P42_PCPM_BRIDGE_JOFOC_SIGNED.pdf

Justification for Other Than Full and Open Competition

U.S. Department of Housing and Urban Development

Office of the Chief Procurement Officer

PART I - PROGRAM OFFICE RECOMMENDATION

I recommend the use of other than full and open competition fur the acquisition of Cdescnbe services or supplies]

POST CLOSING PORTFOLIO MANAGEMENT (PCPM SERVICES

Negotiations should be conducted with the following source(s) 2j (provide names, addresses and points of contact; continue on separate sheets as needed].

MCARTHUR BAKER INT - JOHN KAMYA 7200 WiSCONSIN AVENUE, SUITE 107, BETHESDA, MD 20814 (301 )-986-1 586

The estimated cost of this acquisition is: $ 685.558 The statutory exception which allows this use of other than full and open competition is [select one):

[II Only one responsible source and no other supplies or services will satisfy agency requirements -41 USC 3304 (a)(1) (see FAR 6.302-i) Unusual and compelling urgency -41 USC 3304 (a)(2) (see FAR 6.302-2)

U Industrial mobilization; engineering, developmental or research capability; or expert services -41 USC 3304 fa)(3) (see FAR 6.302-3) U Authorized or required by statute -41 USC 3304 (a)(5) (see FAR 6.302-5)

[] Public interest (NOTE: requires Secretarial approval and Congressional Notification) -41 USC 3304 fa)(7) (see FAR 6.302-7)

III A description of the circumstances that support The use of the above statutory authority is attached and included as Exhibit ito this justification.

Program Office Certification. I certify that the information contained in this justification Is accurate and complete to the best my knowledge and belief Titl&Name of Office:

OFFICE OF HOUSING - FHA COMMISSIONER, H

ContractIng Officer CertificatIon.

I certify that the information contained in this justificalion is accurate and complete to the best of my knowledge and belief

Name: Signature; Date:

BRENDA K. LEE

Previous edition unusable Page 1 of 2 form HUD-24012 (0712011) cr......, Provide adcfitionafjustification and comments here. Continue on back as needed.

Brenda K. Lee 6/3/19

PART 3- OTHB APPROVALS

Up to $700,000 - Contracting Officer

Previous edition unusable Page 2 of 2 form HUD-24012 (0712011)

Name litle

Signature Date

$700,000 to $1 3,500000 - Competition Advocate

Name Title

Signature Date

$13,500,000 to $68,000,000 - Head of the Contracting Activity Name Title

Signature Date

Over $88,000,000 - Senior Procurement Executive

Name Title

Signature Date

Additional Contracting Officer Justif ication!comments from front [attach additional pages if needed]

Additional Guidance for Completing the Justification (see HUD Handbook 2210.3, Chapter 4)

PART 2 - Contracting Officer Review and Certification PART I - Program Office Recommendation Besides any information provided to support the program offices justification, the

Contracting Officer shall provide:The supporting documentation in the Exhibit 1 must describe:

. The nature of the proposed acquisition that requires other than

• Documented results of any Federal Business Opportuity notices or full and open competition; explanation of why no notice was published.

• The unique qualifications of any proposed sole source; and • A statement of actions the Department may take to remove barriers to competition for subsequent acquisitions of similar services / supplies; and• The market research conducted (see FAR Part 10) and the

• A determination that the anticipated cost I price is fair and reasonable.results or the reason(s) why market research was not conducted, (See FAR Subpart 6.3 for further guidance.)

The cost estimate must include all costs of the proposed acquisition, The Contracting Officer signing the certification shall be the same individual whoe.g., options, systems life costs, etc. The total will determine the will sign the proposed acquisition action which is the subject of this justification.approval level needed (see 3 below).

PART 3 - Other ApprovalsFAR Subpart 6.3 describes the statutory exceptions, their applicabilitti The Contracting Officer shall obtain the approval for the dollar value rangesand limitations on their use.

indicated.

Head of the Program Office means:

• For all Headquarters acquisitions: the cognizant Assistant If any person required to sign in these blocks disapproves this justification,Secretary or designee, he/she shall return it to the requesting activity with a written determination.• For field acquisitions: the program office director (e.g., Director, Multifamily Housing) within the State or Area Office. The requesting activity may obtain the name of the Contracting Activity Competition Advocate from the cognizant contracting office.

