Talu Sole Source JA.pdf

JUSTIFICATION FOR OTHER THAN FULL & OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING AGENCY:

Contracting Activity Customer Agency Department of Labor Department of Labor OASAM/OSPE/OAS Bureau of Labor Statistics 200 Constitution Avenue, NW 2 Massachusetts Avenue NE Washington, DC 20210 Washington, DC 20212

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

The Department of Labor (DOL), Office of the Assistant Secretary for Administration and Management (OASAM), Office of the Senior Procurement Executive (OSPE) plans to award a sole source contract to Talu, LLC (Talu) located at 2553 Dulles View Dr. Ste 700, Herndon VA 20171 to provide a turnkey outfitting solution to support the relocation effort for the Bureau of Labor Statistics (BLS), in which BLS is relocating its headquarters from the Postal Square Building (PSB) in Washington DC to the Suitland Federal Center (SFC), Suitland, MD.

Pursuant to FAR 6.302-1, full and open competition is not in the Government’s best interest as continuity of services is vital to BLS’ relocation effort and will allow the completion of essential tasks that initially began under task orders awarded to Talu under the Department’s Indefinite Delivery, Indefinite Quantity (IDIQ) Contract No. 1605C3-21-D-0002, which does not have sufficient ceiling remaining to accommodate this requirement and is scheduled to expire on December 8, 2023.

Awarding a follow-on sole source contract to Talu for BLS’ relocation services will ensure project continuity, minimize risks, and maintain quality control.

The Government anticipates awarding a Firm-Fixed Price (FFP) contract with a twelve-month base period, and one twelve-month option period.

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS:

At the direction of the Office of Management and Budget (OMB), BLS is relocating its National Office Headquarters from PSB located at 2 Massachusetts Avenue in Washington, DC, to SFC located at 4600 Silver Hill Rd in Suitland, Maryland. The planning of this relocation, involving approximately 1,800 federal employees and contractors, represents the ongoing design, construction and planning of BLS’ headquarters and advances new workplace strategies, concepts, and standards resulting in a reduced footprint and rent savings.

Talu’s continued support and expertise is required to provide BLS with an economical turn-key solution that includes, but is not limited to:

Furniture, Fixtures, and Equipment (FF&E);

Interior design services;

Decommission of the remaining 250,000 square feet of space at PSB and provide moving services;

Workplace graphics for design services;

Transition planning and coordination, storage, physical relocation services;

Project management;

Audio-Visual (AV) technology equipment and services:

Delivery and installations services;

Signage;

Requirements development and planning;

Design-build quality assurance and inspections; and Schedule management.

To support the relocation requirement, Talu has supported BLS over the last thirteen months in several areas, including space decommissioning at PSB and furniture/equipment design services at SFC. As such, Talu is familiar with BLS detailed space plans/requirements and has provided significant logistical support to the agency to facilitate a seamless transition.

The estimated value for this requirement is $21.6 million, which is detailed below.

Period of Performance Total Estimated Value Base Period: 9/28/2023 – 9/27/2024 $18,835,140.24

Option Period 1: 9/28/2024 – 9/27/2025 $2,785,284.86 Total Estimated Cost $21,620,425.09

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION:

The appropriate statutory authority permitting other than full and open competition is 41 U.S.C.

3304(a)(1), as implemented by FAR 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements).

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE AUTHORITY CITED:

Talu is uniquely positioned with the institutional knowledge that is required to support the BLS mission and possesses the distinctive ability to continue providing furniture and relocation services for the agency.

On December 9, 2020, DOL awarded enterprise-wide IDIQ Contract No. 1605C3-21-D-0002 to Talu (an Alaskan Native Corporation) as an 8(a) sole source award. The contract was awarded to provide a nation-wide, scalable, and economical turn-key solution throughout the Department for furniture and relocation services. Additionally, the enterprise-wide contract provides DOL Agencies with support services for:

Data gathering and analysis;

Space planning and architectural design;

Policy recommendations;

Change management leadership and implementation assistance regarding relocation/moving services;

Space optimization; and Consolidating/co-locating program areas in order to provide modern, highly functional and efficient, office space that will allow for increased workforce density, acoustic comfort, and enhanced productivity, Pursuant to the Federal Government's category management initiative, three task orders were awarded against the IDIQ in FY 2022 as BLS began planning their relocation from PSB in Washington, DC to SFC in Maryland.

