FLOTUS_Hotel_JA_for_Chengdu-FBO.pdf

Reference DOSAR 606.303-2

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION, PRICE

JUSTIFICATION (JOFOC)

ACQUISITION OF HOTEL ACCOMMODATIONS IN SUPPORT OF SENIOR

HIGH LEVEL USG VIP VISIT

1. I recommend that the Department of State use other than full and open competition for the acquisition of hotel rooms for this VIP visit. The estimated cost is 1,393,500 RMB.

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

Necessary lodging and office space support for the Senior High Level VIP traveling with a delegation inclusive of support elements in: Security, Communications, Logistics and Operations for a visit to Chengdu, China on March 24-26, 2014.

3. A description of the supplies or services required to meet the agency’s needs.

Shangri-La Hotel 9 Binjiang Dong Road, Chengdu

An estimated 900 room nights are required to support this visit. Starting on March 13 with 21 rooms and hitting a peak of 144 rooms on the days of the visit, the hotel will provide lodging rooms as well as office space for security, communications and staff as necessary.

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

[ X ] 41 U.S.C. 253 (c) (2), FAR 6.302-2; Unusual and Compelling Urgency;

(Based on the available time and urgency of the requirement as detailed below)

Security concerns prohibit sufficient advanced notification of VIP travel to allow for sufficient time to conduct full and open competition. The Department of State can only communicate with the staff at Posts abroad when authorization is given due to security concerns. They have an extremely short turnaround time when authorization has been granted for negotiations to commence and site selections to be finalized with both the local vendors and Posts before the actual Senior High Level USG VIP visit occurs. Security and logistical teams make determinations during the site survey as to which hotels are most suitable for the Senior High Level USG VIP and his traveling staff to remain overnight. Consideration of the Senior High Level USG Principal and the location are taken into consideration as a determining factor.

The types of events, meetings, locations and availability of venues to support the Senior High Level USG VIP and the delegation are often times designated by the host countries.

Unique requirements for communications support are under severe time limitations and always a determining factor in the selection process as its capacity to be augmented to the unique requirements necessary to support certain Senior High Level USG Principals.

Many of the arrangements for hotel and transportation are often not confirmed until just before the actual visit. In addition to supporting a large delegation within a short time frame, last minute and frequent changes of itineraries for supporting personnel often result in significant changes in how Posts work with the vendors.

With the exception of a few trips, contracts are not permitted to be signed until the Department of State (Post) has written confirmation from all supporting agencies, which enables collection of funds from said agencies in the event of cancellation.

This results in an unusual and compelling urgency in accordance with 41 U.S.C.

253 (c) (2), FAR 6.302-2.

These unique high level VIP travel requirements result in only a single or a very limited number of responsible sources with no other supplies or services capable of satisfying agency requirement in accordance with 41 U.S.C. 253 (c ) (2), Far 6.302-2. Only one hotel will is expected to be used based on the initial estimates.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Security and logistics are the Department of State’s primary considerations when procuring hotel rooms. The Department of State must be able to provide a safe and secure environment for VIP visitors. Frequently VIP visits are not announced or confirmed in sufficient time to conduct a competition, creating an urgent and compelling need. At other times, the security requirements and/or requirements of the host country government limit the acquisition to one or a small number of predetermined hotels.

[X ] The VIP visit information was not available in sufficient time thereby creating an urgent and compelling need.

[ ] The host country government requires the use of this/these hotel(s).

[X] The proposed contractor has the following unique qualifications which meet the Department of State’s security and logistical requirements.

[X] Set-back (hotel is safe distance from the street)

[X] Location (able to secure building, travel route; distance to and from event) [X] Size and number of rooms (able to house everyone in one hotel)

[X] Conference facilities (adequate space for meetings, press conferences) [X] Communications (able to install equipment/lines, command center) [X] Accommodating to security needs—hotel will allow party to occupy the entire top two floors for the visit.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Due to urgency and exception in FAR 25.401(a)(5) this solicitation cannot be posted but the JOFOC will be published in FedBizOpps.

The following other hotels were reviewed but were not adequate because of the following:

The Ritz-Carlton, Chengdu—price was prohibitive when compared with Shangri-La— otherwise met requirements.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Lodging per diem for Chengdu is 920RMB maximum. 1200 RMB is above this rate because the VIP visit falls during the citywide Sugar and Wine Festival that has hotel rooms in high demand. Historically, hotels have charged up to the maximum or just slightly below to cover exchange rate issues. 1200 RMB is a good price for lodging of this quality and location. The Ritz-Carlton also quoted us at this rate so the rate is competitive to hotel rooms of similar quality and standards over the dates of the VIP visit. Post has submitted a request for a temporary increase of per diem over the VIP visit.

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

None

9. A listing of sources, if any, that expressed, in writing, an interest in the acquisition.

The Ritz-Carlton, Chengdu expressed interest and were considered. In preliminary price comparisons, the cost was sufficiently more than the Shangri-La. We requested a price reduction but a great cost difference remained for the both the Executive Junior Suites, that will serve as control rooms, and the Presidential Suite.

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

CERTIFICATIONS

I certify that the information in this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition to the best of my knowledge and belief.

3/3/2014 ______________________ Date: Kristen Woodiwiss

I certify that this justification is accurate and complete to the best of my knowledge and belief. Based on my assessment, I conclude that other than full and open competition is justified and the proposed price is fair and reasonable.

3/3/2014 _____________________ Date: Contracting Officer