Manufactured Home Sole Source Determination Approved.pdf

SOLE-SOURCE DETERMINATION & JUSTIFICATION

FOR SUPPLIES AND SERVICES

To: Contract Services

From: Lance Solis and Julie Cone Date: 6/29/2021

Sole Source Determination pursuant to Oregon Revised Statute (ORS) 279B.075, Oregon Administrative Rule (OAR) 137-047-0275, and delegated contracting authority provided under ORS 279A.050(6)(m) for:

Description of Goods or Services:

This sole source justification is for the purchase and delivery of a Quartzville Model 28583R manufactured home from Fleetwood Homes purchased through Factory Expo Home Centers in Woodburn, Oregon. The home, once constructed, will be delivered to the Oregon Department of Fish and Wildlife’s (ODFW) Big Creek Fish Hatchery located near Astoria, Oregon.

Reason for Need:

ODFW is required through labor contracts to provide livable housing for certain staff in locations such as hatcheries and wildlife areas. The existing manufactured home being replaced at Big Creek Fish Hatchery had outlived its useful life and is degraded to a level that is not fit for habitation. ODFW has adequate funding available for the purchase and delivery of a new manufactured home, with funding eligibility expiring in February 2022.

Manufactured homes are in critically short supply, with prices and build times having increased dramatically in the last year. Due to COVID pandemic effects on supply chains, the availability of building supplies has been adversely affected. The unique weather event that caused catastrophic wildfire events across Oregon increased the demand for replacement homes, of building supplies, and has taxed the manufactured home supply chain. A combination of these two events has created a scenario where purchasing a manufactured home that meets ODFW’s specifications, funding requirements, and completion timeline through a competitive Invitation to Bid (ITB) public procurement process is unachievable.

Single or Multiple Purchases:

This Sole Source Justification is for a single purchase.

Estimated Cost:

The referenced model of manufactured home and delivery is currently priced at $158,384.94.

Research Leading to Determination:

ODFW issued an Invitation to Bid (ITB ODFW-3459-21) for the purchase, delivery, and installation of a manufactured home through ORPIN on May 20, 2021. There were no attendees at the non-mandatory preconference meeting on June 3, 2021, ODFW received no interest, and no bid responses for the

ITB.

Discussion with a contractor that had previously supplied ODFW with a manufactured home through an ITB process, and research conducted on other manufactured home providers revealed information that the manufactured home market is in very high demand region wide. Construction and delivery times have increased from three to six months to now averaging twelve to fourteen months. In addition, home prices have increased more than 40% in recent months. With prices increasing so rapidly and build times extended to twelve to fourteen months, contractors are unable and/or unwilling to lock in a contract price through a competitive bid, and there are virtually no lot (demonstration) or used models available to procure.

After the unsuccessful solicitation process, ODFW staff proceeded to look for any models available that could be delivered to meet the funding deadline. Factory Expo is one of three companies contacted in this process. Factory Expo had two models available at the first call, but the smaller model under $150,000 was quickly unavailable. The other two companies did not have any inventory, nor models in the build process that were not spoken for.

Analysis of Research / Findings of Fact:

Pursuant to OAR 125-247-0275(2)(a): Compatibility.

Pursuant to ORS 279B.075 (2)(b): Exchange of Software or Data.

Pursuant to ORS 279B.075 (2)(c): Pilot or Experimental Project.

Pursuant to ORS 279B.075 (2)(d): Other findings that support the conclusion that Supplies and Services are available from only one source may include but are not limited to considerations of:

unique design, availability, geographic location, exclusive authorized representative, cost of conversion, and warranty services.

ODFW has determined through the unsuccessful Invitation to Bid process, market research, and the attached documentation of the attempts to locate contractors with manufactured home inventory, that the purchase of the Quartzville model by Fleetwood Homes, sold by Factory Expo Home Center, meets the requirements of a sole source procurement, as a manufactured home that meets ODFW specifications is currently available from only source. Factory Expo has the only model meeting specifications, available within funding deadlines, and available for purchase at this time. The conclusion is the purchase will not adversely affect competition for the procurement of the manufactured home.

APPROVED BY:

Ken Loffink, Deputy Administrator/DPO, Administrative Services Division Date

7/1/2021