Justification_for_FBP_UIG_Sole_Source_$150000_PY19.doc

JUSTIFICATION FOR OTHER THAN FULL & OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING AGENCY:

Contracting Activity

Customer Agency

U.S. Department of Labor U.S. Department of Labor ETA/Office of Contracts Management ETA/Office of Workforce Investment/DYS

200 Constitution Avenue, NW Room N4643 200 Constitution Avenue, NW

Washington, D.C. 20210 Room N4464

Attn: Isabella Nguyen Washington, D.C. 20210

Attn: Mallery V. Johnson

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

The contractor will provide fidelity bonding coverage to formerly incarcerated individuals and others with high-risk backgrounds. The Fidelity Bonds issued to employers covering at-risk applicants will be made available exclusively through the Department’s Federal Bonding Program by Oakdale Holding Corporation (D.B.A. Union Insurance Group), an insurance brokerage firm, as agent for CHUBB, which is not duplicated by any other U.S. program. Uniquely, bonds are issued instantly to be in effect the day that the applicant is scheduled to start work. Issued bonds will be self-terminating (no termination paperwork needed) and by design, the employer will not be required to sign any papers in order to receive the bond free-of-charge. With bond insurance issued in ranges from $5,000 to $25,000 coverage for a 6-month period with no deductible amount (employer gets 100% insurance coverage) the contractor will provide a unique resource. This resource will be available to both organizations offering reentry services and those with high-risk backgrounds. This resource in turn will help high-risk employees to establish and demonstrate job honesty under the coverage provided by selected contractor.

Union

Insurance

Group

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS (Including the Estimated Value):

The contractor will provide fidelity bonding coverage to the formerly incarcerated individual and others with high-risk backgrounds.

Estimated value including the base and any options:

Union

Insurance

Group

$150,000.00

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION:

The statutory authority permitting acquisition of this requirement by other than full and open competition is 41 U.S.C. 3304(a)(l), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services will Satisfy the Agency’s Requirements.

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUSITION REQUIRES USE OF THE AUTHORITY CITED:

Union Insurance Group (UIG) is the incumbent familiar with the Agency’s needs for the Federal Bonding Program. They hold a current Treasury certificate of authority as an acceptable surety on fidelity bonds, and licensed to operate in the 50 states, the District of Columbia, and U.S. Territories and possessions with coordinators representing each.

The contractor is the only responsible source that can provide immediate services without disruption of issuance of fidelity bonds. They administer the program of bond purchase whereby States, localities and other entities (such as correctional agencies) are made aware of the availability of fidelity bonds and can acquire bonds that will provide fidelity bonding coverage.

The U.S. Department of Labor awarded $2,234,122 to Fidelity Bonding Demonstration Grants in June 2019. These grants will enable states to expand their use of fidelity bonds to help person with criminal records with employment opportunities. UIG has developed an automated system to request and purchase bonds and is uniquely qualified to accommodate this anticipated increase in bond processing. Fidelity bonds are necessary due to the promoting of the program and to accommodate the over 600,000 formerly incarcerated individuals that are reentering our communities each year and other at-risk individuals.

6. A DESCRIPTION OF EFFORTS TO OBTAIN COMPETITION TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS 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:

Special notice of the intent to award sole source contract, for the identified contract, will be posted to the Federal Business Opportunities Web site, FBO.gov, upon execution of this determination and finding.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNEMENT WILL BE FAIR AND REASONABLE:

The estimated cost for purchasing the Federal Bonding Program will be $150,000 for a period of one year plus cost for a 2- 1 year options.

8. A DESCRIPTION OF MARKET RESEARCH CONDUCTED (PART 10) AND THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED:

Market research was conducted in 2015 when the original award was made. There was no market research conducted in association with this sole source contract, as Union Insurance Group is currently performing these duties.

9. ANY OTHER SUPPORTING FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION:

This is a bond program, which is unique to the Federal Bonding Program.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION:

There have been no responses at this time.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED:

a. TECHNICAL CERTIFICATION:

Supporting data that is the responsibility of technical or requirements personnel (9e.g., verifying the Government’s minimum needs, schedule requirements or, other rationale for other than full and open competition) and which form a basis for this justification, is certified as complete and accurate by the technical or requirements personnel.

The program/technical official further certifies that no conflict of interest exists in awarding a sole source contract to the contractor identified herein.

Technical or Requirements Official

Mallery V. Johnson Date August 8, 2019

b. CONTRACTING OFFICER CERTIFICATION:

Contracting Officer’s certification that the justification is accurate and complete to the best of the Contracting Officer’s knowledge and belief.

Isabella Nguyen Contracting Officer

Date