A18 73351020Q0127 LSJ SRA Fullly Signed.pdf

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LIMITED SOURCES JUSTIFICATION

FOR AN ORDER EXCEEDING

THE SIMPLIFIED ACQUISITION THRESHOLD

(AUTHORITY: FAR 8.405-6)

Solicitation No.: 73351020Q0144

This acquisition is conducted under the authority of the Multiple Award Schedule (MAS) Program.

1. Agency and contracting activity. US Small Business Administration, Denver Finance Center – Acquisition 13221 Woodland Park Road, 5th Floor Herndon, VA 20171 POC: Roger Henriquez

Program Office US Small Business Administration

Office of Disaster Assistance 13221 Woodland Park Road, 6th Floor Herndon, VA 20171 POC: Mark Vaccaro

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

This requirement is for a limited source justification for a logical follow-on order against the General Services Administration (GSA) Information Technology MAS Number (SIN) 54151S Information Technology Professional Services for the Office of Disaster Assistance (ODA).

The Small Business Administration (SBA) intends to award a performance-based, labor hour contract for IT Operations & Maintenance Support for the Disaster Credit Management System (DCMS). The DCMS portfolio includes but is not limited to: performing Task Management activities including Project Plans, Work Estimates and Status Reports; System Requirement Development and Management; designing, developing, testing and implementing software changes and enhancements; maintaining existing and creating new external system interfaces; correcting erroneous production data; updating system documentation; and providing support to Disaster Credit Management System (DCMS) users. The DCMS is a mission critical system that supports ODA and agency’s mission in providing assistance to disaster victims timely and efficiently.

Proposed Contractor: *SRA International, Inc. (referred hereafter as SRA)

15036 Conference Center Dr Chantilly, VA 20151

*SRA was acquired by General Dynamics Information Technology (GDIT)

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

The SBA, officially established in 1953, maintains and strengthens the nation’s economy by aiding, counseling, assisting, and protecting the interests of small businesses, and by helping families and businesses to recover from national disasters in the United States (including Puerto Rico and other US possessions). The Small Business Act (ACT) authorizes the Small Business Administration (SBA) to make loans to eligible survivors of declared disasters. The ODA plans, directs, and administers the SBA’s responsibilities under the ACT. The mission of ODA is to help people recover from disasters and rebuild their lives by providing affordable, timely and accessible financial assistance to homeowners, renters, businesses of all sizes and nonprofit organizations. Responding to the needs of the disaster survivors in an efficient manner is a primary goal. ODA strives to meet this efficiency goal, regardless of the emergency or disaster impact. The COVID-19 pandemic, which is by far the largest Presidential Disaster Declaration for SBA, demands immediate attention. Immediate acquisition of services and supplies and the issuance of loans will help ensure that U.S. small businesses remain economically stabilized during this emergency.

In order to achieve this goal for the small business to remain economically stable, ODA uses DCMS for the purpose of processing, disbursing, and modifying disaster home and business loans for qualifying disaster events. DCMS consists of a lending suite integrated with several subsystems. The subsystems include, but are not limited to, the public facing Electronic Loan Application (ELA) system; document image storage and retrieval system; custom closing document generation; a remote user Loss Verification (LV) function with interfaces between DCMS and remote devices. DCMS is undergoing a modernization effort to a cloud-based platform.

SRA provides IT Operations & Maintenance (O&M) Support for the DCMS portfolio and supports the successful migration to the modernization system. Modernization migration activities include support for planning and executing the migration of multiple existing applications to the modernized system. The IT O&M support for the DCMS portfolio includes, but is not limited to: performing Task Management activities including Project Plans, Work Estimates and Status Reports; System Requirement Development and Management; designing, developing, testing and implementing software changes and enhancements; maintaining existing and creating new external system interfaces; correcting erroneous production data; updating system documentation; and providing support to DCMS users.

The on-going mission of the DCMS Operations Center is to provide improved DCMS functionality through controlled software releases. The contractor adheres to the agency life cycle Software Development Methodology and provides the necessary resources to ensure the appropriate system improvement activities are complete within the designated timeframes of the DCMS Operations Center management.

The SBA ODA DCMS Operations Center directly supports recovery efforts related to COVID -19, hurricanes and other associated disaster declarations. As a result of these major disasters, the Operations Center has needed to expand their operating hours to 7 days a week, 12 hours a day. In order to support the extended hours, additional O&M services are required resulting in the existing contracting staff (which SRA has in place and is performing via the current Option Year) to work additional hours.

