2-Supplement-SoleSourceJustification-SBAHQ-17-C-0011.pdf

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

SBAHQ-17-C-0011

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

Emergency Acquisition for Help Desk Support Services

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

Crisis

FAR 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

FAR 6.302-2, Unusual and Compelling Urgency –

Exceptions 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 Alpha Omega Integration, LLC (Alpha Omega). Alpha

Omega is the awardee of the current contract for Help Desk Support services for the CAFS IT system of SBA, OCA (Office of Capital Access), OPSM (Office of Performance and Systems

Management. This contract Period of Performance (POP), as awarded ended 09/11/2019.

The follow-on requirement was competed on the NIH (National Institutes of Health) GWAC for

IT services. After award, two protests were filed with the GAO. The SBA agreed to take corrective action which led to a full re-evaluation.

During this evaluation period, the SBA extended the POP for six months (through March 10, 2020). A further extension through April 22nd was required as the re-award had not occurred, under the authority FAR 6.202-1.

2-On March 16, 2020, COVID-19 emergency work commenced on the CAFS IT system that is the subject matter of this contract. In response to the national economic emergency that severely impacted the Nation’s small business, the CARES Act legislation was passed by Congress and signed by the President. The CARES (Coronavirus Aid, Relief, and Economic Security) Act created the Payroll Protection Program (PPP). In the first wave of the PPP program, and in 14 days, the SBA processed in a few days an amount of loans equal to14 years’ worth of SBA loans in prior years. There was also a second found of PPP loans of about the same size of $350B for a total of $700B in increased and immediate loans.

3-Using the FAR provision for urgent and compelling sole sourcing (FAR 6.302-2), the SBA extended this contract one more time for six months – or through October 22, 2020 – to allow the system to remain sufficiently viable to handle the volume of loan applications and administration.

4-The contract workers for Alpha Omega worked many more hours than the regular 40-hour work week to development and maintain the CAFS system so that it could handle the high volume of loans without crashing.

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

On April 17, 2020, OMB (Office of Management and Budget) issued a memo to the Federal

Agencies, titled “Preserving the Resilience of the Federal Contracting Base in the Fight Against the Coronavirus Disease 2019 (COVID-19).” This OMB memo supports reimbursing contractors for emergency-related additional time paid to workers for emergency related work.

5-SBA agreed with the Alpha Omega to pay additional costs for additional services rendered during the initial response and also through October 22, 2020 that is related to the expanded

CAFS-IT system.

6-Only Alpha Omega had the experience with the CAFS IT system to perform these services.

Only Alpha Omega had the workers with the necessary security clearance to work immediately.

Pricing was found fair and reasonable when matched with the timing, level-of-effort, tasks, and deliverables required by the performance-based statement of work (SOW) – and uses labor rates previously negotiated with the contract.

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.

Cheryl T. Flanagan, Contracting Officer, SBA

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

Executive) 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 Standards Management). All PPP (Payroll 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 (Office of Capital Access) OPSM (Office of Performance and Standards Management) 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. In addition, the financial system must quickly adapt to new rules and regulations of new and old federal programs aimed at bolstering the national small business community, PPP data addition and reporting is essential for the administering and reporting on the vast PPP loan program which is part of the emergency CARES Act. These sole source actions for this contract qualify as a contracting emergency and is part of the Presidential Declared COVID-19 Disaster

Declaration.

Kip A. Sheppard, Acting SPE for the SBAS