Justification_Redacted.pdf

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The contract action involves collecting on EXIM Bank’s claim in a foreign country. It is imperative to hire local counsel in Brazil where the claim is to be litigated with experience in: locating assets, especially potential hidden assets, and embargoing and executing upon such assets; drafting and negotiating restructuring agreements appropriate for debtors of the type in this matter; and litigating the collection matter in all levels of courts throughout the debtor’s country. It is also imperative that the local counsel have experience handling collection matters of this sort on behalf of foreign entities, and especially foreign government entities such as EXIM Bank, because such representation often raises issues and creates legal risks for the foreign government entity. These risks include the risk of counter-suits, referrals for criminal prosecution, and withholding tax questions. Additionally, it is imperative to hire local counsel that is familiar with EXIM Bank’s policies and procedures so as to avoid problems with payment procedures, handling of funds, facilitation of payments, and fraud.

The firm of Varella & Advogados Associados and its local office in Rio de Janeiro, Brazil, is uniquely qualified to pursue this case in Brazil due to the seasoned recovery expertise, accompanied by commercial legal know-how, blended with a full understanding of EXIM Bank’s activities, collection processes and rules and regulations that comply with the U.S. government guidelines.

Varella & Advogados Associados will not require a familiarization period or training prior to immediately commencing performance of the Performance Work Statement. Accordingly, Varella & Advogados Associados is the only firm capable of providing the services described in Section 3 above without EXIM Bank experiencing duplication of cost for familiarization/training nor unacceptable delays in fulfilling its requirements.

The law firm of Varella & Advogados Associados was assigned Case I021966 under order EXIM-16-P- 0021, Case G509634 under order EXIM-16-P-0036 and Case G492461 under order EXIM-16-P-0041.

Varella & Advogados Associados is the local counsel that has handled the claim for EXIM Bank since its inception and the firm is fully familiar with the case. The introduction of another party would require EXIM Bank to take risks of poor or inadequate execution that would be presented by an unfamiliar party, regardless of qualifications. The litigation is fully in process and Varella & Advogados Associados was previously empowered under former purchase to undertake such legal action. Any changes in counsel at this juncture could completely disrupt a delicate case that is now entering into a decade. Varella & Advogados Associados has been involved in litigations of this nature for several decades and is a fully registered as practicing attorney duly recognized and registered in the Brazilian judicial system.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

In accordance with 41 U.S.C. 3304, the Bank has sought to identify as many potential sources as practicable under the circumstances. The specialized knowledge required to minimize the risks and maximize the chances of success in EXIM Bank’s executing its rights under the Finance Documents and the need for confidentiality, limits the likelihood of identifying multiple firms possessing the requisite skill set.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the Justification will be fair and reasonable based upon prior experience with this contractor, comparison to rates and collection percentages assessed by similar firms in the same and similar jurisdictions, and by review of published rates publicly available.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

AMD confirmed that the types of services to be undertaken by the Contractor are commercial in nature. These services are provided to private and public sector entities without distinction. EXIM Bank has worked with Varella & Advogados Associados on several heavily structured EXIM Bank transactions and demonstrated a high degree of competence in the advisory/documentary role. A review of legal support for EXIM indicated that Varella & Advogados Associados is uniquely positioned to provide the services required for this instance. No other firms were identified that possess similar knowledge of EXIM, its transactions and legal experience with project situated in Brazil. EXIM Bank has been utilizing Varella & Advogados Associados since 2007 on these particular projects and is satisfied with the services being provided.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

Varella & Advogados Associados provides seasoned collection specialist(s) who have been involved both in the private and public sectors of Brazil. In addition, the firm is fully cognizant of the process of litigation within Brazilian courts.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: NA

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required:

For the reasons set forth in Paragraph 5, EXIM Bank has no plan at this time to compete future contracts for the types of services covered by this document. If another potential source emerges, the Agency will assess whether competition exists.

12. Requirements Certification:

I certify that the requirement outlined in this justification is a Bona Fide Need of the Export-Import Bank of the US and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Facility: Recoveries Group, Asset Management Division

13. Approvals