9531CB23R0002-Justification.pdf

JUSTIFICATION

Bureau Enhanced Acquisition Management System

Source Selec�on Sensi�ve in accordance with FAR 2.101 and FAR 3.104.

Procurement ID: ePRO-2022- 14656

BEAMS User Guide BEAMS Feedback

SUMMARY

Procurement Title:

APOR Data Procurement (BR 6297) Program Office:

RMR: Research

Contracting Officer:

Del Toro, Vanessa (CFPB)

Contract Specialist:

Del Toro, Vanessa (CFPB)

Acquisition Strategy:

Sole Source - SAT or over

Anticipated Award Date:

Base and All Options Value:

$615,000.00 (Total Contract Value)

BR Total Amount:

$0.00

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 Op�on Periods:

Op�on Period 1 (Months):

Op�on Period 2 (Months):

Op�on Period 3 (Months):

Op�on Period 4 (Months):

COSTS Note: the Base Amount(s) do not update from the Buy Request a�er the first �me they are copied.

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

Life-Cycle Es�mated Total:

$615,000.00

Base (From Buy Request 1):

$123,000 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.

Op�on Year 1 Cost:

$123,000.0 Op�on Year 2 Cost:

$123,000.0 Op�on Year 3 Cost:

$123,000.0 Op�on Year 4 Cost:

$123,000.0 https://sharepoint.cfpb.local/promgt/procure/eProcurement/Documents/Docs%20Posted%20in%20BEAMS%20Form%20for%20Client%20Use/BEAMS_Client_User_Guide.pdf https://sharepoint.cfpb.local/promgt/procure/eProcurement/Lists/BEAMS%20Feedback%20Tracker/Issue/newifs.aspx?List=d2403db3%2D56d3%2D4191%2Dbfab%2Dc88f7272ab4a&Source=https%3A%2F%2Fsharepoint%2Ecfpb%2Elocal%2Fpromgt%2Fprocure%2FeProcurement%2FLists%2FBEAMS%2520Feedback%2520Tracker%2FAllItems%2Easpx&RootFolder=&Web=c7d7e3f5%2D98d7%2D4224%2Da3d7%2D4365e09d6c7e

FAR 6.3

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

(FAR) 6.302

Date Needed:

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

Display Acq Plan Statement of Need To construct Average Prime Offer Rate (APOR)s, the Consumer Financial Protection Bureau requires a very specific set of mortgage pricing data fields. These fields must be updated on a weekly basis and formatted in an aggregate manner for the Bureau to generate APOR, which is used by industry to fulfill regulatory requirements. The current data used to generate APOR, the Primary Mortgage Market Survey (PMMS) from Freddie Mac, is being discontinued in Fall 2022. Without a replacement data source, industry would be unable to meet any of the regulatory requirements described above. The Bureau has identified only one potential vendor that can meet these specific data requirements.

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 Identified potential mortgage pricing data vendors - Intercontinental Exchange, Inc. (ICE), Optimal Blue, CoreLogic, and Mortgage Bankers Association to discuss the data available from each company. Office of Research (OR) also discussed with Brian Bucks in OR regarding the possibility of CFPB performing its own survey to generate the data needed for Average Prime Offer Rate (APOR). See attached narrative for details. Given the Bureau has very specific data needs for this procurement, we have identified only one potential vendor (ICE) that can meet these specific data requirements.

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

The Bureau requires a very specific set of data fields to calculate APOR for fixed rate and adjustable rate mortgages. The proposed contractor (ICE)'s data has the following important characteristics that the other potential contractors identified through market research did not: includes third party fees field, includes lender fees (discount or origination points) field, 5/1 ARMs indexed to U.S. Treasury yield, applies relevant filters to identified best-qualified applicants, etc.

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.

SIGNATURES Contract and Legal Reviews Policy

Person Decision Approved Date and Time

Senior Program Official (Only applicable under FAR 8.4)

Approve

The proposed contractor (ICE)'s anticipated prices are based on a data package sent to the Bureau during the Market Research stage, including an additional adjustment representative of the increased quanity of data requested following the completion of CFPB's backtesting. To account for the increase in data requested, the initial pricing was doubled and a 5% estimate for increased administrative costs was added. This is a fixed yearly cost of $123,000, or a total of $615,000 (one base and 4 option years). While the Freddie Mac data previously used did not cost anything, it will no longer be availabe. The ICE data is the only viable replacement found. The cost of $123,000 a year is in line with prices paid for other mortgage data procurements. In 2022, CFPB paid $426,998 for twice weekly comprehenesive mortgage data and $155,000 for monthly Mortgage Performance Data. Some of the other procurements are more comprehensive and thus more expensive, but serve as a comparison. The price ICE charges is deemed to be fair and reasonable given the nature of the data and past prices paid for data obtained for the Office of Research, Markets, and Regulations. Additionally, the vendor information sent mentions that discounts are given for multi-year contracts. Discounts will be requested in the Request for Proposal.

Given the fact the Bureau requires a very specific set of data fields to calculate APOR (that the Bureau has identified only one vendor can deliver), its current data source for APOR will be unavailable come Fall 2022, and the importance of the APOR values to industry, a sole source procurement is appropriate.

Performing continued Market Research to identify a variety of potential vendors that might be able to provide us with appropriate data and gathering information on the nature of each vendor's data. This justification and related solicitation will be publicly posted on SAM.gov.

https://sharepoint.cfpb.local/promgt/procure/Reference%20Library/Policies%20and%20Procedures/Contract%20%20and%20Legal%20Reviews%20-%20Policy%20and%20Procedures/Procurement%20Review%20Policy%20Amendment%2011%20Final%206_9_20.pdf

Technical/Requirements Official Approve

Dobre, Alexandra (CFPB)

Contracting Officer

Del Toro, Vanessa (CFPB)

Competition Advocate

Coleman, CC (CFPB)(she/her/hers)

Head of Contracting Activity

Senior Procurement Executive

Jus�fica�on Signature History Stamp

Source Selec�on Sensi�ve in accordance with FAR 2.101 and FAR 3.104.

STATUS

Pre-Award Review

NOTES Flag for Review

11/15/2022 8:56:56 AM

11/15/2022 9:04:49 AM

11/15/2022 9:56:21 AM

||Competition Advocate Coleman, CC (CFPB)(she/her/hers)has Approved 2022-11-15T09:56:21 ||CO Del Toro, Vanessa (CFPB)has Approved 2022-11-15T09:04:49 ||Technical Requirements Offical Dobre, Alexandra (CFPB)has Approved 2022-11-15T08:56:56 ||Competition Advocate Coleman, CC (CFPB)has Approved 2022-08- 16T07:15:55 ||CO Del Toro, Vanessa (CFPB)has Approved 2022-08-16T06:35:21 ||Technical Requirements Offical Dobre, Alexandra (CFPB)has Approved 2022-08- 15T23:29:41 ||CO Del Toro, Vanessa (CFPB)has Approved 2022-08-09T15:16:06 ||||||||||||||

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Procurement.

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Notes captured in this common space facilitate communication between all Stakeholders in this

Procurement.

Please specify which tab your note is about Created By Date and Time

Acq Plan

HISTORY

Created By:

Dobre, Alexandra (CFPB) Creation Date:

7/21/2022

Creation Time:

10:43:19 AM

Last Modified By:

Coleman, CC (CFPB) (she/her/hers)

Last Modified Date:

11/15/2022

Last Modified Time:

9:56:23 AM

Office of the Chief Procurement Officer Operations Division

Consumer Financial Protection Bureau