Limited_Source_Justification_for_SAMS.pdf

J&A Log 19-25

Attachment

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (RU]))

LIMITED SOURCES JUSTIFICATION

For Single family Acquired Asset Management System (SAMS)

;. IDENTIFICATION OF THE AGENCY AND TUE CONTRACTING

ACTIVITY, AND SPECIFIC IDENTIFICATION OF THE DOCUMENT AS A

LIMITED - SOURCES JUSTIFICATION

Agency: U.S. Department of Housing and Urban Development (HUD) 451 7th Street SW, Rm 5256 Washington, DC 20410

Contracting Activity: Office of Chief Procurement Officer

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

Approval is being sought to eater into a new contract with Perspecta Enterprise Solutions LLC to provide uninterrupted operations and maintenance including transition for Information Technology services and support for the Single family Acquired Asset Management System (SAMS). A new sole source contract is being sought to ensure continuity of services while the follow-on competitive acquisition is being conducted.

Type of contract will be a Hybrid consisting of Firm Fixed Price and Labor Hours.

Contract action will be funded with Information Technology (if) funds. Method of contracting will be a new contract award.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE).

The Office of Single-Family Asset Management Division requires a contract to supportOperations and Maintenance for SAMS to ensure continuity of services. SAMS is a mission critical, major system that the federal Housing Administration (F}{A) relies upon for financial management and financial control of real property assets under the Singlefamily Mortgage Insurance Program. SAMS accounts for the sale of over 60,000 properties per year valued at over $5 billion and related property expenses totaling nearly$1 billion. In addition to recording costs and cost recovery from FHA’s real propertymanagement activity, SAMS generates the financial transactions that FHA relies upon forfederal accounting, reporting, and funds control. SAMS processes disbursements toManagement and Marketing (M&M) contractors, vendors, taxing authorities, and homeowner’s associations. SAMS supports headquarters staff, Home Ownership Center

(HOC) staff, and M&M contractors in recording the financial results of property management events from acquisition through maintenance and repair to resale or other disposition.

Performance Period: 07/01/2019 through 03/31/2020 Estimated Total Dollar Value: $2,541,484.82

4. THE AUTHORITY AND SUPPORTING RATIONALE (SEE $.405-6(A)(1)(1)

AND (B)(1)) AND, IF APPLICABLE, A DEMONSTRATION OF THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS TO PROVIDE

THE REQUIRED SUPPLY OR SERVICE.

Authority: FAR 8. 405-6 (a)(l)(i)(B). Only one source is capable of responding due to the unique or specialized nature of the work.

The incumbent, Perspecta Enterprise Solutions LLC 13600 EDS Dr., Herndon, Virginia 2017 1 is considered the only capable source that can satisfy the Department’s requirement within the established timeframe and with the specialized knowledge of the proprietary Computer Aided Software Engineering (CASE) tool known as “R1CASE”.

Since the SAMS application is written in the INCASE Software, the major requirement is the contractor’s ability to access and effectively utilize the ThTCASE software. Further, the incumbent is fully staffed with the personnel who are subject matter experts on the financial reporting requirements. Changing to another vendor would incur substantial costs and schedule delays which would negatively affect FHA’s mission.

Perspecta Enterprise Solutions, LLC is the only contractor that can meet this requirement with the unique proprietary software. SAMS was developed exclusively for HUD by Perspecta Enterprise Solutions, LLC (then Electronic Data Systems) in 1994 to provide the Department with a management system to record, track and report ITUD-owned properties. The Department does not own the source code for SAMS and does not have the ability or expertise to provide operations and maintenance support for the system. SAMS is a legacy system written in proprietary code. Only the suggested source can furnish the requirements, to the exclusion of others because the department does not have the ability or expertise to provide support for this system.

Awarding this support service to a new vendor would be impractical. A new vendor would have to develop a completely new source code and then transfer all data from SAMS to a new system. In addition, it would have to conduct extensive testing to ensure that accurate and complete accounting/financial data would be maintained and readily available to the Department and others. Also, because of the time and cost constraints associated with the steep learning curve needed to learn the business/program requirements and HUD’s if infrastructure environment and governance, it is impractical for another vendor to provide the required services in the timeframe needed.

5. A DETERMINATION BY IKE ORDERING ACTIVITY CONTRACTING

OFFICER THAT THE ORDER REPRESENT THE BEST VALUE CONSIST

WITH 8.4.04(D).

In accordance with FAR 8.404(d) the ordering activity Contracting Officer will determine that the order represents the best value and results in the lowest overall cost alternative to meet the government’s needs by performing a price evaluation in accordance with FAR 8.405-2(d).

