COR Memo to File - Sole-Source Justification (JOFOC) - Worldwide Debt Recovery - REDACTED.pdf

Ver: May 2017

EXPORT-IMPORT BANK OF THE U.S.

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: The requirement is being conducted by the Export Import Bank of the United States, Office of Contracting Services (“OCS”) at 811 Vermont Avenue, NW, Washington, D.C. 20571.

2. Nature and/or Description of the Action Being Processed: The purpose of this Justification is to award a new Firm Fixed Price (“FFP”) Purchase Order to Global Recovery Group, LLC (“GRG”) to provide legal recovery services to assist the Export Import Bank of the United States (“EXIM Bank”) in its efforts to collect outstanding amounts owed to EXIM Bank by the obligor(s)/buyer(s) and all guarantors, if any. These efforts will include, asset searches, site visits, negotiations, litigation, documentation of agreements, embargoing assets and executing upon assets to replace contract 20- F-0006.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Contractor is required to provide all labor, collection expenses, materials, equipment, and facilities to provide recoveries on claims that are assigned to it. If the contractor believes that litigation is necessary, the contractor must deliver a written justification to EXIM Bank which must then be approved by both the Asset Management Division (“AMD”) and the Office of the General Counsel (“OGC”). No litigation can be started by the contractor without the written approval of AMD and OGC. The estimated value for this contract is for the full five-year period. The Period of Performance for this contract will be five years.

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

(X) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6; and ( ) (7) Public Interest per FAR 6.302-7.

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): This contract would be a follow-on to 20-F-0006. GRG is already working on these recovery cases, so it has developed an expertise in the specific market and business conditions for each debtor. Some of these cases are involved in ongoing litigation and EXIM Bank’s recovery potential would be risked were this contractor to be replaced. This would potentially disrupt ongoing negotiations, ongoing payment streams, and/or ongoing litigation strategies. EXIM Bank has had good prior experience with GRG on worldwide debt

Ver: May 2017 collections. Because the goal is to have continuity on the recovery effort in this existing portfolio of recovery cases, EXIM Bank will not add any additional recovery cases under this contemplated contract.

The nature of these recovery cases is that the contractor invests a tremendous effort (in most cases the recovery process takes several years) to work with debtors in order to obtain a recovery. Some of these cases involve litigation in the debtor’s country. Research on the company, industry, and country’s environment; credit analysis, meetings to ascertain information and develop rapport; and legal investigations and filings if litigation is contemplated or has begun. Changing vendors on cases that the vendor has already worked would put future collections on those cases at risk. As such GRG has developed an expertise on the cases to which it has been assigned and is considered to be the only responsible source (as defined in FAR 6.302-1) and an expert on these cases (as defined in FAR 6.302-3(a)(2)(iii)) and changing contractors on these existing cases would harm the potential recovery of government assets. A continuity in the collection effort is important to the government in order to maximize the recovery in these defaulted transactions, some of which are in litigation. Recovery cases are time sensitive matters.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: In accordance with 41 U.S.C. 3304, EXIM Bank has sought to identify as many potential sources as practicable under the circumstances. The specialized knowledge required to minimize the risks and maximize the chances of success in EXIM Bank’s executing its rights under the Finance Documents and the need for confidentiality, limits the likelihood of identifying multiple firms possessing the requisite skill set.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the Justification will be fair and reasonable based upon prior experience with this contractor, comparison to rates and collection percentages assessed by similar firms in the same and similar jurisdictions, and by review of published rates publicly available.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: AMD confirmed that the types of services to be undertaken by the Contractor are commercial in nature. These services are provided to private and public sector entities without distinction. EXIM Bank has worked with GRG on hundreds of defaulted claims receivable transactions. The company has demonstrated a high degree of competence in the recovery role. This includes competence in appropriate commercial and legal recovery processes in various parts of the world. A review of its recovery support for EXIM Bank indicated that GRG is uniquely positioned to provide the ongoing services required for this instance. No other firms were identified that possess similar knowledge of EXIM Bank’s existing portfolio, its transactions, and legal experience on cases throughout the world. EXIM Bank has been utilizing Global Recovery Group, LLC since 2004 on this project and is satisfied with the services being provided.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: N/A.