Supplement-SoleSourceJustification-73351020F0185-signed.pdf

Sole Source J&A – Task Order 73351020F0185 – IDIQ 73351020D0002 – COVID 19 Crisis Page 1 of 3

Task Order (TO) 73351020F0185

Indefinite-Delivery Indefinite-Quantity (IDIQ) 73351020D0002

Sole Source Justification- Supplement to Class JOFOC for COVID-19

Emergency Acquisition for PMO (Project Management Office) and Financial Professional

Emergency Services

Presidential Declared Emergency – COVID-19 Virus and Response to Resulting Economic

Crisis

FAR 6.302-2, Unusual and Compelling Urgency – Exception to FAR Competition Requirements

– a part of FAR 6.302 Circumstances Permitting Other Than Full and Open Competition

1. Identification of the Agency and Contracting Activity

Requesting Office: Small Business Administration (SBA)

Office of Capital Access (OCA), Office of Performance and

Systems Management (OPSM)

Contracting Activity: SBA Office of the Chief Financial Officer (OCFO)

Acquisition Division

2. The nature and/or description of the action being approved:

The Contractor for this acquisition is Guidehouse LLP (Guidehouse). Guidehouse also provides the Central Servicing Agent (CSA) services for the SBA 504 Guaranty Loan Program, and Fiscal

Transfer Agent (FTA) for the SBA 7(a) Guaranty Loan Program. Both servicing contracts for the

SBA Guaranty loan programs were competed.

In April 2020, and in response the CARES Act legislation, the SBA processed 14 years’ worth of

SBA loans in prior years, in 14 days during the first round of PPP (Payroll Protection Plan) loans. There was also a second found of PPP loans of about the same size of $350B for a total of

$700B in increased and immediate loans.

This acquisition will provide support to the SBA’s Office of Financial Program Operations

(OFPO) for administration of loan activities authorized by the CARES Act. Services will include automation of the processes for determining loan forgiveness eligibility and related loan administration services, such as reviewing loan documentation. Guidehouse’s familiarity with

SBA’s loan processing procedures and systems make it a unique source for professional services.

See FAR 6.302-1.

The SBA determined that a delay in the award of this contract would result in serious injury, financial or other, to the Government. See FAR 6.302-2(b).

3. Description of Supplies/Services:

Services include:

*Develop a methodology to rapidly populate eligibility risks/exceptions on all approved PPP loans;

Sole Source J&A – Task Order 73351020F0185 – IDIQ 73351020D0002 – COVID 19 Crisis Page 2 of 3

*Conduct reviews to determine the validity of populated eligibility risks/exceptions with corresponding manual review protocols;

*Provide reporting and documentation of progress and results; and

*Provide regulatory assistance, including assistance with any borrower appeals of ineligibility determinations.

4. Authority Cited:

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

5. Reason for Authority Cited:

The reason for the unusual and compelling urgency for this acquisition is the COVID-19 Crisis and its economic ramifications. In December 2019, a novel coronavirus was detected, causing outbreaks of the coronavirus disease COVID-19 that has now spread globally. As the virus spread across the United States, the Federal Government and individual states issued guidance requiring social distancing, quarantines, and school and non-essential business closures. Small businesses were immediately affected. To minimize economic disruption to the nation’s 30 million small businesses, the SBA will process and administer PPP (Paycheck Protection

Program) and EIDL (Economic Injury Disaster loan) loans. The number of loans and the overall size of the PPP and EIDL loans requires the SBA to seek support in administering these programs authorized by the CARES Act.

6. Efforts to Obtain Competition:

In accordance with FAR 5.202(a)(2), this action will not be synopsized. Because this is a sole source action, effective competition is not applicable as only one contractor can perform the work to meet these urgent and compelling requirements. No other offers will be solicited. The total period of performance for this Task Order is one year - from April 29, 2020 through April

28, 2021. This includes a base period from December 7, 2018 through March 17, 2020. This TO has no option periods.

7. Actions to Increase Competition:

Competition will not be sought for this modification due to the unusual and compelling urgency to process the loan applications and because only one source can reasonably perform this work given the exceptional circumstances caused by the pandemic.

8. Market Research:

Market research was not conducted due to the urgent and compelling nature of this acquisition which was caused by the COVID-19 crisis and the National response.

9. Interested Sources:

Due to the urgent nature of this requirement, no other sources were sought.

10. Other Facts:

The SBA cannot adequately perform its mission if these services are not put in place as quickly as possible. Taxpayers could suffer financial harm if the CARES ACT programs were quickly supported by the administrative services being acquired by this acquisition

Sole Source J&A – Task Order 73351020F0185 – IDIQ 73351020D0002 – COVID 19 Crisis Page 3 of 3

Determination: I certify that this justification is accurate and complete to the best of my knowledge and belief. In addition, the President’s declaration of a formal COVID-19 national crisis adds credence to the statement of facts and to the necessity for this sole source decision.

Cheryl T. Flanagan, Contracting Officer, SBA

The class J/A for urgent compelling actions signed by the SBA SPE (Senior Procurement

Executive) as Congress was passing the CARES Act, applies to this procurement because of the emergency contracting actions required to support SBA, OCA (Office of Capital Access) OPSM

(Office of Performance and Standards Management). All PPP (Payroll Protection Program) funding is processed and administered by OPSM federal personnel and through its contracts. The strain on the financial systems managed by SBA, OCA (Office of Capital Access) OPSM (Office of Performance and Standards Management) is tremendous as it processed and continues to process more funding in a few weeks than the systems have processed in the last 14 years. In addition, the financial system must quickly adapt to new rules and regulations of new and old federal programs aimed at bolstering the national small business community, PPP data addition and reporting is essential for the administering and reporting on the vast PPP loan program which is part of the emergency CARES Act. This acquisition qualifies as a contracting emergency and is part of the Presidential Declared COVID-19 Disaster Declaration.

Kip A. Sheppard, Acting SPE for the SBA