COSTAR_FBO_3-11-2019.pdf

Justification for Sole Source or Brand Name U.S. Department of Housing

- - • and Urban DevelopmentUnder Simplified Procedures for Certain omce of the Chief Procurement Officer

Commercial Items (FAR Subpart 13.5)

PXRT I )US!flAflONbe big6fl7c).

1h1s acquisition Is conducted under the authority of the Simplified Procedures tar Certain Commercial Items (section 4202 of the Clinger-Cohen Act ot 1996) or the authority of the Services Acquisition Reform Act of 2003 (41 U.S.C. 428e) — Sole Source (including brand name) Acquisitions.

Description of services required to meet agency’s needs: CoStar On-Line Market Data Subscription Services Total .itlmated cost of this order $595,272.00

Consideration for this simplified acquisition under the Simplified Procedures for Certain Commercial Items must be limited to the following source(s) [provide names, addresses and points of contact or attach separate sheet as needed]:

Circumstance justltying acquiring the services using a sole source acquisition (check those that apply):

Only one source is capable of responding due to the unique or specialized nature of the work (see FAR 13.501Ca)f2).

D This is a follow-contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, and supplies ate available only from the original source. It is likely that award to any other source would result in -.

D (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or

Q (6) Unacceptable detays in futnuling the agency’s requirements.

Attachments [provide the following information):

Requiring agency;

NaturelDescription of action being approved;

Comprehensive description of services required to meet agency’s needs (Including the estimated value);

Identification of statutory authority permitting other than full and open competition;

IJ Demonstration that proposed contractor’s unique qualifications or nature of the acquisition requires use of authority cited;

Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Section 13.SOlfa)(1);

Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable;

Description of market research efforts conducted and the results or a statement of the reason market research was not conducted;

Other facts supporting the use of other than full and open competition (and if a follow-on, an estimate of the cost to the government that would be duplicated and how the cost was derived;

Listing of the sources, it any, that expressed, in writing, an interest In the acquisition;

tI Statement of actions to remove or overcome any banlers to competition before any subsequent acquisitions.

(2

Sources to be considered for this order should be limited to those offering the following Item(s) peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer) [list and describe Miy, or attach detailed description of the product or critical characteristics of the product]:

Attachments [pmvWe the following 1nformation]

In addition to the documentation identified for sole source above, attachments for brand name justification must also include:

Q if brand name, product, or product feature Is the basis for the restricted consideration, the program office must describe why It Is essential to the Government’s requirements, and demonstrate how the attached market research supports the determination that other companies’ similar products, or products lacking the particular teature, do not meet, or cannot be modified to meet, the Department’s need.

El A statement of the actions, if any, the Department may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

If the order contains brand name specifications, the requirement has been posted in accordance with FAR Section 13.105(a)(1) unless one of the following exceptions appires (see FAR Section 5.102(a)f6)) [check applicable exception):

El Disclosure would compromise the national security (e.g., would result in disclosure of classified Information) or create other security risks. The fact that access to classified matter may be necessary to submit a proposal or perform the contract does not, In Itself, justify use of this exception;

El The nature of the file (e.g., size, tormat) does not make It cost-effective or practicable for contracting officers to provide access through the GP; or

El The senior procurement executive has made a written determination that access through the GPE is not in the Government’s interest.

Program Office’s Supporting Data

The following information has been provided to support the sole source action or specific brand name, product, or product feature (e.g., verification of the Government’s minimum needs or requirements or other rationale for sole sources) [list and describe; attach additional pages If needed) See Attached Justification

Program Office Officials Certification

I certify that the Information provided in support of this justification Is compiete and accurate to the best my knowledge and belief.

