P43-DBLS FINAL JOFOC Attachment 18 May 2020.pdf

J&A Log #20-17

EXHIBIT 1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Electronic Payroll Service (EPS) System

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY, AND SPECIFIC IDENTIFICATION OF THE DOCUMENT AS A

“JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION”

Agency: U.S. Department of Housing and Urban Development (HUD) 451 7th Street SW, RM 7108 Washington, DC 20410

Contracting Activity: Office of Chief Procurement Officer, Philadelphia

Program Office: Office of Field Policy & Management, Headquarters

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

A one-year extension contract extension to contract DU203NP-15-P-0024 is requested to maintain the Electronic Payroll Services (EPS) for the Office of Davis-Bacon Labor Standards (DBLS) under the Office of Field Policy and Management.

Method of contacting: sole source urgent and compelling action Type of contract: fixed price commercial purchase order (per project/month) Type of funds: 19/20 and 20/21 program funding

3. A DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEED (INCLUDING THE ESTIMATED VALUE)

Contractor support is required for Electronic Payroll Services to maintain the DBLS operations in receiving, reviewing, and retaining certified payroll reports for federally funded projects at HUD as well as to ensure compliance with DBLS laws.

Performance Period: 05/21/2020 through 05/20/2021 Estimated Total Dollar Value: $710,000

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION

FAR 6.302-2, Unusual and Compelling Urgency – 41 U.S.C. 3304(a)(2)

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED

As the incumbent, Elations Systems Inc, located at 5000 Hopyard Road, Suite 405, Pleasanton, CA 94588, provided electronic payroll services since 2004 giving them the extensive experience needed to provide DBLS the services needed to enable expedited and efficient payroll reviews. Their experience in this area has allowed HUD to conduct its payroll reviews expeditiously and close federally funded projects.

While there are other contractors that provide EPS systems today, this contractor is the only one that can provide the current level of services due to not having a new contract in place by May 20, 2020. Additionally, the current system provides the required data needed to continue current operations. HUD has no data rights with the current contractor, Elations Systems. Consequently, any lapse with the current EPS service will result in the loss of access to the data for projects currently in progress. Without access to the data, DBLS will be unable to process reviews. This lapse in service would halt closings if DBLS must manually reconstruct records to close on existing projects.

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 NOT BE PUBLISHED AS

REQUIRED BY SUBPART 5.2 AND IF NOT, WHICH EXCEPTION UNDER

5.202 APPLIES

As required by the FAR Subpart 5.2, a notice will be publicized in beta.sams.gov (formerly Federal Business Opportunities site, www.fedbizopps.gov.)

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer will make a determination that the anticipated cost to the government will be fair and reasonable based on the Independent Government Cost Estimate (IGCE) founded on historical pricing for the same or similar services and on the negotiated direct labor rates under the current contract.

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART

10) AND THE RESULTS OR A STATEMENT OF THE REASON MARKET

RESEARCH WAS NOT CONDUCTED

The competitive acquisition for a follow-on contract is being sought concurrently with this bridge action. The original market research was conducted by the program specialist during the Summer of 2019 for the competitive acquisition. HUD conducted market research by searching the internet, looking at the GSA schedule, and contacting companies that conduct similar work to obtain information used in the recompete action.

Additional market research was not conducted for this one-year extension.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

There are no alternatives other than to provide continued support through the requested contract extension. The impact of a break-in-service would result in significant harm to the agency.

First, without data rights, DBLS will lose access to 1,156 projects causing HUD to violate the Record Retention Acts. The system data maintains an unknown number of PII for individuals employed on HUD funded projects and lack of data access will prevent HUD from ensuring that Elations Systems or HUD complies with applicable privacy laws. This may expose HUD to a breach of PII data, posing liability for HUD with Congress and stakeholders.

Second, HUD would be unable to comply with Department of Labor (DOL) reporting requirements, as the data needed from the system for HUD to address reporting requirements would not be available during the break-in service. The data in the current Elations Systems is necessary for HUD to complete required quarterly and annual reports to DOL. Absent this data, HUD cannot submit its mandated reports to DOL and Congress, which could lead to OIG audits and deemed a compliance failure.

Third, an adverse impact to the economy would occur. Without the current system in place, DBLS would manually process all new and existing projects covered by DBLS reducing the number of FHA closings that HUD performs currently. As of March 19, 2020, there were 810 FHA projects pending closing covering $17 billion dollars in insured guarantees with 55 projects closing in the next 120 days.

Conducting reviews of pending projects manually would reduce the number of closings DBLS can complete on time. A slowdown of reviews would impact the construction industry and its laborers that, in turn, adversely impacts the U.S.

economy.

Finally, the primary HUD constituents, low-income housing residents, would face potential problems obtaining affordable housing. HUD would be producing less affordable housing units each year. Without additional housing units, delays will increase for those seeking HUD-assisted housing and would increase the number of individuals who cannot afford safe and affordable housing would be forced to live in unsafe, less favorable conditions.

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION

No sources have expressed, in writing, an interest in this contract extension.

11. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES

required

A competitive acquisition for the re-compete of the EPS system is being procured concurrently with the bridge action and should be awarded no later than quarter 2 of fiscal year 2021.

12. CONTRACTING OFFICER CERTIFICATION THAT THE

JUSTIFICATION IS ACCURATE AND COMPLETE TO THE

CONTRACTING OFFICER'S KNOWLEDGE AND BELIEF

See certification at Part 2, Form HUD-24012 filename: DBLS JOFOC Attachment May 8 2020 v4 location: Y2020 Elations 5-8-20