022 _____________________ Date: James P. Clarkson

Contracting Officer

As the Competition Advocate at post, I approve this justification:

June 23, 2022 _____________________ Date: Joseph Bedessem

Management Officer