Moody_On-Line_JOFOC.pdf

Control NLlrnber 18-22

FOR FAR PART 13 J&As SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS (FAR SUBPART 13.5)

Justification for Sole Source or Brand Name U.S. Department of Housing

- - - and Urban Development

Under Simplified Procedures for Certain omce of the Chief Procurement Officer

Commercial Items (FAR Subpart 13.5)

PART 1 — JUSTIFICATION (to be completed by requesting office) This acquisition is conducted under the authority of the Simplified Procedures for Certain Commercial Items (section 4202 of the Clinger-Cohen Act of 1996) or the authority of the Services Acquisition Reform Act of 2003 (41 U.S.C. 428a) — Sole Source (including brand name) Acquisitions.

Description of services required to meet agency’s needs [describe]: MOODY’s on-line 25-year House Price Index forecast data by Metropolitan Statistical Area (MSA).

Total estimated cost of this order [include all costs of the proposed acquisition, e.g., options, systems life costs, etc.; total will determine the approval level needed]: $ 861,083.00

Sole Source (see FAR Section 13.501(a)) Consideration for this simplified acquisition under the Simplified Procedures for Certain Commercial Items must be limited to the following source(s): Moody’s Analytics, InC., 7 World Trade Center, 250 Greenwich Street, New York, NY 10007

Circumstance justifying acquiring the services using a sole source acquisition (check those that apply):

Only one source is capable of responding due to the unique or specialized nature of the work (see FAR 13.501(a)(2).

This is a follow-contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, and supplies are available only from the original source. It is likely that award to any other source would result in --

D (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or

(B) Unacceptable delays in fulfilling the agency’s requirements.

Attachments [provide the following information]:

Requiring agency;

Nature/Description of action being approved;

Comprehensive description of services requited to meet agency’s needs (including the estimated value);

Identification of statutory authority permitting other than full and open competition;

Demonstration that proposed contractor’s unique qualifications or nature of the acquisition requires use of authority cited;

Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Section 13501(a)(1);

Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable;

Description of market research efforts conducted and the results or a statement of the reason market research was not conducted;

Other facts supporting the use of other than full and open competition (and if a follow-on, an estimate of the cost to the government that would be duplicated and how the cost was derived;

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

Statement of actions to remove or overcome any barriers to competition before any subsequent acquisitions.

Sources to be considered for this order should be limited to those offering the following item(s) peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer) [list and describe fully, or attach detailed description of the product or critical characteristics of the product]:

Attachments [provide the following information]:

In addition to the documentation identified for sole source above, attachments for brand name justification must also include:

If brand name, product, or product feature is the basis for the restricted consideration, the program office must describe why it is essential to the Government’s requirements, and demonstrate how the attached market research supports the determination that other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the Department’s need.

LI A statement of the actions, if any, the Department may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

If the order contains brand name specifications, the requirement has been posted in accordance with FAR Section 13.105(a)(1) unless one of the following exceptions applies (see FAR Section 5.102(a)(6)) [check applicable exception]:

LI Disclosure would compromise the national security (e.g., would result in disclosure of classified information) or create other security risks. The fact that access to classified matter may be necessary to submit a proposal or perform the contract does not, in itself, justify use of this exception;

LI The nature of the file (e.g., size, format) does not make it cost-effective or practicable for contracting officers to provide access through the GPE; or

LI The senior procurement executive has made a written determination that access through the GPE is not in the Government’s interest.

Program Office’s Supporting Data

The following information has been provided to support the sole source action or specific brand name, product , or product feature (e.g., verification of the Government’s minimum needs or requirements or other rationale for sole sources) [list and describe; attach additional pages if needed]

Program Office Official’s Certification

I certify that the information provided in support of this justification is complete and accurate to the best my knowledge and belief.

Head of Program Office [name] Title/Name of Office:

Assistant Secretary for Housing, FHA Brian D. Montgomery Commissioner, H

Signature — Date: / For additional information contact:

x ‘ 1

PART 2 - CONTRACTING 0 FICER’S DETER INA ION AND CERTIFICATION

I hereby determine that:

The sole source action represents the best value to HUD consistent with the requirements of FAR Section 13.501 (price evaluation is attached); and, If a particular brand name, product, or product feature is requested, I hereby determine that it is essential to the Government’s requirements, and as demonstrated by the attached market research, other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the Department’s need.

I certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. In accordance with FAR 13.501, this certification serves as approval of this sole source justification for orders up to $700,000.