The first task order (1605C3-21-D-0002/1605C5-22-F-00013) was awarded with a performance period of June 3, 2022 – September 30, 2022. The order was viewed as a pilot effort to provide a showroom of potential furniture options to current BLS employees to obtain their opinions and preferences regarding the furniture outfitting of the new headquarters location in Suitland, MD.

The services required under this order impacted the first floor at the PSB, and required Talu to:

Remove existing furniture from PSB and prepare the space for a new tenant.

o Tasks consisted of, but were not limited to, removing existing furniture systems, disposing the furniture at an offsite location, and disconnecting all electrical/data connections from existing furniture.

Order, assemble, and install temporary furniture at PSB to provide swing space, as well as provide a furniture pilot to solicit input from BLS employees prior to finalizing the new furniture specifications for the Suitland headquarter office.

o Tasks consisted of, but were not limited to, providing furniture renderings, verifying field measurements, scheduling, and staging for furniture (including graphic plans for staging), and coordinating delivery and installation of new furniture.

Paint and clean the carpet throughout the BLS offices and cubicles in the PSB.

Arrange delivery and use of a dumpster and for all related fees.

Provide an itemized report of all materials recycled to the BLS Project Manager at the end of each furniture removal phase.

Obtain all the required clearances and permits associated with placing a dumpster on the grounds of PSB in Washington DC.

A second task order (1605C3-21-D-0002/1605C5-22-F-00032) was awarded with a performance period of September 1, 2022 – January 30, 2023, to provide decommissioning services for three floors (450,000 square feet) at PSB (i.e. The third, fourth, and fifth floors). These services included removing all workstations and case goods from the private offices, and any ancillary products (e.g. File cabinets, conference tables, chairs, and lounge furniture).

A third task order (1605C3-21-D-0002/1605C5-22-F-00039) was awarded with a performance period of September 30, 2022 – July 31, 2022, to provide FF&E design services at SFC. The order included furniture design services of all workstations, private offices, task seating, ancillary furniture, and flexible workspace design elements for BLS at SFC in Suitland, MD. The scope of the design services (and subsequent furniture) spanned eight floors consisting of a conference center, a workspace, one-hundred seventy-nine offices, and nine-hundred fifteen workstations.

As such, Talu’s industry expertise, and substantial involvement and familiarity with this project will allow BLS to standardize the execution of its furniture and relocation requirements, minimize acquisition lead-times and costs, and successfully complete multiple projects concurrently on schedule. Talu's industry expertise, focus on quality control, expert guidance, longstanding relationships with local service providers, and oversight are integral to the successful completion of BLS’ relocation to Suitland, MD.

From the project's inception, Talu has been instrumental. Therefore, the Department believes that only Talu (and no other firm) can perform the mandatory decommissioning services, implement the required design plans, and provide the needed FF&E within BLS’ established schedule without causing significant harm to the agency. Given the critical nature of this project, the substantial risks and negative consequences of replacing Talu at this late stage, and the need for continuity, it is in the Government’s best interest to award the sole source contract to Talu.

Awarding to a different vendor would be extremely disruptive, lead to significant delays, and may result in the duplication of costs associated with design services and disassembling furniture that was temporarily installed and assembled by Talu. Thereby, increasing the risks of damaging the furniture, project failure, and untimely completion. In addition, significant delays in the relocation, would lead to costly holdover expenses if BLS is not able to vacate its current space at PSB by May 2025, which is the expiration date of its lease with the General Services Administration (GSA).

Furthermore, competing this effort would not be cost effective nor efficient, or in the Government’s best interest. To date, BLS has invested $1,511,702.08 towards the design, FF&E, and decommissioning services with Talu. Changing vendors at this juncture will result in higher operating costs and delays due to the potential duplication of efforts, the loss of any economies of scale previously achieved, and the loss of familiarity with BLS’ detailed space plans and requirements, which would be disruptive and lead to significant delays.

6. A DESCRIPTION OF EFFORTS TO OBTAIN COMPETITION 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 SUBPART 5.2 AND IF NOT, WHICH

EXCEPTION UNDER 5.202 APPLIES:

The Contracting Officer surveyed the market to identify vendors providing relocation and furniture services. However, only Talu was found capable of providing the required services due to the specific nature of the required tasks and continued work needed. Although some of the vendors demonstrated an ability to provide some of the required services, none demonstrated the ability to provide all the required service within the timeline required to offer a turn-key solution in support of BLS, a critical component of this requirement.

Therefore, Talu is the only vendor uniquely positioned at this time to provide the relocation and furniture services in support of BLS’ mission.

