Justification_redacted.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

The following facts and rationale justify the basis for an exception to fair opportunity following the requirements of FAR 16.505(b)(2)(ii).

1. I recommend that the Federal Housing Finance Agency (FHFA), Office of the Chief Financial

Officer (OCFO), on behalf of the Office of Facilities Operations Management (OFOM), use an exception to fair opportunity procedures in the acquisition of a Copier Lease Extension. The estimated price, including any options, is $ based on a two-year lease extension.

2. Nature and/or description of the action being approved. This will be an extension of the current firm-fixed-price Delivery Order 95314323F2008 under National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V. The anticipated period of performance for the two-year lease extension is 02/01/2026 to 01/31/2028 with maintenance through 12/31/2027. As this is an extension of FHFA's current copier lease, the identified vendor is: Alvarez, LLC (Alvarez), SAM UEI: Y928UVG75CT6.

3. A description of the supplies or services required to meet the agency’s needs. FHFA’s OFOM has a requirement for a two-year lease extension of FHFA's current copiers. FHFA currently leases twenty-eight (28) Konica copiers from Alvarez. The current copier lease expires 01/31/2026. With the extension, FHFA anticipates returning approximately four (4) copiers. The copiers provide vital printing, copying, and scanning functionality to all on-site FHFA staff.

4. An identification of the exception to fair opportunity and the supporting rationale.

41 U.S.C. § 4106(c)(2); FAR 16.505(b)(2)(i)(B). Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

FHFA returned to full time, in office operations in February 2025 and is currently in a post-transition phase, continuing to evaluate and adjust its space utilization, staffing levels, and organizational footprint. As these adjustments progress, the agency’s future copier requirements, including both the number of devices and anticipated print volumes, remain uncertain. FHFA estimates that it will require at least two years to fully assess its long-term space configuration and corresponding copier capacity needs.

Because these conditions make it impossible to accurately determine the appropriate quantity, configuration, and placement of equipment for a new five-year lease, a two-year lease is the only viable option that aligns with FHFA’s current operational environment. However, the open market does not generally offer cost effective or resource efficient leasing options for a two-year term. Such short-term leases are considered specialized arrangements, typically resulting in significantly higher pricing, and therefore do not present a practical or economical alternative for FHFA at this time.

Given these constraints, the only feasible path forward is a two-year extension of the existing lease. FHFA currently leases its copiers through Alvarez. The original RFQ that resulted in the award to Alvarez in 2017 provided a fair opportunity for all small business awardees under NASA SEWP V. Alvarez has met all performance requirements and continues to provide reliable equipment and support. Extending the existing lease with the incumbent vendor is therefore the most cost-effective and operationally sound solution.

Transitioning to a new contractor or new devices during this interim period would require substantial reconfiguration, integration efforts, and onboarding costs, while also presenting a significant risk of operational disruption. Because the agency’s long-term requirements are not yet established, such a transition would be premature and fiscally imprudent.

The copiers were previously extended for a three-year term under the expectation that FHFA would have greater clarity on its future needs by the end of that period. However, due to ongoing changes in space utilization and staffing, FHFA has determined that a further two-year extension is necessary. This extension will bridge the gap until fiscal year 2028, when FHFA anticipates initiating a new, fully competed lease after the current equipment reaches end of life on 12/31/2027.

In conclusion, FHFA seeks an exception to fair opportunity to execute a two-year extension to its existing copier lease with Alvarez. This approach represents the only practical and cost-effective means of maintaining continuity of services while providing the necessary time for FHFA to fully assess its space and copier capacity requirements and make data driven decisions regarding its future enterprise copier solution.

5. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. In accordance with FAR 16.505(b)(2)(ii)(B), the contracting officer has made the determination that the anticipated cost to the Government will be fair and reasonable.

Additionally, NASA SEWP V has already determined the prices on contract to be fair and reasonable.

6. Any other facts supporting the justification.

Market research indicates that vendors typically charge the same pricing for a new five-year copier lease as for a new two-year lease. Because equipment is amortized over the full expected life of the devices, vendors typically do not reduce pricing for shorter terms, making a two year lease a specialized product. As a result, recompeting the requirement for a two-year term would not provide pricing benefits and may not attract meaningful competition.

FHFA also determined that transitioning to new copiers at this time would create unnecessary sunk labor costs. Replacing the existing equipment would require extensive internal effort for removal of current devices, delivery and installation of new units, configuration and integration with FHFA's systems, and agency wide user coordination. These activities require substantial time from information technology, facilities, and acquisition personnel. All of these costs and disruptions can be avoided by extending the current lease on the equipment already installed and in full working order.

FHFA explored the option of renting equipment, but rental units are subject to availability and are typically drawn from mixed fleets that may not match the performance or configuration of the copiers currently in use. Even if appropriate rental devices were available, FHFA would still incur the same sunk costs associated with removal of the existing machines, installation of the rental units, and configuration for network and security compliance. Bringing temporary devices into the environment would also trigger additional information technology security reviews and approvals.

By retaining the current machines, all of these considerations become irrelevant, making an extension of the current lease the only practical and cost-conscious option.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made. The Agency anticipates that the subsequent new copier lease will be competed under NASA SEWP VI. The current copiers reach end-of-life 12/31/2027. FHFA will need to enter into a new copier lease in FY 2028.

CERTIFICATIONS

I certify that this justification is accurate and contains complete data necessary to support the recommendation for an exception to fair opportunity.

Rodeaster Robinson Jr.

Inventory Management Specialist Requirements Office

I certify that this justification is accurate and complete to the best of the Contracting Officer’s knowledge and belief. Also, I hereby (1) determine the circumstances cited as the statutory authority apply to this action, (2) determine the anticipated cost to the government will be fair and reasonable, and (3) approve this action.

Laura Baker Contracting Officer

I determine that this submission is legally sufficient to support an exception to fair opportunity procedures.

Carly Malamud Senior Counsel Office of General Counsel

RODEASTER

ROBINSON

Digitally signed by

RODEASTER ROBINSON

Date: 2025.12.12 03:19:36 -05'00'

LAURA BAKER

Digitally signed by LAURA

BAKER

Date: 2025.12.12 07:32:59 -05'00'

CARLY

MALAMUD

Digitally signed by CARLY

MALAMUD

Date: 2025.12.12 07:56:08 -05'00'