Final J&A Pad Leases DR-4277-LA

CLASS JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
41 U.S.C. 3304(a)(7)

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity:

The Department of Homeland Security, Federal Emergency Management Agency (FEMA), continues contracting with twenty-nine (29) contractors on a basis other than full and open competition with commercial mobile home parks.

2. Nature and/or Description of the Action being Approved:

a. Type of action: Firm Fixed-Price Contracts
b. Amount: Not-To-Exceed $16,000,000.00
c. Type of funding: Disaster Relief Fund
d. Year of funding: FY 2016 and FY2017
e. All mobile home parks are located in the State of Louisiana. The contracts covered under this Class J & A are for the rental of pad sites at various commercial mobile home parks located in the declared parishes.

3. Description of Supplies/Services:

Section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. No. 93-288, as amended (the "Stafford Act"), codified at 42 U.S.C. 5121 et seq., authorizes FEMA to provide manufactured housing units (MHUs), acquired by purchase or lease, directly to individuals or households, who, as a result of a major disaster, lack available housing resources and would be unable to make use of financial assistance. Direct assistance may be provided for a period of up to 18 months from the date of a Presidentially-declared major disasters. The contracts covered under this Class J&A are for the rental of pad sites at various commercial mobile home parks and campgrounds located in the declared parishes. The total combined value of all contracts issued under this class justification will not exceed $16 million. In addition to the monthly rent of the pad site (including utilities), the price of each contract may include expanding and improving commercial sites including upgrading utility services, to develop usable pad sites for MHU placement. The period of performance for each contract will be for a base period of three (3) months with four, 3-month options, for a total of 15 months to cover possible extensions beyond the 18-month program. 
INITIAL CLASS J&A

Pads Contract # Expiration Date w/ Options Value of Base plus Options
Airport Road HSFE06-16-P-0348 11/30/2017 $833,300.00
Albany HSFE06-16-P-0381 12/12/2017 $121,500.00
Babin's I-12 HSFE06-17-P-0102 3/28/2018 $148,500.00
Brentwood Estates HSFE06-17-P-0004 1/5/2018 $330,000.00
Bunch's Trailer Park HSFE06-17-P-0039 1/23/2018 $198,000.00
C&W Ventures HSFE06-17-P-0029 1/19/2018 $165,000.00
Central Point HSFE06-17-P-0055 2/6/2018 $165,000.00
Cook Road HSFE06-17-P-0061 2/14/2018 $450,000.00
Cypress Cove HSFE06-16-P-0387 12/9/2017 $165,000.00
Danni Lane HSFE06-17-P-0047 2/1/2018 $510,000.00
Denham Place HSFE06-17-P-0111 4/29/2018 $66,000.00
Denham Street HSFE06-17-P-0098 3/29/2018 $1,006,500.00
Evergreen One LLC HSFE06-17-P-0079 2/28/2018 $181,500.00
Greenwell Village HSFE06-17-P-0097 3/29/2018 $1,047,288.00
Hendricks HSFE06-17-P-0015 1/13/2018 $456,500.00
Kleinpeter HSFE06-17-P-0119 7/19/2018 $148,500.00
Lavey Lane HSFE06-17-P-0121 7/20/2018 $396,000.00
LEO's Park LLC HSFE06-16-P-0340 5/31/2018 $1,947,000.00
Magnolia Terrace HSFE06-17-P-0110 4/27/2018 $23,100.00
PCR Properties HSFE06-17-P-0027 1/19/2018 $429,000.00
Pine Acres Park HSFE06-17-P-0017 2/1/2018 $660,000.00
Pine Crest HSFE06-17-P0109 4/30/2017 $29,700.00
Plantation Village HSFE06-17-P-0042 1/31/2018 $450,000.00
Springfield HSFE06-17-P-0033 1/21/2018 $612,000.00
Stone Hill Park HSFE06-16-P-0382 12/8/2017 $619,300.00
Svara MHP HSFE06-17-P-0063 2/14/2018 $445,500.00
Sweet Briar (S&K) HSFE06-16-P-0345 12/12/2017 $1,072,500.00
Twin Oaks HSFE06-17-P-0101 7/8/2018 $99,000.00
Walker South HSFE06-17-P-0016 1/13/2018 $195,000.00
TOTAL $12,970,688.00