Head of Program Office [name] Ede/Name of Office:

‘ Mont o Assistant Secretary for Housing -Federal Housingan . g mery Commission, H

I —FEB 8 2019

For additional information contact:

‘FPA 2 - CONTRACCINGOFFICER’S DETERMINATION AND€ERTIflCATION I hereby determine that:

The sole source action represents the best value to HUD consistent with the requirements of FAR Section 13.501 (price evaluation Is attached); and, if a particular brand name, product, or product feature is requested, I hereby determine that It Is essential to the Government’s requirements, and as demonstrated by the attached market research, other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the Department’s need.

I certify that the information contained in this justification Is accurate and compiete to the best of my knowledge and belief. In accordance wIth FAR 13.501, this certification serves as appl of this sole source ju lice for orders up to $700,000.

Name: Slgna - Da:

BrendaK. Lee x

6)

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, DC 20410-3000

OFFICE OF CHIEF PROCURBi4ENT OFFICER

Control Number 19-7

TITLE: On-Line Subscription For Residential Market Data Trends for Residential Real Estate

1. Identification of the agency and the contracting activity, and specific Identification of the document as a “Justification for other than full and open competition.”

U.S. Department ofHousing and Urban Development (HUD) Office of the ChiefProcurement Officer (OCPO) The Office ofHousing — PHA 451 ? Street, Room 5256 Washington, DC 20410

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

The scope and purpose of this agreement is to satis1’ the requirement ofproviding a commercially available database (CoStar) that provides access to many up-to-date multifamily housing rents and occupancy levels. This data is used to determine primary, secondary and tertiary metropolitan markets on an annual basis.

3. A description of the supplies or services required to meet the agency’s needs (Including the estimated value).

The Department ofHousing and Urban Development (HUD) insures an average ofapproximately $40 billion in multifamily rental projects each year. In doing so, it evaluates the market absorption potential for these projects and how they relate to existing projects in the market. HUD has two objectives. One is to avoid financing projects in markets where it is anticipated there will be an excess supply of rental units by the time the project is completed, thereby reducing the risk ofdefault for the proposed project. The other is to avoid increasing vacancy levels above desired levels in the market to reduce the risk to financial viability of existing rental projects, some of whose mortgages HUD may have insured.

Most ofHtJD’s multifamily mortgage business is concentrated in metropolitan areas, especially large, fast-growing areas. Detailed information on the location, type, rents, and vacancy rates ofexisting and newly developed multifamily rental projects is highly valuable in estimating the impacts and potential absorption of rental projects applying for BUD mortgage insurance or subsidy assistance. A limited amount ofrental vacancy rate data is available from the Bureau of the Census. This information is collected in greater detail for multifamily rental projects by a limited number of firms that sell it to interested parties in a standardized format. BUD is interested in purchasing such data to assist it in carrying out its market analysis functions.

___PZ

For orders greeter thin $700,000 up to the Simplified Procedures tar Certain Commercial Items threshold — Competition Advocate Name Signature Date

Instructions:

PART I - to be completed by the requesting office

The office requesting the sole source consIderation shall enter all Inl’onnatlon and provide all supplementary Information and attachments.

The head at the office submitting the justification shall complete the certifIcation and sign and date IL

PART 2- to be completed by the Confractlng Officer

The contracting officer shall attach the price evaluation and sign and date the form. If the order Is less than $700,000, stop here and place the completed justification In the contract tile.

PART 3- to be completed by the approving official

It the order exceeds $700,000, the contracting officer shall obtaIn the appropriate higher-level authority’s name, signature, and date and place the completed justification In the order tile.

C) C)

4\

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

* jflfflj * WASHINGTON, DC 20410-3000

OFFICE OF CHIEF PROCUREMENT OFFICER

Control Number 19-7

Justification for Sole Source for Simplified Procedures for Certain Commercial Items (FAR Subpart 13.5)

TITLE: On-Line Subscription for Residential Market Data Trends for Residential Real Estate

1. Identification ofthe agency and the contracting acth’ity, and specific identification ofthe document as a “Jusftficationfor other than full and open competition.”

