JOFOC Number 26-30_FSM_COMP-ADVOC_SIGNED.pdf

See Attached Exhibit 1

Program Office Certification. I certify that the information contained in this justification is accurate and complete to the best my knowledge and belief.

PART 2 - CONTRACTING OFFICER REVIEW AND CERTIFICATION

Contracting Officer Certification.

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

Justification for Other Than

Full and Open Competition

U.S. Department of Housing and Urban Development

Office of the Chief Procurement Office J&A 26-30

PART 1 - PROGRAM OFFICE RECOMMENDATION

I recommend the use of other than full and open competition for the acquisition of [describe services or supplies]

REO Field Service Manager (FSM) Contracts for Eight Areas Negotiations should be conducted with the following source(s)EL [provide names, addresses and points of contact; continue on separate sheets as needed]:

The estimated cost of this acquisition is: $ 170,829,743 The statutory exception which allows this use of other than full and open competition is [select one]:

Only one responsible source and no other supplies or services will satisfy agency requirements - 41 USC 3304 (a)(1) (see FAR 6.103-1)

E3 Unusual and compelling urgency - 41 USC 3304 (a)(2) (see FAR 6.103-2)

Industrial mobilization; engineering, developmental or research capability; or expert services - 41 USC 3304 (a)(3) (see FAR 6.103-3)

Authorized or required by statute - 41 USC 3304 (a)(5) (see FAR 6.103-5)

Public interest (NOTE: requires Secretarial approval and Congressional Notification) - 41 USC 3304 (a)(7) (see FAR 6.103- 7)

A description of the circumstances that support the use of the above statutory authority is attached and included as Exhibit 1 to this justification.

Provide additional justification and comments here. Continue on back as needed.

Head of Program Office [name]

Paul M. Olin Title/Name of Office:

Acting General Deputy Assistant Secretary for Housinc Date:

cilm/azu For additional information contact: Signature:

Name: Signature: Date:

Digitally signed by: CHARLES HOYLE

CHARLES DN: CN = CHARLES HOYLE C =

US O = U.S. Government OU =

Department of HOYLE Housing and Urban

Development Date:

2026.09.30 11:42:29 -04'00'

Charles W. Hoyle Jr. September 30 2026

Previous edition unusable Page 1 or 2 Form HUD-24012 (09/2026)

Contracting Officer

September 30 2026

Charls W. Hoyle Jr

CHARLES

HOYLE

Digitally signed by: CHARLES HOYLE

DN: CN = CHARLES HOYLE C = US O =

U.S. Government OU = Department of

Housing and Urban Development Date:

2026.09.30 11:40:37 -04'00'

Digitally signed by: NICOLE JACKSON

DN: CN = NICOLE JACKSON C = US O = U.S. Government

OU = Department of Housing and Urban Development, Office of the Chief Procurement Officer

Date: 2026.09.30 12:49:23 -04'00'

NICOLE JACKSON

Amber Jones Acting DCPO

Francine L. Hemphill CPO

Exhibit 1 Class Justification and Approval (J&A) Justification for Other than Full and Open Competition for

Field Service Management Services for Areas 3A/4A, 5A/8A, 1D, 2D, 4D/5D, 5P, 3S/5S, and 4S/6S

1. Identification of the agency and the contracting activity:

Agency: The U.S. Department of Housing & Urban Development, Washington D.C. Program Office: Office of Single-Family Housing, Office of Single- Family Asset Management Contracting Activity: Office of the Chief Procurement Officer, Atlanta Office -Southern Field Contracting Operations

