J A.doc

Control Number: KO FY14-10

Justification Review Document for Other Than Full and Open Competition Contracting Activity: 413th CSB, Regional Contracting Office, Hawaii, CDA Purchase Request/Local Identification Number: W912CN-14-P-0037 Name of Intended Contractor: Rest Easy LLC (5MUQ7) Estimated Contract Cost (including options): $xx,xxx

Authority:

[ X ] FAR 13.106-1(b)(1) or[ ] 10 U.S.C. 2304(c)(___), as implemented by FAR 6.302-___

Type J&A: _______N/A_____________(Class or Individual) [ Prepared By:

Contracting Specialist:

DSN: xxxx-xxxx COM: (xxx) xxx‑xxxx E-mail:

Contracting Officer:

RCO HI

DSN: xxx-xxxx COM: (xxx) xxx-xxxx

E-mail: xxxxxxxxxxxxxxxxx Technical Representative:

(Name)

(APIX-HOS-CO)

27FEB2014

Requirements Representative:

(APIX-HIS-CO)

27FEB2014

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

Legal Counsel (as applicable): ___________________________

(Office Symbol) Date Signed

DSN: XXX‑XXXX, COM: (XXX) XXX‑XXXX

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. Contracting Activity 413th Contracting Support Brigade, Regional Contracting Office (RCO-HI), Contract Division Alpha (CDA). The requiring activity is U.S. Army 194TH USAH Fort Benning Georgia.

II. Description of Action Contracting Officer Determination to issue sole source award to Rest Easy LLC (5MUQ7), 1 Jarrett White rd, TAMC, HI, 96859, CAGE Code 5MUQ7. New firm-fixed-price contract, using FY14 Operations and Maintenance (OMA) funds.

III. Description of Supplies/Services Lodging rooms are required for 34 soldiers from various Army locations 08-28 March

2014 for the 1984th US Army Hospital Unit’s annual training at Tripler Army Medical Center.

The estimated amount per room night is $119 + $5.61 GE Tax = $124.61. Seventeen rooms

(17double occupancy) x 20 nights x $124.61 = $42,367.40 lodging cost.

IV. Authority Cited Only the authorities below should be used:

Action using simplified acquisition procedures (select one):

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT) which is $150,000 or for a declared contingency, $1 million for any contract to be awarded and performed, or purchase to be made, outside the United States to support that contingency. Contracting officers may solicit from one source if the 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)

FAR 13.501(a)(1)(ii): For actions for commercial supplies or services greater than the SAT but not exceeding $6.5M ($12 million if acquisitions for commercial items that, as determined by the head of the agency, are to be used in support of a contingency operation or to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack), the correct citation is: Test Program for Commercial Items, Section 4202 of the Clinger-Cohen Act of 1996 as codified at 10 USC Sec. 2304(g)(1)(B), and amended by Section 807 of the Ronald Reagan National Defense Authorization Act of 2005.

Actions using other than simplified acquisition procedures (select one):

FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements, 10 USC 2304(c)(1)

FAR 6.302-2: Unusual and compelling urgency, 10 USC 2304(c)(2)

FAR 6.302-5: Authorized or Required by Statute, 10 USC 2304(c)(5)

FAR 6.302-6: National Security, 10 U.S.C. 2304(c)(6).

FAR 6.302-7: Public Interest, 10 U.S.C. 2304(c)(7).

V. Reason for Authority Cited

a. IAW FAR 13.106-1(b)(1), only one source is reasonably available to provide the required lodging accommodations for this requirement and IAW FAR 13.106-1(b)(1)(i) for unique capabilities Rest Easy LLC, IHG Army Hotels – Tripler/Shafter is located on the grounds of Tripler Army Medical Center (TAMC) where the 1984th US Army Hospital Reserve Unit’s annual hospital training will be held from 8-28 March 2014. Lodging at Rest Easy on the grounds of TAMC will allow the soldiers to be in a secure location, allow for ease of formations and gatherings, and to keep the unit cohesive. The Command can hold formations in the parking lot of Rest Easy to maintain accountability of all soldiers and to disseminate information to soldiers before they go to work.

b. Award to any other source would result in substantial costs to the Government not expected to be recovered through competition. There would be increased costs if awarded to another hotel. Arrangements at other than Rest Easy would require the unit to spend time scheduling drop-off and pick-up of soldiers to and from TAMC and take away from valuable training time. Scheduling drop-off and pick-up of soldiers would also be cumbersome due to the various shifts they must work. An example of the shifts would be, 0600-1400, 1400-2200, and 2200-0600. Lodging at the Rest Easy would allow soldiers to walk to and from the hospital in a secure environment and avoid the cost of obtaining rental transportation.

c. Market research indicates that during the time period of 8-28 March that 15 passenger vans from Enterprise Rent-A-Car are sold out. A verbal from Enterprise Rental is $2,363 per 15 passenger van for the required period specified previously. The cost savings of using Rest Easy LLC versus of post billeting will be $9,452.00 for transportation services.

d. Additionally, meals will be provided by Tripler Medical Center during they deployment. There would be no additional cost for feeding the soldiers if Rest Easy LLC facilities are utilized reducing further the cost to the US Government. The estimated cost per soldier would be $91 which would result in an additional cost of $3,094.

e. Finally, if soldiers are billeted off post, additional time will ne need to be allotted for travel to and from the restaurant to eat and then head back to work at Tripler Hospital. This additional travel requirement can become a safety concern and can increase chances of vehicle accidents.

