Justification for Other than Full and Open Competition IEM.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Identification Number: Contract 73351020C0008 Modification P00002

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

Agency: The Small Business Administration (SBA), Office of Disaster Assistance

(ODA)

Contracting Activity: The Office of the Chief Financial Officer, Acquisitions Directorate.

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

Modification to an existing contract: Contract 73351020C0008 was modified on August 28, 2020 resulting in an overall not-to-exceed contract amount of $124,000,000.00. The contract will be further modified to change the period of performance end date to March 27, 2021.

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)).

On March 13, 2020, the President issued a proclamation declaring a National Emergency concerning the Novel Coronavirus Disease (COVID-19) outbreak. The mission of ODA is to help people recover from disasters and emergencies by helping them rebuild their lives by providing affordable, timely and accessible financial assistance to homeowners, renters, businesses 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. As a result of the COVID-19 pandemic and the subsequent national emergency, America’s business community has an urgent need for economic assistance that demands immediate attention and continued action from the ODA.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was introduced to the Senate on March 19, 2020 and was signed into law on March 27, 2020. Section 1110 of the CARES Act injects $10 billion into the SBA’s existing Economic Injury Disaster Loan (EIDL) program and expanded eligibility for EIDL loans. Eligible businesses who apply for an EIDL program loan may receive up to $10,000 as an advance against the loan. There is a continued need for legal support services to assist ODA in the loan processing function that is integral to EIDL program. The legal support consists of two major functions: 1) a legal review of all documentation in the file prior to disbursement on a loan; and 2) a legal review of any requested modifications to the original loan. Paralegal support is required to ensure the appropriate documentation is correctly completed and submitted. Without this support, the SBA will not be able to efficiently and effectively process Economic Injury Disaster Loans (EIDL) and modifications to those loans.

Since SBA's inception in 1953, and leading up to COVID-19, SBA had approved over

2.2 million disaster loans for $66.7 billion to disaster survivors, of which 338,000 loans totaling $20.9 billion were for small businesses. As of July 28, 2020, SBA had approved over 3.0 million COVID-19 EIDLs for over $165 billion. In fiscal year 2020, SBA has approved and distributed more loans for COVID-19 than for all other disasters combined in the history of the Agency. As a result, it is imperative to continue the legal support services to continue processing this extraordinary number of loans, which currently has hit an all-time peak. In order to ensure that U.S. small businesses remain economically stabilized during this emergency declaration, its essential that this contract continues. The number of loan requests is expected to continue to rise over the foreseeable future as the extent and length of the effects of the COVID-19 virus are not fully known at this time.

Each of these loan requests requires a legal review before funds can be disbursed.

This Justification provides for a not-to-exceed contract total of $124,000,000.00 and extension of the period of performance to March 27, 2021.

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

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.

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)).

There is an unusual and compelling urgency to assist millions of small businesses devastated by the COVID-19 pandemic, which requires the SBA to increase its loan processing bandwidth for the EIDL program. Increasing the level of support for loan processing will essentially allow small businesses to receive aid as soon as possible.

Every day counts for these struggling businesses, and there is a need to speed up SBA’s application processing capabilities.

Receiving a timely loan can make the difference between the survival of a small business and the business being unable to recover from the COVID-19 disaster or a natural disaster. Small businesses are the lifeblood of the U.S. economy: they create two-thirds of net new jobs and drive U.S. innovation and competitiveness. Small businesses affect local, state and federal economies by providing jobs (income) and tax revenues. Many small businesses have minimal cash reserves and will not be able to survive if the SBA is not able to process and approve loans in a very short period of time causing serious injury to not only the business and its employees, but also to local, state and national economies. A delay in awarding this modification would cause serious injury and harm to SBA, which would not be able to fulfill its mission and use its authority, as described in the CARES Act and the Small Business Act, in a timely manner, thus negatively impacting millions of Americans and the economy as a whole.

This need was urgent and compelling, and in accordance with FAR 6.302-2(c), this justification has been prepared and approved after Modification P00002, as it would have unreasonably delayed the acquisition.

IEM is listed in the Disaster Recovery Registry. The SBA verified that IEM had the readily available staffing and IEM has continuously provided the needed staff and contract management to successfully perform the work.

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)).

The award notice for Contract Number 73351020C0008 was posted to beta.sam.gov on June 26, 2020. This J&A will be posted to beta.sam.gov as required.

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 pricing is in accordance with the awarded rates which were already found fair and reasonable with the award of the base period of performance. The estimated hours have been verified as reasonable for the required effort. Based on this, the Contracting Officer has determined that the cost 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)).

Prior to the award of the contract in March 2020, market research was conducted and as part of that process, several companies were contacted to discuss capabilities. Due to the urgency of this modification, no other market research was conducted.

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

2(b)(9)).

Delay in the performance of this requirement 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 the award of the additional capacity and performance time would have also resulted in serious injury, financial or other, to the Government due to the direct impact on SBA’s ability to fulfill its disaster loan mission, in addition to the unacceptable jeopardy that would be posed to the U.S.

economic infrastructure.

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

None.

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)).

Due to many uncertainties, the SBA cannot determine with any confidence whether this requirement will be needed beyond the current period of performance as it is only for support of the COVID-19 emergency. The ODA will continue to assess its needs and will utilize competitive acquisition procedures to the greatest extent possible.

CERTIFICATION AND APPROVAL

12. CERTIFICATION: The JOFOC has been prepared and certified by:

Technical / Requirements Personnel: I certify the requirement meets the Government’s minimum need and that the facts, representations, and data included in this justification are complete and accurate.

Laura Specians Information Technology Project Manager

Contracting Officer: I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Roger Henriquez Contracting Officer

13. APPROVAL:

Kip Sheppard Senior Procurement Executive