Redacted Real Estate Market Research Database JOFOC.pdf

TEMPLATE FOR FAR PART 13 J&As SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS (FAR SUBPART 13.5)

Justification for Sole Source or Brand Name Under Simplified Procedures for Certain Commercial Items (FAR Subpart 13.5)

U.S. Department of Housing and Urban Development

Office of the Chief Procurement Officer

PART 1 – JUSTIFICATION (to be completed by requesting office)

This acquisition is conducted under the authority of the Simplified Procedures for Certain Commercial Items (section 4202 of the Clinger-Cohen Act of 1996) or the authority of the Services Acquisition Reform Act of 2003 (41 U.S.C. 428a) – Sole Source (including brand name) Acquisitions.

Description of services required to meet agency’s needs [describe]:

HUD’s appraisers and underwriters gather and review a wide range of housing and macroeconomic data to analyze market conditions and assess the demand for additional rental housing in specific housing market areas for every application for new construction and substantial rehabilitation project mortgage insurance. Easily accessible data of good quality is crucial in analyzing market conditions and to forecast demand. The data also assists Multi Family Housing with processing applications for the Section 202 Supportive Housing for the Elderly Program and Section 811 Supportive Housing for the Disabled.

Total estimated cost of this order [include all costs of the proposed acquisition, e.g., options, systems life costs, etc. ; total will determine the approval level needed]: $ for one base year and two options years.

Sole Source (see FAR Section 13.501(a)) 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]: CoStar Realty Information, Inc., 1331 L Street NW, Washington, DC 20005;

Circumstance justifying 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 13.501(a)(2).

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 are available only from the original source. It is likely that award to any other source would result in --

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

(B) Unacceptable delays in fulfilling the agency’s requirements.

Attachments [provide the following information]:

Requiring agency;

Nature/Description 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;

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 13.501(a)(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;

All providers known to the agency were verified for the availability of the necessary data. Additionally, an internet search was conducted to find companies providing rental data. Other resources generally lacked the geographical coverage required by HUD’s appraisers and underwriters, especially regarding the breakdown of Small Market and Metropolitan Statistical Areas and counties. Some sources provided necessary rental unit data but did not offer the ability to view historical trends for individual property.

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, if any, that expressed, in writing, an interest in the acquisition;

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

Other Than Full and Open Competition Based on Brand Name

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 fully, or attach detailed description of the product or critical characteristics of the product]:

Attachments [provide the following information]:

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

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 feature, do not meet, or cannot be modified to meet, the Department’s need.

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 applies (see FAR Section 5.102(a)(6)) [check applicable exception]:

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;

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

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] Detailed market research was performed and concluded that CoStar Group is the only entity capable of providing data that meets all the requirements of HUD.

Program Office Official’s Certification

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

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

Jessica Jackson Acting Director, MFH-OFSO Signature: Date: For additional information contact:

X Bruce Swedal Contracting Officer Representative

Bruce.W.Swedal@HUD.gov

PART 2 – CONTRACTING OFFICER’S DETERMINATION AND CERTIFICATION

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 complete to the best of my knowledge and belief. In accordance with FAR 13.501, this certification serves as approval of this sole source justification for orders up to $750,000.

Name: Signature: Date:

X

PART 3 – APPROVALS

For orders greater than $750,000 up to the Simplified Procedures for Certain Commercial Items threshold – Competition Advocate

Name Signature Date

Instructions:

PART 1 – to be completed by the requesting office

The office requesting the sole source consideration shall enter all information and provide all supplementary information and attachments.

The head of the office submitting the justification shall complete the certification and sign and date it.

PART 2 – to be completed by the Contracting Officer

The contracting officer shall attach the price evaluation and sign and date the form. If the order is less than $750,000, stop here and place the completed justification in the contract file.

PART 3 – to be completed by the approving official

If the order exceeds $750,000, the contracting officer shall obtain the appropriate higher-level authority’s name, signature, and date and place the completed justification in the order file.

Digitally signed by: JESSICA JACKSON

DN: CN = JESSICA JACKSON C = US

O = U.S. Government OU = Department of Housing and Urban Development, Office of Administration

Date: 2025.04.04 11:35:51 -04'00'

JESSICA

JACKSON

Digitally signed by: ADRIAN BLACKMAN DN: CN = ADRIAN BLACKMAN C = US O = U.S. Government OU = Department of Housing and

Urban Development, Office of the Chief Procurement Officer Date: 2025.04.30 08:40:41 -06'00'

ADRIAN BLACKMAN

Digitally signed by: AKINSOLA AJAYI DN: CN = AKINSOLA AJAYI C = US O = U.S. Government OU = Department of Housing and Urban Development, Office of the Chief Procurement Officer Date: 2025.05.02 09:14:52 -04'00'

AKINSOLA AJAYI

April 2025 1

J&A under FAR Subpart 6.302-1 - Justification for Other than Full and Open Competition

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity.

a. Federal agency and contracting activity. Department of Housing and Urban

Development

Department of Housing and Urban Development Western Field Contracting Operations

Requiring activity. HUD/Office of Multi Family Housing

Requiring Activity Point of Contact (POC) information.

