SOLICITATION NOTICE
R -- Consumer Assistance to Recylce and Save Act (CARS) - signed JOFOC
- Notice Date
- 11/9/2009
- Notice Type
- Justification and Approval (J&A)
- NAICS
- 522320
— Financial Transactions Processing, Reserve, and Clearinghouse Activities
- Contracting Office
- Department of Transportation, National Highway Traffic Safety Administration (NHTSA), National Highway Traffic Safety Administration HQ, 1200 New Jersey Avenue, SE, Washington, District of Columbia, 20590
- ZIP Code
- 20590
- Solicitation Number
- DTNH22-09-C-00122
- Archive Date
- 11/30/2009
- Point of Contact
- Chelly Johnson-Jones, Phone: 202-366-1943
- E-Mail Address
-
chelly.johnson-jones@dot.gov
(chelly.johnson-jones@dot.gov)
- Small Business Set-Aside
- N/A
- Award Number
- DTNH22-09-C-00122
- Award Date
- 8/31/2009
- Description
- Justification for Other than Full and Open Competition JUSTIFICATION FOR OTHER THAN FULL & OPEN COMPETITION (JOFOC) National Highway Traffic Safety Administration PR NUMBER: 09 - 01939 TECHNICAL SUPPORTING DATA I recommend that the National Highway Traffic Safety Administration (NHTSA) conduct negotiations with ACS Federal Solutions, LLC (ACS) on a non competitive basis in an amount not to exceed $10,648,493. The purpose of this contract is to assist the agency in administering the Consumer Assistance to Recycle and Save Act (CARS) Program and to mitigate waste, fraud and abuse. A.SUPPLIES/SERVICES REQUIRED The contractor shall provide support in the implementation and execution of the transaction process of the CARS program. The contractor shall review vouchers submitted for reimbursement by automotive dealers consistent with all Federal requirements, conduct quality control efforts, and complete reporting requirements. The contractor shall examine, enter, verify, and process reimbursements during the contract performance period. The information required for this effort is extensive and includes at a minimum the vehicle identification number, insurance information, ownership information, certificates to dispose, MPG information for trade-in and new vehicle and voucher amounts. The contractor also shall implement and execute an industry standard audit program to conduct random reviews of the transactions processed for quality assurance. The contractor will act independently and not as an agent of the Government, and shall furnish all the necessary services, qualified personnel, material, equipment, and facilities, not otherwise provided by the Government, as needed to perform the Statement of Work. B.BACKGROUND On June 24, 2009, the President signed legislation to provide consumers with a financial incentive to trade in older model vehicles for newer, more fuel efficient models. Under the “Consumer Assistance to Recycle and Save Act” (CARS), consumers would receive a credit of up to $4,500 for trading in older cars and purchasing new vehicles that meet specific qualifying criteria. The Act established NHTSA as the government agency responsible for administering this program. Under the statute, NHTSA was required to develop program requirements for reimbursements within 30 days, including defining a system to register dealers and to start accepting "vouchers" for reimbursement. On July 24, 2009, the agency issued the rule implementing the CARS program and began allowing vehicle dealers to register for the program. On July 27, 2009, NHTSA began accepting vouchers for reimbursement from dealers. Within a few days, it became apparent that the program was more popular then anyone had anticipated and that the number of voucher requests would exceed all expectations for the program. In response to the program’s popularity, Congress, with the approval of the President, added $2 billion additional dollars to the program. Given this additional sum, which allowed more consumers to participate, and the pace with which vehicle dealers submitted vouchers and expected reimbursement as a result, the agency needs additional processing resources to meet all statutory reimbursement requirements. Specifically, the agency requires contractor support capable of committing a substantial, skilled workforce to process potentially hundreds of thousands of CARS transactions. After approximately a month, NHTSA received more than 690,000 voucher requests, accounting for almost $2.9 billion. The agency closed the CARS program to further transactions on August 25, 2009, more than 2 months earlier than initially planned. C.ADVANCED PLANNING Advance planning is not available due to the overwhelming number of voucher requests submitted by dealers. With the infusion of additional funds, these requests are expected to grow significantly. In addition, the pace with which the vouchers are being submitted far exceeds program estimates. The agency will not be able to manage the CARS transaction workload and meet statutory requirements without additional resources. These resources need to be committed to the program in a very short timeframe so that requests for reimbursement continue to be processed on a timely