Justification - Signed.pdf

JUSTIFICATION

Bureau Enhanced Acquisition Management System

Source Selection Sensitive in accordance with FAR 2.101 and FAR 3.104.

Procurement ID: ePRO-2020- 12286

BEAMS User Guide BEAMS Feedback

SUMMARY

Procurement Title:

Mercator Advisory Group

Program Office:

RMR: Card MarketsRMR: Card Markets

Contracting Officer:

Helman, Casey (CFPB)

Contract Specialist:

Helman, Casey (CFPB)

Acquisition Strategy:

Sole Source - SAT or over

Anticipated Award Date:

12/27/2019

Base and All Options Value:

$462,500.00 (Total Contract Value)

BR Total Amount:

$92,500.00

Type Of Action:

New Contract/Agreement

Bureau:

CFPB

Contract Type:

Firm Fixed Price

Contract Number:

Is it Sole Source?

Yes No

FAR Reference:

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements

PERIOD OF PERFORMANCE

Base Period (Months):

Number of Option Periods:

Option Period 1 (Months):

Option Period 2 (Months):

Option Period 3 (Months):

Option Period 4 (Months):

COSTS Note: the Base Amount(s) do not update from the Buy Request after the first time they are copied.

If the Base Amount in the BR changes, you may need to manually update it here.

Life-Cycle Estimated Total:

$462,500.00 Base (From Buy Request 1):

$92,500 Note: You may over-ride the base amount(s).

Base (From Buy Request 2):

If the background color is yellow, the amount does not match the Buy Request.

Option Year 1 Cost:

$92,500

Option Year 2 Cost:

$92,500

Option Year 3 Cost:

$92,500

Option Year 4 Cost:

$92,500

FAR 6.3

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

(FAR) 6.302

Date Needed:

12/23/2019

Nature/Description of Action, Supplies, and Services [FAR 6.303-2(b)(2] and (3):

Display Acq Plan Statement of Need The Consumer Financial Protection Bureau seeks advisory services from Mercator Advisory Group in the areas of Credit, Customer Monitor Survey Series (CMSS), Debit, Emerging Technologies, Merchant, and Prepaid Advisory Service; to include direct access to research team, all written research deliverables (including archive content), access to all related presentations & webcasts, minimum 45 logins for said access, fifteen hours of analyst inquiry support across Mercator Advisory Services outside of the selected areas, and three on -site meetings with members of the Mercator Research team.

Statutory Authority Permitting Other than Full and Open Competition [FAR 6.303-2(b)(4)]:

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements

Description of Market Research and Results [FAR 6.303-2(b)(6), (8) and (10)]:

Display Acq Plan Market Research No formal market survey was conducted, but pursuant to information provided herein, the Bureau is continually evaluating potential sources of research, including subjecting those with which it currently contracts to continual scrutiny for quality and value and soliciting proposals from those it does not. In a relatively small and specialized market whose few participants are active in promoting their services to interested parties such as the Bureau, this provides the Bureau with a comprehensive picture of what services of this nature are available to us and what quality and value we expect to receive. Other firms reviewed include Aite Group, Auriemma Consulting Group, Javelin Strategy & Research, Forrester

Research, Yankee Group, Informa Financial Intelligence, and Business Insider; none of these firms offers the specific breadth, depth, comprehensiveness, and rigor of original research in payments offered by Mercator. Aite Group provides related but distinct research into banking and payments, providing unique insights but not encompassing the research done by Mercator. Javelin and Forrester's research into banking and payments is better suited for industry participants than the kind of market research necessary to the Bureau. Yankee's research is focused more narrowly on specific subject areas than Mercator's. Business Insider is a useful aggregator of the research of others but does less original research.

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

Determination of Fair and Reasonable Cost/Price [FAR 6.303-2(b)(7)]: The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on the following information:

Any Other Facts Supporting the Use of Other than Full and Open Competition [FAR 6.303-2(b)(9)]:

Actions Taken to Remove or Overcome Barriers to Competition [FAR 6.303-2(b)(11)]:

CERTIFICATION

Technical/Requirements Official [FAR 6.303-2(c):

I certify that the facts and representations under my cognizance, which are included in this justification and which form a basis for this justification, are complete and accurate.

Contracting Officer [FAR 6.303-2(b)(12):By signing below, I certify that this justification is accurate and complete to the best of my knowledge and belief.

Mercator Advisory Group provides unique quantitative and qualitative research services in several areas of key interest to the Bureau, especially payments markets. Much of their work is viewed as “baseline” information by industry participants, which makes it impossible for Bureau staff to engage effectively with payment market participants without access to Mercator data. For example, Mercator estimates and forecasts of past, present, and future load volume on different categories of prepaid card accounts are generally regarded as the most reliable and comprehensive data source in this area. Mercator is able to put this type of comprehensive payments data together because the firm has uniquely close relationships with a broad spectrum of payments processors. (Almost all the large processors are their clients.) Critical Bureau tasks in this area require access to this kind of baseline data both for its own direct content and to engage effectively and productively with industry participants. Mercator’s secondary research, which uses this data (and more detailed data that Mercator has unique access to), is also viewed as “industry-standard,” and is accordingly necessary for the Bureau’s work for the same reasons.

Mercator also regularly surveys consumers on specific products, issues, and areas highly relevant to Bureau policy work, and produces unique, deep, and comprehensive reports based on those survey data as well as releasing detailed cross-tabs for further user exploration. These survey data have no parallel known to the Bureau in terms of their depth and specificity in exploring consumer sentiment towards and experience with specific products of interest to Bureau in its policy work. These surveys and resultant reports routinely inform Bureau policy and prioritization decisions.

We use these data to identify market trends, develop strategies and policies, and inform research and rulemaking. The Bureau currently has contracts with, or has thoroughly explored engaging with, firms offering research services of a similar nature, but none has proven to be an adequate substitute for the work we have received and expect to receive from Mercator. This includes Aite Group, which provides related but distinct and non-overlapping research into payments to the Bureau. They do not provide the same breadth and depth of industry baseline data or consumer survey data, as described above, that the Bureau needs.

The CO has reviewed the provided quote from Mercator compared with historical pricing. Mercator has "Grandfathered" in the rates from last year which were deemed fair and reasonable.

N/A

It is likely for the near-future that this contract will remain a sole source; however, as stated above, we are continually evaluating and re-evaluating current and potential providers, and should more compelling direct competition to Mercator emerge we would not hesitate to revisit.

SIGNATURES Contract and Legal Reviews Policy

Person Decision Approved Date and Time

Senior Program Official (Only applicable under FAR 8.4)

Approve

Technical/Requirements Official

ApproveMueller, Austin (CFPB)

Contracting Officer

ApproveHelman, Casey (CFPB)

Competition Advocate

ApproveGalicki, Joshua (CFPB)

12/10/2019 1:45:18 PM

12/10/2019 10:38:23 AM

12/9/2019 2:11:39 PM

Justification Signature History Stamp

Office of the Chief Procurement Officer Operations Division

Consumer Financial Protection Bureau

||Technical Requirements Offical Mueller, Austin (CFPB)has Approved 2019-12-10T13:45:18 ||CO Helman, Casey (CFPB)has Approved 2019-12-10T10:38:23 ||Competition Advocate Galicki, Joshua (CFPB)has Approved 2019-12-09T14:11:39 ||||||