FAR 6.3 JA - Justification for Other than Full and Open Competition (1.10.20).docx

Exhibit 1 –Justification and Approval (J&A) for Other than Full and Open Competition

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity.

a. Federal agency and contracting activity. U.S. Department of Housing and Urban Development, Office of the Chief Procurement Officer

b. Requiring activity. HUD/Office of Policy Development and Research

c. Requiring Activity Point of Contact (POC) information.

· Name. Marina L. Myhre

· Mailing address. 451 7th St, SW, Rm. 8120, Washington, DC 20410

· E-mail address. Marina.L.Myhre@hud.gov

· Telephone number. (202) 402-5705

2. Nature and/or description of the action being approved.

a. Acquisition purpose and objectives.

The Department designed the First-Time Homebuyer Education and Counseling Demonstration as a large-scale randomized experiment to answer the question about the relative efficacy of homebuyer education and counseling on first-time borrowers. The demonstration aims to test whether in-person or remote homebuyer education and counseling services result in improvements across three outcome domains: preparedness and search, financial capability, and sustainable homeownership. In the wake of the mortgage market and foreclosure crisis, the Housing and Economic Recovery Act of 2008 (HERA) required HUD to establish the Pre-Purchase Homeownership Counseling Demonstration (Section 2128). The Demonstration was required to test different means of providing counseling (e.g. via telephone, individualized in-person counseling, web- based counseling, counseling classes, and any other type deemed appropriate by the Secretary) on a sample of 3,000 participants and report the results to Congress.1 However, the Demonstration specified in HERA did not include appropriations so HUD had to wait until the FY 2010 Appropriations, where the Demonstration was funded under the Obama Administration’s Transformation Initiative, whose goal was to increase

1 Housing and Economic Recovery Act of 2008, Public Law 110-289, Section 2128, Enacted: July 30, 2008, pgs. 2841-2.

knowledge about the effectiveness of HUD’s policies and programs on the ground. The FY2018 Appropriations Act provided funding for critical research, demonstrations, and evaluations, including the First-Time Homebuyer Education and Counseling Demonstration. In addition, the Conference Report signaled their support for the research: “The Committee is pleased with HUD's early insights from its First-Time Homebuyer Education and Counseling Demonstration. The knowledge and skills that consumers gain from this counseling will play an essential role in the continued recovery of the Nation from the foreclosure crisis. That ongoing recovery has been shown in the increase in demand for pre-purchase homeownership counseling and lower need for delinquency prevention counseling.”2

b. Project background.

Abt Associates was under contract to conduct the design and implementation of the First-Time Homebuyer Education and Counseling Demonstration under HUD contract C-OPC-22921, T003, and is currently under contract to conduct the short- and long-term impact analyses under HUD contract DU204SA-14-C--01 (referred to as the “existing contract”). Under this current contract, a base period, and Options 1, 3, and 4 have been awarded for a total of $5,158,109 dollars. Option 4 of the existing contract DU204SA-14-C--01 includes long-term impact analysis and reporting tasks of the long-term follow-up survey data and along with the origination and servicing data, credit report data collected under the existing contract DU204SA-14-C--01. Option 5 of the existing contract DU204SA-14-C--01, to conduct the long-term follow-up survey was scheduled to be awarded on September 30, 2017 and run through April 30, 2020, so that the survey data could be collected and analyzed under the same contract, but the funds for the option were not available and Option 5 was not exercised. In fact, Congress directed HUD to seek alternative sources of funding in the FY2017 Appropriations Act, but the Department was not able to secure any alternative sources of funding to complete the long-term follow-up survey for the completion of the study.

In the FY2018 Appropriations Act, Congress provided funding for critical research, demonstrations, and evaluations, including the First-Time Homebuyer Education and Counseling Demonstration. On July 2, 2019, the Department used that FY2018 appropriations to award the long-term follow-up survey contract, HUD contract 86544A19C00001, to be conducted by Abt Associates (the current incumbent) as a follow-on contract for the continuation and completion of the current First-Time Homebuyer Education and Counseling Demonstration HUD contract DU204SA-14-C--01 awarded on September 30, 2014. Since the award of the long-term follow-up survey was delayed by over 9 months and because of delays caused by the federal government shutdown December 22, 2018-January 25, 2019, Abt Associates needs an additional 14 months, through June 30, 2021, to conduct the analysis and reporting tasks under Option 4 of the existing HUD contract DU204SA-14-C--01.

