22P00010_Justification Redacted.pdf

DEPARTMENT OF THE TREASURY

SF 1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART 13.5 SOLE SOURCE

(INCLUDING BRAND NAME) ACQUISITIONS

Treasury Standard Form – 1013 (Rev 5/18)

Prescribed by Treasury: DTAP 1013.501

Tracking No.

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the Office of Comptroller of the Currency (OCC), Human Capital (HC). The contracting activity is the OCC, Office of Acquisition Management (AQM).

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

The OCC seeks to acquire a training course for Advanced Cash Flow, which is a course necessary for Examiners to enhance their knowledge about cash flow analysis that would affect a lender’s view of a company’s ability to generate cash flow. This sole source justification supports the OCC’s decision to acquire this training from Paragon Analysis Corporation for a base year and 4 option years.

2.b Name of the vendor. Paragon Analysis Corporation 2.c Requisition No.: OCCR 2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☐ Yes ☒ No 3.a A description of the supplies or services required to meet the agency’s needs:

OCC Continuing Education (CE) ensures appropriate training is provided to examiners to develop the necessary skills and knowledge to effectively supervise financial institutions.

OCC seeks training to enhance examiners knowledge and provide various tools and perspectives to analyzing banking information to accomplish the supervisory mission. The Advanced Cash Flow course deepens an examiner’s ability to evaluate a borrower’s cash flow and credit risk from a unique perspective. The training is part of OCC’s credit curriculum targeting commissioned examiners or experienced/industry-hired examiners, who evaluate complex commercial credit at Large or Midsize banks. The course must provide examiners with advanced knowledge and skills to evaluate a borrower’s capacity to generate cash flows as a primary source of repayment as well as assess how changes in cash flow influence enterprise value as a secondary source of repayment.

Additionally, the training must be provided virtually via a platform that meets Section 508 compliance to ensure accessibility to all examiners.

3.b Includes IT: ☐ Yes ☒ No 3.c IGCE/Estimated dollar value:

The Independent Government Cost Estimate (IGCE) is $ per course session. The OCC anticipates 3 sessions per year escalated by per year for a base and four option years. The total estimated dollar value for all five years is $ .

4. Identification of the authority being used (Check the box that applies):

☒ 41 U.S.C. 1901 – Simplified acquisition procedures.

☐ 41 U.S.C. 1903 – Special emergency procurement authority.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

Paragon Analysis Corporation is the only firm that provides a commercial off the shelf course meeting the cash flow analysis principles and objectives. Paragon’s course offers a deep understanding of underlying principles that other courses did not meet, as well as a definition of cash flow that offers a different perspective on lending. Additionally, the target audience of the Paragon course is aligned with the OCC supervisory and examination audience of advanced lenders.

http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1901 http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1903

Prescribed by Treasury: DTAP 1013.501

Tracking No.

Specific topics in Paragon’s Advanced Cash Flow course that align with the OCC’s requirements are: cash flow coverage ration analysis (including strengths, limitations, and common misuses), Debt capacity analysis, and forecasting cash flow (including determining sustainability in a fast-growing company). Market research demonstrated companies did not offer a course with these objectives and topics included.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR 5.202 applies:

The initial procurement for this training was also a sole source to Paragon. See section 8 for a description of the market research conducted for this recompete.

In accordance with FAR subpart 5.2, a notice of intent to award a sole source contract under the authority of FAR subpart 13.5 will be posted on the Government Point of Entry. This notice will afford an opportunity for all responsible sources to submit a capability statement which shall be considered by the Government.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on commercial price lists for similar training offered to lenders and historical prices offered for this course.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

The Program Office and Contract Specialist conducted market research during August and September 2021 to ascertain whether any other training providers offered a course with curriculum meeting the OCC’s requirements. The OCC used internet searches to locate training companies specifically offering training to financial lenders and banks. The OCC used the company’s websites to review course catalogs and public information about the course objectives. While a handful of firms were identified that offered training on various topics to financial entities, none of the course catalogs contained a course curriculum inclusive of all of the OCC’s objectives and requirements. OCC will continue to examine the marketplace for courses offered and will compete if it finds there are other firms offering a course meeting OCC’s requirements. The results of the market research support the Government’s determination to obtain this course under a sole source basis.

See SF 1010 Market Research Summary Report for specific details.

9.a Any other facts supporting this justification:

The requirement cannot be modified to enhance competition as the objectives and content have been vetted with the Chief National Bank Examiner’s office to ensure that the curriculum is consistent with OCC’s policies and practices on cash flow analyses as taught in other pre-commissioned credit courses.

Procurement history: 2031JW18P00042 was issued to Paragon on a sole source basis under FAR 13.106(b) only one responsible source. A survey of the market indicates no other firms are offering courses that meet OCC’s requirements, and we are therefore still in a sole source environment.

9.b Attachments:

Prescribed by Treasury: DTAP 1013.501 Tracking No.

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

A memo to the file will be included if any responses are received to the GPE post.

11. A statement of the actions, if any, the Requiring Activity or Contracting Activity may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Contracting Activity and Program Office will continue to search the marketplace for potential sources by analyzing course catalogs for training opportunities.

12. Certifications and Approvals:

12.a Program Office certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

Name: Date:

Signature:

12.b Contracting Officer certification and approval. I hereby determine the circumstances of this acquisition support the justification to acquire the item(s) on a sole source (including brand name) basis under the authority of FAR subpart 13.5. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve this justification.

Name: Date:

Signature:

13. Additional Reviews and Approvals (As applicable):

13.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

13.b Advocate for Competition (if over $700,000, but not exceeding $13.5 million) (Contracting Activity). 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 the Advocate for competition, I hereby approve this justification.

Name: Date:

Signature:

13.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find

Prescribed by Treasury: DTAP 1013.501 Tracking No.

it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification.

Name: Date:

Signature:

13.d Treasury Chief Information Officer (for IT requirements that are over $68 million).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

13.e Senior Procurement Executive (if over $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement official, I hereby approve this justification.

Name: Date:

Signature: