Fitness Center Membership

EXPORT-IMPORT BANK OF THE US

JUSTIFICATION FOR LIMITING COMPETITION -SIMPLIFIEDACQUISITION PROCEDURES PROCUREMENT UNDER FAR PART 13.501 (JUSTIFICATION AND APPROVAL)

In accordance with Federal Acquisition Regulation (FAR) Part 13: Simplified Acquisition Procedures (SAP), the Export Import Bank of the United States (EXIM Bank), intends to conduct a sole source procurement for fitness center membership services for EXIM bank employees. The Competition in Contracting Act (CICA), 41 USC 3301 et seq., does not apply to SAP procurements. However, the FAR requires that SAP procurements be conducted in a manner to promote competition to the "maximum extent practical ". SAP procurement at or below the SAP threshold ($150k) may be limited to one source when the Contracting Officer determines that the circumstances of a proposed contract action deem only one source reasonably available. FAR 13.106-l(b). SAP procurement of commercial items/services in excess of the SAP threshold may rely upon the streamlined sole source determination set forth at FAR 13.501. Procurement of supplies or services not commercial in nature, in excess of the SAP threshold, must comply with CICA. Fitness center membership services, as described in the attached Statement of Work accompanying this Justification and Approval is - by definition - commercial in nature.

The format and substance of a written Justification and Approval supporting such a determination is not prescribed; however, in the interests of establishing a transparent record supporting this sole source procurement, a Justification and Approval in form and substance similar to that required by FAR 6.303-2(b), subject to modification of form and content as permitted by FAR 13.50l(a)(l)(ii), is hereby submitted.

1. Contracting Activity:
Export-Import (EXIM) Bank of the US, Division of Human Capital. Purchase request number PR-19-0008-HCD.

2. Nature and/or Description of the Action Being Processed:

This requirement is for a new firm-fixed-price, level-of-effort term contract for memberships with non US government fitness facility as part of EXIM bank's health and wellness initiatives for employees. The facility must be within a 10 minute walking distance to EXIM bank's headquarters located at 811 Vermont Avenue, NW, Washington DC, so staff can avail themselves of this benefit without negatively impacting their workday.

3. Description of Supplies/Services Required to Meet the Agency's Needs:

The fitness center facility would provide full service fitness/workout facilities and equipment, as well as on-site classes and lockers/showers. It is expected that approximately 100 EXIM employees may take advantage of this benefit and EXIM's monthly contribution per employee will be 50% of the total cost of the membership. EXIM anticipates awarding a contract for a base year plus four option years. Estimated total value of the contract including the base period and all 4 options year periods is between $200,000 and $250,000.

The fitness center facility must be able to provide the following:
a) Full service fitness/workout facility
b) State-of-the-art equipment
c) Hours of Operation which are concurrent with the standard core working hours of the participating office
d) Shower facilities
e) Towel and Locker services Availability of on-site fitness classes (i.e., yoga, Pilates, Step, etc.)

4. Statutory Authority Permitting Other than Full and Open Competition:

41 USC 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. Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):
The fitness center must be physically located no further than 10 minutes walking distance from EXIM's HQ location. Any distance beyond that would mean that staff could not avail themselves of this wellness benefit within their allotted lunch and break time. Accordingly, Balance Gym is the only firm capable of providing the requirements described above. Balance Gym's fitness facility is located within an estimated 7 to 9 minutes of walking distance from EXIM headquarters office.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Market research was conducted via internet searches for nearby fitness centers to investigate the existence of fitness centers within the desired walking distance. As a result, Pulse House of Fitness and Balance Gym were located within the specified distance from EXIM headquarters. The Contracting Officer visited both Pulse House of Fitness located at 1401 New York Ave NW, Washington DC and Balance Gym located at 1111 14th Street NW Washington, DC on November 7, 2018. The contracting officer observed that Pulse House of Fitness does not meet the requirements listed under section 3 above. Pulse is a fitness center based on providing trainers at specific time intervals for member to participate in training sessions with limited workout equipment. Pulse provides a trainer led fitness studio/facility that does not meet EXIM's requirement for a fully equipped fitness center. The contracting officer was able to tentatively determine that Balance Gym's fitness facility would meet EXIM's requirement for fully equipped fitness center.

In order to ensure that offers are solicited from as many potential sources as practicable, the proposed requirement was synopsized and posted on FedBizOpps (www.fbo.gov). Sources Sought Pre-Solicitation Notice number 83310119Q0009 was posted on 12/20/2018 with responses due date of 01/03/2019. Three responses were received. The respondents are Green Court Club LLC dba Balance Gym, NAPNOOK LLC dba recharj, and Leading2Succeeding LLC. The capability statements from both recharj, and Leading2Succeeding indicated that they would operate as a third-party reseller for fitness center memberships. EXIM is only interested in executing a contract with a fitness center that can provide the specified requirements directly, not through a third party contractor. Balance Gym's capability statement showed their facility which is located 7 to 9 minute walking distance from EXIM bank headquarters can provide the specified requirements directly.

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

Balance Gym's proposed fee for individual fitness center membership is $64.00 per month. The monthly fee is determined to be fair and reasonable based on comparison of costs for comparable fitness center memberships at other facilities in the Washington DC metropolitan area. EXIM bank will pay one half of the proposed fee as part of health and wellness initiatives for its employees.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Market research was conducted by searching on the internet and visiting fitness centers in the area. In addition, a Sources Sought pre solicitation notice was posted in FedBizOpps on 11/12/18. EXIM received Three (3) responses. See summary of details in under section 6 above.

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

N/A

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:
1. Green Court Club LLC dba Balance Gym
2. NAPNOOK LLC dba recharj
3. Leading2Succeeding LLC

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required:

EXIM bank will continue conducting market research to foster competition before making subsequent future acquisitions.

12. Requirements Certification:
I certify that the requirement outlined in this justification is a Bona Fide Need of the Export-Import Bank of the US and 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.

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13. Approvals in accordance with FAR 6.304

a. Contracting Officer's Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

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Facility

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