In addition, under the first task order that was awarded to Talu against their DOL IDIQ contract (1605C3-21-D-0002/1605C5-22-F-00013), the firm presented a variety of furniture options at PSB for BLS employees to provide their feedback for the new furniture at SFC. This task order was viewed as a pilot, but required Talu to order, assemble, and install furniture at PSB that will be moved to SFC under the subsequent contract. Having a different vendor disassemble and reassemble the furniture strongly increases the risks of damage to the furniture, which will violate the previous agreements and warranties offered by Talu, and jeopardize the schedule for the relocation project being completed timely. Furthermore, significant delays in the relocation, would lead to costly holdover expenses if BLS is not able to vacate its current space at PSB by May 2025, which is the expiration date of its lease with GSA.

Also, a Notice of Intent to Sole Source was published on SAM.gov on September 22, 2023.

To date, no responses have been received.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

Prior to the award of the IDIQ contract, a combination of price/cost analysis techniques were utilized to review the contractor’s proposed firm-fixed prices and the Contracting Officer established a basis for developing the Government’s objectives and negotiated amounts. The Government relied on technical input, the independent government cost estimate, local wage determinations, market research, and historical data on similar work.

Although the IDIQ was awarded as an 8(a) sole source contract, the pricing negotiated under the contract was determined fair and reasonable. Historical pricing will be used as a basis to determine price fair and reasonableness for the anticipated sole source contract. The Contracting Officer is confident the anticipated cost will be fair and reasonable.

8. A DESCRIPTION OF MARKET RESEARCH CONDUCTED (PART 10) AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

Market research was conducted prior to DOL IDIQ Contract No. 1605C3-21-D-0002 being awarded as an 8(a) sole source contract. The required market research documentation was presented to the SBA and the requirement was entered into the 8(a) program.

For this effort, an informal analysis was conducted by the Contracting Officer to identify technically capable GSA contractors that offer comprehensive furniture management and relocation services. While there are several GSA contractors that have the technical capability to perform some of the tasks detailed in the Performance Work Statement for this effort, no contractor is readily available with the institutional and programmatic knowledge required to fulfill BLS requirements within the available timeframe without a disruption of services.

Procuring the furniture and relocation services from a source other than Talu would delay critical services and severely adversely impact the mission of BLS.

Talu’s continued support is required to provide BLS with an economical turn-key solution that includes, but is not limited to:

FF&E;

Interior design services;

Transition planning and coordination, storage, physical relocation services;

Project management;

Audio-Visual (AV) technology equipment and services:

Delivery and installations services;

Signage;

Record keeping;

Requirements development and planning;

Design-build quality assurance and inspections Cost estimating; and Schedule management.

9. ANY OTHER SUPPORTING FACTS SUPPORTING THE USE OF OTHER THAN

FULL AND OPEN COMPETITION:

To meet the project deadlines that are established by GSA and reported to OMB and Congress, BLS must integrate the timing of the deliverables of this contract with the overall project schedule determined in coordination with GSA. If, for instance, furniture and equipment is not delivered in sync with the completion of construction of new space at Suitland, the overall project will be delayed. The decommission of existing BLS space must also be closely linked and timed to coincide with deliverables in the new Suitland space for this project to remain on schedule, including the relocation of existing property at PSB to SFC. At this point in the project, significant delays would lead to costly holdover expenses if BLS is not able to vacate its current space at the PSB by May 2025, the expiration of the GSA lease.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

None

11. 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:

There are no known barriers at this time.

12. SIGNATURE BLOCKS:

The program/technical official further certifies that no conflict of interest exists in awarding a sole source contract to the contractor identified herein.

TECHNICAL CERTIFICATION:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Signature: _________________________ Date: _____________________________ Name: ________________________ Title: _____________________________

CONTRACTING OFFICER CERTIFICATION:

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

Signature: _________________________ Date: _____________________________ Name: ________________________ Title: _____________________________

APPROVAL

Based on the foregoing justification, I hereby approve the procurement under an other than full and open competition basis pursuant to the authority of 41 U.S.C. 3304(a)(1) as implemented by FAR 6.302-1(a)(2)(ii) and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: _________________________ Date: _____________________________ Name: Carolyn Angus-Hornbuckle Title: Assistant Secretary for Administration and Management, Office of Assistant Secretary for Administration and Management

Steve Augente Facilities Support Specialist

09/28/2023

Shayla Battle Contracting Officer

09/28/2023

9/29/2023