VPOTUS VISIT .pdf

Reference DOSAR 606.303-2 Page I of6

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION, PRICE

JUSTIFICA TION (JOFOC)

ACQUISITION OF HOTEL ACCOMMODATIONS IN SUPPORT OF

PRESIDENTIAL AND VIP TRAVEL

I. 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 $665,545.00.

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

[] Presidential Visit [X] Vice-Presidential Visit [] Other

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

Rooms at the Ritz Carlton Hotel, Moscow, Tverskaya UI., 3, estimated amount 1778 room nights - for the delegation and supporting staff;

Seventeen (17) of the rooms shall be used for conference rooms, or common areas for the control rooms and offices, etc.

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

[Xl 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 Presidential Travel Office can only communicate with the staff at Posts abroad when authorization is given from the White House and the National Security Council. 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 Presidential visit occurs. The White House security and logistical teams make determinations during the site survey as to which hotels are most suitable for the President and his traveling staff to remain overnight. Obvious consideration of the President and his Cabinet's location are taken into consideration as a determining factor.

Overseas Contracting Version - October 19,2010

Reference DOSAR 606.303-2 Page 2 of6

The types of events. meetings. locations and availability of venues to support the U. S. President and his delegation are often times designated by the host countries. In this case, the proximity ofthc support staff to the President is crucial and often requires PTS to react quickly to accommodate.

Unique requirements for communications and audiovisual support made by the White House Communications Agency under severe time limitations are always a determining factor in the selection process of vendors.

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 few trips, contracts are not permitted to be signed until the Presidential Travel office has written confirmation from all White House 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 Presidential 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.

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.

[X] 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.

[I 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)

Reference DOSAR 606.303-2 Page 3 of6

[X] Conference facilities (adequate space for meetings, press conferences) [X] Communications (able to install equipment/lines, command venter) [X] Accommodating to security needs (hotel will allow DOS to occupy the desired top two floors of the hotel)

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 2S.401(a)(S) this solicitation cannot be posted but the JOFOC will be published in FedBizOpps.

Although other hotels (Lotte, Radisson, Marriott) were prepared to offer the same room rate based on the lodging portion of the per-diem rate, the Ritz Carlton Hotel was selected for its unique location near the Kremlin, facilities for the delegation, security, staffing, and overall pricing. The Ritz Carlton Hotel has offered favorable terms on pricing. For example, a flat rate will be charged for single sleeping rooms, including the Presidential Suite and the Carlton Suites ($363.00/night). Double-bed rooms will be billed at $411.00/night. Most sleeping rooms converted into office space (regardless of category) will be billed at a $400.00 rate. This hotel was determined to be an ideal place for accommodation of the Vice Presidential delegation.

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

The Ritz Carlton Hotel agreed to accommodate the delegation and provide standard, single sleeping rooms at rates equal to the lodging portion of the current per-diem rate for Moscow, i.e. $308 per night (plus 18% VAT).

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

Hotel management is extremely interested and flexible in hosting the Vice Presidential visit. They agreed to disrupt some routine services and cancel those events which may become an obstacle for the U.S. high level delegation's successful and safe visit. Also they agreed to adapt their internal accommodation, security, and communications policies to meet the U.S. delegation's requirements.

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

None.

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.

None.

Version - October 19,20 I0

Reference DOSAR 606.303-2 Page 4 of6

CERTIFICA TIONS

I certify that the information in this justification is accurate and complete to the best of my knowledge and belief as Presidential Travel Specialist.

. i !:, !~'1-.A.. Z -I-7~~-~..., / ·f . • L l . I ---r- /)' Guhan Kalambur '.P'\ ;,.,Ii! "'/1/ "JI ~-C'''M'' ("-1';_.£/ Presidential Travel Support I..;

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 reasona Ie, J/7//( Date: Timothy R. hnson

Contracting Officer

As the Competition Advocate at post, I approve this justification:

Reference DOSAR 606.303-2 Page 5 of6

DETERMINATION OF FAIR AND REASONABLE PRICING

Contracting Officers must determine that the proposed prices for hotels and conference accommodations are fair and reasonable. A fair and reasonable price is one that a prudent and competent buyer would be willing to pay considering market conditions such as supply and demand, competition, and general economic conditions.

A determination has been made to make an award to the Ritz Carlton Hotel. The price of the hotel accommodations are considered fair and reasonable based on the following price analysis:

[X] Comparison with Other Hotel Room Rates: I reviewed the rates of comparable hotels and/or conference accommodations and these rates are reasonable in comparison.

Lotte Hotel - $363.00/night for a standard room

Marriott Hotel - $363.00/night for a standard room

Radisson Hotel - $363.00/night for a standard room

Ritz Carlton Hotel - $363.00/night for all room types including the Presidential and Carlton Suites (with exception of 6 double-bed rooms at $411.00/night).

[] Comparison with Market Prices: I compared the present accommodation rates to the rates this hotel charged in the past competitive environment and found them to be reasonable.

[X] Per Diem Comparison: The hotel room rates are reasonable based on comparison with the approved per diem rates for this country.

The lodging portion of per diem for Moscow is $308.00/night. The Ritz Carlton Hotel will charge $308.00/night for a standard room plus 18% VAT.

[l Compensation for Security Accommodations: The hotel included additional expenses for security needs. Security personnel concur that these measures are necessary and reasonable. These charges are similar to those encountered for other VIP visits.

[J Restricted Competition: The hotel prices are higher than normal market due to the restricted competition created by unique security needs.

r J Comparison with Government Estimate: The proposed hotel and conference rates are reasonable based on comparison and analysis of the government estimate by the office of Presidential Travel Support (A/PTS).

Reference DOSAR 606.303-2 Page 6 of6

RESPONSIBILITY DETERMINATION

Contract Number: S-RSSOO-JJ-D-00S2

Contractor Name: Ritz Carlton Hotel

In accordance with FAR 9.104-1, the contractor is determined to be responsible after consideration of the following:

(a) Financial Resources. The contractor appears to have adequate financial resources to perform the contract, or the ability to obtain them.

(b) Compliance with Performance Schedule. The contractor appears to be able to meet the required performance schedule. Rooms and facilities have been determined to be available and adequate for this event.

(c) Performance Record. The contractor has a satisfactory record of performance history. Post has used this hotel before or is familiar with the hotel's reputation for performance.

S-RS500-09-M-04S3 - Obama Presidential Visit in 2009 S-RS500-1 0-M-6682 - Clinton SecState Visit in 20 J0

(d) Integrity. The contractor has a satisfactory record of integrity and business ethics.

Post is unaware of any issues relating to integrity or business ethics.

(e) Organization and Skills. The contractor appears to have the necessary organization, experience, accounting and operational controls, and skills (or the ability to obtain them) to perform this contract.

(f) Equipment and Facilities. The contractor appears to have the necessary equipment and facilities necessary for this contract, or the ability to obtain them.

(g) Otherwise Qualified. The contractor is otherwise qualified and eligible to receive an award under applicable laws and regulations. The firm is not found to be on the Excluded Parties List dated February 18, 20 II.

Contracting Officer Name

J/JI!I

Date

Timothy R. Johnson