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

a. Project title. The First-Time Homebuyer Education and Counseling Demonstration:

b. Project description.

HUD’s Office of Policy Development and Research (PD&R) is issuing this no-cost time extension to Abt Associates to conduct the long-term impact analysis and reporting of the long-term follow-up survey data of the full study sample that will be completed as part of the Impact Evaluation of the First-Time Homebuyer Education and Counseling Demonstration, DU2014SA-14-C--01. Conducting the long-term impact analysis and reporting of the long-term follow-up survey data will complete the long-term impact analysis of the First-Time Homebuyer Education and Counseling Demonstration that is currently being implemented under DU204SA-14-C--01.

The long-term impact evaluation of the First-Time Homebuyer Education and Counseling Demonstration that is currently being implemented under DU204SA-14-C--01 is designed to answer the following overall research questions:

· What impact does pre-purchase counseling have on prospective low- to moderate-income, first-time FHA homebuyers?

· To what extent does pre-purchase counseling affect the treatment groups’ homeownership preparedness or their home or mortgage search activities?

· To what extent does pre-purchase counseling improve participants’ financial literacy, capability, and financial management?

· To what extent does pre-purchase counseling improve participants’ ability to sustain homeownership following home purchase?

Provide the following information:

· Requirement type.

· Research & development (R&D)

· R & D support services X Support services (non-R&D)

· Supplies/equipment

· Information technology (IT)

· Construction

· Architect-engineer (A & E) services

· Design-build

· Other (specify):

· Proposed contract/order type.

❑ Firm-fixed-price

· Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee):

· Cost-plus-fixed-fee

· Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee):

· Time and materials

· Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements):

X Other (specify): No-cost time extension modification

· Completion Form ❑ Term form

· Acquisition identification number. ___________

c. Total estimated dollar value and performance/delivery period.

The existing non-severable Option 4 was exercised on April 7, 2017 for $1,331,771.00 and increased the base and exercised options of the contract from $3,826,338.00 to $5,158,109.00. No additional funds are needed to exercise this no-cost time extension modification. The period of performance would be extended from April 30, 2020 to June 30, 2021.

The proposed period of performance allows Abt Associates to conduct the long-term impact analysis and reporting of the long-term follow-up survey data under the existing contract.

4. Identification of the statutory authority permitting other than full and open competition.

Federal Acquisition Regulation (FAR):

X 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1).

· 6.302-2 Unusual and compelling urgency. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(2) or 41 U.S.C. 3304(a)(2).

· 6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(3) or 41 U.S.C. 3304(a)(3).

· 6.302-4 International agreement. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(4) or 41 U.S.C. 3304(a)(4).

· 6.302-5 Authorized or required by statute. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(5) or 41 U.S.C. 3304(a)(5).

· 6.302-6 National security. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(6) or 41 U.S.C. 3304(a)(6).

· 6.302-7 Public interest. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(7) or 41 U.S.C. 3304(a)(7).

· 13.501(a)(1)(ii) Sole source, including brand name, under Simplified Procedures for Certain Commercial Items. This acquisition is using this justification format, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C. 1901 or the authority of 41 U.S.C. 1903.

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s). Abt Associates Inc. 10 Fawcett Street, Suite 5, Cambridge, MA 02138-1168

b. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

The Office of Policy Development and Research is requesting a no-cost time extension modification to the existing contract DU204SA-14-C--01with Abt Associates to conduct the long-term impact analysis and reporting of the long-term follow-up survey data being collected under contract 86544A19C00001. The long- term impact analysis and reporting tasks are necessary for the successful completion of existing contract DU204SA-14-C--01, Option 4.

Abt Associates is the only responsible source that will satisfy the Agency’s requirements under this contract and that has existing and relevant experience designing and implementing the First-Time Homebuyer Education and Counseling Demonstration that is required to complete the long-term impact analysis of the long-term follow-up survey data that is being collected 36-60 months after random assignment.