Agency: Department of Housing and Urban Development (HUD) Office of Housing-Federal Housing Commissioner The Office of Housing — FHA 451 7th Street S.W. RM 6264 Washington. DC 20410

Contracting Activity: Department of Housing and Urban Development (HUD) Office of Chief Procurement Officer (OCPO) 451 7th Street, Room 5256 Washington, DC 20410

(2) Nature and/or description ofthe action being approved

This is a sole source action to CoStar Realty Information, mc, fixed price to provide an on-line subscription for market data trends for rents and occupancy in primary, secondary and tertiary metropolitan markets.

Housing Market Analysis Data: All rent comparability, submarket and metropolitan market report for 165 primary, secondary and tertiary metropolitan multifamily markets, including quarterly executive-level summary data, rankings and analyses on U.S. and regional markets, as well as a variety of special research studies.

(3) Comprehensive description ofservices required to meet agency’s needs (including the estimated value);

The Department of Housing and Urban Development (HUD) insures an average of approximately $40 billion in multifamily rental projects each year. In doing so, it evaluates the market absorption potential for these projects and how they relate to existing projects in the market. HUD has two objectives. One is to avoid financing projects in markets where it is anticipated there will be an excess supply ofrental units by the time the project is completed, thereby reducing the risk of default for the proposed project.

JUSTIFICAUUrb4 FOR OTHER THAN FULL & OPEN COMPETITION:

The other is to avoid increasing vacancy levels above desired levels in the market to reduce the risk to financial viability of existing rental projects, some of whose mortgages HUD may have insured.

Most of HUD’s multifamily mortgage business is concentrated in metropolitan areas, especially large, fast-growing areas. Detailed information on the location, type, rents, and vacancy rates of existing and newly developed multifamily rental projects is highly valuable in estimating the impacts and potential absorption of rental projects applying for HUT) mortgage insurance or subsidy assistance. A limited amount of rental vacancy rate data is available from the Bureau ofthe Census. This information is collected in greater detail for multifamily rental projects by a limited number of firms that sell it to interested parties in a standardized format. HUT) is interested in purchasing such data to assist it in carrying out its market analysis functions.

This procurement will provide the only source that provides access to up-to-date multifamily housing rents and occupancy levels annually in primary, secondary and tertiary metropolitan markets. The CoStar Reports subscription service provides data that is essential to completing the short turnaround tasks and analyses required by the HUt).

The period ofperformance will be for a 12-month Base Period with four 12-month Option Periods

The estimated value is $595,272.

(4) Identification ofstatutory authority perntitting other thanfull and open competition;

The statutory authority is “Only one source is capable ofresponding due to the unique or specialized nature of the work (see FAR 13.501(a)(2)”.

(5) Demonstration thatproposed contractor’s ttnique qualflcations or nature ofthe acquisition requires use ofauthority cited;

CoStar is the only source that meets the minimum requirements ofmarket coverage that will satis1’ the needs of HUD financial risk assessment needs for multifamily properties.

Most of HUD’s multifamily mortgage business is concentrated in metropolitan areas, especially large, fast-growing areas. Detailed information on the location, type, rents, and vacancy rates of existing and newly developed multifamily rental projects is highly valuable in estimating the impacts and potential absorption ofrental projects applying for HUD mortgage insurance or subsidy assistance. A limited amount of rental vacancy rate data is available from the Bureau of the Census however, HUB requires this data to assist it in canying out its market analysis functions.

The CoStar subscription service provides data that is essential to completing the short turnaround tasks and analyses required by the Department. This data meets the Departments objectives ofbeing available in a variety of forms.

CoStar subscription provide following modules and applications:

CoStar Market Analytics — Underwriting Subscription CoStar Property Professional®: the most commercial property and multifamily detail available anywhere: model level availability, for lease, concessions, tax assessment, owner information, property manager information, historical property data, t / JUSTIfICAT1uN FOR OTHER THAN FULL & OPEN COMPETITION:

building photos, maps, floor plans and more; CoStar COMPS Professional; CoStar Analytics: CoStar Property Professional; CoStar GO: Costar’s iPad app; CoStar Market Analytics - Investment Performance Analysis; CoStar Market Analytics - Fundamentals with Submarkets; CoStar Market Analytics — Underwriting Reports & Rent Comp Reports: CoStar Market Analytics — Data.