VI. Efforts to Obtain Competition As noted in Para VIII below, market research was conducted by comparing the Rest Easy LLC rate against prices found on the internet, previous acquisition history, and Accommodations BPA contract holders.

VII. Actions to Increase Competition Other locations for lodging accommodations will be considered for each subsequent requirement.

VIII. Market Research

a. Market research was conducted. The Inn at Schofield Barracks website shows that their double-occupancy room rate is $159/night. The Hale Koa Hotel in Waikiki shows that the rate charged for official travel (TDY/PCS) is $177/night for a standard room and the Ala Moana Hotel’s best rate is $169/night. In comparison to the suggested source, Rest Easy LLC has quoted the Activity a $119/night room rate (not including taxes). Rest Easy’s room rate is approximately 35% lower than the Inn at Schofield Barracks, 51% lower than Hale Koa and 44% lower than the Ala Moana Hotel. At $159/night The Inn at Schofield Barracks charges the lowest room rate of all three hotels surveyed however The Inn is approximately 17 miles away from TAMC and would require transportation for the soldiers.

b. Previous acquisition history shows that awards have been made in the past to Rest Easy LLC. Contracts 11-P-0177 (5/2011), 12-P-0073 (3/2012) and 12-P-0188 (7/2012) were awarded sole source to Rest Easy at the room rate of $115/night. In comparison for this current requirement Rest Easy is quoting $119/night, a 1.74% increase from rates charged in 2011 and 2012 but still lower than market survey rates of The Inn at Schofield ($159/night), Hale Koa ($177/night) and Ala Moana Hotel ($169/night). Other requirements that were solicited and awarded to Rest Easy (08-P-0332, 07-P-0172, 05-P- 0098 and 05-P-0612) in the past show that Rest Easy’s room rate per night was half that offered by competitors. Rest Easy’s rates for these awards ranged from $49 - $57.50 per night while their competitor’s offers ranged between $105.85 - $120/night.

c. Research was also performed on the Accommodations BPA that RCO-HI has with several hotels. Calls were selected at random for room rate comparison against Rest Easy. 11-A-0019 0003 which was awarded to Hilton Waikiki Beach on 1/12/12 shows that several BPA holders were solicited however only one quote was received. The other properties no bid and the quote from Hilton Waikiki Beach was for $159/night. Research of 11-A-0016 0007 on 8/10/12 awarded to the Miramar Hotel shows that five responses were received and room rates quoted ranged from $129 - $177/night. Under award 11-A- 0011 0004 awarded to the Ala Moana Hotel on 12/14/12 the other four properties did not have availability or the conference room space required to accommodate the Activity. The Ala Moana Hotel won the award and offered a room rate of $145/night. Rates quoted by the properties above all fall below the JTR rate of $177/night however Rest Easy’s rate of $119/night is both lower than the JTR and the rates quoted by the Accommodations BPA holders in calls sampled above.

d. The hotels closest to TAMC are located near the airport and are the Ohana Airport Hotel and the Best Western Honolulu. The Ohana Airport Hotel’s website shows a published rate of $169/night and the Best Western show’s a published rate of $199/night. These rates are 44% and 70% higher respectively than the rate of $119/night offered by Rest Easy LLC. The Ohana Airport Hotel and the Best Western Honolulu are operated under TEG Hotels LLC. TEG Hotels LLC is also an Accommodations BPA holder with RCO-HI therefore comparison is being made against previous acquisition history. The most recent rate offered to the government for lodging was $142.45/night on call 11-A-0017 0003 issued on 9/24/2012. In comparison to Rest Easy, the rate offered by TEG Hotels under their accommodations BPA is 21% higher than Rest Easy. Lodging near the airport would not meet the requirement and the Activity would incur rental vehicle costs for soldiers to be transported to TAMC.

IX. Interested Sources. N/A X. Other Facts. N/A XI. Technical/Requirements Personnel’s Certification As evidenced by their signatures on the J&A signature page, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.

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

Typed Name: Crystal Jones, SSG

Position Title: Supply Sergeant/S4 NOCIC

Signature: ______________________

Date:27FEB2014

XII. Requirements Certification

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

Typed Name: Crystal Jones, SSG Position Title: Supply Sergeant/S4 NCOIC Signature: Date:27FEB2014 XIII. Fair and Reasonable Costs I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Basis for the determination would be quotes received in response to the solicitation and historical pricing for the same item.

Typed Name: Ryan G. Lee Position Title: Contracting Officer Signature:

Date: 2/27/2014 XIV. Contracting Officer’s Certification and Determination I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. Based on the foregoing, . I hereby determine that the circumstances of the contract action deem that only Rest Easy LLC is capable of providing the lodging services required by the 1984th Army Hospital Unit and that award to the company is in the best interest of the Government.

Typed Name: Ryan G. Lee Position Title: Contracting Officer Signature:

Date: 2/27/2014