JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION - TurnKey Housing Solutions

SUBJECT: JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION - TurnKey Housing Solutions 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. NNSA currently leases two apartment units in the Washington DC area in the Millennium at Metropolitan Park to support the NNSA program needs. The organization has several employees stationed in various off-site locations and requires frequent travel to the DC Metro area. The recommendation is to negotiate a succeeding lease with the incumbent lessor without full and open competition for continued occupancy at this leased location as it has been determined to be cost savings to the Government considering the current per diem rate per night. 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. NNSA verified a continuing need of two apartment units in Washington DC metropolitan area. To satisfy their requirements include two one bedroom apartments for a one year term: 1. Fully furnished one-bedroom apartment, minimum 700 square feet 2. Within reasonable walking distance to the Metro to commute to DOE HQ 3. Secure, ingress/egress regulated 4. Within close proximity to a grocery store or convenience mart 5. All utilities paid 6. Includes basic phone service 7. Includes basic cable/high speed internet service 8. Washer/Dryer within apartment 9. Weekly cleaning service 10. Desk for working area 11. Parking This requirement is set to commence when the existing lease expires, November 30, 2017, beginning December 1, 2017. The estimated annual cost is $91,080. 3. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION. 41 U.S.C. 3304(a)(1): Only one responsible source and no other supplies or services will satisfy agency requirements. 4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. FAR 6.302-1(a)(2)(iii) allows for negotiation with the incumbent lessor when a cost-benefit analysis shows that the Government cannot expect to recover relocation and duplication costs through competition. The duplication of costs through competition exceeds the cost of remaining at the current location by roughly up to $36,000 plus the Government's labor cost to solicit and award a new lease. Based on the cost-benefit analysis in the attached, the Government intends to negotiate a succeeding lease and remain at its current location. 5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. From 1 - 15 September 2017, NNSA posted a sources sought notice and conducted market research within the delineated area; five companies submitted 12 potentially acceptable apartment locations with an interest to meet the needs of the program requirements. In September 2017, after review and analysis, NNSA solicited one source, the incumbent lessor, as their space met all requirements at the lowest rate. The current lessor provided the existing space at the existing rate resulting in a savings to the Government. 6. DEMONSTRATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE. In accordance with Federal Acquisition Regulation (FAR) 6.303-2(a) (7), the Contracting Officer determines by certifying this document that the anticipated cost to the Government of $91,080 for the entire requirement is fair and reasonable. The results of the sources sought showed the rental rates within the area ranges from $91,080 to $126,720. 7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS. On 27 September 2017, NNSA conducted a market survey on website stayattache.com that identified three locations in the attached. Since not all leasing requirements were not included in the rental rate per day, the rates would have be adjusted up to be a true comparable. 8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. Not applicable. 9. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION. TurnKey Housing Solutions Rental Relocation Inc. Oakwood Suites National Corporate Housing 10. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION. Consistent with the Competition in Contracting Act, full and open competition will be undertaken in future requirements for NNSA, as future opportunities are available. 11. CONTRACTING OFFICER CERTIFICATION. By signature on this Justification for Other than Full and Open Competition, the Real Estate Contracting Officer certifies that the award of a succeeding lease is in the Government's best interest and that this Justification is accurate and complete to the best of the Real Estate Contracting Officer's knowledge and belief. See signed attachment.