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

HUD's Office of Single-Family Housing, Office of Single Family Asset Management has a need of unusual and compelling urgency to continue Field Service Management (FSM) services under FAR Overhaul 6.103-2 Other than Full and Open Competition (previously 6.302-2) to provide services for a base period of 12 months and 1 (one)- 12-month option period and the Option to Extend Services as per FAR Clause 52.217-8, for 6 (six) months. This is a hybrid (Fixed-Price and Cost Reimbursable Contract) Indefinite Delivery/Indefinite Quantity contract, as defined at Subpart 16.504 of the Federal Acquisition Regulation and in Section I, Clause 52.216-22, Indefinite Quantity, herein. Services provided by the Contractor under the contract shall be obtained as stated in HUDAR 2452.216-78, Ordering Procedures. The 3.12 Field Service Management Contracts are currently in option year 2. The current base contracts expire on November 1, 2026, and the current option 2 task orders ordering periods expire on February 15, 2027. Despite having remaining options for years 3 and 4, the Agency has concluded that it is in the Government's best interest not to exercise the next option for these areas due to the lack of performance resulting in: key vendors suspending operations because of outstanding client invoices, lack of property preservation and maintenance triggering property liens and blocking the marketing or sale of homes, and non-payments escalated to Congressional inquiries, putting the Agency's reputation and funding at risk.

The Agency plans to award sole source contracts by September 30, 2026, with a base period of performance from October 1, 2026, to September 30, 2027, which will include one (1) 12-month option period and the Option to Extend Services as per FAR Clause 52.217-8, for an additional six (6) months. This period of performance for the sole source contracts will ensure there is no lapse of service. This Justification and Approval (J&A) is being prepared because the relevant base contracts will expire on November 1, 2026, necessitating the award of follow on Contracts by that date to prevent any interruption in Field Service Management Services.

Areas:

Contract Area 3A/4A (IL, IN, & KY)

Contract Area 5A/8A (NC, SC, FL, PR, & VI)

Contract Area 1D (CO, NM, North TX, & UT)

Contract Area 2D (AR, KS, LA, MO, OK, & South TX)

Contract Area 4D/5D (WI, IA, NE, SD, WY, MT, ND, & MN)

Contract Area 5P (PA, WV, VA, MD, DE, & DC)

Contract Area 3S/5S (AZ, CA, HI, & GU)

Contract Area 4S /6S (ID, NV, OR, WA & AK)

The Federal Housing Administration (FHA), an organizational unit within HUD, administers the Single-Family mortgage insurance program. FHA insures approved lenders against the risk of loss on loans they finance for purchase or rehabilitation. When a borrower defaults on an FHA insured loan, the lender acquires title to the property by foreclosure, a deed-in-lieu of foreclosure, or other acquisition method, files a claim for insurance benefits, and conveys the property to HUD.

The FSM contractors provide vital property preservation and protection services for REO properties.

HUD has a critical need to award new contracts without delay in the referenced areas as a discontinuation in services would result in prolonged unoccupied assets posing increased risk of adverse occupants, theft, and vandalism, which in turn may result in blight on the communities in the specified areas. The FSM contractors service and repair REO properties into ready-to-show condition, which allows another contractor to market the properties for sale. If a contract is not awarded in time with a base period of 12 months and 1 (one)- 12-month option period and the Option to Extend Services as per FAR Clause 52.217-8, for 6 (six) months. HUD may accrue a substantial amount of holding costs.

The follow on contracts will involve no changes to the core services performed under the current contracts.

HUD intends to hold a full and open competition to replace the 3.12 FSM IDIQ contracts in Fiscal Year 2027 to ensure the new FSM contract iteration will take place before the end of the subject Contracts.

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

Subject to approval of this J&A action, the Atlanta contacting office plans to hold a limited sources competition to three vendors whose past performance indicates that they are capable of performing Field Service Management Services with minimum start up time to avoid a break in service. The incumbent contractors will continue performance for option 2 in the eight (8) contract areas through February 15, 2027, and option 3 will not be exercised. The new contracts for these areas are a temporary measure urgently needed to avoid a break in services and serious injury to the government. The contracts, which operate nationwide, have critical functions necessary to place and maintain properties in Ready-to-Show condition, perform inspections, secure properties, mitigate health and safety hazards, manage preservation activities, and provide continuous maintenance until disposition. A lapse in these services will result in additional holding costs. The performance period for the base contract will be from October 1, 2026, through September 30, 2027, which will include one (1) 12-month option period and the Option to Extend Services as per FAR Clause 52.217-8, for an additional six (6) months.

