Limited Source Justification Redacted_Redacted.pdf

Federal Supply Schedule (FSS) Limiting Sources Justification (LSJ)

Upon the basis of the following justification, prepared in accordance with Federal Acquisition Regulation (FAR) 8.405-6(c), it is hereby approved for the use of Limiting Sources in accordance with FAR 8.405-2, “Ordering Procedures for Services requiring a Statement of Work” pursuant to the authority of FAR 8.405-6(a)(1)(i)(A).

This acquisition is conducted under the authority of the Multiple-Award Schedule Program ( 41 U.S.C. 152(3), Competitive Procedures, and 40 U.S.C. 501).

1. FAR 8.405-6(c)(2)(i) - Identification of the agency and the contracting activity U.S. General Services Administration (GSA), Public Buildings Service (PBS), Pacific Rim Region 9, Acquisitions Management Division (AMD).

2. FAR 8.405-6(c)(2)(ii) - Nature and/or description of the action being approved This action is to award a Blanket Purchase Agreement (BPA) under the Federal Supply Schedule (FSS) for Operations and Maintenance and Vertical Transportation Equipment (O&M/VTE) at Ronald Reagan Federal Building (RRFB), 411 W. Fourth St, Santa Ana, CA.

The recurring service requirement will be awarded and funded as a Firm-Fixed Price (FFP) task order pursuant to Limiting Sources justification in accordance with FAR Part 8.405-6 in order to avoid a lapse in essential building services for tenants at the RRFB.

a. Relevant History:

Acepex Management Corporation (Acepex) was awarded BPA47PK0223A0001 on October 19, 2022, under Multiple Award Schedule 47QSHA19D001P for Operations & Maintenance and Vertical Transportation Services for the RRFB at 411 West Fourth Street, Santa Ana, CA 92701 in response to Request For Quotation (RFQ) 47PK0222Q0006. Acepex was determined to be the best value as they provided the lowest priced quote and met the technical requirements of the RFQ.

The BPA included a one (1) year Base Period with nine (9), one (1) year Option Periods. BPA Call Order 47PK0223F0004 was issued under the BPA on November 7, 2022, to fund the base period of December 1, 2022 – November 30, 2023. Option Period 1 was exercised as modification PS0001 to this BPA Call Order on November 6, 2023.

A Termination for Cause will be issued due to Acepex’s inability to provide “adequate assurances of future performance” as a result of the following as documented in the Termination for Cause Memorandum:

1. Non-payment of payroll and fringe benefits monies owed to Acepex employees

2. Non-payment to subcontractors performing preventative maintenance requirements of the BPA

3. Acepex's inability to provide a statement or accounting from a qualified individual, such as a CPA, to assure continued solvency and sufficient liquid assets to perform the requirements of this BPA.

In addition, Acepex notified GSA that they “will be declaring bankruptcy” on March 15, 2024.

As a result of Acepex’s inability to assure future performance, GSA must immediately put a bridge action in place to ensure continuation of the essential building services.

3. FAR 8.405-6(c)(2)(iii) - Description of the supplies and/or services required to meet the agency’s needs:

The Contractor shall provide management, supervision, labor, materials, equipment, and supplies (shipping & handling) and shall be responsible for the efficient, effective, economical, and satisfactory operation, scheduled and unscheduled maintenance, repair of equipment and systems, including vertical transportation and all related services located within the property line of the following location:

Ronald Reagan U. S. Courthouse & Federal Building (CA0295ZZ) 411 West Fourth St Santa Ana, CA 92701

Additional services may be ordered at the discretion of GSA for work relating to the operations, maintenance and repair or upgrade of the facilities listed above, but not covered in the basic services of the contract.

The period of performance will be approximately an eight (8) month Base period with one (1) one-year option and the inclusion of FAR Clause 52.217-8, Option to Extend Services not to exceed six (6) months.

The estimated total contract value of this bridge task order with base + 1 Option, a possible 6-month bridge, and estimated Above Standard service calls is shown in the table that follows.

