A05_Part 8 Over SAT JA Cross Program Alignment- Redacted.pdf

United States Department of Agriculture Justification to Restrict Competition under FAR Part 8

Over the Simplified Acquisition Threshold Identification Number:

Rev. 2/26/26

In accordance with the Federal Acquisition Regulation (FAR) 8.4 and General Services Administration Acquisition Manual (GSAM) 538.7104-3 (b), the following justification documents the decision to restrict competition for this acquisition.

(1) Mission Area and Contracting Activity.

Requisition Number: TBD

Requesting Activity Agency: RD, FSA, and OCIO

Contracting Activity: Procurement Operations Division

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

This Justification and Approval (J&A) formally authorizes and endorses the issuance of a sole source Firm Fixed Price contract to The Newberry Group. This work is for Implementation Readiness Support and is commercial. The work was previously completed under another contract where the Newberry Group operated as a sub-contractor during the initial Implementation Readiness engagement. This new requirement does not match the previous contract, as the scope has been significantly reduced and therefore it is considered a different requirement. The original contract was strategically executed prior to the deployment of the technical solution for loan modernization, thereby supporting both the Farm Service Agency and Rural Development. Through this engagement, Newberry Group acquired in-depth familiarity with the intricate workflows, specialized terminology, and nuanced processing requirements inherent to the USDA programs encompassed by this initiative. The Loan Modernization initiative continues to be a top priority for Administration, with substantial progress already achieved across multiple program areas. The specialized expertise cultivated between federal program stakeholders, the software vendor, and the implementation readiness team is integral to the success of this migration; transitioning this knowledge base to an alternative provider would pose significant risks and could adversely affect the overall migration timeline and program continuity.

THE NEWBERRY GROUP, INC.

26 PORTWEST CT

SAINT CHARLES, MO 63303-5985

SAM UEI: NMVMPTNDXYR6

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value).

In support of USDA’s loan modernization efforts, the purpose of this initiative is to establish consistency across major federal business programs in Rural Development (RD) and Farm Service Agency (FSA), to enhance data interoperability, reduce ambiguity, and support enterprise-wide decision making. Loan/Grant workflows and implementation standards are being reviewed for commonality between the business program areas to allow for optimization in the USDA portfolio.

Integration of process improvement is vital as we leverage industry best practice into the government workflows.

The Contractor has assessed current state and is working with the Government to standardize program implementation across selected USDA loan and grant programs. As a part of the engagement, the contractor is also providing recommendations on a logical sequencing for implementation of a modernized loan management system, identifying which program(s) should be prioritized based on data maturity, interdependence, mission criticality, and readiness. As a part of the program review the contractor has documented the business workflow to identify areas of optimization and process improvement across the USDA loan portfolio. Throughout the life of the engagement the contractor will ensure timely communications are made throughout the FSA and RD organizations so that all stakeholders remain informed. Continuity is imperative to ensure that work done to-date continues to be leveraged at the pace of implementation.

(4) Identify the statutory authority permitting other than full and open competition.

The statutory authority supporting the placement of an order or establishment of a Federal Supply Schedule Blanket Purchase Agreement (BPA) that exceeds the Simplified Acquisition Threshold (SAT) on a sole source basis is: GSAM 538.7104-3 (b)(ii) - Only one source is capable of providing the products, services, or solution required at the level of quality required because the products, services, or solutions are unique or highly specialized.

(5) Demonstrate that the proposed contractor's unique qualifications or the nature of the acquisition requires using the authority cited.

The statutory authority permitting other than full and open competition, for this procurement applies due to the unique qualifications of the proposed contractor and the specialized nature of the acquisition. The contractor, having successfully delivered the same services as subcontractor under the previous contract, possesses critical institutional knowledge, specialized technical expertise, and a deep familiarity with the RD and FSA Loan and Grant programs. Their understanding of program history, operational workflows, system dependencies, and stakeholder expectations is essential to sustaining continuity and ensuring the integrity of mission-critical functions. Therefore, are the only vendor with the capability to conduct this work at this critical juncture.

