Program_Support_JA_for_URLA_-_v2_-_signedJun_2019.pdf

Justification for Other than Full and Open Competition United States Department of Agriculture

Federal Acquisition Regulation (FAR) Part 6.3

1. Identification of the agency and the contracting activity.

USDA, Rural Development (RD) Procurement Management Office (PMO), for services required by the Rural Housing Service (RHS), Single Family Housing Guaranteed Loan Program.

2. The nature and/or description of the action being approved.

The USDA proposes to enter into a contract on a basis other than full and open competition, negotiate a sole source, level of effort contract with RSM. This is an action for project and program support services to assist with the implementation and completion of the required Uniform Residential Loan Application (URLA) and the associated Uniform Loan Application Dataset (ULAD).

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The period of performance will be a base period of 9 Months commencing upon award with a one 3-month option beyond the base period.

The purpose of this order is to assist RHS, Single Family Guaranteed Loan Program in implementing the new critical requirements associated for URLA and the associated ULAD. On February 1, 2020, all commercial and government lenders are mandated to implement a new industry standard for processing of loan applications with the purpose of collecting additional information and enhancing language requirements as required by the Home Mortgage Disclosure Act. The estimated contract amount is not to exceed $850,000.00.

The contractor will support program management to ensure timely implementation of the new mandated standards required for meeting the RD Mission of providing housing loans to rural America.

Contractor will support project implementation of essential program aspects which will provide:

Program control and administration; stakeholder management; value measurement; and coordination of resources.

In addition, the contractor will provide subject matter experts to ensure Rural Development’s uniquely defined loan origination services meet relevant mortgage industry standards from the Mortgage Industry Standards Maintenance Organization (MISMO) Version 3.4.

4. The statutory authority permitting other than full and open competition.

41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1, titled "Only one responsible source and no other supplies or services will satisfy agency requirements."

This authority applies when the services required by the agency are available from only one responsible source, and no other type of supplies or services will satisfy agency requirements.

RHS, Single Family Housing Guaranteed Loan Program has an urgent need to implement the URLA and URLA dataset by the date established by industry regulation. URLA implementation date is a non-negotiable deadline that RD and all commercial and federal lending entities are mandated to be in compliance.

If system design, enhancement, compliance testing does not occur by the February 1, 2020 deadline, the Guaranteed Loan Program will not be able to process and issue new loan applications to low- and moderate-income constituents in the country.

This will subsequently jeopardize the availability of affordable housing for thousands in rural areas.

Development of necessary tools and applications for implementation of URLA was placed on contract soon after the standard was announced, approximately two and a half years ago. The initial contract was terminated within the last quarter. Due to the urgency of this effort, the IT development needed to meet the implementation of the URLA standards was contracted to a new vendor, with a very aggressive timeline. Due to the complexity and fast paced developmental environment, RD requires program support assistance and subject matter expertise necessary to successfully deliver the project.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

RSM is the only contractor can meet Rural Development’s needs, at this time. RSM has developed a unique understanding of RD’s loan processes and requirements. Recently, on an unrelated requirement, RSM completed six months conducting an in-depth analysis of the rural development loan application processes, RD’s unique IT systems, and regulations through detailed documentary analysis and nationwide interviews with RD personnel, becoming intimately familiar with the program’s requirements, processes and limitations.

Because of the urgent timeframes required for this effort, there is not a sufficient amount of time for another vendor to develop the subject matter expertise of RD’s unique loan processing requirements necessary to successfully support this vital program through implementation (7 months).

RSM has demonstrated that they have the capability and expertise necessary to immediately, upon award, to provide the needed program support.

In addition, RSM has project and program management services, as well as mortgage industry experts, which will ensure that RD implements URLA in accordance with the Federal Housing Finance Agency’s requirements for the effective date of February 1, 2020.

6. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

Because of the unique knowledge and experience of RSM, no other contractor would be able to meet the timeline necessary for implementation and delivery.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

An independent Government Cost Estimate has been developed (IGCE) based on the history of previous contracts, current market conditions and program expectations. However, to ensure that the price will be fair and reasonable, the data from the IGCE will be compared with the proposal received from the offeror. An award will be made only if during negotiations it is shown that the anticipated cost to the government will be fair and reasonable.

8. A description of the market research conducted and the results or a statement of the reason Market Research was not conducted.

Various program support vendors were contacted and interviewed to assess the level of expertise and knowledge of RD loan processing. RSM was the only vendor that currently demonstrated a sufficient amount of subject matter expertise needed to successfully support the requirement.

9. Any other facts supporting the use of other than full and open competition.

N/A

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

N/A

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

In this instance, the failure of a previous contract which shortened the development timeframe of the requirement created the barrier to competition. Competition is always the default acquisition strategy and will be pursued according to timing of legislative mandates and notification requirements.

Supporting data that form the basis for and included in this justification are certified accurate and complete.

The information contained in this Justification for Other Than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

Marshall G. Ritchey Contracting Officer

RD-USDA

Additional Reviews & Approvals

Signatures are required at each threshold up to the total estimated dollar value of the acquisition

Advocate for competition for the procuring activity (if over $700,000, but not exceeding $13.5 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as advocate for competition for the procuring activity, I hereby approve this justification.

Scott Beckstrand Mission Area Advocate for Competition