FHA RESOURCE CALL CENTER JOFOC.pdf

Exhibit 1

Justification for Other Than Full and Open Competition for the FHA Resource Center

(i) Identification of the agency and the contracting activity, and specific identifications of the document as a “Sole Source”.

Department of Housing and Urban Development (HUD)

Office of Chief Procurement Office 451 7th Street, Room 5256

Washington, DC 20410

This acquisition is conducted under the authority of 41 U.S.C. 3304. The statutory authority permitting other than full and open competition is 41 Y.S.C. 253(c)(1) as implemented by the

Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(ii) Nature and/or description of the action being approved.

Request for a sole-source bridge contract award to provide the Federal Housing

Administration’s (FHA) Office of Single Family Housing (SFH) a turnkey multi-channel contact solution to support the FHA Single Family program, including the required facility, staff, equipment and services needed to respond to inquiries from the public and housing industries via telephone, fax, email and web-based media. This is a new fixed price bridge contract.

(iii) A description of the supplies or services required to meet the Agency’s needs

(including the estimated value).

The FHA Resource center will achieve the following objectives:

1. Provide the American public and the FHA lending industry with easily accessible, consistent, timely, and professional responses to their inquiries via their preferred method of communication.

2. Provide a fully managed multi-channel contact center solution.

3. Sustain access to state-of-the-art technology that is scalable to meet current and future requirements.

4. Maintain a comprehensive knowledge base that will contain the breadth of Single Family policies and procedures that is made available on-line to Single Family clients.

5. Establish and maintain training and monitoring structures that provide for exceptional customer service and ensure accurate and consistent responses to the wide variety of potential questions from industry clients and the general public.

6. Assist in the promotion of new or revised programs and services to HUD’s clients.

7. Utilize feedback obtained from clients, HUD staff, and internal Contact staff to identify methods to improve the customer experience.

The period of performance is a one (1) year base period and two (2), three (3) month option periods as follows:

Base Period (05/01/20 - 04/30/2021)

Option Period 1 (05/01/2021 - 07/31/2021)

Option Period 2 (08/01/2021 - 10/31/2021)

(iv) The authority and supporting rationale (see 6.302), if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

Leidos Innovations Corporation furnishes the necessary facilities, personnel, equipment, supplies, and services to provide FHA Single Family with a turnkey multi-channel contact solution. This solution provides information to industry and consumer.

During Fiscal Year 2019, U.S. Department of Housing and Urban Development (HUD) entered into an

Inter-Agency Agreement (IAA) with General Service Administration (GSA) (IA:

HUDFHACOE19001). In FY 19 GSA initiated a competitive contractual requirement using GSA’s

Center of Excellence (CoE) Initiative to procure a developmental single front-door contact center, called HUD Central. HUD Central will be an omnichannel, outsourced, HUD-wide front-door contact center and Knowledge Management (KM) solution that will improve mission delivery, drive cost savings, and replace the Federal Housing Administration (FHA) Resource Center and four other contact centers within HUD.

The sole-source bridge contract is needed to ensure there is no break in service and a smooth transition between FHA Resource Center and HUD Central. Based on the GSA HUD Central request for quote

(RFQ), approximately 300 days are needed for the transition-in. It is anticipated that the HUD Central contract will be awarded on or about May 30, 2020 with an effective date of June 01, 2020. The first six (6) months of the contract are for the development and implementation of the HUD Central solution. Months seven (7) through nine (9) will be for the transition of the FHA Resource Center . To prevent the break in services, a sole-source bridge contract with a one (1) year base period and two (2)-three (3) month option periods will be awarded and effective 05/01/2020.

(v) The Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable. The Government will compare prices submitted for this requirement to the existing contract action and to the Independent Government Cost Estimate to determine the proposed cost to be fair and reasonable. The cost to award a sole-source bridge contract is estimated to be. 21,787,954.20.

(vi) A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason market research was not conducted.

In an effort to achieve the President’s Management Agenda (PMA) Cross Agency Priority (CAP)

Goals HUD entered into an agreement with the General Services Administration’s (GSA) Center of

Excellence (CoE) to provide a centralized suite for a multitude of services to help HUD manage and enhance our customer contacts services agencywide. Currently HUD’s external-facing contact centers are fragmented across five formal contact centers, 65 field offices, and 37 “shadow” lines, which results in duplicative efforts and inconsistent customer experience. Upon completion of the competitive

GSA assisted acquisition, HUD will have an agency-wide, omnichannel, outsourced, centralized, front-door contact center with an ecosystem of supporting infrastructure, technology, and organizational management that will provide internal and external customers with timely, accurate and consistent services.

(vii) Any other facts supporting the justification.

The FHA Resource Center is single family’s customer service centerpiece for the Federal Housing Administration’s extensive outreach efforts to our industry program participants and consumers. It is anticipated in FY 2020, there will be approximately 750,000 to 800,000 clients contacting our FHA Resource Center contact center with various types of inquiries and need for assistance. There is a significant urgency to award a bridge contract on the FHA Resource Center project before this contract expires on April 30th, 2020. If these services are not extended with a bridge contract all of these inquiries will need to be redirected inside the agency to HUD personnel. The last time there was a break in services in 2008, there was a significant challenge with the limited HUD staff’s ability to respond to these inquiries and perform their traditional required work responsibilities. During this time period in 2008 when there was not a FHA Resource Center contract, there were many clients who did not have the ability to have their calls and emails answered timely. In addition, the HUD employees required to support this FHA Resource Center project during the contract break in services had some of their other required work activities impacted. For instance, Loan Reviews, Appraisal reviews, Condominium Approvals, NSC Servicing of FHA mortgage activities etc. would be adversely impacted since the HUD staff were handling all customer service inquiries during that time. Since 2008, when the contract breach occurred on the FHA Resource Center contract, the project is now significantly larger (as many as 4,500 inquires per day) with the addition of many new activities like the transition of the National Servicing Center inquiries to the FHA Resource Center. This is an additional 30,000 National Servicing Center monthly inquiries being added to the FHA Resource Center contact volume. These additional inquiries are HECM and Servicing related which in essence would impact the National Servicing Center (NSC) staff and their contractor in the event there was a break in service.

Without the proposed FHA Resource Center contract, it is anticipated that HUD will incur approximately $36,195,946.00 in costs associated with having HUD staff dedicated full time to FHA Resource Center tasks.

(viii) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

There are no action that could have been taken to prevent only one responsible source being able to satisfy HUD need for continued FHA Resource Center services as HUD transitions to the new HUD

Central solution that will provide a centralized suite for a multitude of services that will assist internal and external customers with timely, accurate and consistent services.