Multi-Family Master Subservicer

Justification for Other Than Full And Open Competition Multi-Family Master Subservicer 1. Requesting Agency: U.S. Department of Housing and Urban Development (HUD), Ginnie Mae, Office of Mortgage Backed Securities. 2. Nature And/Or Description Of The Action: The action provides to extend services for Multifamily loan servicing Contract C-OPC-22882. Ginnie Mae has a continued need for the contractor to provide multifamily loan servicing functions, as the service is being re-competed. These services include but are not limited to providing default services, servicing current, delinquent and defaulted loans, including preparation of full insurance endorsement packages and effecting assignments for full insurance benefits on defaulted loans or Real Estate Owned (REO), enforcement and foreclosure services, preparation and submission of claims for FHA insurance benefits, and reports to Ginnie Mae, providing for the conversion of Construction Loan Certificates (CLC) to Project Loan Certificates (PLC) and providing management oversight to projects due the term of this contract. In order to provide continuity of program support, Ginnie Mae's needs for a Multi-Family Master Subservicer capable of providing continued services without interruption is of an unusual and compelling nature. 3. A Description Of The Supplies Or Services Required To Meet The Agency's Needs: Ginnie Mae has a continued need for the contractor to provide multifamily loan servicing functions, as the service is being re-competed. These services include but are not limited to providing default services, servicing current, delinquent and defaulted loans, including preparation of full insurance endorsement packages and effecting assignments for full insurance benefits on defaulted loans or Real Estate Owned (REO), enforcement and foreclosure services, preparation and submission of claims for FHA insurance benefits, and reports to Ginnie Mae, providing for the conversion of Construction Loan Certificates (CLC) to Project Loan Certificates (PLC) and providing management oversight to projects due the term of this contract. In order to provide continuity of program support, Ginnie Mae's needs for a Multi-Family Master Subservicer capable of providing continued services without interruption is of an unusual and compelling nature. The estimated value of the procurement is $100.00 for a six-month period of performance. There are sufficient funds available on the current contract to fund this extension. 4. An Identification Of The Statutory Authority Permitting Other Than Full And Open Competition: This Justification for Other than Full and Open Competition is pursuant to the authority under 41 U.S.C. 253(c) and FAR 6.302-2, which allows for the award of contracts without full and open competition when unusual and compelling circumstances exist. 5. A Demonstration That The Proposed Contractor's Unique Qualification Or The Nature Of The Acquisition Requires Use Of The Authority Cited: The current contract was due to expire on January 26, 2011 and unforeseen circumstances occurred as the re-compete process was in order. At the present time it would be virtually impossible for any other contractor to provide the necessary services, hire experienced staff and transition the work from the incumbent contractor in a timely manner without disrupting the services and subject the Government to any undue risks. Award to other than the incumbent at this time may create an unacceptable lapse in services for Ginnie Mae with the potential to put both the Ginnie Mae and HUD stakeholders at substantial technical, legal and fiscal risk. This proposed extension will not exceed a six-month period. This extension allows for sufficient time to solicit the re-compete for Multi-Family Master Subservicer as a full and open commercial acquisition. It is therefore determined that only the proposed and available contractor with the capabilities and qualifications to immediately address the urgent needs of the agency would be the incumbent. 6. A Description Of Efforts Made To Ensure That Offers Are Solicited From As Many Potential Sources As Is Practicable, Including Whether A Notice Was Or Will Be Publicized, As Is Required By Subpart 5.2 And, If Not, Which Exception Under FAR 5.202 Applies: This action was not published in FEDBIZOPPS and a waiver of the synopsis is not required in accordance with 5.202 Exception, paragraph 2 which states the proposed action is made under conditions described in 6.302-2 Unusual and Compelling Urgency. Because of urgent and compelling circumstances the government would be seriously injured if it complied with the time periods in FAR 5.203. 7. A Determination By The Contracting Officer That The Anticipated Cost To The Government Will Be Fair And Reasonable: The cost to continue this effort is at no additional cost to the Government. Funds in the amount of $4.0 million remain on the current contract. - 8. A description of the market research conducted (see Item 10) and the results or a statement of the reason market research was not conducted: Due to the basis and nature of this request for a short term contract extension, under Unusual and Compelling Urgency (FAR 6.302-2), full market research was not conducted. Pursuant to FAR Parts 10 and 12, comprehensive market research was conducted during the acquisition planning stages for the re-compete action. However, based on the need to maintain continuity of services until the new contract is awarded, limited market research indicates that no other vendor can immediately perform the task of the Multi-Family Master Subservicer. 9. Any Other Facts Supporting The Use Of Other Than Full And Open Competition: This is an emergency action being issued under unusual and compelling urgency. As stated in item five above, a new contractor at this time would be met with significant risk to Ginnie Mae and the Federal Government would be insurmountable. The current contractor has worked with, and is familiar with Ginnie Mae's extensive system interfaces, which a new contractor would be required to understand and implement in detail upon taking over from the incumbent contractor. Moreover, the incumbent contractor is experienced and well-versed in servicing multifamily commercial products. Therefore, any lapse in the contract would also create a hardship and inconvenience that may result in Ginnie Mae incurring a financial loss. In addition, the Government has determined a minimum of six months is required for any contractor to fully understand and transition into the capacity to perform all tasks under this statement of work. This includes the ability to fully integrate all business requirements compliant with all outstanding system security certifications and accreditation requirements established by the National Institute of Standards and Technology (NIST). Therefore, there is not adequate time to transition a new or different contractor to absorb the institutional knowledge of the current Multi-Family Master Subservicer contractor necessary to continue seamless operations to meet the goals of Ginnie Mae and the Department. 10. A List of the Sources, If Any, That Expressed, In Writing, An Interest In The Acquisition: This is an emergency action being issued as an unusual and compelling urgency, and as such, there is no listing of sources. 11. A Statement Of The Actions, If Any, That The Agency May Take To Remove Or Overcome Any Barriers To Competition Before Any Subsequent Acquisition Of The Supplies Or Services Required: HUD's Office of Ginnie Mae needed to award this contract on an emergency basis not later than January 25, 2011; prior to the expiration of the contract. The Department is currently preparing for the recompetition of this action to maintain continuity of services. minimize programmatic, financial and operational risks and in compliance with the Competition in Contracting Act (CICA). It has always been the Department's desire to promote full and open competition to the maximum extent possible. As such the procurement strategy for the re-compete is to acquire these services using Full and Open Competition. 12. Certification Requirement: The signatures with this Justification for Other than Full and Open Competition certify that all of the supporting data, which form a basis for the justification, are complete and accurate.