NEW CLASS J&A
Pads Contract # Expiration Date w/ Options Value of Base plus Options Revised Expiration Date w/ Options Revised Value of Base plus Options
Airport Road HSFE06-16-P-0348 11/30/2017 $833,300.00 2/28/2018 $833,000.00
Albany HSFE06-16-P-0381 12/12/2017 $121,500.00 3/12/2018 $145,800.00
Babin's I-12 HSFE06-17-P-0102 3/28/2018 $148,500.00 6/28/2018 $172,800.00
Brentwood Estates HSFE06-17-P-0004 1/5/2018 $330,000.00 4/5/2018 $396,000.00
Bunch's Trailer Park HSFE06-17-P-0039 1/23/2018 $198,000.00 4/23/2018 $237,600.00
C&W Ventures HSFE06-17-P-0029 1/19/2018 $165,000.00 4/19/2018 $165,000.00
Central Point HSFE06-17-P-0055 2/6/2018 $165,000.00 5/6/2018 $198,000.00
Cook Road HSFE06-17-P-0061 2/14/2018 $450,000.00 5/14/2018 $540,000.00
Cypress Cove HSFE06-16-P-0387 12/9/2017 $165,000.00 3/9/2018 $198,000.00
Danni Lane HSFE06-17-P-0047 2/1/2018 $510,000.00 5/1/2018 $612,000.00
Denham Place HSFE06-17-P-0111 4/29/2018 $66,000.00 7/29/2018 $330,000.00
Denham Street HSFE06-17-P-0098 3/29/2018 $1,006,500.00 6/9/2018 $1,207,800.00
Evergreen One LLC HSFE06-17-P-0079 2/28/2018 $181,500.00 5/28/2018 $455,400.00
Greenwell Village HSFE06-17-P-0097 3/29/2018 $1,047,288.00 6/29/2018 $1,261,788.00
Hendricks HSFE06-17-P-0015 1/13/2018 $456,500.00 4/13/2018 $490,000.00
Kleinpeter HSFE06-17-P-0119 7/19/2018 $148,500.00 10/19/2018 $148,500.00
Lavey Lane HSFE06-17-P-0121 7/20/2018 $396,000.00 10/20/2018 $475,200.00
LEO's Park LLC HSFE06-16-P-0340 5/31/2018 $1,947,000.00 8/31/2018 $1,947,000.00
Magnolia Terrace HSFE06-17-P-0110 4/27/2018 $23,100.00 7/27/2018 $23,100.00
PCR Properties HSFE06-17-P-0027 1/19/2018 $429,000.00 3/19/2018 $495,000.00
Pine Acres Park HSFE06-17-P-0017 2/1/2018 $660,000.00 5/1/2018 $792,000.00
Pine Crest HSFE06-17-P0109 4/30/2017 $29,700.00 7/30/2017 $148,500.00
Plantation Village HSFE06-17-P-0042 1/31/2018 $450,000.00 4/31/2018 $450,000.00
Springfield HSFE06-17-P-0033 1/21/2018 $612,000.00 4/21/2018 $732,000.00
Stone Hill Park HSFE06-16-P-0382 12/8/2017 $619,300.00 3/8/2018 $731,300.00
Svara MHP HSFE06-17-P-0063 2/14/2018 $445,500.00 5/14/2018 $534,600.00
Sweet Briar (S&K) HSFE06-16-P-0345 12/12/2017 $1,072,500.00 3/12/2017 $1,072,500.00
Twin Oaks HSFE06-17-P-0101 7/8/2018 $99,000.00 10/8/2018 $118,800.00
Walker South HSFE06-17-P-0016 1/13/2018 $195,000.00 4/13/2018 $234,000.00
TOTALS $12,970,688.00 TOTALS $15,145,688.00

 
4. Identification of Statutory Authority permitting Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1), implemented by the FAR Subpart 6.302-1 entitled "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited:

a. Background information about the requirement. In response to the Louisiana Severe Storms, Flooding, the state received a Presidential Major Disaster Declaration on 14 August 2016 (DR-4277-LA). The Governor requested a direct housing program under the Housing Assistance Provision of the Individuals and Households Program (42 U.S.C 5174 (c)(1)(B)) under FEMA DR-4277-LA on 24 Aug 2016. Based on the damage resulting from the incident, FEMA determined a lack of available housing resources exist in and around the declared area, and authorized temporary direct housing assistance for eligible applicants on 1 September 2016.