Introducing a new support team at this stage would significantly disrupt the implementation timeline and increase the Government’s financial burden. The Farm Loan and Grant project has been labeled a do not fail project. A newly onboarded team would require extensive ramp-up time to gain the necessary program knowledge, understand system interdependencies, and fully align with USDA’s operational requirements. This learning curve is not just a theoretical concern - it would directly translate into measurable delays in deliverables, slower issue resolution, and reduced efficiency during the transition period. Such delays would ripple across the program schedule, likely causing milestone slippage, jeopardizing planned deployments, and forcing costly timeline extensions. They are the only vendor that is uniquely positioned to seamlessly pick up this work and carry it forward. While other vendors could be capable with a significant learning curve, USDA does not have the schedule flexibility to accommodate any other vendors and this this is the only source capable of the work.

From a budgetary standpoint, the onboarding of a new contractor would require additional Government resources for training, oversight, quality assurance reviews, and corrective actions as the team acclimates. These are expenses that are entirely avoidable by retaining the incumbent contractor with proven performance and established expertise. The original intent of the contract structure was to provide long-term stability for the program; however, changes in acquisition strategy related to 8(a) programs removed the viability of option years. Awarding a sole source to retain the primary resources is therefore the most cost-effective and risk-adverse path forward. It minimizes programmatic disruption, preserves continuity of operations, and safeguards the Department from avoidable schedule delays and financial impacts.

(6) A determination by the Contracting Officer that the order represents a fair and reasonable price.

The Contracting Officer will review the proposed order pricing against the contractor’s GSA Schedule rates and confirm that the proposed labor categories, quantities, and discounts are consistent with the requirement and do not exceed approved Schedule ceiling rates. Although GSAM 538.7102-2(d) waives a formal determination, an appropriate price evaluation was completed. Based on a planned review, the anticipated costs will be considered fair and reasonable.

The Contracting Officer will ensure the final price remains fair and reasonable by verifying labor category alignment, confirming any applicable discounts, and reviewing the final pricing prior to award.

(7) A description of the market research conducted among schedule holders and the results, or a statement of the reason Market Research was not conducted.

Market research was conducted among GSA Schedule holders by reviewing the available contractors and capabilities in GSA eLibrary and GSA Advantage. This research confirmed that the required supplies/services are available under the Federal Supply Schedule; however, only one Schedule contractor was identified as having the institutional knowledge that would equip them capable of meeting the specific technical requirements of this acquisition from the start to allow no delays. This project this contract is associated with has been labeled do not fail and the magnitude of it is massive.

Accordingly, the market research supports proceeding with a single source justification under the FSS program.

(8) Any other facts supporting use of other than full and open competition, such as:

Additional factors support the use of this justification for a sole-source contract with The Newberry Group. The highly specialized nature of the federal loan and grant making process limits vendors that would have inherent knowledge spanning the array of programs that the Implementation Readiness Team has worked with over the past year. No other single vendor can provide the depth of knowledge that has been gleaned and would be able to step in seamlessly. Materials that have been uniquely developed and refined by The Newberry Group have provided a level of insight that is unmatched.

Furthermore, transitioning to an alternate source would require substantial efforts, significant time, and financial investments to replicate and validate, leading to unacceptable delays and operational risks.

(9) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition of the supplies or services required.

To enhance competition and remove barriers for subsequent acquisitions of the Implementation Readiness of the RD/FSA Grants and Loan platform Modernization, the agency anticipates when there is a pause or break in modernizing that USDA could then compete the requirement, as at that time we would have space for transition. Although we will conduct regular market research and engage with industry to identify new sources, it is unlikely that these efforts alone will overcome the significant barriers posed by the speed at which this program is running.

Attempts will be made to promote vendor capability development through pre-solicitation briefs and technical workshops, offering performance standards early in the acquisition process. Despite these efforts, creating a genuinely competitive environment may be difficult. The agency will explore incremental acquisition strategies and encourage partnerships and subcontracting to broaden the contractor base. While committed to a continuous review for improvement, the proprietary elements and unique requirements of the program suggest that significant barriers to competition will likely remain.