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The estimated award date is September 21, 2020 and the SBA estimates that these services will cost approximately $3,047,082.78 for the 1-year performance period.

4. Authority and supporting rationale. The following circumstance justifies limiting the source as supported below:

Logical Follow-on under the authority of FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule (FSS) GS35F088AA order D16PD01036. The original order was placed competitively in accordance with the applicable FSS ordering procedures. The original order was not previously issued under a sole-source or on a limited sources procedure basis.

Order D16PD01036 was previously awarded by the Department of the Interior (DOI), Acquisition Services Directorate to SRA under GSA’s schedule contract GS35F088AA. The period of performance was a base year with 4 option years that commenced on September 25, 2016 and ends on September 24, 2021. DOI exercised all option years, except for the 4th and final year of the order.

The SBA has decided to bring the requirement in-house and rather than exercise the last option period, will issue a new order. Completion of the final option period of the original order is a necessity since DCMS is starting to decommission the system prior to a new system taking place. Continuation of services via a follow-order to SRA is vital since it would take too much time and money to bring on board a new contractor to perform the services as required. The time that it would take to re-train and bring a new contractor up to speed would not be cost effective for the short time period needed. In addition, only SRA has familiarity with and is knowledgeable of the intricacies of how other systems integrate with that DCMS system.

Since SBA's inception in 1953, and leading up to COVID-19, SBA had approved over 2.2 million disaster loans for $66.7 billion to disaster survivors, of which 338,000 loans totaling $20.9 billion were for small businesses. As of July 28, 2020, SBA had approved over 3.0 million COVID-19 EIDLs for over $165 billion. In FY2020. SBA has approved and distributed more loans for COVID-19 than for all other disasters combined in the history of the Agency.

Therefore, continuation of the O&M support for the system that processes the extraordinary number of loans, which currently has hit an all-time peak for loan processing, is imperative.

In order to ensure that U.S. economy and small businesses remain economically stabilized during this emergency declaration, its essential that this contract continues.

5. Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d).

The Contracting Officer has determined that the anticipated price(s) will be fair and reasonable based on the prior acquisition history and the pre-approved prices on their GSA Federal Supply Service Schedule. On this new follow-on order, SRA will be utilizing the same GSA schedule contract GS35F088AA that was utilized previously at the DOI order for the same requirement. This schedule is valid through November 29, 2022.

Prices will be based on negotiated rates of GSA Schedule pricing and will be based on the option year 4 pricing (GS35F088AA), that will begin September 25, 2020. The year 4 pricing was evaluated as part of the initial award and subsequently the Contracting Officer determined that pricing to be fair and reasonable.

The Contracting Officer will include in the solicitation a request for additional discounts before award consistent with FAR 8.405-4.

6. Market research conducted among schedule holders (or reason market research was not conducted).

Market research was conducted based on the D16PD01036. Research was also performed to confirm that SRA still offers these services under their schedule contract, that their contract is still active and that they have no active exclusions.

7. Any other facts supporting the justification.

SBA discussed whether to exercise the option year with DOI or issue a logical follow-on order to bring the requirement in-house. This decision will save the SBA the 4.9% ($149,307.06) DOI service fee for assisted acquisitions. This results in an overall cost savings to the Government.

8. Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for supplies and services is made.

SBA is in the process of transferring to a new system and once it is up and running and the data has been transferred to the new system, these services will not be needed.

Certification and Approval

9. Technical / Requirements Representative Certification.

I certify that this requirement constitutes the Government’s minimum needs and the supporting data provided herein is accurate and complete to the best of my knowledge and belief.

Digitally signed by MARK

VACCARO

Date: 2020.07.28 10:12:55 -04'00'

Mark S. Vaccaro Contracting Officer’s Representative

UP TO $500,000

10. Contracting Officer’s Certification and Approval.

I certify this justification is accurate and complete to the best of my knowledge and belief, and hereby provide approval.

Digitally signed by ROGER

ROGER HENRIQUEZ HENRIQUEZ

Date: 2020.07.28 15:08:29 -04'00' Roger N. Henriquez Contracting Officer

11. Approval

$500,000 - $700,000

Kip A. Sheppard, Director, Acquisition Division

> $700,000 ≤ $13,500,000

Sarah M. Davis Competition Advocate

MARK VACCARO