The Head of Contracting Activit ‘ is defined at Subpart 2402.1 of the HUD Acquisition Regulation (48 CFR Chapter 24). The cognizant contracting office may also provide the name of this individual.

US. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, DC 204i0-3000

JUSTIFICATION FOR OTHER THAN FULL & OPEN COMPETITION

TITLE: POST CLOSING PORTFOLIO MANAGEMENT

Control Number: 19-15

(1) Identification of the agency and the contracting activity, and specific identification of the document as a “Justificationfor other than flit! and open competition.”

Agency: Department of Housing and Urban Development tHUD)

Contracting Activity:

Program Office:

Department of Housing and Urban Development (HUD) Office of Chief Procurement Officer (OCPO) 451 7th Street, Room 5256 Washington, DC 20410

Office of Housing-Federal Housing Commissioner 451 7th Street S.W. RM 6264 Washington, DC 20410

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

Request approval to award a sole source to MacArthur Baker, Inc to review Owner’s Annual Financial Statements (AFS). This is a new Fixed Price contract utilizing 0183 funds.

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

The PCPM reviews the Owner’s annual financial statement (AFS) for each of the Approximately 1,200 properties in this portfolio. It compares actual performance to M2M underwriting conclusions, identifies significant variances, makes necessary adjustments, and computes the surplus cash due. In addition, contacts the key parties including, Owner, Property Manager, Multifamily Account Executive to confirm, adjust, and approve the AFS and any adjustments to the AFS computations.

Estimated Value: $685,558.

Period of Performance: March 315t 2019 to September 30, 2019

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

41 Usc 3304 (a)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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

The current contractor is uniquely qualified to perform these services as they can begin work as soon as the contact is awarded. No start-up time, training and PWing will be necessary. In addition, they have performed these services for the past 10 years, they have the current employees, information technology and infrastructure in place to begin immediately.

The current Loan Servicing portfoiio is approximately $1.6 billion. This break in service is jeopardizing the Department’s ability to service these notes and process collections. A sole source contract will provide all continued services to be performed including transition-in new contractor.

Overall, MBI will perform Post Closing Portfolio Management Services to ensure Office of Asset Management meets its core mission.

If the sole source contract is not awarded, the work of the Post Closing Portfolio Manager will not be performed until a new Contract is awarded. A new Contract is anticipated to be awarded by July 31st, 2019.

(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 an4 if not, which exception under 5.202 applies.

A solicitation for a new PCPM Contractor is scheduled to be posted by March 22w, 2019. This solicitation is an 8a competition. The purpose of the sole source contact in this justification request is to continue the work of the PCPM until a new award is made and allow time for the new award to transition in. The transition in period is approximately 60 days.

(7) A determination by the contracting officer that the anticipated cost to the Government wilt be fair and reasonable.

The Contracting Officer will determine that the prices is fair and reasonable at the time of award by comparing pricing to previous contract awards for the same services along with referring to the IGCE provided by the program office. The IGCE is based on the negotiated rates in the current contract for services

(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.

Market Research was not conducted because services have lapsed and this short-term contract needs to be in place immediately until a new award is made.

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

MBI is the incumbent contractor and has been responsible for providing the required services for over five (5) years. MBI has been performing the services satisfactorily. MBI has the expertise to provide the continuation of services to meet mission critical needs for the Office of Multifamily to assist in maximizing the value of M2M and Demo Notes by making sure HUD receives the correct surplus cash payment.

A notice of intent to source source to MBI was posted on february 10. 2018.

(10) A listing of the sources, ifany, that expressed, in writing, an interest in the acquisition.

Applewood Advisors, a part of the Corvus Group located at 9500 Arena Drive in Largo, Maryland, submitted an interest. While they may be qualified to submit a competitive bid for the new contract award, they are not in a position to begin SCA processing immediately. They would require a transition-in period.

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

A pre-solicitation notice has been pubticized in fedBitzOpps to announce an 8a competitive solicitation will be issued on or around March 15, 2019.

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

See HUD-24013, Part 2, Contracting Officer’s Determination and Certification.