JOFOC_Sydney_071614.docx

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 for this VIP visit. The estimated cost is AUD$277,493.00 (US$260,703.63).

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

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.

The Government’s estimated needs for this visit include the following:

a) InterContinental Sydney Hotel, located at 117 Macquarie Street, Sydney NSW 2000 and;

b) Lodging rooms – approximately 816 room nights;

c) Function space for vehicle dispatch – 11 days.

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 between the granting of authorization to commence negotiations, finalization of site selections with both the local vendors and Posts, and the occurrence of the actual 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 VIP 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.

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.

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

Shangri-La Sydney: insufficient room availability for the required dates.

Sofitel Sydney: insufficient capacity to meet required room numbers. However, the Sofitel is being used to host another high-level U.S. delegation and is logistically closer to the InterContinental Sydney Hotel and, therefore, more conducive for the movement of U.S. delegations to common meeting facilities.

Park Hyatt Sydney: The Australian government suggested the use of the Park Hyatt hotel, an upscale establishment in the northern section of Sydney’s Central Business District (CBD) and adjacent to Sydney Harbor. The Park Hyatt hotel has never been utilized by Mission Australia for a for a Senior High Level USG VIP visit. The venue has virtually one way in and one way out resulting in access issues, increased congestion and little room to stage motorcades. The New South Wales (NSW) Police Force does not recommend utilizing this hotel for Senior High Level USG VIP visitors in Sydney.

After consultation with our Regional Security Office staff and the Australian law enforcement officials, we have determined that the InterContinental Sydney Hotel is a preferred choice for a number of security and logistical reasons, as follows:

The InterContinental Sydney Hotel has several access options, including an underground passage.

The InterContinental Sydney Hotel and its staff have repeatedly demonstrated their ability to meet the security expectations of high-profile dignitaries.

Having hosted several Senior High Level USG VIP visitors, the InterContinental Sydney Hotel already has much of the IT & communications infrastructure in place to support this visit.

It should be noted that the visit is scheduled to take place during the World Congress of the International Union of Angiology (1,000 delegates). The proposed arrival coincides with Sydney’s premier running event – City 2 Surf – expected to attract 20,000 competitors and an international soccer game expected to attract 80,000 fans. The busiest day is Sunday, August 10. Room build up requirements mean that many of the hotels simply do not have rooming capacity or would not allow the USG to secure a room block for the duration required.

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

The determination was made by the Contracting Officer based upon a range of recent pricing inquiries submitted to other hotels in Sydney’s CBD for a similar number of rooms during the same visit timeframe. In reviewing the responses received from those other hotels, the prices provided by the InterContinental Sydney Hotel fell near the low end of the range. Given the superior security, access options, the InterContinental Sydney Hotel’s experience with Senior High Level USG VIP visits, and room availability (most of the hotels contacted could not supply the required numbers of rooms), we conclude that the InterContinental Sydney Hotel is the most cost-effective option available, and that the anticipated cost to the Government will be fair and reasonable.

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

Room availability and pricing was thoroughly canvassed prior to the proposed decision on the location for this senior high level USG VIP visitor. When Sydney was announced as the location for this particular event, there was simply no time to issue a RFQ. Post had to move quickly to secure room blocks during one of the busiest times in Sydney.

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.

Taking into consideration the relatively short lead time, extremely high occupancy rate of Sydney hotels, our need for top five-star accommodations and the limitations imposed on our choice of hotel venue by the need for the best possible security arrangements, it was not possible for this contract to be conducted under circumstances of full and open competition.

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.

Director

S/ES-EX

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 U.S. Consulate Sydney

DETERMINATION OF FAIR AND REASONABLE PRICING

Contracting Officers must determine that the proposed prices for hotels and conference accommodations are fair and reasonable. A fair and reasonable price is one that a prudent and competent buyer would be willing to pay considering market conditions such as supply and demand, competition, and general economic conditions.

The price of the hotel accommodations are considered fair and reasonable based on the following price analysis

[X] Comparison with Other Hotel Room Rates: I reviewed the rates of comparable hotels and/or conference accommodations and these rates are reasonable in comparison.

[X] Comparison with Market Prices: I compared the present accommodation rates to the rates this hotel charged in the past competitive environment and found them to be reasonable.

[ ] Per Diem Comparison: The hotel room rates are reasonable based on comparison with the approved per diem rates for this country.

[ ] Compensation for Security Accommodations: The hotel included additional expenses for security needs. Security personnel concur that these measures are necessary and reasonable. These charges are similar to those encountered for other VIP visits.

[ ] Restricted Competition: The hotel prices are higher than normal market due to the restricted competition created by unique security needs.

[ ] Comparison with Government Estimate: The proposed hotel and conference rates are reasonable based on comparison and analysis of the government estimate by the office of Presidential Travel Support (A/PTS).

RESPONSIBILITY DETERMINATION

Contract Number: TBD

Contractor Name: InterContinental Sydney Hotel

In accordance with FAR 9.104-1, the contractor is determined to be responsible after consideration of the following:

(a) Financial Resources. The contractor appears to have adequate financial resources to perform the contract, or the ability to obtain them. This hotel has been a going concern in this country with adequate business.

(b) Compliance with Performance Schedule. The contractor appears to be able to meet the required performance schedule. Rooms and facilities have been determined to be available and adequate for this event.

(c) Performance Record. The contractor has a satisfactory record of performance history. Post has used this hotel before and is familiar with the hotel’s reputation for performance.

(d) Integrity. The contractor has a satisfactory record of integrity and business ethics. Post is unaware of any issues relating to integrity or business ethics.

(e) Organization and Skills. The contractor appears to have the necessary organization, experience, accounting and operational controls, and skills (or the ability to obtain them) to perform this contract.

(f) Equipment and Facilities. The contractor appears to have the necessary equipment and facilities necessary for this contract, or the ability to obtain them.

(g) Otherwise Qualified. The contractor is otherwise qualified and eligible to receive an award under applicable laws and regulations. The firm is not found to be on the Excluded Parties List dated 07/01/2014 and FAPIIS list dated 07/01/2014. Copies of the SAM and FAPIIS reports are attached.

Contracting Officer Name Signature Date