Part 13 Single Source Determination for FBO 73351020F0192.pdf

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SINGLE SOURCE DETERMINATION USING

SIMPLIFIED ACQUISITION PROCEDURES (SAP)

FOR AN ACTION NOT EXCEEDING THE SIMPLIFIED ACQUISITION THRESHOLD

(AUTHORITY: FAR 13.106-1(b)(1))

PR 0503200EQ0058 / Order 73351020F0192

1. Agency and contracting activity. Small Business Administration, Office of the Chief Financial Officer, Acquisitions Division, in support of Office of Credit Risk Management.

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

This determination is applicable to the open market items included on Order 73351020F0192 with Dun & Bradstreet under their GSA contract GS-00F-022DA. This order consists primarily of GSA Schedule Contract items approved through a separate limited sources justification in accordance with FAR 8.405-6.

This is a firm fixed price requirement for services to conduct a study that identifies affiliated businesses (unique small businesses controlled by the same individual or entity) that either should not have qualified for Paycheck Protection Program (PPP) loans due to their combined size or applied for and received multiple PPP loans exceeding program limits. The Cares Act caps PPP lending to affiliated small businesses at $20M (except in specific circumstances). This requirement includes 3 distinct activities –

1. Data Match and Append

2. Affiliation Analysis (includes 1. data access and 2. consulting services)

3. Proof of concept

The Data Access and Proof of Concept are open market items with a value of X with a period of performance of twelve months.

3. Identification of the single source or the brand name to be solicited.

Dun & Bradstreet, Inc.

11710 Plaza America Dr., Suite 900 Reston, VA 20190-4768 POC: Shareen Kitterman, kittermans@DNB.com

4. Supporting rationale. Only one source or brand name is reasonably available as detailed below:

Urgency – The nature of the requirement has been deemed urgent due to unusual and compelling circumstances. Following competitive procedures would result in unacceptable delays resulting in serious injury to the Government.

This order with D&B is necessary due to the financial impact, urgency, and high-profile nature of the PPP program as described below.

Through June 12, 2020 PPP lending has exceeded $512 billion (https://www.sba.gov/document/report-- paycheck-protection-program-report-through-

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june-12-2020). During the month of June, lenders started submitting requests for SBA to pay lender processing fees for creating the PPP loans (5% for loans up to $350k; 3% for loans $350k-$2m; 1% for loans over $10m). By the end of June, lenders will begin submitting requests for PPP loan forgiveness for their borrowers (up to $512B). Loan forgiveness means the money loaned to small businesses through the PPP will not be repaid to the government. The government will reimburse the lender that fronted the cash for all the businesses. If loan repayment is forgiven, the money loaned to small businesses through the PPP program is taxpayer dollars. Therefore, ensuring the entities that received funding have done so within the parameters of the regulation is of utmost importance.

SBA officials believe the impact of affiliated businesses could be significant and want to begin this study immediately so the SBA can flag as many of these affiliated loans as possible before SBA begins paying the lender processing fees and borrower debt forgiveness. Failure to identify entities that have inappropriately received funding through the PPP or have received funding in excess of the limits harms both the small businesses who were the intended recipients of PPP funds and the taxpayer if SBA is unable to recover improper payments to lenders and PPP borrowers. Competing this requirement would result in unacceptable time delays in fulfilling the agency's urgent need to start this analysis.

Further, there are only a handful of firms with the business bureau data and technical expertise to perform this study. D&B is the only firm with enough knowledge of the SBA PPP portfolio data to ramp this up quickly and make any progress on this requirement prior to lenders submitting requests for loan forgiveness.

5. Market Research.

Due to the urgency of this requirement, extensive market research was not conducted. Dun &

Bradstreet’s GSA schedule contract was reviewed, and it was verified this requirement is within scope.