basis. D.CONSIDERATION OF OTHER SOURCES When the legislation was enacted, the agency conducted market research with industry leaders having expertise in the area of transaction processing. The agency selected the firm that best represented itself as able to provide all necessary services, qualified personnel, material, equipment and facilities to perform the level of work necessary to meet the CARS program requirements at that time. However, this approach was based on processing $1 billion worth of transactions within four months. Based on the volume of submissions received within the first few days of the program, the agency's needs for the CARS program changed. Instead of a firm that could provide a broader range of services, the agency required a firm that could ramp up a large workforce capable of processing CARS transactions within days of award. Most of these industry leaders considered during the earlier market research did not have the infrastructure in place to assign more than a few hundred employees immediately to the CARS program. The agency sought expertise in voucher transaction processing with ability to add a significant amount of people in a short period of time. After reaching out to other Federal agencies for information and assistance on contractors able to provide this type of service, the agency identified two firms with significant experience in processing government transactions with sizable workforces able to begin work immediately. E.COST INFORMATION The estimated cost for this effort is not to exceed $10,648,493. This cost is based on the resources required to conduct this effort. F.UNIQUE CAPABILITIES/CIRCUMSTANCES The agency determined that ACS could assist the agency in meeting the statutory requirements of the CARS program, and provide the necessary services, qualified personnel, material, equipment and facilities to perform the level of work required by the agency. Specifically, ACS was able to commit 1500-2000 employees to process CARS transactions within days of award. In addition, ACS has extensive experience with similar processing services for other Federal agencies. Due to the urgency created by the statutory requirements, the volume of vouchers for reimbursement, and the immediate need for a firm that has significant experience and expertise in the areas mentioned above, a contract to perform this effort should be awarded to ACS. G.SCHEDULE REQUIREMENT The contract shall have an estimated period of performance of one (1) month from award with, if exercised, an additional one (1) week option period for a total performance period of five (5) weeks. H.OTHER FACTORS Because the agency received an unprecedented number of voucher requests, the agency's needs for the services and supplies represented an unusual and compelling urgency. Specifically, the receipt of hundreds of thousands of voucher requests in conjunction with the statutory deadline for processing voucher requests precludes full and open competition. Failure to make an immediate award would delay significantly the processing of vouchers already received and those that the agency will continue to receive as a result of the additional funding. As this Government program was designed to stimulate the economy and, in particular, the automotive industry, and to provide a benefit environmentally by reducing gas guzzling vehicles from the nation’s roads, any delay in providing required reimbursements will harm the purposes of the program. I.SUBSEQUENT REQUIREMENTS Not applicable. J.STATUTORY AUTHORITY The sole source acquisition is justified under the authority contained the following citations: (a) Authority. (1) Citations: 10 U.S.C. 2304(c)(2) or 41 U.S.C. 253(c)(2). (2) When the agency’s need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for. (b) Application. This authority applies in those situations where (1) An unusual and compelling urgency precludes full and open competition, and (2) Delay in award of a contract would result in serious injury, financial or other, to the Government. (c) Limitations. (1) Contracts awarded using this authority shall be supported by the written justifications and approvals described in 6.303 and 6.304. These justifications may be made and approved after contract award when preparation and approval prior to award would unreasonably delay the acquisition. (2) This statutory authority requires that agencies shall request offers from as many potential sources as is practicable under the circumstances K.PROGRAM OFFICE Terry Anderson Program Manager National Highway Traffic Safety Administration 1200 New Jersey Avenue, SE, W45-310 Washington, DC 20590 Phone: 202-366-6030 E-mail: Terry.Anderson@dot.gov In support of my recommendation stated above, I hereby certify that the foregoing data is accurate and complete. ________________________ Contracting Officer's Technical Representative Date____________________ Approved\Disapproved: ______________________________ Contracting Officer Date____________________________
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