JA New Software -Final_Redacted.pdf

JUSTIFICATION AND APPROVAL (J&A)

OTHER THAN FULL AND OPEN COMPETITION

The Small Business Administration (SBA) Office of Capital Access (OCA) Software Acquisition for COVID Relief Programs

Solicitation Number: 73351022Q0061

1. Identification of the agency and contracting activity.

The Small Business Administration (SBA), Office of Performance, Planning and the Chief Financial Officer, Acquisition Operations Division, in support of the Office of Capital Access (OCA) and the Office of Hearing and Appeals (OHA).

2. The nature and/or description of the action being approved (FAR 6.303-2(b)(2)).

As a result of the demand and volume associated with COVID-19 relief programs, OCA and OHA engaged the assistance of outside vendors to deploy and scale SaaS environments to support various emergency COVID related programs, including the below:

PPP Forgiveness Platform;

PPP Originations Platform;

Restaurant Revitalization Fund Platform;

PPP Direct Forgiveness Platform;

DLAP Disaster Platform;

COVID EIDL Loan Closing Platform; and OHA PPP Appeals Platform.

OCA is seeking approval for a sole source award for the purchase of these Software-as-a-Service (SaaS) platforms (including all sub-modules) and all related data, including source code, configuration and workflows, supporting data, meta-data, system documentation, and API documentation that addresses the needs of the Government as well as market needs articulated by small businesses and the wide range lending community participants. The vendor is conveying perpetual, unlimited rights in all data delivered to SBA. The contract contains a firm fixed price (FFP) arrangement. This acquisition is restricted to the following source:

Goldschmitt & Associates, LLC 11601 Quail Ridge Court Reston, Virginia 20194

POC: Marc Goldschmitt (marc@goldschmitt.com) POC Phone: 703.863.0176

3.

estimated value) (FAR 6.303-2(b)(3)).

This requirement is to:

Insource these SaaS platforms to ensure availability through the closure of the

COVID-19 relief programs (e.g., PPP, RRF) and associated administrative processes. The need to access this software and maintain these platforms will continue for the next several years.

Avoid the high cost of continuously extending the licenses that support the SaaS platforms (as is) by paying annual access and maintenance fees to external vendors.

Ensure proper, continuous, and secure data retention capabilities by owning, operating, and maintaining these platforms without reliance on any specific vendor relationship.

Provide short-term post-deployment operations, support and training until SBA can migrate the platform operations to SBA-owned and operated cloud facilities.

The performance period of this contract is twelve (12) months from the date of award. The perpetual, unlimited rights are conveyed to SBA with delivery of all data and software described in the Performance Work Statement (PWS), within 14 days of award. Related source code, conveyance of all configuration and workflows, and all supporting data, meta-data, system documentation, and API documentation will be conveyed within 30 days of award. The total estimated value of the contract is

The estimated award value includes the perpetual, unlimited rights in all software and data described in the PWS, as well as operations, maintenance, integration, and transition services.

4. Identification of the statutory authority permitting other than full and open competition:

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

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority (FAR 6.303-2(b)(5)):

In this unique situation, SBA is purchasing software and supporting data, with perpetual, unlimited rights. This software and data were developed and deployed under other contracts. The SaaS platform annual licenses were originally purchased from Goldschmitt-CRI JV and developed by Summit Technology Group (STG). No other vendor can supply the rights to this software as it was uniquely built and operated for SBA. SBA is purchasing SaaS platform perpetual licenses that were developed and operated under multiple SBA COVID-19 relief program support services contracts.

On February 17, 2022, Database Information of Loans and Grants Related to COVID-19 Relief Programs. OIG expressed concerns surrounding the preservation of the data collected and maintained in the SaaS systems data when the current contracts to provide access rights expired. The secure retention of data has a the pandemic relief programs going forward.

programs. SBA has decided that the most expeditious and secure way to ensure continuous access, functionality of the platforms, and maintenance of the data in a format that is most useful to the Government is to retain the data in the original repository for several more years.

