FSH JA 2025_16_Redacted.pdf

FAR 13.5 Simplified Procedures for Certain Commercial Items Sole Source Justification and Approval

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command (MICC) - Fort Sam Houston (FSH), 2205 Infantry Post Road, Joint Base San Antonio - Fort Sam Houston, TX 78234.

2. Description of Action: The Office of the Administrative Assistant (OAA) to the Secretary of the Army requests a Single Award Indefinite Delivery Indefinite Quantity (IDIQ) contract for Hotel Support Services required to continue supporting Congressional Medal of Honor ceremonies and events. Individual task orders will include a period of performance for specified requirements. The identified contractor is HEI South ORME Street LLC. The appropriate corresponding fiscal year Operations and Maintenance, Army funding will be applied as Task Orders are issued. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: The Contractor shall provide a high-quality venue for an evening reception befitting this prestigious event, a private location for secure professional and social interaction, areas for security screening and bus staging, media training and engagement space, briefing and portrait area, a welcome reception, and a block of rooms for the honoree and guests.

Due to the unpredictable nature of White House announcements for Medal of Honor events, it is challenging for OAA to secure individual contract arrangements in a timely manner. Therefore, this requirement is being requested in advance to ensure adequate preparation and accommodations are available. Establishing an IDIQ Contract enables OAA to provide the Medal of Honor recipients with the dignity and ceremony they deserve, befitting the nation's highest military honor, without any disruptions or delays.

This arrangement ensures that these prestigious events can be executed with the utmost respect, dignity, and precision, reflecting the significance of the award.

Period of Performance.

5-year Ordering Period: 23 DEC 2024 – 22 DEC 2029 Value: $ 1,178,794 FAR Clause 52.217-8: 23 DEC 2029 – 22 JUN 2030 Value: $ 124,949

Total Value: $1,303,743

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

5. Reason for Authority Cited: Medal of Honor events are coordinated and scheduled through the White House. OAA receives no more than two week notice to schedule all services supporting these high visibility events. The Performance Work Statement (PWS) requires that the hotel utilized be located within not more than five minutes or less than 2 miles from the Pentagon due to the sensitive health status of many of the Medal of Honor recipients. The hotel to be utilized must have a vehicle staging area located on or adjacent to its property. This staging area will be utilized to hold up to four 55 passenger busses along with a motorcade. Many other government agencies buy these services, but none have the stringent requirements of the vehicle staging area.

Due to the complex nature and mission-essential tasks that comprise this needed service, market research through the years has revealed that only one vendor, HEI South ORME Street LLC, can fulfill and effectively meet all the requirements in the PWS.

Due to the security and facility requirements and required proximity to the Pentagon, only one vendor is capable of providing the required services. This vendor, HEI South ORME Street LLC, has successfully fulfilled this same requirement in the recent past. HEI South ORME Street LLC is a large business. This vendor also does not charge additional costs to “block off rooms”. Other vendors do charge an additional fee for “blocking off rooms” which has proven to be cost prohibitive in the past due to budget constraints. In addition, the incumbent has the ability to quickly react to the average 10-day notification from the White House that a Medal of Honor event is taking place.

Another important factor that impacts this requirement is that awarding to any contractor other than the incumbent will require substantial ramp-up time and overcoming a steep learning curve. The incumbent is familiar with all security regulations for all federal facilities associated with these events and has passed extensive security investigations to obtain the necessary clearances, access, and approvals the requirements levied in the PWS allowing for a successful Medal of Honor event. It is in the Government’s best interest to award to the incumbent to reduce effort and administrative costs and continue to provide the Medal of Honor recipients with a ceremony that dignifies their sacrifice.

Notwithstanding the requirement for the location proximity to the Pentagon, there are cost, schedule and performance risk considerations associated with awarding to any other vendor than the incumbent. With respect to Cost Risk, if the vendor is not trained on the intricacies and requirements associated with Medal of Honor ceremony, or if the vendor has additional charges for blocking off rooms for event, the Government’s cost to execute the event will increase, forcing the Government to eliminate requirements to compensate for the additional costs. Schedule Risks will exist if an unexperienced vendor isn’t prepared and able to develop a plan to execute the mission within 10-day notice, causing rescheduling and potentially damaging the prestige of the event.

Performance risk exists if the contractor does not have a facility that provides a) a reception area for approximately 200 guests; b) a secure parking location that accommodates all guests and 4 coach busses; c) a freight elevator with direct proximity to the event area; and d) a 6,000 square feet room to accommodate audio/visual equipment. All four of these accommodations contribute to the execution of the Medal of Honor events and prestige for the Medal of Honor recipients.

Impact if Justification not approved. Without an existing contract vehicle to support short notice Medal of Honor events, the potential exists that the Army may be unable to

Further, the market research included a feasibility assessment of local hotels. This assessment indicates that, based on reasons stated in paragraph 5, HEI South ORME Street LLC is the only viable option. It offers a location with off main street vehicle staging area, along with required conference space and volume of hotel rooms required.

Documentation from the requiring activity is in the contract file.

HEI South ORME Street, LLC has the capacity to perform all required services IAW the PWS. There are no opportunities for subcontracting. A Contracting Officer’s Determination that no subcontracting opportunities are available with this requirement and vendor correspondence attesting to this will be provided in the contracting folder.

7. Actions to Increase Competition: The requiring activity continues to monitor the marketplace to stay abreast of new market entrants and changes. At the end of this 5-year ordering period, a survey of the hotels available will be conducted to determine if any other hotels meet the requirements.

8. Market Research: The OAA Special Event Program Manager researched and toured ten (10) separate hotel facilities in the District of Columbia / Maryland / Virigina area to determine feasibility of alternate sources. The customer requires that the hotel utilized is located within five minutes, or less than 2 miles from the Pentagon, due to the sensitive health status of many of the Medal of Honor recipients. The hotel to be utilized must have a vehicle staging area located on, or adjacent to its property. This staging area will hold up to four 55-passenger busses along with a motorcade. Many other government agencies buy these services, but none have the stringent requirements of the vehicle staging area. Based on this market research, HEI South ORME Street LLC is the only source that can provide support for this contract within the time frames being requested.

9. Interested Sources: As shown in the market research, interest is limited as many Offerors cannot provide the required service due to security requirements and required proximity to the Pentagon. The current vendor, HEI South ORME Street LLC, is solely capable of providing the required services and has successfully fulfilled this same requirement in the recent past. HEI South ORME Street LLC is a large business.

10. Other Facts:

Procurement History

Contract number: W9124J20D0002 Awarded Contractor: Sheraton Pentagon hotel, HEI SOUTH ORME STREET LLC Description of requirement: Hotel support for Medal of Honor Events Method of procurement: Sole Source, FAR Subpart 13.5 Contract type: IDIQ, Firm-Fixed-Price Period of performance:19 OCT 2019 to 18 OCT 2024 Total awarded amount: $700,000 Maximum Amount

11. 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.

________ Date: See digital signature

Contracting Officer’s Representative

12. Requirements 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.

________ Date: See digital signature

Chief, Business Compliance Division

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. The method for determining the price Fair and Reasonable will be made once the contractor has submitted its proposal and the adequacy of the price or cost data submitted has been evaluated. This determination will be made through a solicitation process and comparison to historical data.

_________ Date: See digital signature

Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

_________ Date: See digital signature

Contracting Officer