NEW IDIQ CONTRACT: NO COST | Award Sole Source Contract to QTC Medical Services (QTC) | Medical Disability Exams (MDE) | VA119A-17-D-0011
Added: Feb 16, 2017 12:25 pm
CLASS LIMITED SOURCES JUSTIFICATION
Class Justification for Other than Full and Open Competition
Contracting Activity: Department of Veterans Affairs (VA)
Office of Acquisition Operations
Strategic Acquisition Center Frederick (SAC-F)
321 Ballenger Center Drive, Suite 125
Frederick, MDÂ 21704
Description of the Action: The proposed action is for four firm-fixed-price multiple award Indefinite-Delivery, Indefinite-Quantity (IDIQ) contracts and subsequent task orders to the four incumbent contractors that are currently providing Medical Disability Examination (MDE) services for VA. The incumbent contractors are QTC Medical Services (QTC), Veterans Evaluation Services (VES), Logistics Health Inc. (LHI), and Medical Support Los Angeles (MSLA).
Description of Supplies/Services: The VA, through VBA, administers the Compensation & Pension (C&P) Program for benefits to Veterans, their dependents, and their survivors. Entitlement determinations for disability compensation and pension claims are made by VBA Rating Veterans Service Representatives (RVSRs) and Decision Review Officers (DROs) working in VA Regional Offices (VAROs) across the country. Public Law 104-275 was enacted authorizing VA to contract for medical examinations. Medical Disability Examinations are a critical piece of the medical examination process by determining the percent of disability that the Veteran is awarded. Examinations are required for thousands of Veterans on an annual basis and internal VA personnel resources cannot support this workload without contract support services. The examination includes a physical and a report that provides essential medical and disability information which supports each claimed disability. It is not enough to simply state a diagnosis; the examination report also provides detailed medical information sufficient for RVSRs and DROs to arrive at a medical decision that can withstand the scrutiny of an appellate review.
The existing four contracts that expire on January 12, 2017, include the following, all of which are funded through VBA congressionally mandated funding:
QTC Medical Services, Inc. (QTC)
Contract #: VA791-P-0146
Expires: January 12, 2017
Funding: VBA Mandatory Funding
Veterans Evaluation Services, Inc. (VES)
Contract #: VA791-P-0108
Expires: January 12, 2017
Funding: VBA Mandatory Funding
Logistics Health Inc. (LHI)
Contract #: VA791-P-0107
Expires: January 12, 2017
Funding: VBA Mandatory Funding
Medical Support Los Angeles (MSLA)
Contract #: VA791-P-0105
Expires: January 12, 2017
Funding: VBA Mandatory Funding
To avoid a lapse in service to Veterans, VA needs to award short-term bridge contracts and subsequent task orders will be funded with mandatory congressional dollars so that disability exams may continue until the protested MDE next generation contracts are in place and fully ramped up. Awarding bridge contracts with VA s incumbent contractors is the most appropriate method to continue uninterrupted MDE services. If this action is not approved, VA and Veterans will suffer severe injury if there is a lapse in service. Award of these urgent and compelling contracts will provide continued disability exams across all VBA locations.
The ordering period for these actions will be a base period of three months beginning January 13, 2017, with an option for up to six months of extended service, if necessary, under Federal Acquisition Regulation (FAR) 52.217-8 (Option to Extend Services). This will allow time for the resolution of the GAO protests, as well as, a 90-day ramp-up period once the new contractors begin performance. The estimated value of this acquisition is $1.2 Billion. This cost estimate is based on the prior year period of performance.
Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C. § 3304(a)(2) and implemented by the FAR 6.302-2, Unusual and Compelling Urgency.
Rationale Supporting the use of the Authority Cited Above: The VA recently awarded several contracts that were intended to provide disability exam services. However, the recently awarded contracts are currently under a stop-work order due to post-award protests filed with GAO. The VA is currently taking corrective action to ensure the issues identified by GAO are addressed. Should GAO deny the pending protest in its entirety, the previously awarded contractors shall begin a three-month ramp up period on or about January 13, 2016. Since the new contractors will not be at full capacity to accept orders in all locations, bridge contracts are needed to prevent a lapse in service to Veterans. Should GAO sustain a portion or portions of the pending protest, corrective actions may be required by VA. To avoid a lapse in service while the corrective actions are completed, bridge contracts are needed to prevent a lapse in service to Veterans. If this action is not approved, VA and Veterans will suffer severe injury if there is a lapse in service. Significant delay in adjudicating thousands of Veterans benefit eligibility will occur, depriving qualifying Veterans of medical care and other earned VA benefits. Award of these urgent and compelling contracts will provide continued disability exams across all VBA locations.
Efforts to Obtain Competition: As required by Subpart FAR 5.203, these actions may be synopsized on or around January 12, 2017, through FedBizOpps; however, the proposed contract action is made under the conditions described in 6.302-2 and the Government may be seriously injured if the agency complies with the time periods specified in 5.203. Further, the contracts and subsequent task orders supported by this justification are merely a short-term bridge effort to ensure continued service while VA addresses GAO s recommendations that resulted from the post-award protests of MDE.
Determination of Fair and Reasonable Cost: As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable. The quoted prices will be compared to historical pricing of the previous contract actions and comparable prices on the commercial price list that was previously negotiated. Further pricing discounts will be sought on the sole-source bridge contracts.
Market Research: The Government performed extensive market research in preparation of the recently awarded contracts (which were competed under VA solicitation number VA119A-15-R-0150) and are aware that numerous sources could potentially provide this short-term requirement. Thirteen vendors submitted proposals under the aforementioned solicitation. However, insufficient time is available for the Government to hold a competition among the available vendors prior to the expiration of the existing contracts on January 12, 2017. Furthermore, it is highly probable that none of the potential vendors would be able to begin performance without significant start-up delays. As a result, no additional market research was conducted beyond what was recently prepared under solicitation number VA119A-15-R-0150.
Any Other Facts Supporting this Justification: Veterans Benefits Administration (VBA), who administers the Compensation Services Program, has an immediate requirement for MDE services to continue uninterrupted. On March 28, 2016, 12 new contracts were awarded for MDE services. The new contracts are intended to provide continued MDE services following the expiration of previously awarded contracts. The contracts were protested April 4, 2016, and a stop work order was issued April 7, 2016, as a result of the protest. VA took corrective action to remedy three issues found deficient by the Government Accountability Office (GAO) in its decision on the protest. Following the corrective actions, new awards were made on September 16, 2016. Immediately following these awards, three new protests were filed with GAO November 4, 2016, and a decision on this subsequent protest is not expected until approximately January 12, 2017. Coinciding on the same date as the anticipated GAO protest decision, four existing contracts covering these services expire (January 12, 2017). Regardless of the outcome of the protest, the four incumbent contractors are required as a bridge effort until the protested MDE contracts are resolved and the awardee contractors complete a three month ramp-up period under the protested contracts. The authority to act under this class justification for other than full and open competition will cover the award of the IDIQ contracts as well as the subsequent task orders needed from January 13, 2017 April 12, 2017, or until the competitive awards clear the protest process, whichever is sooner.
In accordance with FAR 6.303-2(b)(9)(iii), the following information is provided regarding the extent and nature of the harm to the Government. A significant reason Congress authorized contracted exam providers to perform MDEs on behalf of VA, under Public Law 104-275, was to streamline VA s ability to address Veterans requirement for disability exams. A lapse in service would significantly hinder VA s ability to satisfy this Congressional intent for a significant period of time. As previously mentioned, the services under this proposed contract must begin on October 1, 2016, presenting an unusual and compelling need to meet VA requirements. The VA does not have the capacity to handle the unexpected volume of disability exams on such short notice, and would incur significant additional costs to its medical centers and physicians if it were to consider handling the required MDEs through VA internal resources.
The statutory requirement to comply with 38 U.S.C. §§ 8127 8128 and implemented under VA Acquisition Regulation (VAAR), Subpart 819.70, as a result of the June 16, 2016, a decision of the U.S. Supreme Court in Kingdomware Technologies, Inc. v. United States, 136 Sup. Ct. 1969 (2016) has been addressed. Due to the unusual and compelling urgency, the Contracting Officer has no reasonable expectation that two or more SDVOSBs can meet the Government s requirements without resulting in serious injury, financial or other to the Government.
A Listing of the Sources, if any that Expressed, in Writing, an Interest in the Acquisition: No other sources expressed, in writing, an interest in the acquisition. In accordance with FAR 6.302-2(b)(1), and due to the urgent and compelling nature of this requirement, the Government does not have sufficient time to compete the requirement among all interested firms. Based on recent market research, other known sources could potentially provide services at some of the locations; however, no other vendors would be able to begin performance by the January 12, 2017 deadline.
Actions to Increase Competition: At this time, there are no other actions that can be taken to increase competition. The requirement for MDE bridge service contracts subsequent task orders are based on unusual and compelling urgency caused by the award protests and the expiration of the existing contracts.
Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.
_______________________________ ______________
Contracting Officer s Representative Date
Veterans Benefit Administration (VBA)
Determination of Best Value/Contracting Officer Certification: I hereby determine that the proposed contract actions will represent the best value to the Government and certify that this justification is accurate and complete to the best of my knowledge and belief.
_______________________________ ______________
Contracting Officer Date
Strategic Acquisition Center - Frederick
Office of Acquisition Operations
Legal Sufficiency Certification: I have reviewed this justification and find it legally sufficient as to formalities and compliance with the requirement set forth in FAR 6.302-2.
_______________________________ ______________
Legal Counsel Date
Concurrence
Based on the foregoing justification, I concur with the class justification for the acquisition of Medical Disability Examination Services in the estimated total amount of $1.2 billion, on an other than fair opportunity basis, pursuant to the authority cited in Section 41 U.S.C. 3304(a)(2) and implemented by the FAR 6.302-2, Unusual and Compelling Urgency, subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.
_______________________________ ______________
Head of Contracting Activity (003B) Date
Office of Acquisition Operations
Approval
Based on the foregoing justification, I approve the class justification for the acquisition of Medical Disability Examination Services in the estimated total amount of $1.2 billion, on an other than fair opportunity basis, pursuant to the authority cited in Section 41 U.S.C. 3304(a)(2) and implemented by the FAR 6.302-2, Unusual and Compelling Urgency, subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.
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Senior Procurement Executive (003A) Date
Office of Acquisition and Logistics
VA119A17R0059 Department of Veterans Affairs Strategic Acquisition Center Frederick
2/16/17, 12:25 PM