Name.

Mailing address. 1670 Broadway, 23rd Floor, Denver, CO 80202 E-mail address.

Telephone number.

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

Approval is being requested for a 36-month contract (1 twelve-month base period plus 2 twelve-month options) on a sole source basis to CoStar Realty Information, Inc., under Federal Acquisition Regulation (FAR) 6.302-1, due to the fact that CoStar is the only responsible source that provides a comprehensive database needed by appraisers and underwriters to complete market reviews for mortgage insurance applications received by HUD, mainly under the 221(d)(4) program. HUD appraisers and underwriters also use the database to forecast market demand for affordable rental housing. The requisition, titled Market Research Data Subscription, is PRISM Requisition Number: RCS-HY-2025-00145.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project Title: Real Estate Valuation Database

b. Project Description.

Section 209 of the National Housing Act states the following: The Secretary shall request such statistical surveys and legal and economic studies as he shall deem useful to guide the development of housing and the creation of a sound mortgage market in the United States and shall publish from time to time the results of such surveys and studies.

HUD requires a comprehensive research database to support the review of Map Appraisals, rent comparability studies, and development of real estate market intelligence. HUD staff will utilize the data to evaluate loan and mortgage insurance applications. HUD’s appraisers and underwriters gather and review a wide range of housing and macroeconomic data to analyze

April 2025 2 market conditions and assess the demand for additional rental housing in specific housing market areas for any applications for new construction and substantial rehabilitation project mortgage insurance. Easily accessible data of good quality is crucial in analyzing market conditions and to forecast demand. The data also assists Multi Family Housing with processing applications for the Section 202 Supportive Housing for the Elderly Program and Section 811 Supportive Housing for the Disabled.

The database must be capable of determining the value and rents of varied and complex multifamily and mixed-use commercial properties. Properties may range from small apartment buildings in suburbs to complex commercial properties with retail, office, townhomes, penthouses, and rental apartments in major cities. The type of research required is determined by the Multifamily Accelerated Processing (MAP) applications received by the Department and Rent Comparability Studies (RCSs) submitted by owners seeking to renew Project Based Section 8 Contracts. Our staff will not only evaluate the subject property in the application or Section 8 Contract renewal, but also, the comparables that have been selected to support the values in their application and contract renewal requests.

HUD’s Office of Multi Family Housing seeks to issue a sole source contract to CoStar to acquire the necessary market intelligence needed to evaluate mortgage insurance applications and to forecast market demand for affordable rental housing. CoStar is the only responsible source with a comprehensive database that contains the data Multi Family needs to evaluate applications and forecast market demand.

c. Total estimated dollar value and performance/delivery period.

The government estimates the value of this acquisition to be and the period of performance to be

Provide the following information:

Requirement type.

Research & development (R&D) R & D Services Support Services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): Subscription Service.

Proposed contract/order type.

Firm-fixed-price

Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee):

April 2025 3

Cost-plus-fixed-fee

Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee):

Time and materials

Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements):

Other (specify): Negotiate final price with vendor.

Completion Form Term form

Acquisition identification number. TBD

4. Identification of the statutory authority permitting other than full and open competition.

Federal Acquisition Regulation (FAR):

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements. This acquisition is conducted under the authority of United States Code 10 (U.S.C.) 253(c)(1) or 41 U.S.C.3304(a)(1)

6.302-2 Unusual and compelling urgency. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(2) or 41 U.S.C. 3304(a)(2).

6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(3) or 41 U.S.C. 3304(a)(3).

6.302-4 International agreement. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(4) or 41 U.S.C. 3304(a)(4).

6.302-5 Authorized or required by statute. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(5) or 41 U.S.C. 3304(a)(5).

6.302-6 National security. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(6) or 41 U.S.C. 3304(a)(6).

6.302-7 Public interest. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(7) or 41 U.S.C.

3304(a)(7).

April 2025 4

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s). CoStar Realty Information, Inc, 1331 L Street NW, Washington, D.C. 20005

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

This is a follow-on contract to CoStar for a real estate database subscription that Multi Family has used since 2017. From 2017 – 2020, this database was acquired using sole source procedures in FAR 13.106-1. In 2021, HUD used the sole source procedures at FAR 13.501 to award an IDIQ contract. An IDIQ contract was used because Multi Family and Economic Market Analysis Division (EMAD) needed this database but were using different types of funding. From 2021 – 2024, one year task orders were issued against the IDIQ for Multi Family.

