SFIS_J&A_for_FBO.pdf

J&A Number 19-8

EXHIBIT 1

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY

Agency: U.S. Department of Housing and Urban Development (HUD) 451 7tL Street SW, RM 5184 Washington, DC 20410

Contracting Activity: Office of the Chief Procurement Officer

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

Contractor support is required for Operations and Maintenance (O&M) and Development and Modernization (DME) for the Single-Family Insurance System (SFIS/A43), SFIS - Claims (CLAIMS/A43C), and Title I Insurance and Claims (TIIS/F72) systems. A new sole source contract is being sought to ensure continuity of services. Type of contract will be a Hybrid — Firm Fixed Price and Time and Materials. Contract action will be funded with Information Technology (IT) funds.

3. A DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET

THE AGENCY’S NEED (INCLUDING THE ESTIMATED VALUE)

Contractor support is required for O&M and DME services for the Single-Family Insurance System (SFIS/A43), SfIS-Claims Subsystem (CLAIMS/A43C) and Title I Insurance and Claims (TIIS/F72) systems.

Performance Period: 12/29/2018 through 09/28/2019 Estimated Total Dollar Value: $1,463,436.92

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY

PERMITTING OTHER THAN FULL AND OPEN COMPETITION

FAR 6 302-1, Only One Responsible Source, and no other supplies or services will satisfy the agency requirements, 41 U.S.C. 3304 (a) (1)

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S

UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION

REQUIRES USE OF THE AUTHORITY CITED

As the incumbent, Pyramid Systems, Inc. 2677 Prosperity Ave. Ste. 700 Fairfax, VA 22031, has extensive experience in successfully providing expedited and efficient support services under the past and existing HUD contract. PSI has demonstrated an in-depth knowledge of HU]Ys if infrastructure, inclusive of a clear understanding of HUD’s single-family modernization standards. Only this contractor can meet this requirement due to the lack of time available to make a new contract award by December 28th 201$. In addition, only this contractor can meet the current operations and maintenance support needs of the Single-Family Insurance System, Single Family Insurance System — Claims, Title I Insurance Systems and Claims systems because they possess the unique knowledge, skills and abilities. This contractor also possesses the unique technical capability to perform support of this complex legacy system that has 42 separate system interfaces associated with it and a multitude of downstream system impacts. The requirement is essential because the SFIS systems are major and mission critical applications, contains Personally Identifiable Information (P11), and provides the backbone infrastructure for processing the majority of FHA’s insurance programs.

The current contract expires December 28th, 2018. However, in October 2018, the acquisition strategy was changed from Lowest Price Technically Acceptable (LPTA) to Best Value Trade-Off (BVTO) which required revisions to procurement artifacts. A competitive process is currently underway for the reprocurement of this acquisition. There is no estimated cost duplication for this contract. The impact of delay if this contract is not awarded by December 28th 201$, is that there will be a break in service and a major business impact.

6. 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

NOT BE PUBLISHED AS REQUIRED BY SUBPART 5.2 AND IF NOT,

WHICH EXCEPTION UNDER 5.202 APPLIES

As required by the FAR Subpart 5.2, a notice will be publicized in the Federal Business Opportunities site, www .fedhizopps.gov. Additionally, a competitive follow-on acquisition is in progress for O&M and DME services for SF15 with an anticipated award date of FY19, 2nd Quarter.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE.

The Contracting Officer will determine that the anticipated cost is fair and reasonable based on the Independent Government Cost Estimate (IGCE) founded on historical pricing for the same or similar services and on the negotiated direct labor rates under the current contract.

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE

PART 10) AND THE RESULTS OR A STATEMENT OF THE REASON

MARKET RESEARCH WAS NOT CONDUCTED.

A competitive acquisition for a follow-on contract is currently underway. The original market research conducted on the competitive award was done via Acquisition Gateway located on the SBA website and indicated that there are potential small business sources that were interested in the requirement. Twelve companies responded to the RFI posted in 2017. Since the market has not changed since initial market research was conducted, additional market research was not conducted for this 9-month Bridge Contract.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

If the Single-Family Insurance System, Single Family insctrance System — Claims, Title 1 Insurance Systems and Claims systems experience a break in service the business impacts include critical functions being severely compromised such as inaccurate calculations and inaccurate lender periodic billing resulting in a significant increase in lender complaints to the Department, at a minimum. There are no estimated duplicative costs.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING,

AN INTEREST IN THE ACQUISITION

No market research was conducted for this sole source acquisition.

11. A STATETMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION

BEFORE ANY SUBSEQUENT ACQUISITION FOR SUPPLIES OR

SERVICES

A competitive acquisition for Single-Family Insurance System, Single Family insurance System — Claims, Title 1 Insurance Systems and Claims systems is currently ongoing. Contract award is anticipated for FY19 2’ Quarter.

12. CONTRACTING OFFICER CERTIFICATION THAT THE

JUSTIFICATION IS ACCURATE AND COMPLETE TO THE

CONTRACTING OFFICER’S KNOWLEDGE AND BELIEF.

See certification at Part 2, Form HUD-24012.