Bridge_Contract_J_and_A_Final.docx

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION BELOW SIMPLIFIED ACQUISITION THRESHOLD (Under $150,000) - FAR Part 6

1. Agency/Contracting Activity: PBGC, Corporate Investments Department

2. Nature and/or Description of Action: Special Situations Manager Bridge Contract

Requisition Number: RQ-23-15-000022

Nature: X New Requirement |_| Follow-on Requirement

Pricing: |_| Firm-Fixed Price |_| Time & Materials |X| Labor Hour |_| Cost

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

Approval of this justification will permit the Pension Benefit Guaranty Corporation (PBGC) to continue using JP Morgan Investment Management (JPMIM) for investment management services for a maximum of a four (4) month period by way of a bridge contract to avoid a break in service during the follow-on requirement competition. These investment services will consist of JPMIM continuing to oversee certain Special Situation assets under the direction and supervision of the PBGC Corporate Investments Department (CID), to include items such as, but not limited to:

4. Authority: (Identify the statutory authority, FAR title and FAR citation permitting other than full and open competition. It may be one of the following, but other exceptions may be used.)

The specific authority allowing this action is FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

Action using simplified acquisition procedures (select one):

X FAR 13.106-1(b)(1)(i): For purchases not exceeding the simplified acquisition threshold (SAT), contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g. urgency, exclusive licensing agreements, brand name, or industrial mobilization).

5. Unique Characteristics and reason(s) that only one source can provide the supplies or services: (Identify the characteristics and/or reason(s) that only one source can provide the supplies or services).

The services sought under this bridge contract are very short term in nature, and require highly specialized skills which are currently provided by JPMIM. As the incumbent under the current contract (PBGC01-CT-12-0021), JPMIM is the only vendor qualified to continue the current activities in support of CID.

The current contract procures a specialized, multifaceted service that focuses on the management and liquidation of unusual, illiquid or difficult to market assets received in conjunction with the termination and trusteeship of underfunded defined benefit pension plans. These unusual/illiquid assets are sophisticated investments whose successful management, oversight and eventual liquidation, requires specialized knowledge, business acumen, and financial skill sets. PBGC relies on the current contractor to provide that careful management and oversight of the illiquid investment portfolio of assets. The results of this contract are visible to the highest levels of the organization, including PBGC’s stakeholders and the public.

6. Market Research: (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 current JPMIM contract serves as a basis for contract cost and contractor capabilities.

7. Additional Information to support the justification: Any other facts supporting the use of other than full and open competition, such as:

(i) Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

(ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

(iii) When 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

N/A

8. List of Sources: (A listing of the sources, if any, which expressed, in writing, an interest in the acquisition.)

N/A

9. A statement of actions to overcome barriers to competition: (A statement of the 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.)

PBGC is unaware of any barriers to competition, and is currently in the process of competing, using full and open competitive procedures, for these services. However this competition will not be completed in time to support the timeframe required for the services described above.

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