New FSM Bridge JOFOC JA 2312 through 5_31_2023_signedNHJ_.pdf

Justification for Other Than Full and Open Competition

U.S. Department of Housing and Urban Development

Office of the Chief Procurement Officer

PART 1 - PROGRAM OFFICE RECOMMENDATION

I recommend the use of other than full and open competition for the acquisition of [describe services or supplies]

Negotiations should be conducted with the following source(s) only [provide names, addresses and points of contact; continue on separate sheets as needed]:]:

The estimated cost of this acquisition is: $

The statutory exception which allows this use of other than full and open competition is [select one]:]:

Only one responsible source and no other supplies or services will satisfy agency requirements - 41 USC 3304 (a)(1) (see FAR 6.302-1)

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

Industrial mobilization; engineering, developmental or research capability; or expert services - 41 USC 3304 (a)(3) (see FAR 6.302-3)

Authorized or required by statute - 41 USC 3304 (a)(5) (see FAR 6.302-5)

Public interest (NOTE: requires Secretarial approval and Congressional Notification) - 41 USC 3304 (a)(7) (see FAR 6.302-7)

A description of the circumstances that support the use of the above statutory authority is attached and included as Exhibit 1 to this justification.

Program Office Certification. I certify that the information contained in this justification is accurate and complete to the best my knowledge and belief.

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

Signature: Date: For additional information contact:

PART 2 - CONTRACTING OFFICER REVIEW AND CERTIFICATION

Provide additional justification and comments here. Continue on back as needed.

Contracting Officer Certification.

I certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Name: Signature: Date:

Previous edition unusable Page 1 of 2 form HUD24012 (1212/2020)

REO Field Service Managment (FSM) for All Contract Areas

See Attached Exhibit 1

45,025,268. 0000

Vance T. Morris Associate General Assistant Secretary for Housing

Charles W. Hoyle Jr.

J&A 23-12

DocuSign Envelope ID: 490A60F3-D780-4A30-B23E-59C0A90CB00D

3/13/2023

March 13 2023 Digitally signed by: CHARLES HOYLE

DN: CN = CHARLES HOYLE C = US O = U.S.

Government OU = Department of Housing and

Urban Development

Date: 2023.03.13 16:03:18 -04'00'

CHARLES HOYLE

5 5 0

5 0 75

Additional Guidance for Completing the Justification (see HUD Handbook 2210.3, Chapter 4)

PART 2 - Contracting Officer Review and Certification

PART 1 - Program Office Recommendation

The supporting documentation in the Exhibit 1 must describe:

• The nature of the proposed acquisition that requires other than full and open competition;

• The unique qualifications of any proposed sole source; and

• The market research conducted (see FAR Part 10) and the results or the reason(s) why market research was not conducted.

The cost estimate must include all costs of the proposed acquisition, e.g., options, systems life costs, etc. The total will determine the approval level needed (see 3 below).

FAR Subpart 6.3 describes the statutory exceptions, their applicability and limitations on their use.

"Head of the Program Office" means:

• For all Headquarters acquisitions: the cognizant Assistant Secretary or designee.

• For field acquisitions: the program office director (e.g., Director, Multifamily Housing) within the State or Area Office.

Besides any information provided to support the program office's justification, the Contracting Officer shall provide:

• Documented results of any Federal Business Opportuity notices or explanation of why no notice was published.

• A statement of actions the Department may take to remove barriers to competition for subsequent acquisitions of similar services / supplies; and

• A determination that the anticipated cost / price is fair and reasonable.

(See FAR Subpart 6.3 for further guidance.)

The Contracting Officer signing the certification shall be the same individual who will sign the proposed acquisition action which is the subject of this justification.

PART 3 - Other Approvals The Contracting Officer shall obtain the approval for the dollar value ranges indicated.

If any person required to sign in these blocks disapproves this justification, he/she shall return it to the requesting activity with a written determination.

The requesting activity may obtain the name of the "Contracting Activity Competition Advocate" from the cognizant contracting office.

The "Head of Contracting Activity" is defined at Subpart 2402.1 of the HUD Acquisition Regulation (48 CFR Chapter 24). The cognizant contracting office may also provide the name of this individual.

form HUD24012 (12/2020)

Nicole Jackson Competition Advocate Alternate

DocuSign Envelope ID: 490A60F3-D780-4A30-B23E-59C0A90CB00D

Charles w. Hoyle Jr. Contracting Officer

March 13, 2023

Digitally signed by: CHARLES HOYLE DN: CN = CHARLES HOYLE C = US O = U.S. Government

OU = Department of Housing and Urban Development

Date: 2023.03.13 16:37:51 -04'00'

CHARLES HOYLE

h19627 Typewritten Text Head of the Contracting Activity h19627 Typewritten Text Jimmy Fleming-Scott

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 obtain continued contracted Field Service Management (FSM) work for HUD REO properties. The period of performance shall be a two-month Base with a FAR 52.217-8 Option to Extend Services for up to an additional six (6) months. The Bridge contracts covering the below Areas expire on March 31, 2023.

