LSJ_Combined Insurance Data and Services_Redacted.pdf

LSJ Template > SAT Procurement Sensative 4- 1 - LSJ No.: 20-011 March 31, 2020

Combined Insurance Data and Services Replacement Cost Value (RCV)

Limited Sources Justification (LSJ) For orders or BPAs exceeding the Simplified Acquisition Threshold

LSJ No.: 20-011

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C. 152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

1. Agency and Contracting Activity. Identification of the agency and the contracting activity, and specific identification of the document as a “Limited-Sources Justification.”

The Federal Emergency Management Agency (FEMA) and Office of Chief Procurement

Office (OCPO) intends to award a fixed price Blanket Purchase Agreement (BPA) award pursuant to FAR 8.405-6 (1)(B).

2. Nature and/or description of the action being approved. Describe the action being approved and include the name and address of the proposed contractor(s).

FEMA/Federal Insurance and Mitigation Administration (FIMA) intends to limit the number of sources solicited pursuant to FAR 8.405-6 (1)(B). This procurement is for the following: Replacement cost value (RCV) web services or tools, replacement cost data, first floor height/structural ground elevation estimation web services or tools and data.

Furthermore, this procurement is to obtain transactional solutions for address correction and other address related services including geocoding, flood mapping, and structural and parcel data for determining flood insurance insurance premiums for the NFIP’s new flood insurance rating system. FEMA/FIMA intends to award to CoreLogic Solutions, LLC from the authorized Federal Supply Schedule (FSS) resellers to ensure a fair and reasonable price.

CoreLogic Solutions address:

400 Pacifica Ste 900 Irvine, CA 92618-7487

CoreLogic is on the GSA schedule under Contract Number: GS-23F-0032U. CoreLogic’s GSA contract period of performance is April 14, 2018 through April 13, 2023.

3. Description of Supplies/Services. Describe the supplies or services to be acquired. Provide the estimated total value (including options, if any).

LSJ No.: 20-011

LSJ Template > SAT Procurement Sensative 4- 2 -

Combined Insurance Data and Services Replacement Cost Value (RCV)

Limited Souces Justification (LSJ) For orders or BPAs exceeding the Simplified Acquisition Threshold

BACKGROUND: FIMA has developed a preliminary new rating methodology for NFIP flood policy premiums through the Risk Rating 2.0 Initiative. This initiative includes policy premiums for single family homes, multi-unit and commercial structures. The current policy base is approximately 5.1 million policyholders with approximately 4 million structures covered. The critical objectives of the initiative are to provide policies that reflect the unique risk to each structure and to encourage mitigation actions in order to allow survivors to recover more quickly and fully from disasters.

The Government is Congressionally and publicly committed to deliver the new rates on October

1, 2021. The Government must have all solutions procured by July 1, 2020 and in place by

December 31, 2020 to support the delivery of new rates for policy renewal processing on April 1, 2021.

The price for the new rating structure solution to price flood insurance policies with an RCV web service or tool, replacement cost data, first floor height/structural and ground elevation estimation web service or tools and data; transactional solution for address correction and other address related services including geocoding, flood mapping, structural and parcel data is estimated to cost

FEMA/OCPO intends to procure from only one source for replacement cost value (RCV) web service or tool. The RCV web service or tool will include: replacement cost data, first floor height/structural and ground elevation estimation web service or tools and data, transactional solution for address correction and other address-related services. The other address-related services include: geocoding, flood mapping, and structural and parcel data using the Multiple

Award Schedule Program.

Period Unit Price Total Base Year 12 mo. Detailed in the IGCE Option Year 1 12 mo. Detailed in the IGCE

Total

Combined Insurance Data and Services Replacement Cost Value (RCV)

Limited Souces Justification (LSJ) For orders or BPAs exceeding the Simplified Acquisition Threshold

LSJ Template > SAT Procurement Sensative 4- 3 -

4. Authority and supporting rationale.

Pursuant to FAR 8.405-6(a)(1)(i)(B), only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

The Government requires a sole source acquisition with CoreLogic Solutions for the following reasons:

Market research showed CoreLogic is the only vendor that demonstrated the capability to provide replacement cost value (RCV) service and data, first-floor height/structural and ground elevation estimation service and data, transactional solution for address correction and other address related services including geocoding, flood mapping, structural and parcel data.

Market research indicates other companies’ similar products are not FSS holders and lacked the feature(s) required and do not meet, or cannot be modified to meet, the needs of FEMA. All bundled services required are not available via open market.

CoreLogic is able to offer the unique services required by the Government in one packaged solution. Other vendors have not shown they are capable of providing data, tools and services or completing requirements inclusive of security or privacy.

CoreLogic is providing our geospatial data, therefore our baseline data is with

CoreLogic. Replacement cost value (RCV) is also their data. Using CoreLogic for both data sets would provide consistency for each policy. To ensure consistency of rates delivered during implementation and transition of 5.1 million policyholders and

4 million structures to the new rating system, it is in the Government’s best interest to maintain information, data sets and solutions consistent to the vendor’s baseline delivery of analyses, data and information.

Corelogic is currently providing the NFIP with geospatial services for its NFIP policies.

Policies are further dependent upon geospatial location, data and analysis. The NFIP flood insurance policies are stored and maintained within a central hosting system.

