Standard Recovery - Brazil (Follow-on)

Other / Unclassified

This document is a Justification and Approval for Other Than Full and Open Competition for legal recovery services. The Export-Import Bank of the United States (EXIM Bank) intends to award a Firm Fixed Price Purchase Order to Varella & Advogados Associados to provide these services in Brazil. The services include asset searches, negotiations, litigation, and asset execution to collect outstanding amounts owed to EXIM Bank.

This document explains why EXIM Bank is pursuing a sole-source contract for legal recovery services in Brazil. It details the specific needs, the unique qualifications of the selected contractor (Varella & Advogados Associados), and the justification for not conducting a full and open competition. Key aspects include:

• Services Required: Judicial process for asset recovery, including asset searches, negotiations, litigation, and execution of assets related to a specific claim (Claim Nos. 1200668) involving a debtor and guarantor in Brazil.
• Contract Details: Firm Fixed Price, with an estimated contract value and a period of performance of five (5) years.
• Justification for Sole Source: Varella & Advogados Associados is cited as uniquely qualified due to their seasoned recovery and commercial legal expertise, familiarity with EXIM Bank's policies and procedures, and established presence and experience in the Brazilian legal system. They have been handling these specific claims since their inception.
• Market Research: Confirms the services are commercial in nature. EXIM Bank has worked with this firm since 2003 and is satisfied with their performance. No other firms were identified with similar knowledge of EXIM Bank's transactions and legal experience in Brazil.
• Authority: The procurement is justified under FAR 13.106-1(b) and FAR 13.501, citing "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1."

Statement of Work (SOW) / Performance Work Statement (PWS)

To provide loan recovery assistance for a defaulted debt owed to the Export-Import Bank of the United States (EXIM Bank), specifically related to Claim No. I200668, located in Brazil. The ultimate goal is to recover as much of the debt as possible, considering the debtor's financial circumstances.

The Contractor will provide collection services and servicing for defaulted loans. This includes borrower negotiations, restructuring, and workout agreements. The Contractor will also institute legal proceedings and take other actions to effect recovery for EXIM Bank. The work is specifically for EXIM Bank Claim No. I200668, assigned to Varella & Advogados Asociados law firm.

• Task 1: Case Analysis/Due Diligence: Perform due diligence, analyze case specifics, consider recovery strategies, and recommend actions to maximize collections. This includes preliminary research, asset search, credit analysis, and legal action evaluation. A conflict of interest check is required.
• Task 2: Recovery of Defaulted Debt (Contingency Fee Basis): Attempt extrajudicial collection within ten business days of authorization. Provide written briefs on case progress (at least quarterly) and a Collected Funds report within fifteen days of notification of incoming funds.
• Task 3: Provide Litigation: Before legal action, obtain written approval from EXIM Bank's Recoveries Group, Asset Management Division, and Office of the General Counsel. Provide a breakdown of anticipated work/cost for litigation approval.

Performance will be evaluated based on timeliness, completeness, thoroughness, record keeping, and effective communication. Specific Acceptable Quality Levels (AQLs) are defined for each task, with 100% accuracy generally required for deliverables. Performance ratings range from Exceptional to Unsatisfactory, with potential for positive or negative CPARS ratings.

The work is to be completed in Brazil.

• The Contractor must be a law firm registered and licensed with the Brazilian Republic Bar Association.
• Experience in locating assets, negotiating restructuring agreements, and litigating collection matters in Brazil is required.
• The Contractor must have experience handling collection matters for foreign government entities.
• All subcontracted efforts must also be registered/licensed in Brazil.
• The Contractor must be able to understand legal risks specific to representing a foreign government entity, including countersuits and withholding tax questions.
• Communication must be in the local language.
• A contingency fee structure applies to recovery services, with specific percentages detailed for different tasks. Expenses are generally not reimbursed unless approved by the COR on a case-by-case basis.