In 2024, HUD issued a competitive solicitation using the procedures at FAR Subpart 13.5 and received one offer from . As part of its technical approach, proposed partnering with to give HUD users access to database. As part of the responsibility determination, the Contracting Officer requested documentation showing that had the legal right to provide HUD users access to platform.

Stijo provided the requested documentation, and contract was awarded on December 16, 2024. On January 24, 2025, notified HUD that withdrew from the partnership agreement. The Contracting Officer asked to find another provider that met PWS requirements. made multiple attempts to find a provider but was unsuccessful, and on February 28, 2025, the contract was terminated for convenience since the period of performance had not begun.

HUD wishes to award another sole source contract to CoStar because CoStar is the only responsible source with a comprehensive database that allows HUD appraisers and underwriters to evaluate mortgage insurance applications and to forecast market demand for affordable rental housing. CoStar possesses the following unique qualifications:

April 2025 5

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies.

In November 2024, HUD issued a competitive solicitation using the procedures at FAR Subpart 13.5 and received one offer from As part of its technical approach, proposed partnering with to give HUD users access to database. As part of the responsibility determination, the Contracting Officer requested documentation showing that had the legal right to provide HUD users access to platform.

provided the requested documentation, and contract was awarded on December 16, 2024. On January 24, 2025, notified HUD that withdrew from the partnership agreement. The Contracting Officer asked to find another provider that met PWS requirements. made multiple attempts to find a provider but was unsuccessful, and on February 28, 2025, the contract was terminated for convenience since the period of performance had not begun.

In March 2025, the COR conducted additional market research using the techniques described in Section 8 below. Market research indicates that CoStar is the only responsible source capable of satisfying HUD’s requirements. In accordance with FAR 5.203(a)(1), a special notice and the PWS will be posted on SAM.gov notifying the public that the HUD intends to award a sole source contract to CoStar. Interested parties will have 7 days to submit capability statements for review. If HUD does not receive any responses or no capable vendor is identified, HUD will issue a RFQ directly to CoStar. In accordance with FAR 13.501(a)(iii), HUD will post the J&A on SAM.gov within 14 days of contract award.

7. Determination by the Contracting Officer that the anticipated cost/price to the

Government will be fair and reasonable.

April 2025 6

The Contracting Officer will determine that the anticipated cost to the Government will be fair and reasonable based on the Independent Government Cost Estimate (IGCE) founded on historical pricing for the same or similar services and on the negotiated direct labor rates under the current contract.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

The COR conducted the Market Research utilizing the following techniques:

• Historical acquisition information of previous contract awards.

• Internet searches for valuation databases.

• HUD Subject Matter Experts (SMEs) who use research databases of this type emailed, spoke to contacts, and reviewed reports from potential sources grid above to determine capability.

• Search of the System of Award Management (SAM), www.sam.gov.

• Search of the Small Business Administration's Dynamic Small Business Database, https://dsbs.sba.gov/search/dsp_quicksearch.cfm

Market research indicates that CoStar is the only responsible source with a comprehensive database capable of meeting HUD’s requirement. The below shows a list of vendor with real estate databases that were reviewed during market research.

April 2025 7

Potential Vendor Information

Vendor Name Unique Entity Identifier

(UEI)

Size Status

Location Point of Contact Capability

CoStar

1331 L St. NW, Washington, DC 20005 provides all required services with consistent good past performance ratings -

Small Business Opportunities

As noted above, the COR searched the Small Business Administration's Dynamic Small Business Database (DSBS). The DSBS search results are below for how many businesses, in each of the following small business categories, were identified as capable of satisfying the Departmental requirement and the results were zero. The search was conducted using NAICS code 519290 – Web Search Portals and All Other Information Services with the keywords “apartment data”, “apartment”, and “housing database.”

April 2025 8

Search ”apartment”.

April 2025 9

Search “housing database”.

April 2025 10

9. Any other facts supporting the use of other than full and open competition.

None

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

Not applicable

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.

Not applicable.

12. Program office certification.

This is to certify that the portions of this justification that have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for other than full and open competition, are accurate and complete.

April 2025 11

13. Contracting Officer certification.

This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Official Name & Title Signature Date Contracting Officer Adrian Blackman

Digitally signed by: ADRIAN BLACKMAN

DN: CN = ADRIAN BLACKMAN C = US O = U.S. Government OU = Department of Housing and Urban Development, Office of the Chief Procurement Officer Date: 2025.04.30 08:15:29 -06'00'

ADRIAN BLACKMAN