Those policies have been batch geocoded by CoreLogic in that environment to ensure

Limited Souces Justification (LSJ) For orders or BPAs exceeding the Simplified Acquisition Threshold

LSJ Template > SAT Procurement Sensative 4- 4 -data consistency. To maintain consistency across our data by maintaining use of one provider. As an example: Corelogic may provide a latitude/longitude of 78.12/75.15 while another provider for the same policy may provide a latitude/longitude of

77.15/75.15 which could significantly impact the calculated premium of the policy holder. Keeping this consistency will provide a potential cost savings for the government by not having to re-code all policies. It is in the Government’s immediate best interest to keep geocoding solutions constant, ensuring consistency, compatibility and interoperability allowing the Government to formulate, analyze and deliver the rates in a disciplined manner.

The application delivering the rates for flood insurance policies is hosted on a centralized infrastructure. We are currently using CoreLogic to provide geospatial information to Pivot our centralized System of Record (SOR). The infrastructure’s geospatial solutions(s) for locating structures and providing geospatial data analysis in order to deliver rates must remain consistent.

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

The contracting officer has determined that issuing the proposed blanket purchase agreement (BPA) for this requirement represents the best value consistent with FAR

8.404(d). The General Services Administration (GSA) has already negotiated fair and reasonable prices. Discounts from the GSA schedule prices will be requested.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

FEMA/OCPO/NFIP Risk Rating 2.0 conducted market research on the following services:

replacement cost value (RCV) web service or tool, replacement cost data, first-floor height/structural and ground elevation estimation web service or tools and data, transactional solution for address correction and other address related services including geocoding, flood mapping, structural and parcel data with other vendors. As an agency, this market research has been ongoing and continues to be ongoing.

Limited Souces Justification (LSJ) For orders or BPAs exceeding the Simplified Acquisition Threshold

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Market research was conducted in the following manner(s), (2) RFIs for first-floor height/ elevation services and data, (1) industry day, demonstrations by vendors of first-floor height/elevation solutions, (3) RFIs for the replacement cost services and data, market research follow up with vendors for both FFH/structural elevation and replacement cost services, internet research, consultation with subject matter experts in government and private industry in all mentioned fields of required support.

For FFH/structural elevation, two rounds of market research were conducted through two sources sought notices. The first sources sought notice published in June 2018 resulted in responses from 15 potential providers and the second sources sought notice published in

May 2019 resulting in responses from 11 potential providers. CoreLogic responded to both

RFI’s demonstrating capability and interest in the FFH/structural elevation requirement

For the replacement cost valuation tool, market research showed that there are two companies, Verisk and CoreLogic, identified as able to provide the replacement cost estimator services due to both their breadth of their knowledge and industry experience.

According to information obtained from the Write Your Own’s (WYO), these two companies are the industry leaders and are who the WYO’s use to provide replacement cost values. The replacement cost data is traditionally obtained by utilizing an online web service that is hosted on the vendor’s systems. A Request for Information was posted in

November 2018 for one week and only Verisk and CoreLogic responded. A second

Request for Information was published in December 2019 and Verisk was the only response. However, follow-up calls were conducted with both Verisk and CoreLogic.

During the phone calls Verisk stated they do not currently provide First Floor Height services. CoreLogic confirmed during the follow up phone call, that they missed the RFI and could still meet the requirement.

Limited Souces Justification (LSJ) For orders or BPAs exceeding the Simplified Acquisition Threshold

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For the geospatial requirement, FEMA geospatial experts continuously stay on top of the marketplace. There are a range of vendors that can provide this service, including

CoreLogic.

CoreLogic is the only vendor that demonstrated the capability to provide replacement cost value (RCV) service and data, first-floor height/structural and ground elevation estimation service and data, transactional solution for address correction and other address related services including geocoding, flood mapping, structural and parcel data

7. Any other facts supporting the justification. Additional facts may be stated in this section. If there are no additional facts, you must state that here.

No additional facts.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited-sources) before any subsequent acquisition for the supplies or services is made. Include a statement of actions taken or that will be taken to increase competition for future acquisitions of the same item/service (e.g., the Government intends to revise overly restrictive technical specifications, acquire data rights, or pursue some other means to increase future competition). Posting requirements may also be addressed here or in #9 below.

The Government intends to recompete all services inclusive of the replacement cost value

(RCV) web service or tool, replacement cost data, first floor height/structural and ground elevation estimation web service or tools and data, transactional solution for address correction and other address related services including geocoding, flood mapping, structural and parcel data with estimated award of FY 2022. This will allow industry to better understand FIMA/NFIP requirements for the new rating system solutions after formal launch and will allow for better and more rapid development of solutions in the marketplace and greater competition.

9. DHS intends to post this requirement on e-buy pursuant to FAR 8.405-6(b)(3)(i)(B).

10. Technical/Requirements Personnel Certification.

Limited Souces Justification (LSJ) For orders or BPAs exceeding the Simplified Acquisition Threshold

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Chief Procurement Officer

Note:

Each Limited-Sources Justification must be reviewed and approved by lower level approval(s).

For example, actions over $62.5 million requiring OCPO approval must be reviewed, approved, and signed by the contracting officer, Component Competition Advocate, and HCA.