Justification for Other than Full and Open Competition.pdf

OFCO-A 007 V1 “Source Selection Information- see FAR 2.101 and 3.104”

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

NOVEL CORONAVIRUS (COVID-19) RESPONSE

1. Identification of the agency and contracting activity (FAR 6.303-2(b)(1)). The Small Business

Administration (SBA), Office of the Chief Financial Officer (OCFO), Acquisitions Directorate. This justification covers all SBA offices and locations.

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

This is a class Justification & Approval (J&A) in accordance with FAR § 6.303-1(d) to include Brand Name and 6.302-2, Unusual and Compelling Urgency, FAR § 8.405-6(a)(1)(A), Limiting Sources, and FAR § 16.505(b)(2)(i)(A), Exceptions to the Fair Opportunity Process for all contract actions to facilitate the recovery efforts necessary to address the 2019 Novel Coronavirus (COVID-19). Because COVID- 19 is an emerging disease, and there are no vaccines or approved treatments, it is prudent to have adequate flexibility to assist small businesses stabilize during this pandemic as quickly as possible. On March 11, 2020, the World Health Organization (WHO) declared the COVID-19 outbreak a global pandemic. Additionally, all fifty states and the District of Columbia have declared emergencies due to COVID-19. This class J&A is essential to respond to urgent requests for immediate support to respond to the expanding outbreak of COVID-19 which was just declared a pandemic on March 11, 2020 and a national emergency via Presidential Proclamation on March 13, 2020. This class J&A supersedes all other class J&A’s executed and issued by SBA and negates the need for individual J&As for contract actions to facilitate the recovery efforts necessary to address COVID-19.

Requirements that arise and are executed by SBA contracts offices can be processed under the authority of the class J&A. A copy of the class J&A must go in the award file for all requirements processed under the authority of this class J&A and each contracting activity must maintain a log of all contract actions awarded under the authority of this class J&A.

Acquisition Purpose and Objective

The SBA, officially established in 1953, maintains and strengthens the nation’s economy by aiding, counseling, assisting, and protecting the interests of small businesses, and by helping families and businesses to recover from national disasters in the United States (including Puerto Rico and other US possessions). The Small Business Act (ACT) authorizes the Small Business Administration (SBA) to make loans to eligible survivors of declared disasters. The Office of Disaster Assistance (ODA) plans, directs, and administers the SBA’s responsibilities under the ACT. The mission of ODA is to help people recover from disasters and rebuild their lives by providing affordable, timely and accessible financial assistance to homeowners, renters, businesses of all sizes and nonprofit organizations.

Responding to the needs of the disaster survivors in an efficient manner is a primary goal. ODA strives to meet this efficiency goal, regardless of the emergency or disaster impact. The COVID-19 pandemic is by far the largest Presidential Disaster Declarations for SBA and constitutes an unusual and compelling urgency that demands immediate attention. Immediate acquisition of services and supplies and the issuance of loans will help ensure that U.S. small business remain economically stabilized during this emergency.

This authority emulates any new directives or legislation that will be implemented as a direct result of the COVID-19 pandemic and will ensure continued operations of SBA’s eight (8) Mission Essential Functions as follows:

1. Declare disasters, process applications for disaster loans from individuals and businesses, and disburse approved loans.

2. Issue acceptance letters to procuring Federal agencies in response to offering letters submitted under the 8(a) Business Development Program and negotiate and execute 8(a) contracts.

3. Servicing and liquidation of all SBA direct and guaranteed loans made pursuant to the Small Business Act and servicing and management of SBA surety bond guarantees issued pursuant to the Small Business Investment Act.

4. Process and approve SBA guaranteed loans made by delegated and non-delegated lenders pursuant to Section 7(a) of the Small Business Act and process and approve loans made by Certified Development Companies pursuant to Section 504 of the Small Business Investment Act and approve and administer SBA surety bond guarantees pursuant to Section 411 of the Small Business Investment Act.

5. Coordinate with recovery partners at national, regional, state, and local levels to support preparedness activities and the long-term economic recovery of small businesses and communities impacted by disaster.

6. Receive, evaluate and forward for disbursement requests from resource partners for payment.

7. Issue Approval Notices for Small Business Investment Companies to allow for investments into small businesses.

8. Approve the repurchase of debentures pursuant to SBA’s guarantee upon demand.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value) (FAR 6.303-2(b)(3)).

a. Project Title:

COVID-19 Response: Supplies and Services to support response and recovery to the national emergency created by the COVID-19 pandemic. Specific requirements and costs will be defined at the contract level and shall be documented as a part of the contract file.

Contract Performance for COVID-19 Supplies and Services: The exact length and breadth of this response cannot be determined at this time and therefore, the period of performance for COVID-19 supplies and services will vary from immediate to longer term support but is not to exceed 12 months.

b. Project Description:

The SBA is working in tandem with other Federal Agencies which, among others, are providing disaster assistance teams to provide support, relief, and aide by various means to Small Businesses impacted by COVID-19. To assist in these efforts, the SBA has an urgent need to obtain and maintain supplies and services in support of the response to the COVID-19 pandemic in an effort reduce the immense economic damage that can be caused as a result of this emergency.

Requirement types:

Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architecture and Engineering (A&E) Services Other (specify): Additional requirements as needed to support recovery efforts related to this national emergency

Type of action: (Check One)

New requirement Follow-on Other (specify):

Proposed contract/order type:

Contract type will be defined at the contract or task/delivery order level. All contract types available under FAR part 16 are authorized under this J&A and shall be documented as part of the contract file.