Option 4 of the existing contract DU204SA-14-C--01 was awarded on May 1, 2017 and runs through April 30, 2020 and includes a final report presenting a complete impact analysis of the long-term follow-up survey data that is underway under HUD contract 86544A19C00001, along with the origination and servicing data, credit report data collected under the existing contract DU204SA-14-C--01. Abt Associates is the only responsible source to conduct the long-term impact analysis and reporting of the long-term follow-up survey data that they are currently collecting under HUD contract 86544A19C00001. No other contractor could come in at the end of this multi-year, multi-site randomized national experiment and work with the 3 national lenders to renegotiate existing non-disclosure agreements (NDAs), and memoranda of understanding (MOUs) between each of the parties (lenders, HUD, and Abt Associates), obtain and an authorization to operate (ATO) from HUD for the study’s data system, and execute a contract with a national credit bureau for the last credit data and credit history request. A critical part of the Demonstration and of the incumbent contractor’s unique qualifications is the Authorization to Operate (ATO) at the FISMA moderate level that the incumbent has from HUD for the Demonstration’s data system. Although HUD did not know until the MOUs were close to being executed, the ATO at the FISMA moderate level was a lender prerequisite for the lenders to execute the MOUs, provide customer referrals to participate in the Demonstration, and provide origination and servicing data that is required to perform the Demonstration’s long-term impact analyses.

Abt Associates uniquely qualified to conduct the long-term impact analysis and reporting of the long-term follow-up survey data for this demonstration because only they have met the extreme tests for developing the demonstration’s data system, obtaining the data system’s Authorization to Operate (ATO) from HUD at the FISMA moderate level (executed 9/23/14 and renewed 9/15/17), building trust with the national lenders, executing NDAs with the lenders, ensuring data security and handling of personal identifying information (PII), executing a contract with a national credit bureau for follow-up credit history and credit score data on the sample of 6,000 study participants, and has the necessary infrastructure in place to start seamlessly conducting analyzing and reporting on the long-term follow-up survey data as they are tasked to do under existing HUD contract DU204SA-14-C--01. All that is needed is a no-cost time extension from April 30, 2020 through June 30, 2021 for Abt Associates to complete the analysis and reporting on the long-term follow-up survey data to complete the long-term impact analysis required to complete HUD contract DU204SA-14-C--01.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

5.202 applies. In accordance with subpart 5.2, a copy of this justification will be posted at the time the combined synopsis/solicitation is issued to the proposed awardee. The proposed no-cost time extension modification is a follow-on action to an existing HUD contract DU204SA-14-C--01, Option 4.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable. The price for this contract modification is based on competitively awarded rates that were determined to be fair and reasonable at initial award, and again based on current market conditions when Option 4 was exercised on April 7, 2017. No additional funds are needed to execute the no-cost time extension.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted. Market research was not conducted because of the unusual situation with the incumbent contractor designing and implementing all other parts of the First-Time Homebuyer Education and Counseling Demonstration and having the only staff that are cleared to work on the study through the existing NDAs, MOUs, ATO for the data system, and HUD contract to conduct the long-term impact analysis of all of the data they have collected. No other contractors have the knowledge and experience to complete the work under this contract in the required time frame without a break in service, which would have a major impact on the research. Incurring the cost and project delays to do that again would be prohibitive, duplicative, and would result in insurmountable delays that would jeopardize the success of this landmark demonstration and the long-term impact analysis that is being conducted under the existing contract DU204SA-14-C--01, Option 4.

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

The First-Time Homebuyer Education and Counseling Demonstration has taken 8 years and over $12.2 million dollars to implement under a task order awarded in September 7, 2011, (Task Order 3 on an IDIQ that was competitively awarded through a full and open competition in 2006), and a new sole source contract awarded to Abt Associates on September 30, 2014. Data collection for the long- term follow-up survey is budgeted at just over $1.5 million and the analysis and reporting of the long-term follow-up survey data and collection of the long-term administrative data and impact analysis is already included in the existing contract, DU204SA-14-C--01, Option 4. In addition, the study participants have consented to participate in the study for 7 years, and this long-term impact analysis is scheduled to occur 3 to 6 years after the study enrollment so there is limited time to collect the origination and servicing data from the 3 national lenders and FHA and the credit score and credit history from the national credit bureau for that analysis before the terms of the consent form will be invalid. Insurmountable delays, duplicative work, and the cost of both run counter to HUD’s mission for the First-Time Homebuyer Education and Counseling Demonstration, which was requested by Congress.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

At this time no other sources have expressed an interest, in writing, in the proposed acquisition.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services. This modification enables the Contractor to complete the final long-term impact analysis and reporting tasks set of tasks required under the existing contract DU204SA-14-C--01, Option 4. The Demonstration will be complete after the Contractor conducts those tasks. No additional funds are expected to be appropriated by Congress since the Demonstration will be complete and no subsequent acquisition is envisioned.