JA Redacted 082925.pdf

On September 30, 2025, the current contract will end. A new contract is necessary to continue to reduce undeliverable as addressed (UAA) mail and to preserve the address quality at a level that will qualify for USPS postal discounts. Discontinued use of the NCOA link product will lead to a loss of the entire postal discount.

NCOALink is needed to meet the USPS Move Update standard which requires mailers to periodically verify their address lists against the Postal Service's change-of-address records.

By doing so mailers are then eligible for USPS Postage Discounts. By utilizing NCOALink IRS achieves a 30% discount from USPS retail rates which equates to $60M in annual postage savings.

The Agency will use the simplified acquisition procedures because this is a sole source, brand name acquisition in compliance with FAR 13.5.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart S.2 and, if not, which exception under FAR S.202 applies:

The USPS developed and owns all rights of the proprietary system, NCOALink and FastCheck. Therefore, the USPS is the sole source for the NCOALink Product and there are no resellers of the unique software created by USPS for IRS.

Due to the unique qualifications of the proposed contractor as described in section 5 above, the Government is unable fmd any vendors capable of providing similar services. The Government will continue to seek competition for these services for subsequent acquisitions.

In accordance with FAR subpart 5 .2, a notice of intent to award a sole source contract under the authoritv of FAR subnart 13.5 will be nosted on the Government Point ofEntrv. This

Tracking No.

Page 3 of6 Treasury Standard Form-1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501 notice will afford an opportunity for all responsible sources to submit a capability statement which shall be considered by the Government

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will determine that the anticipated price will be fair and reasonable based on the current pricing list of the USPS for this license. This license is available from USPS commercially and is the same fixed rate on an annual basis, however, the IRS has a unique version which includes the FastCheck software. The Contracting Officer will also compare pricing to historical contracts for the same product and compare pricing to the Independent Government Cost Estimate provided from the program office.

8. 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:

Market research was conducted by the Contracting Officer and the Program Office between March 2025 and July 2025. The results of the market research supported the Government's determination to obtain this license under a sole source basis.

Multiple internet searches were conducted. There are no sources that can provide this license within the mailing industry.

A Review was completed through Acquisition Gateway and OPE's Treasury Mandatory portal for Treasury Mandatory Sources and other existing contracts. There are no similar type contracts related to this requisition.

Internet searches of"NCOAlink Licenses" confirmed that access to NCOA address information is only available from USPS to authorized licensees. Vendor results stated, "These products and services are available through the Postal Service or Mail Service Providers who are licensed and certified by the USPS." IRS is currently licensed and has been certified by the USPS to use their NCOAlink product and the FastCheck software.

9.a Any other facts supporting this justification:

The NCOALink Product is unique to the USPS, along with the data records it contains.

Individuals and businesses submit change of address information directly to the USPS. The USPS wants to ensure that the use of their intellectual property is limited to its intended purpose and therefore only authorize access to licensees.

The IRS became a licensee in 2001, after completing the rigorous USPS requirements. As a licensee, IRS can update master file addresses in-house, and meet the USPS requirements that allow less than full-rate postage. The data records are defined in subsection (a)(5) of the Privacy Act of 1974, 5 United States Code 552a (the "Act"), and is subject to the provisions of the Act, and 39 CFR 266-268, and, 39 U.S.C. §412, Nondisclosure oflists of names and addresses, which states, that "Except as specifically provided by subsection or other law, no officer or employee of the Postal Service shall make available to the public by any means or for any purpose any mailing or other list of names or addresses (past or present) of postal patrons or other persons."

9.b Attachments: □ Yes � No

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

The Contracting Officer discovered that the USPS posted a list of approved resellers of the license, however, the resellers do not offer the FastCheck option as this software

Tracking No.

Page4 of6 Treasury Standard Form -1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501