JA FAR Part 6 CoStar Reality Software_Redacted.pdf

Control Number: SWF 25-0040

(Source Selection information - See FAR 2.101 and 3.104-4)

1 AUG 2022

Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: This is a brand name action for the purchase of a CoStar real estate license agreement web-based software subscription, which provides confirmed and edited real estate sales and rental market data for the United States to provide property valuation services in support of the Fort Worth District Real Estate Office.

Authority: FAR 13.106-1(b), soliciting from a single source.

Amount: to include a 12 month base period with 4 one-year, 12- month Option periods.

Prepared by:

Contracting Officer:

Technical Representative:

Typed Name: _____________________DSN: ______________________________ Title: _______________________________Date: ______________________

Requirements Representative:

Reviews

I have reviewed this justification and find it adequate to support other than full and open competition.

Control Number:

(Source Selection Information - See FAR 2.101 and 3.104-4)

AUG 2022

Legal Counsel

Typed Name: ________________________________DSN: ______________________

Signature: _________________________________ Date: _______________________

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: Department of Army, US Army Corps of Engineers, Fort Worth District Contracting Division Fort Worth, Texas

2. Description of Action: The Real Estate Division, Appraisal Branch request a firm fixed price purchase Order Award with the CoStar Group, Inc., 1331 L St. NW, Washington, DC 20005-4101.

3. Description of Supplies/Services: This is a brand name action for the purchase of a CoStar real estate license agreement web-based software subscription which provides confirmed and edited real estate sales and rental market data for the United States to provide property valuation services in support of the Fort Worth District Real Estate Office. The estimated value of the web-based license agreement subscription is per year for a single user. The proposed contract is for a 12-month base period with 4 one-year, 12-month option periods. Total estimated value including options is .

4. Authority Cited: FAR 13.106-1(b)(1), For purchases not exceeding the simplified acquisition threshold (SAT), contracting officers may solicit form one source if he contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g. urgency, exclusive licensing agreements, brand name, or industrial mobilization).

5. Reason for Authority Cited: CoStar’s database is unique in the non-residential real estate industry in that the market data is fully researched and verified by over 1,200 researchers with 130 field research vehicles daily. Non-residential property sales and transactional rentals and listings are researched, catalogued, and verified with transaction principles, with links to participating brokers, sellers, and buyers. The database can compress broad real estate market analyses from hours and days to minutes and is able to search via a radius, market, or set boundaries to focus on a particular geographic area. It has access to more than 4.2 million fully researched and continuously updated non-residential properties of all classes and types to include information such as sales and rental rates, rent rolls, listing prices, property location, floor plans and amenities, transactional history over time, photographs, extensive demographic data, traffic count data, mapping, and various reporting functions, and links to assessor data. CoStar offers coverage not only within the market area of the larger standard metropolitan statistical areas, but also in many smaller market areas and cities that are required by the Fort Worth Appraisal Team. CoStar provides this proprietary sales and market data for both states.

CoStar runs the only nationwide non-residential Multiple Listing Service that is openly used by nonresidential real estate brokers for commercial, industrial, mixed use, special purpose, and vacant land properties. LoopNet, a web-based competitor, owned by CoStar, is a limited database offering only listing price/rent information with no verification of any data. REIS Reports offers verified non-residential sales and rental data on a limited basis in only the major metropolitan statistical areas, and for a more limited set of non-residential properties. Currently no other web based real estate data provider has the capability of providing the comprehensive and verified substantial inventory of property sales and proprietary transactional lease data for the Area of Responsibility (AOR) required for the southwestern U.S., including the cities and towns located around our military installations, civil works projects, and recruiting offices.

6. Efforts to Obtain Competition: A sources Sought notice was posted to Sam.gov on 11 February 2025 for seven days with responses explaining an intent to create a software. This requirement is not funded with a budget to create a software for the required functionality. A Statement of non-availability (SoNA) was done by CHESS for the files. A GSA representative confirmed no vendors currently offer this software noted and the result and response is included the file as market research.

7. Actions to Increase Competition: The Appraisal Team uses LoopNet with increasingly deficient results. CoStar acquired LoopNet in the past and since then the available data has dwindled. The data available is listings only, is not verified and contains no transactional data. Information provided is only seller, buyer, price and financing. No property attributes or description, no photos, etc. No rental data is included.

8. Market Research:

Trulia and Zillow only offer database information for residential properties and markets.

REIS Reports, which include cap rates and rental rates, don’t provide verified sales. No other source could be identified offering access to the full range of capabilities required for this effort (real estate database providing verified and confirmed data).

The CoStar database access is proprietary and not available through CHESS. A Statement of non-availability (SoNA) was completed by CHESS and is in the file.

Google searches were performed for CoStar alternatives and other appraisal-based market data sources. Sources identified that provided sales/listing/lease data did not provide the same level of analysis, nor were the sources capable of identifying the same quantity. Sources identified that might provide similar market/sub-market analysis did not provide verified comparable sale/lease data.

9. Interested Sources: A sources sought notice was posted on 11 February 2025 for seven (days) with responses explaining an intent to create a software. This requirement is not funded with a budget to create a software for the required functionality.

10. Other Facts:

a. Procurement history.

(1) Contract number W9126G18P0112 – Galveston – Awarded on 10 May

2018Contract number W91BV18P0094 – Tulsa – Awarded on 01 June 2018 Contract number W9126G20P0129 – Fort Worth – Awarded 31 August 2020

(2) Authority previously cited was FAR 13.106-1(b)(1) for both W9126G18P0112 – and W9126G20P0129

b. Other facts. CoStar is currently the only vendor that can effectively provide a web based real estate information database to meet the requirements for verified and confirmed non-residential transactional sales and rental market data, with links to mapping, photographs, and market analyses reports, for the state of Texas. Other firms do not offer the combination of confirmation and verification resources, links to the transactional participants, and the abundant inventory of non-residential property records.

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.

Signature: ________________________________Date: _______________________

Typed Name: ___________________________Title:___ Chief Appraiser __________

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.

Signature: ________________________________Date: ______________________

Typed Name: _____________________________Title:___ Chief Appraiser ________

13. Fair and Reasonable Cost Determination: