04.Justification and Approval (JA)_posted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SECTION 1: IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

Department of State Contracting Activity ☒ Overseas Post Thailand

Requiring Activity Human Resources Office

SECTION 2: NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

Approval is requested to solicit and award on a sole-source basis a contract to Dhipaya Insurance Public Company Limited for the supplies and/or services described in Section 3 on behalf of the Requiring Activity.

This request is for a one-year interim contract to avoid a lapse in the local staff’s health insurance coverage.

This request is for a fixed price with requirements type contract.

SECTION 3: DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

This contract is for health insurance services for local staff employees at U.S. Embassy Bangkok.

Local Staff Health Insurance Coverage April 26, 2026-April 25, 2027 Employees Approximately 1,300

Dependents Approximately 1,300

The estimated value for the entire period of performance is THB (approximately USD).

SECTION 4: IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION

This acquisition is conducted under the authority of 41 USC 3304, as implemented by FAR 6.3 and substantiated by the following: ☒ FAR 6.302-2 – Unusual and compelling urgency.

SECTION 5: DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY

CITED

This Justification and Approval (J&A) seek approval to award a bridge contract to Dhipaya Insurance PCL for Local Employee (LE) Staff Group Medical Coverage (GMC) Health Insurance services. The contract will be awarded under other than full and open competition due to the unique qualifications of the contractor and the challenges encountered conducting market research.

SECTION 6. DESCRIPTION OF EFFORTS TO ENSURE THAT OFFERS WERE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR

WILL BE PUBLICIZED AS REQUIRED BY FAR SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION

UNDER FAR 5.202 APPLIES

For several months, Post worked on a new solicitation through weekly meetings to discuss market research, challenges faced by post, and the overall timeline to have a new solicitation in place. However, the government shutdown impacted post’s efforts; and upon the shutdown’s conclusion, the parties involved discussed that the best way forward given the time constraints would be to put in place another one-year bridge to offer continuity with the existing vendor and enable the accumulation of reliable claims data and current claims management.

Furthermore, this extension would offer post additional time to conduct a fuller market survey in the form of an industry day and align with the new initiatives regarding health insurance contracts.

After the bridge is awarded, Post will publish the JOFOC on sam.gov. Post will then immediately begin working on a new solicitation for a base year and four options years to be fully competed in 2026. The new solicitation for five years would be expected to be published in November 2026.

SECTION 7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT IS FAIR AND REASONABLE

The Contracting Officer has determined the anticipated cost of USD to the Government of the supplies/services covered by this J&A will be fair and reasonable based on comparison to substantially similar items and market prices. By signing the justification, the Contracting Officer makes a determination that the cost of USD to the Government is expected to be fair and reasonable.

SECTION 8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10) AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED

For the CY2026-2031 solicitation, post sent requests for information (RFI) to 10 insurance companies to request cost estimates for group health insurance coverage. As of writing (June 23, 2025), none have provided estimates. The primary reason cited was the lack of sufficient information to generate accurate quotations.

Although we provided employee and dependent demographic data along with the desired coverage details, several insurers stated that this was not enough to proceed. Insurers also requested nine months of claims history from the current insurer, which was unavailable given post is in month 2 of the 12-month bridge contract (CY2025-2026).

Additionally, Post’s HR reached out to several foreign missions in Bangkok to determine how they were providing insurance to their LE staff. There was no standard insurance coverage across the missions. Some missions work through a local broker, others provide coverage through their national healthcare schemes, and others use an off-the-shelf plan that would not work for the U.S. Embassy based on number of individuals covered and minimum coverage levels required by PERT.

SECTION 9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

The cost of the bridge contract will be determined to be fair and reasonable based on historical pricing data and the contractor’s performance under the current contract.

SECTION 10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST

IN THE ACQUISITION

Post was able to locate 10 reputable health insurance providers. It is worth noting that the GMC coverage requirements are significantly more complex and extensive than standard off-the-shelf insurance plans in Thailand. Market research indicated that the estimated premium cost of the type of insurance required by Mission Thailand is 187,249 to 327,451 THB ($5,851 - $10,232) per year per person based on a number of factors.

Company Name POC: Phone POC: Email address Allianz Ayudhya General Insurance 02.638.9333 sopicha.g@allianz.co.th

Muang Thai Life Assurance PCL 02-274-9400 GROUP_MKT2@MUANGTHAI.CO

.TH KHUN SIRICHAT *4210

AIA Group Limited 089.925.9556 ruksiri.sanganan@aia.com

Krungthai-AXA Life Insurance 065-525-5613 woradda.rattanachantra@krungt hai-axa.co.th

AXA Insurance Thailand 065-995-6966 hatainan.ki@axa.co.th (K.

Hatainan Kiatfuengfoo)

Thai Life Insurance PCL 02-642-2930 gm@thailife.com (K.

Watcharanan Sinsup)

Bangkok Life Assurance PCL 02-777-8888 surachok.ton@bangkoklife.com

FWD Life Insurance PCL 02-632-6400 supportcc.th@fwd.com

Generali Thailand 081-304-9444 puthpongm@generali.co.th

Arthur J. Gallagher Risk Management Services, LLC Matthew_Tuman@ajg.com

SECTION 11. STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR

THE SUPPLIES OR SERVICES REQUIRED

Post will continue to explore opportunities to increase competition for future contracts by engaging with providers earlier in the process including an industry day seminar, offering additional support to address linguistic and legal barriers, and considering alternative contract models. Post plans to award a 5-year award under Full and Open Competition in 2026.

SECTION 12. CERTIFICATIONS

All reviews and approvals should be completed in the order listed unless otherwise authorized or required.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(b)) I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

SIGNATURE:

Ramon Menendez-Carreira Date Contracting Officer, U.S. Embassy Bangkok

Requirements Cognizance:

SIGNATURE:

Bic Leu Date Human Resources Officer

LEGAL SUFFICIENCY REVIEW

This J&A is hereby determined to be legally sufficient.

SIGNATURE:

John Cox Date

CERTIFICATIONS (Continued)

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12)) I certify that this submission is accurate to the best of my knowledge, and that it contains complete information necessary to enable other officials to make an informed recommendation for approval or disapproval.

Ramon Menendez-Carreira Date Contracting Officer

Silje M Grimstad Date Management Officer

SECTION 13. APPROVALS

COMPETITION ADVOCATE

Name Date Competition Advocate

HEAD OF THE CONTRACTING ACTIVITY

Lee A. Belland Date

HCA