Base: $1,244,273.07 Option 1: $1,284,384.23 6 mo. Extension: $642,192.11 Above Standard Services: $400,000.00 Anticipated Contract Value: $3,570,849.41

4. FAR 8.405-6(c)(2)(iv) - The authority and supporting rationale, and if applicable, a demonstration of the contractor’s unique qualifications to provide the required supply or service:

The circumstances that justify limiting sources to fewer than those in accordance with the procedures in 8.405-2, or 8.405-3 is, “FAR 8.405-6(a)(1)(i)(A) – An urgent or compelling need exists, and following the FSS ordering procedures would result in unacceptable delays.”

As stated above, Acepex notified the CO they would be filing for bankruptcy on March 15, 2024 and has not met the requirements of the Cure notices that were sent to them.

Maintaining the courthouse operational integrity and ensuring uninterrupted services to tenants, the public, and other contractors is paramount. Given the critical role of the O&M/VTE in upholding the building's functionality and to operate critical equipment, an immediate bridge contract is imperative. Without the continued support of an O&M/VTE contract critical systems such as HVAC, elevators, fire systems, etc. would be jeopardized and could ultimately cause closure of the building, resulting in immediate impacts to various agencies including, but not limited to the US District Court, US Marshals, Marines, the Federal Bankruptcy Courts, and the Federal Public Defender. Ensuring the transition is seamless will limit the disruptions to the critical mission that occurs at the RRFB for these agencies, the public, and other contractors.

Pundir has been identified as a qualified contractor to perform this bridge. This determination was made as a result of their current performance at Santa Ana Federal Building at 34 Civic Center, Santa Ana, CA (CA0200ZZ) and Glenn Anderson Federal Building at 501 W Ocean Boulevard, Long Beach, CA (CA0273ZZ). Additionally, Pundir also submitted a quote in response to the initial RFQ 47PK0222Q0006 that resulted in the award of the current BPA 47PK0223A0001 with Acepex. Pundir was found to meet the technical requirements of the PWS’ Section L & M for OM&VTE services at RRFB.

5. FAR 8.405-6(c)(2)(v) - A determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d) and FAR 8.405-2(d):

The anticipated cost to the Government for this bridge is considered Fair and Reasonable as GSA has already determined the prices of fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. The same level of effort and the mix of skills will be used in the bridge task order as is being used in the current BPA.

Additionally, the Government will request additional discounts in accordance with FAR Subpart 8.405-4 - Price Reductions.

It should also be noted that Pundir was the second lowest qualified quote that resulted in the award of the current BPA with Acepex. As that procurement was for the same services at the same location, GSA has adequate pricing from various contractors that can be used to determine a reasonable price, including Pundir’s own past price quote.

6. FAR 8.405-6(c)(2)(vi) - A description of the market research conducted among schedule holders, and the results of the research, or a statement why market research was not conducted:

Market research was not conducted for this interim requirement as a result of the non-response to the Cure notice due date and the email received on March 15, 2024 indicating Acepex’s intent to file for bankruptcy.

7. FAR 8.405-6(c)(2)(vii) - Any other facts supporting the limited source justification:

None

8. FAR 8.405-6(c)(2)(viii) - A statement of the actions, if any, the agency will take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for supplies and services is made:

This limited source BPA is only intended to continue the current O&M/VTE services until the new recompete can be competitively procured. No other competitive barriers are known at this time as the new requirement will be solicited on GSA eBuy in Fiscal Year 2025 for award in FY2026 Q1. That procurement will provide fair opportunity for FSS small business contractors.

In accordance with FAR Subpart 8.405-6(a)(2)(ii) the Contracting Officer (CO) must post the limited sources justification within 30 days after placing the order if it exceeds the simplified acquisition threshold if the justification is based on FAR Subpart 8.405-6(a)(1).

The ordering activity shall publish a notice in accordance with FAR Subpart 5.301; and post the justification at the GPE https://www.sam.gov for a minimum of 30 days.