The Office of Single Family Housing estimates that the performance period from October 1, 2026, to September 30, 2027, which will include one (1) 12-month option period and the Option to Extend Services as per FAR Clause 52.217-8, for an additional six (6) months, for all contract Areas detailed below is estimated to be $170,829,743.00. Details per contract Area(s) are as follows:

Contract Areas Combined Estimated Value of All New Contracts per Area

3A/4A $16,353,080.00

5A/8A $25,754,300.00

1D $15,873,014.00

2D $38,419,043.00

4D/5D $9,150,587.00

$33,179,510.00

3S/5S $21,264,833.00

4S/6S $10,835,376.00

4. The statutory authority permitting other than full and open competition:

41 USC 3304 (a)(2) see Unusual and compelling urgency FAR Overhaul

6.103-2.

5. Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited:

The current base contracts expire on November 1, 2026, and the current Option 2 Task Orders will expire on February 15, 2027. Performing a limited competition and awarding new contracts for 12-months and one (1) 12-month option period and the Option to Extend Services as per FAR Clause 52.217-8, for an additional six (6) months under FAR Overhaul 6.103-2 will allow the Agency time to solicit and award the next iteration of the Field Service Management Services IDIQ. In the absence of awarding these new contracts, HUD will have a break in service that will trigger severe financial, legal, and community-level consequences for the Agency. Unmaintained homes suffer rapid physical decline, decreasing the final resale value. Missing deadlines result in denied claims or delayed property transfer. Increased repair costs due to minor unaddressed problems such as a small roof leak or un-winterized pipes escalate into major structural water damage or mold.

The Performance Work Statement also requires the contractors to maintain a fully staffed and equipped office within the HOC jurisdiction. Market research indicates that the recommended contractors, Alpine Companies Inc., P.K. Management, Inc., and A2Z Field

Services, are uniquely capable of meeting the PWS requirements. This determination is based on a comprehensive review of recent capability matrices, and close at hand past performance data. These companies have experience performing in this capacity and have the necessary office space, access to staffing, and resources to provide these services immediately across the geographic areas without significant schedule delays and startup costs. Other contractors may have prolonged delays with set up and may have issues dealing with on-boarding new employees and sub-contractors that have the resources and knowledge to begin work immediately. Therefore, the recommended contractors have unique capabilities to perform these services within the time frame required with no interruption to HUD's mission.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as possible, including whether a notice was or will be publicized as required by part 5 and, if not, which exception under part 5 applies.

HUD has taken reasonable steps to obtain competition to the maximum extent practicable. On July 2, 2026, the Contracting Office conducted market research by issuing a Sources Sought Notice directly to five companies that HUD believed may possess the capability and experience necessary to perform the FSM requirement.

The Sources Sought Notice included specific questions designed to assist HUD in determining whether the companies had experience performing services comparable to HUD's FSM requirement, possessed the organizational and staffing capacity necessary to handle the anticipated volume of work, and could mobilize and begin performance immediately or with minimal startup time.

On July 13, 2026, all five companies responded to the sources sought.

Following the review of the responses, the Government determined that three of the companies appear capable of successfully performing the required services with minimal transition time due to their demonstrated experience managing similar contracts. These three companies also demonstrated that they have an established office location, existing staffing resources, and the ability to recruit additional personnel necessary to perform the anticipated volume of FSM services.

To maximize competition while satisfying the urgent requirement, HUD intends to conduct a limited sources competition among those contractors that have demonstrated relevant past performance and the operational capability to assume performance with minimal startup time.