The software supporting the data repository is manufactured by STG, which does not sell directly to the Government and is only available through relationships with Goldschmitt & Associates, Central Research Incorporated (CRI) or their SBA approved Joint Venture Goldschmitt-CRI, LLC (ostensibly one entity). To further illustrate, a Market Research Report and Analysis conducted by GSA was received on April 14, 2022 and included eleven interested vendors. 10 vendors were interested in a generic software requirement and only one vendor, Goldschmitt & Associates, had the ability to provide the required STG software. Neither CRI nor the Goldschmitt-CRI JV responded to the sources sought as separate entities interested in the requirement. Consequently, it was determined no other vendor can supply this necessary software with the unlimited rights in data sought through this requirement.

Additionally, the required software is uniquely modified to operate specifically to meet SBA .

The SBA invested over the course of 24 months to deploy and scale SaaS environments to support various emergency COVID related programs. The software is highly specialized, and it would create a substantial duplication of cost, which is not expected to be recovered through competition, to procure development and customization of software platforms, repositories, and associated frameworks and APIs, through another vendor.

The agency invested significantly over the last 24 months in several SaaS solutions that enabled delivery of the COVID-19 relief programs. This investment, while valuable and important - did not provide for the acquisition of any permanent assets with unlimited rights for the Office of Capital Access or the Office of Hearings and Appeals, as the software supporting these relief program platforms was licensed for short-term timeframes.

the software and data with perpetual, unlimited rights is prudent and cost effective for the government. By purchasing the source code and assuming operation of these platforms, the government avoids SaaS annual licensing and renewal costs, not only in the current - While the necessary duration of the COVID related platforms remains uncertain, it is anticipated both RRF (Post Award Survey) and PPP Forgiveness will extend for a minimum of 3 years. If SBA does not purchase perpetual, unlimited rights licenses for the software supporting these platforms and repositories, the annual license renewal cost estimate is million per year which brings the projected 3-year (2023- 2025) total annual renewal license cost to over . In comparison, by purchasing the software, source code, and all supporting data at a one-time estimated cost of the SBA expects to secure significant cost savings of approximately over the next three years. If the requirement remains in existence longer that three years, the cost avoidance increases approximately million each year.

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 FAR 5.2 and, if not, which exception under FAR 5.202 applies (FAR 6.303-2(b)(6)).

No other sources were solicited for the reasons described in Section 5. However, a synopsis was publicized on SAM.gov at least 15 days in advance of the solicitation. Multiple forms of market research have been conducted which indicated interest in this requirement (see Section 5 and 8).

Section 5 details why competition would not recoup duplicative costs.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)).

The Contracting Officer determined the total estimated price to be fair and reasonable through the following efforts:

a.

license renewals.

b. -wide acquisition vehicles and other sites, such as the General Services Administration (GSA) Acquisition Gateway Pricing Portal which contains pricing data, for similar types of software licenses.

c. Additionally, the Contracting Officer performed an analysis of other than certified cost or pricing data, provided by the Contractor and a comparison to estimated prices within the Independent Government Estimate (IGE).

8. A description of the market research conducted and the results or a statement of the reason market research was not conducted (FAR 6.303-2(b)(8)).

The following Market research efforts were conducted for this acquisition:

a.

license renewals.

b. ent-wide acquisition vehicles and other sites, such as the General Services Administration (GSA) Acquisition Gateway Pricing Portal which contains pricing data, for similar types of software licenses.

c. The Contracting Officer performed an analysis of other than certified cost or pricing data, provided by the Contractor and a comparison to estimated prices within the Independent Government Estimate (IGE).

d.

analysis. Eleven vendors indicated their interest in the potential requirement, but only Goldschmitt & Associates indicated they could provide the STG software.

Summary: It was determined that there are no existing acquisition contracts or other vendors that have the capability to provide the level of data retention and preservation as can be provided through the existing COVID-19 software developed by Summit Technology Group and resold to SBA by Goldschmitt & Associates, LLC. The research also supports the government cost savings and the ability to use the software code by SBA in future.

9. Any other facts supporting the use of the other than full and open competition (FAR 6.303-

2(b)(9)).

There are no additional facts.

10. A listing of any sources that expressed a written interest in the acquisition (FAR 6.303- 2(b)(10)).

Eleven vendors indicated their interest in the potential requirement, but only Goldschmitt & Associates indicated they could provide the STG software.

11. A statement of any actions the agency may take to remove or overcome any barriers to