2-73351020C0017.pdf

Sole Source Justification Memorandum – FAR 6.302-2, Unusual and Compelling Urgency Page 1 of 2

73351020C0017

Sole Source Justification- Supplement to Class JOFOC for COVID-19

Emergency Acquisition for Fiscal Transfer Agent (FTA) CARES Act Support Services

Presidential Declared Emergency – COVID-19 Virus and Response to Resulting Economic

Crisis

FAR 6.302-2, Unusual and Compelling Urgency – Exception to FAR Competition Requirements

– a part of FAR 6.302 Circumstances Permitting Other Than Full and Open Competition

1-The Contractor for this acquisition is Colson Services Corp. (Colson). Colson is also the current

Fiscal Transfer Agent (FTA) for the SBA Guaranty 7(a) Loan Program.

In April 2020, and in response the Coronavirus Aid, Relief, and Economic Security Act (CARES

Act) legislation, the U.S. Small Business Administration (SBA) processed 14 years’ worth of

SBA loans in prior years, in 14 days during the first round of Paycheck Protection Program

(PPP) loans. There was also a second round of PPP loans of about the same size of $350B approved funding by Congress for small businesses totaling $700B in increased and immediate loans.

This acquisition need will add the PPP loan data and reporting to the overall 7(a) processes.

Only the FTA has access to the financial system to which this data must be added. Additionally, Colson is uniquely qualified to perform this procurement need as they have operations in place to quickly incorporate the high-volume of PPP loan activity. This contractor also has been FTA for over 30 years and will have the ability to quickly modify existing 7(a) processes to incorporate

PPP loan data and reporting needs. See FAR 6.302-1.

Acquisition of these professional services for the SBA are of an unusual and compelling urgency that precluded full and open competition. The SBA determined that a delay in the award of this contract would result in serious injury, financial or other, to the Government. Specifically, searching for another vendor unfamiliar to SBA financial systems would require an inordinate amount of ramp up time and delay the deployment of PPP loan data and reporting, resulting in reduced operations and maintenance proficiency thereby hurting the important mission of SBA to quickly serve small businesses struggling to stay afloat during this economic crisis.

See FAR 6.302-2(b).

2-Review was obtained. The CO considered all comments and made the best business decisions under the circumstances. The reviews and response are documented in the PRISM file.

3-No written interest was expressed by the marketplace. Pricing was found fair and reasonable when matched with the timing, level-of-effort, scope and size, tasks, and deliverables required by the performance-based statement of work (SOW).

Determination: I certify that this justification is accurate and complete to the best of my knowledge and belief. In addition, the President’s declaration of a formal COVID-19 national crisis adds credence to the statement of facts and to the necessity for this sole source decision.

Sole Source Justification Memorandum – FAR 6.302-2, Unusual and Compelling Urgency Page 2 of 2

Cheryl T. Flanagan, Contracting Officer, SBA

The class J/A for urgent compelling actions signed by the SBA Senior Procurement Executive

(SPE) as Congress was passing the CARES Act, applies to this procurement because of the emergency contracting actions required to support SBA, OCA (Office of Capital Access) OPSM

(Office of Performance and Systems Management). All Paycheck Protection Program funding is processed and administered by OPSM federal personnel and through its contracts.

The strain on the financial systems managed by SBA, OCA OPSM is tremendous as it processed and continues to process more funding in a few weeks than the systems have processed in the last 14 years both in terms of dollar amount and number of loans processed. In addition, the financial system’s ability to quickly adapt when incorporating new rules, standard operation procedures, and regulations of new and legacy federal programs aimed at bolstering the national small business community is paramount. A contractor’s familiarity with the SBA financial systems and systems access already in place is vital to the success of the Government to quickly address and implement the PPP data service need.

As part of the emergency CARES Act, the PPP data addition and reporting need is essential for the administration of the new program to provide accurate information to lenders, borrowers, program participants, Congress, and oversight bodies. Hence, the tracking and reporting of PPP loan data quality and integrity of data is extremely important. This acquisition need qualifies as a contracting emergency and is considered part of the Presidential Declared COVID-19 Disaster

Declaration.

Kip A. Sheppard, Acting SPE for the SBA