Name: Signa4e: / I Date:

7 / /( C /f

Control Number 18-22

PART 3 - APPROVALS

For orders greater than $700,000 up to the Simplified Procedures for Certain Commercial Items threshold — Competition Advocate Name . Signature Date

_At

92s- IF Instructions:

PART 1 — to be completed by the requesting office PART 3 — to be completed by the approving official

The office requesting the sole source consideration shall enter If the order exceeds $700,000, the contracting officer shall all information and provide all supplementary information and obtain the appropriate higher-level authority’s name, attachments. signature, and date and place the completed justification in the order file.

The head of the office submitting the justification shall complete the certification and sign and date it.

PART 2 — to be completed by the Contracting Officer

The contracting officer shall attach the price evaluation and sign and date the form. If the order is less than $700,000, stop here and place the completed justification in the contract file.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

I WASHINGTON, DC 20410-3000

I

OFFICE OF CHIEF PROCUREMENT OFFICER

Justification for Sole Source for Simplified Procedures for Certain Commercial Items (FAR Subpart 13.5)

TITLE: 25-year House Price Index (HPI) forecasting model by Metropolitan Statistical Area (MSA)

(1) Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

U.S. Department of Housing and Urban Development (HUD) Office of the Chief Procurement Officer (OCPO) The Office of Housing — DAS for Risk Management and Regulatory Affairs 451 7th Street, Room 5256 Washington, DC 20410

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

Request approval of a sole source contract to Moody’s Analytic, Inc (Moody) for access to an on-line database subscription for housing price forecast economic data. This is for a new Firm Fixed Price contract. The contract will be funded with 0183 funds.

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

The Office of Evaluation located in the Office of Risk Management and Regulatory Affairs (ORMRA) in the Office of Housing is requesting the procurement of the on-line database subscription. The subscription provides unlimited on-line access for 25 users to the economic forecast data. This data access is needed to meet vital components HUD’s Strategic Plan with respect to a high level of accountability in the financial management of the FHA insurance programs. From an operational standpoint, such data are used for modeling and predicting FHA loan performance and for computing impacts of the FHA insurance programs and the Federal budget, and for designing risk-management tools.

The request is for access to an on-line subscription for a one (1) 12-month Base Period and four (4) 12-month Option Periods for a total of sixty (60) months. The period of performance is from September 30, 2018 through September 29, 2023 (base + four 12-month options).

The estimated value is $861,083.00.

(4) An identification of the statutory authority permitting other tha;t full and open competition.

The statutory authority permitting the sole sourcing of services is (see FAR 13.501(a)(2).

Only one source is capable of responding due to the unique or specialized nature of the work.

JUSTIFICATION FOR OTHER THAN FULL & OPEN COMPETITION:

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

A current HPI 25-year MSA forecasting subscription exists with the only known provider of this information, Moody’s Analytics. The Moody’s 25-year House Price Index (HPI) forecasting model by Metropolitan Statistical Area (MSA) data supply’s both Multifamily and U.S. Macroeconomic data that is not offered in other offerings.

Specifically, the Moody’s data provides the market vacancy rate by MSA, State, and National levels going back quarterly to 1970 and provides a forecast for 30 years. This data is a critical variable in the cash flow modeling currently being performed in the Office of Risk Management. Without this information, the reliability and performance of the models being developed would be jeopardized going forward. The critical variables used are outlined below with the critical piece of providing a forecast for 30 years. 0MB requires the ORMRA to provide cash flow estimates of all of FHA’s commercial and SF loan programs for 30 years.

There are now two sources of house price forecasts that are available at the MSA-level: Core Logic Real Estate Solutions (CoreLogic) and Moody’s Analytics. However, only Moody’s Analytics produces long-range trend data that is required by the Actuarial Model. The CoreLogic data currently only produces a 24-month forecast. HUD currently uses IHS Global Insight forecasts of national house prices. However, IHS Global Insight does not forecast house prices at the MSA-level.

(6) A description of efforts made to ensure that offers are solicitedfrom as many potential sources as is practicable, including whether a notice was or wilt be publicized as required by Subpart 5.2 and, if not, which exception under 5.2 02 applies.

A Sources Sought was issued on February 20, 2018. Three vendors responded to the Sources Sought.

