B05 - 73351021Q0075 Att 3 JA.pdf

OFCO-A 007 V1 1 08/30/2021

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

Identification Number: 73351021Q0075 – Consolidated Credit Reporting

1. Identification of the agency and contracting activity (FAR 6.303-2(b)(1)). U.S. Small Business Administration, Office of Financial Operations and Acquisitions Management (OFOAM) and Office of Capital Access’ Office of Financial Program Operations (OFPO)

2. The nature and/or description of the action being approved (FAR 6.303-2(b)(2)).

SBA’s Office of Financial Program Operations (OFPO), a division of the Office of Capital Access (OCA), seeks approval for a Brand Name action. The government anticipates award of a single-award BPA with Fixed Price type call orders.

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

(FAR 6.303-2(b)(3)).

SBA requires the use of the following name brand information – FICO Small Business Scoring Service (SBSS) scores;

Experian consumer data and reporting; and, Dun & Bradstreet commercial data and reporting.

This information is required for underwriting of small business loans to potential SBA applicants and support disaster loan program servicing and liquidation transactions.

Additionally, the government requires a single reseller (contractor) of the brand names to provide access to each brand’s databases, scoring functionality and reporting services. These services are required so the end user can identify all related records associated with the requested data. Access to the database must be maintained current and available to end users to provide the latest business information and data, including risk assessments and ratings. SBA needs continual access to the name brand information and associated data in order to identify all related members of any corporate family. The contractor will provide the prospecting record profile, plus electronic access to any data fields needed. All reports should be stored online and available for 6 months. The contractor will electronically deliver one copy of the data to the SBA upon completion. The data will consist of services and/or information required by the SBA. Credit scoring services must align with current SBA loan origination policy.

The following represents projected costs and periods of performance:

Base Year 09/13/2021 – 09/12/2022 Option Year 1 09/13/2022 – 09/12/2023 Option Year 2 09/13/2023 – 09/12/2024 Option Year 3 09/13/2024 – 09/12/2025 Option CLIN (52.217-8) 09/13/2025 – 03/12/2026

OFCO-A 007 V1 2 08/30/2021

4. An identification of the statutory authority permitting other than full and open competition is as follows:

41 U.S.C. 1901 Brand Name – This particular brand name is essential to the requirement and market research indicates similar products do not meet or cannot be modified to meet agency needs.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority (FAR 6.303-2(b)(5)).

The FICO SBSS score is used to assist SBA and its lenders in determining if a small business applicant is creditworthy. Dun and Bradstreet and Experian feed business and consumer data into the SBSS score. SBA requires this information on small businesses and business owners to include a risk category score and supplemental credit background data. These analogous credit scores must be retrieved during the origination of its loan portfolio through the Liquid Credit scoring system, which is generated for SBA through a small business risk model. SBA uses these scores to enable a more accurate statistical analysis and data comparisons that flow to numerous applications (i.e. setting the credit score parameters for new programs, projecting portfolio trends that have an impact on SBA’s subsidy rate).

Only one brand combination is capable of providing the supplies or services required at the level of quality demanded because the supplies or services ordered are unique or highly specialized. The SBSS score and its Experian consumer and D&B business data files has been coded into the ETRAN origination system and is operationally required to process 7(a) and disaster loans. The SBSS score is a trusted product that provides a score of a business and its associated owners. FICO SBSS is a trademark, proprietary product and no other competitor exists. FICO SBSS requires the use of companion services from D&B and Experian to produce the needed FICO scores.

All three data feeds are hard-coded into the ETRAN system, and are required to remain in the system. They are industry standard data scoring methodologies with a well-respected reputation amongst the lending community. SBA loan origination policy has been written around the performance of the data provided by these companies and how they interact with the ETRAN system. To change or remove these data streams would take years of planning, system coding and testing, and policy changes and would cause an operational stoppage of SBA lending.

5. A 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 FAR 5.2 and, if not, which exception under FAR 5.202 applies (FAR 6.303-2(b)(6)).

Acquisition strategy will be focused on promoting competition by soliciting a single-award BPA for an authorized reseller of these name brands. Market research indicates that at least 19 vendors can provide the subject resale services, including small businesses such as Counter Threat Solutions, LLC and Certified Credit Reporting, Inc.

This justification will be posted with combined synopsis/solicitation in compliance with FAR Part

12. A separate posting is not required.

6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)).

OFCO-A 007 V1 3 08/30/2021

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on adequate price competition. Prior to award of the proposed BPA, cost or price information shall be obtained from the contractor and a price/cost analysis will be performed and documented to sufficiently determine that the cost to the Government of the proposed acquisition will be fair and reasonable.

7. A description of the market research conducted and the results or a statement of the reason market research was not conducted (FAR 6.303-2(b)(8)).

All three files are hard-coded into the ETRAN system, and are required to remain in the system. They are industry standard data scoring methodologies with a well-respected reputation amongst the lending community. SBA loan origination policy has been written around the performance of the data provided by these companies and how they interact with the ETRAN system. To change or remove these data streams would take years of planning, system coding and testing, and policy changes and would cause an operational stoppage of SBA lending.

Due to the reasons stated above, market research to replace these name brand systems was not performed as OFPO determined the expense and risk to not be in the best interest of the government.

8. Any other facts supporting the use of other than full and open competition (FAR 6.303-2(b)(9)).

There are no additional facts.

9. A listing of any sources that expressed a written interest in the acquisition (FAR 6.303- 2(b)(10)).

Trans Union has expressed interest in this acquisition by reaching out directly to the contracting officer.

10. A statement of any actions the agency may take to remove or overcome any barriers to competition, if subsequent acquisitions are anticipated (FAR 6.303-2(b)(11)).

The Government will continue to conduct thorough market research to gauge the marketplace capabilities for future requirements. The Government will seek competition of future acquisitions for services if it is found the significant expense, risk and planning lead time is in the best interest of the government.

OFCO-A 007 V1 4 08/30/2021

CERTIFICATION AND APPROVAL

11. CERTIFICATION: The JOFOC has been prepared and certified by:

Technical / Requirements Personnel: I certify the requirement meets the Government’s minimum need and that the facts, representations, and data included in this justification are complete and accurate.

8/24/2021

Scott Muroski,COR, Program Analyst Date Technical Representative

Contracting Officer: I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

08/24/2021 Laura Saddison, Date Contracting Officer

12. APPROVAL

Director, Acquisitions Directorate (If over $500,000)

Kip Sheppard Director, OFOAM

Competition Advocate (If over $700,000)

Sara Soeka Competition Advocate

Digitally signed by

LAURA E SADDISON

KIP

SHEPPARD

SHEPPARD

SARA SOEKA

Digitally signed by SARA

SOEKA

Date: 2021.08.30 16:06:11 -04'00'