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

DocuSign Envelope ID: 490A60F3-D780-4A30-B23E-59C0A90CB00D risk of loss on loans they finance for purchase or rehabilitation. When a borrower defaults on a 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.

The FSM contractors provide vital property preservation and protection services for REO properties. The contracts for the above-referenced areas expire on March 31, 2023. HUD has a critical need to award new FSM bridge contracts to the current contractors for an additional two (2) months. HUD does not have sufficient staffing nor resources to perform this work in-house. Without FSM services, HUD Real Estate Owned properties would not be preserved/maintained and protected, which poses increased risk in adverse occupants, theft, and vandalism that can result in blight on the communities in which the properties are located.

The FSM contractors also get REO properties in ready-to-show condition, which allows another contractor to market the properties for sale. The holding costs expected to result from not awarding two-month bridge contracts is approximately $73,208,070.

The bridge contracts involve no changes to the core services performed under the current contracts.

The current contracts for the above-referenced area(s) expire on March 31, 2023. HUD has issued a competitive solicitation for FSM services. Originally, awards were made on May 31, 2022, and June 14, 2022. These awards were protested and the Agency decided to take corrective action. The Agency completed corrective action on February 1, 2023, and received three (3) GAO protests on February 13, 2023. Performance of the competitively awarded contracts is stayed for up to 100 days, until GAO issues a decision on the bid protests. GAO’s decision is expected by May 24, 2023. Since HUD still requires FSM services, it needs to award bridge contracts to provide preservation and protection services for properties for the two additional months necessary to resolve the current GAO protests.

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 be awarded short-term bridge contracts in the seventeen (17) listed performance areas through May 31, 2023.

The bridge contracts shall include an Option to Extend Services clause FAR 52.217-8 to allow for a transition out period of up to ninety (90) days, if needed. The bridge contracts are a temporary measure urgently needed to avoid a break in services. These bridge contracts allow HUD to maintain the status quo while the GAO protests are being decided.

TheOffice of Single-FamilyHousing estimates that the two-month (2) base period exclusive of the FAR 52.217-8 for all contract Areas is $10,355,401.00. The total amount requested to cover the two-month (2) base and FAROption period per contract Area is as follows:

Contract Estimated Value

3A $2,248,930.00

4A $1,562,030.00

5A $1,943,245.00

6A $2,746,130.00

7A $1,621,147.00

8A $5,130,710.00

1D $2,318,290.00

2D $6,993,070.00

4D $1,183,800.00

5D $1,104,360.00

1P $1,098,140.00

3P $4,749,088.00

4P $1,262,955.00

5P $6,176,545.00

3S/5S $3,031,623.00

4S $622,260.00

6S $1,232,945.00

Total $ 45,025,268. 00

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

41USC 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 current contracts will expire onMarch 31, 2023. Awarding the bridge contracts for two (2) months will allowGAO time to render a decision for the current bid protests under FAR 6.302- 2(c)(2). In the absence of awarding bridge contracts, HUDwill have a break in service that will adversely impact stakeholders and increase losses to the FHA Insurance Fund. As indicated above, HUD has a critical need to award these short-term FSMBridge contracts without delay in the referenced areas, as a discontinuation in services would result in prolonged unprotected and unoccupied assets posing increased risk of adverse occupants, theft, and vandalism, which in turn results in blight on the communities in the specified areas.

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.

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.

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

HUD completed corrective action on the FSM 3.12 on February 1, 2023. Three protests followed on February 13, 2023. Under the circumstances, it is totally impracticable to solicit or evaluate other offerors beyond the incumbents before the contracts expire on March 31, 2023.

A notice will not be published for the bridge contracts 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)GAO protests on June 28, 2022. The protests were dismissed on August 01, 2022, as a result of the Agency decision to take corrective action, which was completed February 1, 2023. On February 13, 2023, further protests were filed.

7. A determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable:

The Contracting Officer has determined that the anticipated prices will be fair and reasonable by doing a comparison of current contract pricing, previous Government contracts prices for like services, and proposed prices with the Independent Government Cost Estimates (IGCE).

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. The Contracting Officer completed market research for the long-term competitive 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:

Because of the short-term nature of the requirement and significant startup costs associated with the effort, it is not practicable to solicit sources other than current contract holders. The following firms hold contracts for the following geographic areas.

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 timing of the protests relative to the end of the incumbent contracts severely limits the agency’s options. However, this action is specifically to allow HUD sufficient time for GAO to render decisions on the pending bid protests.

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

J&A Number 23-12 Attachment 1

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