Fifteen (15) additional contracts (with option periods) were added to secure 352 additional pads to meet the demand of the increased number of approved applicants. This requires the justification to be increased from the initial amount of $8,000,000.00 to $16,000,000.00.

CONTRACTOR NAME CONTRACT # INITIAL # OF PADS
LEO'S HSFE06-16-P-0340 118
AIRPORT ROAD HSFE06-16-P-0348 134
CYPRESS COVE HSFE06-16-P-0387 10
STONEHILL HSFE06-16-P-0382 18
SWEET BRIAR/S&K HSFE06-16-P-0345 65
BRENTWOOD ESTATES HSFE06-17-P-0004 20
ALBANY HSFE06-16-P-0381 9
WOODLAWN/HENDRICKS HSFE06-17-P-0015 13
WALKER SOUTH HSFE06-17-P-0016 9
C&W VENTURES HSFE06-17-P-0029 10
PCR PROPERTIES HSFE06-17-P-0027 10
SPRINGFIELD HSFE06-17-P-0033 40
BUNCH'S HSFE06-17-P-0039 12
PLANTATION VILLAGE HSFE06-17-P-0042 30

TOTAL 498

 

ADDITIONAL PADS
CONTRACTOR NAME CONTRACT # INCREASED NUMBER OF PADS
PINE ACRES PARK HSFE06-17-P-0017 40
DANNIE LANE HSFE06-17-P-0047 20
CENTRAL POINT HSFE06-17-P-0055 10
COOK ROAD HSFE06-17-P-0061 30
SVARA MHP HSFE06-17-P-0063 27
EVERGREEN ONE LLC HSFE06-17-P-0079 11
GREENWELL VILLAGE HSFE06-17-P-0097 65
DENHAM STREET HSFE06-17-P-0098 61
BABIN'S I-12 HSFE06-17-P-0102 09
TWIN OAKS HSFE06-17-P-0101 10
KLEINPETER HSFE06-17-P-0119 09
LAVEY LANE HSFE06-17-P-0121 24
PINE CREST HSFE06-17-P-0109 09
DENHAM PLACE HSFE06-17-P-0111 20
MAGNOLIA TRACE HSFE06-17-P-0110 07

TOTAL 352

b. Details covering what events lead to the situation requiring use of other than full and open competition procedures. See section 5a above.

c. Why considered alternatives will not work? Mobile home parks are not a service that is based on competition, but rather it is based geographical location. Therefore, utilizing FAR Part 6.302-1, only one responsible source and no other source and no other supplies or services will satisfy agency requirements and expedite the housing services needed.

d. Which authority applies and why? The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1), implemented by the FAR Subpart 6.302-1 entitled "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." This authority applies because the availability for the services required can only be obtained from a limited number of responsible sources based on geographical location. As a result, no other services will satisfy the requirement.

e. Explain the impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided? As a result of the Louisiana floods and the thousands of displaced survivors it is necessary to approve and execute this J&A to continue supporting the response and recovery efforts as a result of this disaster. Without this J&A, FEMA would not be able to continue providing immediate emergency temporary housing needs to disaster victims.

6. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable:

The Contracting Officer did not post a Sources Sought notification on FedBizOpps due to the large number of Mobile Home Park owners identified from market research by the Logistics Program Office and FAR Subpart 6.3 - Other Than Full and Open Competition. However, a FedBizOpps notice will be publicized, as required by FAR Subpart 5.102(a)(6) and 5.2.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