Acquisition identification number:

To be identified at the individual contract and task/delivery order level. All contract actions made under this class J&A shall include a copy of this in the contract file.

c. Estimated dollar value and performance/delivery period:

The estimated value of these supplies and services is $100,000,000.00 based upon the supplemental funding provided by Congress and historical information from the first 6 weeks of the emergency COVID-19 response, and previous federal presidentially declared responses for similar U.S. disasters such as Hurricane Maria and Hurricane Katrina. Initial appropriations in the amount of $20,000,000.00 were recently approved for immediate purchases to mitigate the financial effects of COVID-19 on the economy. The needs of small businesses and the extent of supplies and services will continue to evolve as the virus spreads across the nation. In the face of this disaster, the exact needs and locations can change rapidly and therefore the planned emergency acquisitions and unknown duration of this emergency under this class J&A takes this into account in estimating the value. This class J &A is for all supplies and other related services described under Section 2- Nature and/or description of the actions.

The exact length and breadth of this response cannot be determined at this time and therefore, the period of performance for COVID-19 supplies and services will vary from immediate to longer term support but is not to exceed 12 months. This is consistent with FAR 6.302-2(d)(ii).

4. An identification of the statutory authority permitting other than full and open competition is as follows:

6.302-2 Unusual and compelling urgency (41 U.S.C.3304(a)(2)).

This acquisition is conducted under the authority of 41 United States Code (U.S.C.) 253(c)(1) as set forth in Federal Acquisition Regulation (FAR) 6.302- 2 Unusual and compelling urgency, FAR 8.405- 6(a)(1)(A); and FAR 18.104. An urgent and compelling need exists, and following the procedures would result in unacceptable delays, and FAR 16.505(b)(2)(i)(A) The agency’s need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

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)).

a. Name and address of the proposed contractor(s).

Actions taken under the authority of this class J&A shall include documentation of market research performed and prospective sources of supply and services. Additionally, actions taken under the authority of this class J&A shall include evidence of the urgent and compelling nature of the particular action, reviewed and approved at a level above the Contracting Officer.

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Actions taken under the authority of this J&A shall include documentation of the contractor’s http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 qualifications and ability to perform the work as part of the Contracting Officer’s responsibility determination.

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)).

Due to the unusual and compelling urgency of this requirement, expedited procedures may be utilized.

For commercial items, therefore in accordance with FAR Part 12 and 13, simplified procedures may be utilized for some actions, including informally requesting quotes via telephone or email, or other electronic means.

When the agency’s need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for.

Proposed COVID-19 actions will be made under the conditions of this authority as the Government would be seriously injured if SBA complies with the time periods specified in FAR 5.203. As such FAR 5.202(a)(2) the exemption for synopsis of proposed contract action applies. Actions taken under the authority of this class justification shall include documentation of the extent of competition undertaken.

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 will use appropriate and available information to review proposed prices and determine that they are fair and reasonable, and such documentation shall be included in the contract file. The contracting officer will review the offerors’ published commercial price, including prices list on various government-wide acquisition vehicles and other sites, such as pricing data contained in the GSA Acquisition Gateway Pricing Portal. The Contracting Officer will also request other cost data, and explanations regarding market conditions, from the offeror, in the event that offerors submit prices that exceed published commercial prices. Other information that may be used includes Independent Government Cost Estimates (IGCE), historical information, contractor’s invoice payments and commercial pricing that have been determined to be fair and reasonable.

Actions taken under the authority of this class justification shall include a documentation of the price/cost analysis conducted and that the proposed price is fair and reasonable.

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)).

Actions taken under the authority of this class J&A shall include documentation of market research performed and prospective sources of supply and services in the contract file to extent appropriate for the requirement.

9. Any other facts supporting the use of other than full and open competition (FAR 6.303-2(b)(9)).

Competing requirements taken under the authority of this class J&A would result in unacceptable time delays in fulfilling the agency's urgent needs in addressing a global pandemic and national public health emergency. It would jeopardize SBA’s small business assistance mission in a way that would result in unacceptable risks to capability and functionality of small business across the nation as well invoke unprecedented damage to the U.S. economy. Delays in award of critical contracts would also result in serious injury, financial or other, to the Government due to the unacceptable jeopardy that would be posed to the U.S. economic infrastructure that is comprised of more than 80% small businesses.

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

None, sources and market research shall be defined at the contract or task/delivery order level and shall be documented in the contract file.

11. A statement of any actions the agency may take to remove or overcome any barriers to competition, if subsequent acquisitions are anticipated (FAR 6.303-2(b)(11)).

For all contracts awarded under this authority, the period of performance will be kept brief, will not go any longer than necessary to respond to the current emergency, and will allow for a re-compete action to be put in place at a later date. As the current pandemic de-escalates, the Government will continue to conduct thorough market research to gauge the marketplace capabilities for future requirements. The Government will attempt to compete to small business as much as possible and will seek competition of future acquisitions for these (products or services) if it is found capabilities exist from multiple sources. This is an immediate, urgent requirement. This class J&A shall remain in place for the duration of the national emergency as declared by Presidential Proclamation on March 13, 2020 as described under Section 2 or until revoked by the SBA Senior Procurement Executive (SPE).

_________________________________ _3/28/2020

DATE

BRENDON J. JOHNSON

Senior Procurement Executive & Head of the Contracting Activity Office of the Chief Financial Officer (OCFO) U.S. Small Business Administration (SBA)

6.302-2 Unusual and compelling urgency (41 U.S.C.3304(a)(2)).