Sole Source Justification SAP Over SAT 13.5.V1.pdf

SOLE SOURCE JUSTIFICATION

FOR CERTAIN COMMERCIAL ITEMS USING

THE PROCEDURES IN FAR 13.5

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73351020C0017 – Colson Services CARES Act FTA for 7a PPP Data Analysis

1. Agency and contracting activity. Small Business Administration, Office of the Chief Financial Officer, Acquisitions Directorate, SBA Denver Acquisition Division in support of the Office of Capital Access (OCA).

2. The nature and/or description of the action being approved: This is a sole source justification to procure services to incorporate the Paycheck Protection Program (PPP) loan data into the SBA 7(a) loan program processes.

3. A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

The Fiscal Transfer Agent (FTA) is responsible for the collection of 7(a) loan program data from lenders participating in the 7(a) loan program. The CARES Act requires related but unique data to be collected from the lenders on behalf of SBA. This procurement requires the FTA to include the collection of new CARES Act loan program data to implement provisions and compliance with the CARES Act.

Section 1102 of the CARES act temporarily adds PPP application to the 7(a)loan program, permitting SBA to guarantee 100 percent of 7(a) loans under the PPP program. In conjunction with the Loan Administration and Reporting requirements of the SBAHQ-14-C-0004 Fiscal Transfer Agent for the SBA 7(a) Guaranteed Loan Program, the Contractor shall serve as the collection agent for Section 1102 electronic lender PPP loan activity reporting through SBA Form 1502 (1502).

Section 1106 of the CARES Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program. Further, in conjunction with the Loan Administration and Reporting requirements of SBAHQ-14-C-0004, the Contractor shall serve as the collection agent for Section 1106 electronic lender PPP loan activity reporting through the 1502.

In accordance with section 1112(c) of the CARES Act, SBA will pay the principal, interest, and any “associated fees” that Borrowers owe on a “covered loan” in a “regular servicing status” to 7(a) Lenders for a 6-month period. The definition of a covered loan is provided by the CARES Act and SBA Procedural Notice 5000-20020. Contractor shall develop Section 1112 specific components within the Dashboard, reasonably reflecting input and feedback timely provided by the COR. Contractor shall provide all development, testing, and implementation of the Section 1112 specific components so that lenders may submit the required information by the 10th day of each month or the next business day.

Contractor shall identify the eligible loan population based on the CAFS loan statuses provided under SBAHQ-1-4C-0004.

In conjunction with the Loan Administration and Reporting requirements of the SBAHQ-14-C- 0004 Fiscal Transfer Agent for the SBA 7(a) Guaranteed Loan Program, the Contractor shall serve as the collection agent for Section 1102 electronic lender PPP loan activity reporting through SBA Form 1502 (1502).

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Contractor shall extend full-time client service support, Monday through Friday, from 8:00 a.m.

to 6:00 p.m., Eastern Standard Time (EST) through the FTA toll-free line and centralized client service email mailbox for PPP lenders and SBA Loan Program employee, including SBA Headquarters and SBA field office staff. Contractor shall participate in two CARES Act related (1102, 1106, or 1112) online training sessions per month at SBA’s request.

Award Period Period of Performance Amount Base 07/01/2021 – 08/31/2021 $538,084 Option Period1 09/01/2021 – 09/30/2021 $269,042

4. An identification of the statutory authority permitting other than full and open competition.

41 U.S.C. 1901

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

Only One Source is Capable: The Contractor for this acquisition is Colson Services Corp.

(Colson). Colson is the current Fiscal Transfer Agent (FTA) for the SBA Guaranty 7(a) Loan Program under collateral contract SBAHQ-14-C-0004. In April 2020, and in response to the CARES Act legislation, the SBA processed 14 years’ worth of SBA loans in 14 days during the first round of PPP (Payroll Protection Plan) loans. There was also a second round of PPP loans of about the same size of $350B for a total of $700B in increased and immediate loans. This acquisition will add the PPP loan data to the 7(a) processes. Only the SBA FTA has access to the financial system and information needed to which this data must be added.

6. A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized in FEDBIZOPPS (as required by FAR 5.2) and, if not, which exception under 5.202 applies.

Efforts will not be made to ensure offers are solicited because this work can only be performed by the FTA provider. Notice will be publicized.

7. A determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The Contracting Officer determines that the anticipated prices will be fair and reasonable based on the request for most favored customer pricing, comparison of historical rates, as well as comparisons to other government agency prices, and/or public pricing data for same or similar requirements.

8. A description of the market research conducted and the results or the reason market research was not conducted.

Market Research conducted by the contracting officer has determined that only Colson Services can provide these unique services and they cannot be routed through a third party in an attempt to satisfy any small business or 8(a) concerns due to the current FTA contract in place with http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P56_9651 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P67_10794

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Colson Services. To obtain the proprietary data from Colson would violate the terms of the current FTA contract – SBAHQ14C0004- between SBA and Colson Services.

9. Any other facts supporting the use of sole source.

This contract is a continuation of the services provided under contract 73351020C0017 which expires 06/30/2021. These services are still required and are critical to the agency and to small businesses.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

N/A

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition.

SBA will continue to evaluate existing support options when possible. However, SBA does not anticipate the need for this requirement to continue past the expiration of this contract.

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CERTIFICATIONS AND APPROVALS

Requiring Activity: I certify that the facts and representations under my cognizance that are included in this justification and that form a basis for this justification are complete and accurate.

Steven K. Stine

COR

Contracting Officer: I certify that this justification is accurate and complete to the best of my knowledge and belief.

(Signature & Date) Name Contracting Officer

Delete signatures not needed – review will be required; however, signatures may not be)

5. APPROVAL

Director, Acquisitions Directorate (If over $500,000)

(Insert Name) Director, (Insert name of Acquisition Division)

Competition Advocate (If over $700,000)

(Insert Name)