Limited Source Justification Over SAT LLMS - for GPE_Redacted.pdf

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LIMITED SOURCES JUSTIFICATION

FOR AN ORDER EXCEEDING

THE SIMPLIFIED ACQUISITION THRESHOLD

(AUTHORITY: FAR 8.405-6)

Purchase Request Number: 0502010EQ0133

This acquisition is conducted under the authority of the Multiple Award Schedule Program.

1. Agency and contracting activity. Small Business Administration, Office of the Chief Financial Officer, Acquisition Division in support of the Office of Credit Risk Management (OCRM) and the Office of Performance Systems Management (OPSM).

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

This is a limited sources justification for a bridge task order using the follow-on authority for the SBA Loan and Lender Monitoring System (L/LMS). This order will be a sole source to:

Dun & Bradstreet 11710 Plaza Drive Suite 900 Reston, Virginia 20190

(703) 807-5068 GSA Contract Number GS00F0022DA

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

The SBA requires assistance with loan, lender and portfolio monitoring, oversight, and credit risk management services on the 7(a) and 504 loan portfolios and participating industry lenders.

These services must be consistent with best practices utilized by commercial lending industry and bank regulators for credit risk management including early warning indicators of possible changes in portfolio performance trends. This requirement will apply credit risk prediction and evaluation to the 7(a) and 504 loan portfolios enabling the SBA to predict and evaluate the risk of individual SBA participants and lenders to identify high risk lenders with two (7(a) and 504) Agency-guaranteed loan programs. This requirement will also provide credit risk and program management support. The total estimated cost of this requirement is , with available under GSA and in open market. The period of performance includes a base year of twelve months and a six-month option period.

4. Authority and supporting rationale. The following circumstance justifies limiting the source as supported below:

Logical Follow-on under the authority of FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule (FSS) order D16PD00283. The original order was placed in accordance with the applicable FSS ordering procedures. The original order was not previously issued under sole-source or limited sources procedures, see paragraph 7., below.

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Dun & Bradstreet (D&B), in partnership with the SBA, conceptualized, created and implemented the L/LMS. The system was designed to meet the requirements of program statutes and leverage commercial-off-the-shelf (COTS) products and industry best practice risk management systems to all the SBA to monitor loan- and lender-level risk and focus oversight on the riskiest lenders. By employing the same COTS risk scores used by many of the lenders to manage the portfolios, and sharing these score ranges and other data with lenders through a Lender Portal, it promotes transparency, increases the integrity and ensures confidence in its stewardship of the 7(a) and 504 loan programs. During the previous contract (D16PD00283) with Dun & Bradstreet, the system was evolved to score loans with precision, lender risk is rated with accuracy for purchases and holistically using industry and regulatory best practices, and portfolio risk is proactively monitored and analyzed.

5. Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d).

As most of the requirements can be priced using Dun & Bradstreet’s GSA pricing which has already been found fair and reasonable, and Dun & Bradstreet have successfully performed this requirement since 2003, the Contracting Officer has determined that award of a task order under Dun & Bradstreet’s schedule provides best value to the Government. Additional discounts are being sought.

6. Market research conducted among schedule holders (or reason market research was not conducted).

Market research was conducted by issuing a Request for Information (RFI) on eBuy under RFQ ID: RFQ1415971 under the Special Identification Number 00CORP – 520 5 to the thirty schedule contract holders on February 26, 2020, with a response date of March 16, 2020.

Five contract holders responded to the RFI: Deval, LLC; Dun & Bradstreet; Deloitte;

TrueNorth, LLC;. and TransUnion. However, since the COVID-19 National Emergency which was declared on March 13, 2020, created a strain on SBA resources; the SBA’s technical experts have decided to use this short-term sole source award to ensure continuity of services until a competition can be conducted which is anticipated within the next year.

7. Any other facts supporting the justification.

The Department of the Interior, through an assisted acquisition for the SBA, awarded task order D16PD00283 to Dun & Bradstreet as a result of a competed solicitation. D16PD00283 had an original period of performance, to include options, until March 6, 2021 and a potential end date of September 6, 2021 if the Option to Extend Services was utilized. The total amount of the award was for the base plus four, twelve-month option periods with an additional potential amount of for the Option to Extend Services bringing the potential amount of the order to . To date, has been awarded leaving a total of left under the contract. D16PD00283 has been modified to shorten the period of performance to end on September 7, 2020 as SBA has opted to award this effort in-house.

Although this requirement will result in a new SBA-awarded order, this requirement was originally solicited, competed and awarded via D16PD00283 for the timeframe herein.

8. Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for supplies and services is made.

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The resultant order will be a short-term award to ensure continuity of services until such time as the national emergency requests slow to allow the technical experts the required time to properly evaluate quotes.