Justification for Other Than Full and Open Competetion JOFOC JA2304 11_30_2022.pdf

Alternate Competition Advocate 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: 2022.11.29 07:53:13 -05'00'

NICOLE JACKSON

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, 6A, 7A, 8A, 1D, 2D, 4D, 5D, 1P, 3P, 4P, 5P, 3S/5S 4S, and 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 Asset Management has a need of unusual and compelling urgency to extend current Field Service Management (FSM) contract/services under FAR 6.3, Other than Full and Open Competition, to provide full FSM services for two (2) months. Each of the seventeen (17) contract areas’ current period of performance expires on November 30, 2022, and will be extended through January 31, 2023, to meet HUD’s requirements during the pendency of the corrective action on the post-award protests of the FSM

3.12 awards and any subsequent corrective action (if needed).

Contract Areas:

Contract Area 3A (IL)

Contract Area 4A (IN & KY)

Contract Area 5A (NC & SC)

Contract Area 6A (MS, AL, & TN)

Contract Area 7A (GA)

Contract Area 8A (FL, PR, & VI)

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

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

Contract Area 4D (WI, IA, NE, & SD)

Contract Area 5D (WY, MT, ND, & MN)

Contract Area 1P (MI)

Contract Area 3P (CT, MA, ME, NH, NJ, NY, RI, & VT)

Contract Area 4P (OH)

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

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

Contract Area 4S (ID & NV)

Contract Area 6S (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. In the event of a default 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. Because of acquisitions through the mortgage insurance program and other programs, HUD has a need to close and reconcile a sizable inventory of single-family homes in a manner that promotes home ownership, preserves communities, and maximizes return to the FHA insurance funds.

The FSM contractors provide vital property preservation and protection services. The previous contracts for the above-referenced areas expire on November 30, 2022. HUD has a critical need to extend the current FSM bridge contracts for an additional two (2) months without delay in the referenced areas as a discontinuation in services would result in HUD Real Estate Owned properties not being preserved/maintained and protected, which pose increased risk in adverse occupants, theft, and vandalism that can result in blight on the communities in which the properties are located. The holding costs associated with not awarding a two-month modification to the existing bridge contracts is approximately $91,955,643.00.

The extension modification(s) involve no changes to the core services performed under the current contracts.

The current contracts for the above-referenced area(s) expire on November 30, 2022. The FSM

3.12 awards were made on May 31, 2022, and June 14, 2022. The Agency received three (3) GAO protest on June 28, 2022. HUD has a critical need to modify its current bridge contracts to provide preservation and protection services for properties until the corrective action on the FSM 3.12 protests and any subsequent corrective action (if needed) are resolved.

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 incumbent contractors will continue performance in the seventeen (17) contracts through January 31, 2023, inclusive of a one month transition out period, if needed. The extension modifications for these contracts are a temporary measure urgently needed to avoid a break in services. Without a modification to the existing bridge contracts, there will not be sufficient time to complete the corrective action required due to the three (3) GAO protest(s) of FSM 3.12 contract awards.

The Office of Single-Family Housing estimates that the two (2) month extension for all contract Areas is $8,334,933. The total amount requested to cover the two (2) month extension modifications per contract Area is as follows:

Contract Area Estimated Value

3A $ 436,064.00 4A $ 243,057.00

5A $ 339,162.00

6A $ 570,589.00

7A $ 370,131.00

8A $ 956,993.00

1D $ 396,506.00

2D $ 1,101,280.00

4D $ 259,118.00

5D $ 264,854.00

1P $ 219,111.00

3P $ 952,617.00

4P $ 267,045.00

5P $ 1,080,514.00

3S/5S $ 565,689.00

4S $ 144,078.00

6S $ 189,125.00

Total $ 8,334,933. 00

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

41 USC 3304 (a)(2) (see FAR 6.302-2) Unusual and compelling urgency.

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

The filing of the GAO protests and the subsequent need to take corrective action resulted in an unusual and compelling urgency for the agency. While the agency has been working diligently on the corrective action, it is not yet complete. The current contracts will expire on November 30, 2022, and a procurement strategy to extend the current contracts for two (2) months will satisfy the agency requirements while the corrective action is finalized. In the absence of modifying the existing contracts, HUD will adversely impact stakeholders and increase losses to the FHA Insurance Fund. As indicated above, HUD has a critical need to extend the current FSM Bridge 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 results in blight on the communities in the specified areas.

Based on historical data, the average startup time for new contractors to complete transition-in activities and enter a given FSM market is at least 60 days. The period of performance under this extension is only (2) two months. The Performance Work Statement also requires the contractors to maintain a fully staffed and equipped office within the HOC jurisdiction. The incumbent contractors are currently performing in this capacity and have the necessary office space, staffing, and resources to provide these services immediately across the geographic areas without significant schedule delays and startup costs. Any new contractor would have to deal with the issues of on-boarding new employees and sub-contractors that have the resources and knowledge to begin work immediately. Therefore, the incumbent contractors have unique capabilities to perform these services within the time frame required with no degradation to HUD’s mission. The sources included at paragraph #10 will be the sources awarded under the

JOFOC.

6. A description of efforts made to ensure that offerors are solicited from as many potential sources as is practicable, including whether a notice was or will be published as required by Subpart, 5.2 and if not, which exception under 5.202 applies.

Offers were only solicited from the incumbent contractors, as the incumbent contractors are the only contractors with the capability to perform these services within the time frame required.

A notice will not be published for the contract modifications as required by Subpart 5.2 pursuant to FAR 5.202(a)(2) due to the proposed action being made under FAR 6.302-2. The Agency would be seriously injured if it complies with the time periods specified in 5.203, as complying with the requirements would result in a break in service. The Contracting Officer shall post this justification on the Government-Point-of-Entry, known as SAM.GOV.

The FSM 3.12 procurement strategy was Unrestricted. The FSM 3.12 solicitation closed on April 19, 2021 and allowed potential offerors to submit competitive proposals. Awards were made on May 31, 2022, and June 14, 2022. The Agency received three (3) GAO protest on June 28, 2022.

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

The Contracting Officer determined prices to be fair and reasonable on the current contracts. The extension modifications will be extended at the current unit prices.

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 not conducted because the current contracts are being extended to allow a short period of additional time to complete corrective action taken because of the three (3) GAO protest(s) on the FSM 3.12 awards. The Contracting Officer completed market research for the long-term FSM 3.12 procurement.

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

N/A

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

Atlanta HOC 3A – DGG/Guardian 4A – DGG/Guardian 5A – DGG/Guardian 6A – Innotion Enterprises 7A – Alpine Companies 8A – DGG/Guardian

Denver HOC 1D – DGG/Guardian 2D – DGG/Guardian 4D – DGG/Guardian 5D – DGG/Guardian

Philadelphia HOC 1P - DGG/Guardian 3P – DGG/Guardian 4P – BLM Companies 5P – BLM Companies

Santa Ana HOC 3S/5S - DGG/Guardian 4S – DGG/Guardian 6S – DGG/Guardian

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 Agency conducted extensive market research to remove or overcome any barriers to competition for the 3.12 FSM procurement.

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

13. The contact information for the limited sources are as follows:

Mr. Dan Leader DGG RE Investments, LLC 2300 E Lincoln Hwy, Langhorne, Pa 19047

Mr. Brent Martin BLM Companies, LLC 204 Playa Della Rosita Ste A Washington, UT 84780

Mr. Ryan Gesinski Innotion Enterprises, Inc.

10650 Main St #303 Fairfax, VA 22030

Ms. April Cooper Alpine Companies, Inc 121 N Main Street Alpine, UT 84004