6. A DESCRIPTION Of THE MARKET RESEARCH CONDUCTED AMONG

SCHEDULE HOLDERS AND THE RESULTS OR A STATEMENT OF TUE

REASON MARKET RESEARCH WAS NOT CONDUCTED.

A competitive acquisition for a follow-on contract for SAMS services and support is currently underway. The original market research, conducted by program office personnel in June 2018, on the competitive acquisition for SAMS was done via Acquisition Gateway located on the GSA website. The original market research determined that there is adequate competition in the market-place amongst small businesses that are capable of providing a commercial off-the-shelf system to replace the current SAMS. Additional market research was not conducted for this 9-month bridge contract since it was determined that Perspecta Enterprise Solutions, LLC is the only vendor capable of providing the required services in the short timeframe required in order to keep the continuity of services without a break in service.

7. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION.

Perspecta Enterprise Solutions, LLC is the sole manufacturer and distributor of the ThJCASE TOOL Software and many add in software programs. SAMS is a major system that FHA relies upon for financial management and financial control of real property assets under the Single-Family Mortgage Insurance Program. Without the availability of continued contract support from Perspecta Enterprise Solutions, LLC, HUD’s ability to perform SAMS mission critical financial oversight activities in support of the Department’s Single-Family Property Disposition (SFPD) Program (Section 204(g)) will be jeopardized. SAMS tracks and reports on HUD homes for sale, and processes all financial transactions related to their repair, lease, listing, and sale, including payments for contractor services, taxes and homeowner association and condominium fees. SAMS is integral to managing the portfolio of 1-RID homes, acquired at the rate of 50,000 to 100,000 properties per year with an estimated value of $3 to 6 billion dollars. SAMS interfaces with 15 other HUE) systems and business partners that exchange data daily, monthly and quarterly.

Without the availability of continued ongoing software and maintenance for SAMS, it will impact the mortgage industry’s ability to convey foreclosed property to the department, the department’s ability to manage the preservation, protection, marketing, and sale of the current Real Estate Owned inventory, and the proper financial management and accounting of the department’s property portfolio.

If there is a break in service with awarding SAMS contract timely, FHA will not be able to obtain any technical support needed to address issues that may arise related to the disbursement of funds to contractors for property maintenance and taxes. This will result in unkempt properties and deterring potential buyers. FHA will in turn be delinquent for property where taxes are not being paid. FHA disburses approximately $9.7M per month for approximately 450 properties. Collections of proceeds from the sale of the property may also be affected. Monies collected will be placed into suspense and will require review of the system generated reports to determine the proper corrective actions. SAMS collect approximately $148.2M per month for 2,270 properties.

8. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE

RESTRICTED CONSIDERATION BEFORE ANY SUBSEQUENT ACQUISTION

FOR THE SUPPLIES OR SERVICES IS MADE.

HUD is re-procuring this acquisition on a competitive basis for an alternative to SAMS, thus getting away from the use of proprietary source code. This should remove barriers that led to the restricted consideration for the folLow-on acquisition.

The OCIO, in partnership with OCPO, is actively pursuing a competitive acquisition.

Contract award is anticipated for SAMS by 1st Quarter FY2020.

9. THE ORDERING ACTIVITY CONTRACTING OmCER’s

CERTIFICATION THAT THE JUSTIFICATION IS ACCURATE AND

COMPLETE TO THE BEST OF THE CONTRACTING OFFICER’S

KNOWLEDGE AN]) BELIEF.

See certification, Form HUD-24013, Part 2.

10. EVIDENCE THAT ANY SUPPORTING DATA THAT IS THE

RESPONSIBILITY OF TECHNICAL OR REQUIREMENTS PERSONNEL

(E.G., VERIFYLNG TIlE GOVERNMENT’S MINIMUM NEEDS OR

REQUIREMENTS OR OTHER RATIONALE FOR LIMITED SOURCES) AND

WHICH FORM A BASIS FOR THE JUSTIFICATION HAVE BEEN CERTIFIED

AS COMPLETE AND ACCURATE BY THE TECHNICAL OR

REQUTREMENTS PERSONNEL.

The information provided as supporting data which forms the basis for this limited source justification has been certified as complete and accurate by the Chief Information Officer (ClO) as evidenced by his signature on the Form HUD-24013, Part 1.

11. FOR JUSTIFICATIONS UNDER $.405-6(A)(1), A WRITTEN

DETERMINATION BY THE APPROVING OFFICIAL IDENTIFYING THE

CIRCUMSTANCE THAT APPLIES.

A written determination identifying the circumstance that applies has been provided as evident by the Approving Official’s signature on Form HUD-24013, Part 3.