The contracting officer determines that the anticipated prices will be fair and reasonable based on market research, current price lists, and comparison with similar items. Fair Market Rent (FMR) is defined by the Department of Housing and Urban Development (HUD) and are primarily used to determine payment standard amount for various housing assistance programs. FMRs are gross rent estimates that include the cost of rent plus all tenant-paid utilities, except telephones, cable or satellite television service, and internet service. HUD uses the most accurate and current data available to develop the FMR estimates every fiscal year. FMRs are intended to be housing market-wide rent estimates that provide housing opportunities throughout the geographic area in which rental units are in direct competition. HUD publishes FMRs in the Federal Register, first as proposed estimates for public comment and then for final effect. The purpose of the public comments process is to identify areas where local government officials or residents believe the FMRs are too high or too low. All pad lease payments must be in line with the FMR for that specific county. Fair market rent for East Baton Rouge, Livingston, Ascension and Tangipahoa parishes varies from a low of $728 for a 1-bedroom and a high of $1,056 for a 3-bedroom.

8. Description of Market Research:

FEMA's Disaster Housing Assessment Teams (DHAT) is responsible for working with the State's housing department to locate all commercial mobile home parks and campgrounds in the declared counties. The DHATs then visit each site to perform feasibility assessments to determine if FEMA MHUs can be placed on site. When considering the placement of MHUs, FEMA must follow the abbreviated eight-step decision process for sites as outlined in 44 CFR Section 9.13, which states that no mobile home may be placed on a floodplain. Close coordination with the Environmental Planning and Historic Preservation Program and Hazard Mitigation is also required. In addition, each site must be capable of accepting 1, 2 or 3 bedroom units of various sizes and must be utility-ready or able to have utilities upgraded to meet the specifications of FEMA's MHUs. For DR-4277-LA, there are currently only four approved parishes: East Baton Rouge Parish, Livingston Parish, Ascension Parish, Tangipahoa Parish and DHAT identified a total of 10 Sites in East Baton Rouge Parish, 13 Sites in Livingston Parish, 3 Sites in Ascension Parish and 1 Site in Tangipahoa Parish.
• East Baton Rouge Parish
o 8 are not feasible for the following reasons:
 Management could not be located/contacted
 No lots available
 In Flood Zone
 Does not want to do business with FEMA
o 15 sites are also possibly feasible pending additional inspections. It is anticipated that FEMA would contract with one or more of these 12 sites, depending on survivors' need
• Livingston Parish
o 28 are not feasible for the following reasons:
 Age Restricted
 In flood zone
 Not actually located in the state
 Management could not be located
 No pads available
 Sites no longer exist
o 13 are maybe feasible pending additional inspections. It is anticipated that FEMA would contract with one or more of these 13 sites, depending on survivors' need

• Ascension Parish
o 28 are not feasible for the following reasons:
 In flood zone
 Management could not be located
 No pads available
o 4 sites are also possibly feasible pending additional inspections. It is anticipated that FEMA would contract with one or more of these 3 sites, depending on survivors' need

• Tangipahoa Parish
o 28 are not feasible for the following reasons:
 Management could not be located
 No pads available
 Sites no longer exist
One (1) site is feasible pending additional inspections. It is anticipated that FEMA would contract with one or more of these 29 site, depending on survivors' need.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition:

The need to locate and secure the identified sites allowed occupants to bus routes, jobs, schools, and within a reasonable distance from their permanent dwelling and or family. Also see paragraph 5.

10. A Listing of the Sources, if Any That Express, in Writing, an Interest in the Acquisition:

Potential Commercial Sites were determined and identified based on locations, needs, impacted population and the availability of pads.

11. A Statement of the Action, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services is Required:

FEMA will continue to perform casework in coordination with the Individual Assistance Division to maximize the use of available existing housing resources based on a reasonable commuting distance of 50 miles. This is performed for each household prior to being determined to have a continued need for direct housing assistance. FEMA, in coordination with the State of Louisiana, work with applicants to identify and achieve a permanent housing plan. If necessary, because of extraordinary circumstances, at the written request of the State, FEMA may extend the 18 month period of assistance for temporary direct housing assistance if an extension in the public's interest. FEMA will assess penalty fees for occupants who remain in or maintain possession of the MHU after the end of the approved period of assistance in accordance with 44 C.F.R Section 206.117(b)(1)(ii)(H).

The park owners for the selected are all small business with the majority of them doing business with the Government for the first time. By contracting with these parks FEMA is generating a network of new vendors, thereby, increasing the market pool and allowing future competition.