SandP JA and Sole Source Justification Redacted.pdf

EXPORT-IMPORT BANK OF THE UNITED STATES

Justification and Approval for Other than Full and Open Competition Commercial Services Acquisition IAW FAR 13.501(a)2(ii) for Sole Source Contracts

Exceeding the Simplified Acquisition Threshold.

Standard & Poor’s (S&P) Global Market Intelligence

1. Contracting Activity: Export-Import Bank of the United States / Office of Board Authorized

Finance

2. Nature and/or Description of the Action Being Processed:

Award of new sole source firm fixed-price purchase order to S&P Global Market Intelligence.

Contract Number 83310121P0009

3. Description of Supplies/Services Required to Meet the Agency’s Needs: EXIM has a current contract in place to acquire ratings reports and information as well as CapitalIQ, which is another business valuation tool used in conjunction with ratings and ratings reports. At this time, EXIM requests to expand the number of seats to enterprise-wide and wants to the banks data financial module, SNL Financial Market Intel. The latter will complement the other credit valuation tools in the suite. Bank financial data is required as a regular part of the business analysis conducted by EXIM Bank on its deals, and it is specifically mandated to be included with Board memos when they include a bank guarantee. It is believed that enterprise-wide availability of these tools will greatly enhance risk-mitigation capability. Loan officers, analysts and managers will be able to access critical information on the desktop, thus improving decision-making, and ultimately improving customer service. S&P no longer offers a comparable “library model”.

4. Costs and Period of Performance

The projected expenditure for the proposed acquisition based upon the Independent Government Cost Estimate (IGCE) is shown below:

Total $2,293,499.00

5. Statutory Authority Permitting Other than Full and Open Competition:

Commercial Services Acquisition IAW FAR 13.501(a)-2(ii) for Sole Source Contracts Exceeding the Simplified Acquisition Threshold.

Standard & Poor’s Global Market Intelligence is the source of Standard & Poor’s credit rating reports, CapitalIQ and SNL Financial. While on occasion a report may be available from an aggregator such as Alacra Store, the cost for buying the number of reports needed by EXIM Bank in a single year would be way above what we propose to pay for the service enterprise-wide. EXIM Bank requires access to all three rating agencies: S&P, Moody’s and Fitch.

6. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Standard & Poor’s Global Market Intelligence is the source of S&P’s credit rating reports, S&P CapitalIQ and SNL Financial. EXIM Bank has need of Moody’s and Fitch ratings reports as well as S&P’s. Each agency has its own unique point of view and it is necessary to have the full spectrum of opinion, research and data available when making credit decisions. In addition, occasionally S&P may be the only agency which rates a particular entity. S&P has gathered a great deal of financial and comparative company and industry data and has made it available within the S&P Global Market Intelligence platform in a desktop suite of tools for business & credit analysis.

S&P Global Market Intelligence is a highly specialized data platform. It is the only source which combines S&P rating reports and research with comparative company and bank financial data and ratios from S&P. S&P Global Market Intelligence is essential to EXIM Bank. It is not duplicated by Moody’s or Fitch subscriptions, which are also essential to the operations of EXIM Bank.

7. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

It is essential that EXIM Bank have rating reports and rating research from all three major rating agencies, S&P, Moody’s and Fitch. Other rating agencies are not in the same category.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

Prices were compared amongst the 3 providers and S&P’s price was found to be the best value for the money. The cost of S&P Global Market Intelligence is considered fair and reasonable. S&P is the only rating agency which has offered to include the banks financial data platform at no additional cost over and above the price for continuing the current two modules (S&P RatingsDirect and S&P CapitalIQ).

9. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted:

Market research has been conducted over the past several years by hosting vendor demonstrations, speaking with representatives, and reading output on test banks from all three rating agencies.

EXIM Bank has ongoing relationships with all three rating agencies.

10. Any Other Facts Supporting the Use of Other than Full and Open Competition: None

11. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None

12. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any

Barriers to Competition before Making subsequent acquisitions for the supplies or services required:

Access to S&P ratings reports and research is an essential requirement which we have had for many years. EXIM Bank finds it essential to have access to all 3 credit rating agencies for reports and research. That is integral to EXIM Bank due diligence and its credit evaluation effort. Access to a bank’s financial data platform is also essential for EXIM Bank work-flows.

12/7/2020