A80BDR_JOFOC_Exhibit_1.pdf

EXHIBIT 1

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CRUD)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

1. IDENTiFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY, AND SPECIFIC IDENTIFICATION OF 11W DOCUMENT AS A

“JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION.”

Agency: U.S. Department of Housing and Urban Development (HUD) 451 7th Street SW, RM 5184 Washington, DC 20410

Contracting Activity: Office of Chief Procurement Officer

2. NATURE AND/OR DESCRWHON OF ACTION BEING APPROVED.

Single Family Premium Collection Subsystem — Periodic (SFPCS-P), Single Family Premium Collection Subsystem Upfront (SFPCS-U), and Distributive Shares and Refund System (DSR$)

Approval is being sought to enter a contract with Salient Federal Solutions, Inc. to provide operations and maintenance for information technology services and support for the Single-Family Premium Collection Subsystem — Periodic (SFPCS-P), Single Family Premium Collection Subsystem — Upfront (SFPCS-U), and Distributive Shares and Refund System (DSRS), with the CA GEN enhancements software after deployment.

A new sole source contract is being sought to ensure continuity of services while the follow-on competitive solicitation is being completed.

Contract Type: Hybrid--Firm Fixed Priced and Time and Material Contract action will be funded with Information Technology Funds.

3. A DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET 11W

AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE).

Contractor support is required for Operation and Maintenance and Development, modernization and enhancement services for the Single-Family Premium Collection Subsystem — Periodic (SFPCS-P), Single family Premium Collection Subsystem —

Upfront (SFPCS-U), and Distributive Shares and Refund Subsystem (DSRS).

Performance Period: 11/30/2018 through 08/29/2019 Estimated Total Dollar Value: $3,074,874.00

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION.

FAR 6.302-1 only one responsible source and no other supplies or services will satisfy the agency requirements, 41 U.S.C. 3304 (a) (1).

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED.

As the incumbent, Salient CROT Inc., has extensive experience in successfully providing expedited and efficient support services under the past and existing HUD contract. Salient CRGT has demonstrated an in-depth knowledge of HUD’s IT infrastructure, inclusive of a clear understanding of HUD’s single-family modernization standards. Only this contractor can meet this requirement due to the lack of time available to make a new contract award by November 29, 2018. In addition, only this contractor can meet the current operations and maintenance support needs of the (A8OBDR) Single-Family Premium Collection Subsystem — Periodic ($FPCS-P), Single Family Premium Collection Subsystem = Upfront (SFPCS-U), and Distributive Shares and Refund System (DSRS), system because they possess the unique knowledge, skills and abilities. The requirement is essential because A8OBDR is a critical HUD system processing approximately $1 billion per month in mortgage insurance premiums.

A lapse in contract would jeopardize HUD’s ability to fulfill its most critical mission in providing FHA Insurance by ceasing the endorsement new FHA cases and the collection of insurance premium (over $12 billion annually). This would create a major financial and public relation burden to HUD and the FHA funds, as welt as create economic hardship within the mortgage industry

The impact of delay if this contract is not awarded by November 29, 2018, is that there will be a break in service and a major business impact affecting the Office of Single Family Housing and the overall mission of HUD to provide mortgage insurance premiums.

6. A DESCRIPTION Of EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS

PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR WILL BE

PUBLICIZED AS REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH

EXCEPTION UNDER 5.202 APPLIES.

As required by the FAR Subpart 5.2, a notice will be publicized in the federal Business Opportunities site, www.fedbizopps.ov. Additionally, a competitive follow-on acquisition is in progress for O&M and DME services for A8OBDR with an anticipated award date of FY19, 3rd Quarter. Single Family Premium Collection Subsystem — Periodic (SFPCS-P), Single Family Premium Collection Subsystem —

Upfront (SFPCS-U), and Distributive Shares and Refund Subsystem (DSRS)

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT TIlE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE.

The contracting officer determines that the anticipated prices will be fair and reasonable based on the Independent Government Cost Estimate (IGCE) founded on historical pricing for the same or similar services.

8. A DESCRIPTION OF TIlE MARKET RESEARCH CONDUCTED (SEE PART

10) AND TIlE RESULTS OR A STATEMENT OF THE REASON MARKET

RESEARCH WAS NOT CONDUCTED.

A competitive acquisition for a follow-on contract is currently underway. The original market research conducted on the competitive acquisition indicated that there are potential small business sources that are interested in the requirement. Additional market research was not conducted for this nine (9) month Bridge Contract. Salient CRGT Inc. is the only vendor that can provide the service during this short time frame.

9. ANY OTHER FACTS SUPPORTING TIlE USE OF OTHER THAN FULL

AND OPEN COMPETITION.

If (A8OBDR) Single Family Premium Collection Subsystem — Periodic (SFPCS-P), Single Family Premium Collection Subsystem — Upfront (SFPCS-U), and Distributive Shares and Refund Subsystem (DSRS) experience any break in service it puts the entire FHA program at risk. The inability to endorse new single-family FHA-insured loans negatively impacts the housing market and the American economy. FHA’s single-family insurance program represents approximately 20% of the national housing market. The endorsement process is identified as a mission essential function for the Department. Jeopardizes FHA’s ability to collect over $1 billion in Mortgage Insurance Premiums monthly. Impacts the American public by potentially preventing borrowers’ ability to refinance their home or receive refunds.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING,

AN INTEREST IN TIlE ACQUISITION.

No sources have expressed, in writing, an interest in this sole-source acquisition.

11. A STATEMENT OF THE ACTIONS, if ANY, THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION

BEFORE ANY SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR

SERVICES REQUIRED.

A competitive acquisition for A8OBDR is currently ongoing. Contract award is anticipated for FY19 3rd Quarter.

12. CONTRACTING OFFICER CERTIFICATION THAT THE JUSTIFICATION

IS ACCURATE AND COMPLETE TO THE CONTRCATING OFFICER’S

KNOWLEDGE AND BELIEF.

See certification at Part 2, Form HUD-24012.