Limiting the competition to companies that have demonstrated relevant FSM experience, adequate infrastructure, staffing capability, and the ability to rapidly mobilize is necessary to minimize the risk of a lapse in services and resulting harm to HUD-owned properties and the FHA insurance fund_

A notice will not be published regarding the contracts as required by Subpart 5.1 pursuant to FAR Overhaul 5.101(b)(2) due to the proposed action being made under FAR Overhaul 6.103-2. The Contracting Officer shall post this justification on the Government-Point-of- Entry, known as SAM.GOV.

http://sam.gov/

7. A determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable:

The Contracting Officer has determined that the anticipated prices will be fair and reasonable by making a comparison of current contract pricing, previous Government contracts prices for like services, and proposed prices with the Independent Government Cost Estimates (IGCE).

8. A description of the market research conducted (see Part 10), and the results or a statement of the reason market research was not conducted:

Market research was conducted in accordance with FAR Part 10 to identify potential companies capable of fulfilling the requirement within the limited timeframe available.

The Government issued a Sources Sought Notice to five companies identified as having experience performing similar Field Service Management services.

All five companies submitted responses to the sources sought and answered HUD specific questions that were asked about their capability. The Government reviewed each submission based on conflicts of interest, obtaining financial securities, fully equipped and staffed office in the required geographic areas, having staff available to oversee properties in the required areas, ability to hire/recruit, and demonstrated experience with the number of Real Estate properties they provided Property Preservation, Maintenance, and Protection for. The responses were also evaluated to ensure no conflict of interest that could impact performance existed.

The market research and HUD's available performance information concluded that three companies possess the demonstrated experience and infrastructure necessary to begin performance with minimal startup time and limited operational risk. The results of this market research support conducting limited competition among these companies while satisfying the urgent requirement for uninterrupted Field Service Management services.

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

If contracts are not awarded for these areas the Government would be harmed significantly by a break in service. The cost of not being able to list newly acquired REO/HV inventory for 30 months (12-month base + 12-month option + 6 months under FAR 52.217-8) across the eight contract areas is approximately $126.3 billion in holding costs. In addition, this estimate does not account for the potential vandalism and blight to communities resulting from not performing property preservation/maintenance, and protection (P&P) on existing REO inventory or newly assigned and existing custodial properties.

10. A listing of the sources, if any, that expressed, in writing, any interest in the acquisition:

The following companies expressed interest in writing after the Agency conducted market research and sent them a Sources Sought Notice:

P.K. Management Group, Inc.

Alpine Companies, Inc., Altisource Solutions, Inc.

Vendor Resource Management, Inc., dba VRM Mortgage Services A2Z Field Services

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

The Government intends for this acquisition to serve as an interim solution to prevent a lapse in mission-critical services. During the period of performance, HUD anticipates completing acquisition planning, solicitation, and awarding a future competitive procurement that will provide all responsible sources an opportunity to compete. The use of FAR Overhaul 6.103-2 is limited solely to addressing the current urgent requirement and is not intended to unnecessarily restrict future competition.

12. As the Contracting Officer, I certify that this justification is accurate to the best of my knowledge and belief.

The contact information for the limited sources is as follows:

Albert Martinez, Chief Operating Officer P.K. Management Group, Inc.

2100 Coral Way, Suite 604 Miami, FL 331

Email address: amartinez@pkmg.net Phone: 786-507-6020 ext. 1423

April Cooper Alpine Companies, Inc.

121 N Main St.

Alpine, UT 84004 Email address: april@alpinecompaniesinc.com Phone: 801-836-1111

Arnie Sparks-Beebe, CEO & President A2Z Field Services 7450 Industrial Parkway, Suite 105 Plain City OH 43064 Email address: asparks@a2zfs.com Phone: 614-288-3888 mailto:amartinez@pkmg.net mailto:april@alpinecompaniesinc.com mailto:asparks@a2zfs.com