Countertrade Products, Inc., Feasibility Research Group Ohio, LLC and Moody’s Analytics submitted their capability statements. However, two of the vendors’ capability statement did not demonstrate that they had the capabilities to provide the required services as stated in the PWS. A Notice of Intent to Sole Source to Moody Analytics, LLC was posted on July 13, 2018 on the Federal Business Opportunity website and it closed on July 27, 2018 at 12:00 pm. Once the award is issued, this justification will be publicized on the Federal Business Opportunity website.

(7) A determination by the coiztracti;zg officer that the anticipated cost to the Governmeitt will be fair and reasonable.

Prior to the issuance of any contract award, the Contracting Officer will obtain pricing information and a price analysis will be conducted to sufficiently determine that the overall price represents a fair and reasonable price to meet the Government’s needs. Information will be obtained to evaluate the reasonableness of the price in accordance with FAR 13.5.

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

The Sources Sought issued February 20, 2018 (FBO) received responses from three (3) vendors. All 3 vendors provided a capability statement as required by the sources sought instructions. The only source that meets the requirements of this acquisition is Moody’s Analytics, LLC.

Sources — Market Research

Vendor Location Point of Contact Socio-economic Capability Name Category

Moody’s 121 North Walnut Robin Neid, Director, Large Business Meets and Analytics Street Suite 500 (0) (610) 235—5186 exceeds all

West Chester, PA (Cell) (484) 356-4061 requirements of 19380-3 166 Robin.Heid@Moodys.com the SOW.

United States

Countertrad 7585 W. 66th Ave. Chris Ehmann — Account WOSB Responded to e Products, Arvada, CO $0003 Manager sources sought, Inc. Tel: 303-424-9710 however, they did

Email: not meet all the cehmann@countertrade.com requirements.

Feasibility 13940 Cedar Road # Gregory Williams - Director 8a Responded to Research 196 Tel: 216-920-7573 sources sought, Group University Heights, gwilliams@frg- however, they did Ohio, LLC. Ohio 4411$ consultants.com not meet all the requirements.

(9) Any otherfacts supporting the use of other than full and open competition, such as:

Moody as the current incumbent has successfully performed the requirement.

(10) A listing of the sources, if any, that expressed, in writiitg, an interest in the acquisition.

The following two vendors also submitted capability statements.

Countertrad 7585 W. 66th Ave. Chris Ehmann — Account WOSB Responded to e Products, Arvada, CO 80003 Manager sources sought, Inc. Tel: 303-424-9710 however, they did

Email: not meet all the cehmann@countertrade.com requirements.

Feasibility t3940 Cedar Road # Gregory Williams - Director 8a Responded to Research 196 Tel: 216-920-7573 sources sought, Group University Heights, gwilliams@frg- however, they did Ohio, LLC. Ohio 441 18 consultants.com not meet all the requirements.

(11) A statement of the actions, ifany, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

The Government plan to monitor and research the market and post the requirement on the Federal Business Opportunity before awarding any subsequent awards.

(12) The Technical or requirements personnel certification that any supportiitg documents that is used and which form the basis for the justification have been is certified as complete and accurate by the technical or requirements personnel.

See HUD Cover Sheet, Part 1, Justification, Section — Other Than Full and Open Competition Based on Brand Name, Subsection — Program Office Official’s Certification.

(13) Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

See HUD Cover Sheet, Part 2, Contracting Officer’s Determination and Certification.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410-5000

SEP 20 2018

MEMORANDUM FOR:

FROM

SUBJECT:

Brian D. Montgomery, Assistant Secretary for Housing, FHA Commissioner, H

Shawn Jone( Acting Deputy Assistant Secretary for Risk Management and Regulatory Affairs, HA

Justification for other than Full and Open Competition (JOFOC)

APP-H-2018-006 — RCS-H-201$-00136

The purpose of this requisition is to obtain contractor support for the Department of Housing and Urban Development (HUD), Office of Risk to purchase a commercially available database s subscription database. The Moody’s Reports is essential to completing the short turnaround tasks and analyses required by the Department. This data meets the Department’s objectives of being available in a variety of forms. The department uses this critical data to make informed decisions.

The Sources Sought issued March 2018 through FEDBIXOPS received responses from three

(3) vendors. Of the 3 vendors, all provided a capability statement as required by the sources sought instructions. The one and only company that fully met the requirement of this acquisition was Moody’s Analytics, LLC which is a large company, and therefore the need for a (Justification) JOFOC.

The total contract value is $861,083.00 for a base period and 4 (12 month) option periods. This planned action supports FYY8-22 Strategic Plan.

OllICE OF HOUSING