Email from RER Solutions counsel to Select Subcommittee staff, July 2, 2021

Summary

An email from W. Neil Eggleston of Kirkland & Ellis LLP dated July 2, 2021, with the subject Select Subcommittee on the Coronavirus Crisis - RER Solutions. Response 1 provides a spreadsheet of RER's invoices to the SBA and RER's payments to Rocket Loans through March 5, 2021 under Task Order 73351020F0071 ("Task Order 2," the COVID-19 EIDL work). It states that RER and Rocket respectively bear 51 and 49 percent of the hard costs. Response 2 states that RER has reviewed Rapid's response on fraud checks and has no additional information to add.

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Archived web capture. Preserved source — captured from coronavirus.house.gov; archived 2026-09-30.

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“Email from RER Solutions counsel to Select Subcommittee staff, July 2, 2021.” Original at coronavirus.house.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/email-from-rer-solutions-counsel-to-select-subcommittee-staff-july-2-2-5f58cbd68b/, SHA-256 f563842331d55758fff4c94488ac24631f4c426cf7b6f7e89da5c79dc28300a2.

Full text

From:               Eggleston, W. Neil
To:
Cc:
Subject:            RE: Select Subcommittee on the Coronavirus Crisis - RER Solutions
Date:               Friday, July 2, 2021 3:24:38 PM
Attachments:        2021.07.02 RER and Rocket Invoices Task Order 2.xlsx

Molly: please find responses to the Select Subcommittee’s questions below and in the attached
spreadsheet.

Response 1: The Subcommittee has requested that RER confirm the payments it has received from
the SBA, the Rocket Loans hard costs, and RER’s revenue number. In response to the
Subcommittee’s request, RER is providing the Subcommittee with a spreadsheet that includes the
amounts of RER’s invoices to the SBA and RER’s payments to Rocket loans through March 5, 2021.
The attached spreadsheet lists the invoices that correspond to Task Order 73351020F0071 (“Task
Order 2,” the COVID-19 EIDL work).

Please note that the “Total” paid to Rocket Loans includes both the payment for Rocket’s work on
the contract and the “hard costs.” RER uses the term “hard costs” in its subcontractor agreement to
describe what are otherwise treated as “Other Direct Costs” as set forth in 13 C.F.R. 125.6(a)(1) to
reflect costs for services that are not the principal purpose of the acquisition and not available from
small business concerns. The specific examples of Other Directs Costs include the costs associated
with credit, AVM, and other third party data fees. RER and Rocket each respectively bear 51 and 49
percent of the hard costs associated with the contract. This is the case even though these hard costs
are considered Other Direct Costs (“ODCs”) and are excluded from any calculation related to the
Limitations on Subcontracting. Column F reflects the amount, net of hard costs, that RER invoiced
and received from the SBA. Column G reflects the Total Paid to Rocket, including their split of the
hard costs.

Response 2: The Subcommittee also requested data regarding the implementation of fraud checks.
RER understands that Rapid received the same request and has provided responsive data to the
Subcommittee. RER has reviewed Rapid’s response and does not have any additional information to
add to Rapid’s response.

Neil

W. Neil Eggleston
------------------------------------------------------------
KIRKLAND & ELLIS LLP
1301 Pennsylvania Ave., N.W., Washington, D.C. 20004
T+
--------------------------------
RER Inv. Date  Task Order        Amount       Rocket Inv. Date Amount           Total
   5/11/2020 73351020F0071   $ 240,545,127.20        5/11/2020   117,867,112.33 120,048,087.60
   5/27/2020 73351020F0071   $ 69,240,623.25         5/27/2020    33,927,905.39 33,927,905.39
   5/27/2020 73351020F0071   $ 77,198,558.85         6/26/2020    37,827,293.83 37,827,293.83
    6/3/2020 73351020F0071   $ 96,401,229.90           6/3/2020   47,236,602.65 49,477,089.29
    7/8/2020 73351020F0071   $   2,373,494.40          7/6/2020    1,163,012.26    4,606,619.90
   8/13/2020 73351020F0071   $ 52,373,494.40
   8/13/2020 73351020F0071   $ 50,000,000.00         8/13/2020    50,163,012.26 54,560,421.83
    9/1/2020 73351020F0071   $ 29,525,301.12           9/3/2020   14,467,397.69 16,221,373.99
   10/2/2020 73351020F0071   $ 29,525,301.12         10/6/2020    14,467,397.69 16,431,752.40
   11/2/2020 73351020F0071   $ 29,525,301.12         11/4/2020    14,467,397.69 15,177,539.97
   12/1/2020 73351020F0071   $ 29,525,301.12         12/8/2020    14,461,360.67 15,080,317.97
    1/4/2021 73351020F0071   $ 29,525,301.12           1/6/2021   14,467,397.69 15,423,023.62
    2/1/2021 73351020F0071   $   2,373,494.40          2/4/2021    1,163,012.26    2,174,320.65
    3/1/2021 73351020F0071   $   2,373,494.40          3/4/2021    1,163,012.26    2,211,965.31

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