(6) Description ofefforts made to ensure that offtrs are solicitedfrom as manypotential sources as practicable, including whether a notice was or wilt bepublicized as required by FAR Section 13.501(a) (1);

A Sources Sought Notice was posted to publicize this requirement on November 5, 201$ on the federal Business Opportunity website that closed November 23,2018. The JOFOC will be published within 14 days after award, also a notice of intent to sole source to CoStar was published on Fedbitzopps on December 13, 2018 and close on December 21, 2018. There were no response.

(7) Determination by the Contracting Officer that the anticipated cost to the government wilt befair and reasonable;

Prior to the issuance of any contract award, the Contracting Officer will obtain pricing information published price list and a price analysis will be conducted to sufficiently determine that the overall price represents a fair and reasonable price to meet the Government’s needs

(8 Description ofmarket research efforts condtccted and the results or a statement ofthe reason market research was not conducted;

Market research was conducted to fulfill FAR, Part 10, to determine if there was a contractor or agency in the marketplace that could provide primary, secondary and tertiary metropolitan markets on an annual basis for residential properties. On November 5, 2018, a source sought notification was posted on fedBizOpps for the on-line subscription to access multifamily project occupancy, rent and sales data.

One vendor Essnova Solutions, Inc., (Essnova) responded but were not capable ofmeeting the requirement. CoStar met the minimum technical capabilities required by the sources sought notice.

Therefore, based on the market research outcome there is no other vendor in the market that can provide the services except CoStar Realty Information, Inc.

The firm Essnova Solutions, Inc. responded to the sources sought notification. However, after a review of Essnova’s capability statement we found Essnova does not provide the multifamily data. Inquires and/or research was conducted of the following companies and CoStar met the minimum requirements.

Vendor Name Location Point of Contact Soclo- Capability Economic Category

Essnova Solutions, Birmingham, Sridhara (Sri) Gutti 8(a), SDB Did not provide comprehensive Inc Al 35203 1500 i Ave Suite 47 capability statement detailing the

Huntsville, Al 35203 multifamily and commercial property Phone: 888405-3 189 data required to meet the SOW.

Cell: 256-7834215 Email: srguttiessuova.com

JUSTIPICATIUN FOR OTHER THAN FULL & OPEN COMPETifION:

CoStar Realty Philadelphia, Mark Dougherty, Large Meets and exceeds all requirements Information, Inc, PA 19103 2005 Market Street, Suite Business in the SOW.

1950, Philadelphia, PA 19103 Phone: 215-356-3920 mdoughertycostargroup.com

(9.) Any Otherfacts supporting the use ofother thanfull and open competition (and fafoiow-oit, an estimate ofthe cost to the government that would be duplicated and how the cost was derived;

This is a folLow-on contract, the estimated cost will be use to compare the price of the previous contract and historical cost.

(10) Listing ofthe sources, ifany, that expressed, in writing, an interest in the acquisition;

Essnova Solutions, Inc. responded to the sources sought. The capability statement received from this finn was analyzed by the program office, subject matter expert. It was determined that this firm did not meet the requirement.

(11) Statement ofactions to remove or overcome any barriers to competition before any subsequent acquisitions.

The Government plans to continue researching the market before awarding any subsequent awards.

(12) Program Office Official’s Certification

See HUD Cover Sheet, Part 1, Justification, Section — Other Than Full and Open Competition Based on Brand Name, Subsection — Program Office Official’s Certification.

(13) Contracting officer’s Determination and Certification.

See HUD Cover Sheet, Part 2, Contracting Officer’s Determination and Certification.