18-10096_Redacted_(J&A).pdf

Subject: J&A 18-10096 Location: Naval Health Clinic New England (NHCNE) Newport, RI

Justification for an Exception to Fair Opportunity

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Identify the agency and contracting activity.

This justification is executed by the Naval Medical Logistics Command, Fort Detrick, Maryland on behalf of Naval Health Clinic New England (NHCNE) Newport, RI hereafter referred to as the medical treatment facility

(MTF).

2. Nature/description of the action/contract type.

Loyal Source Government Services under current NE Physician contract N62645-15-D-5003 is providing a firm fixed priced task orders for; Optometry services (under task order 0003) in support of the Naval Health Clinic New England (NHCNE) Newport, RI at Naval Branch Health Clinic (NBHC) Portsmouth, NH, and Clinical Psychologist services (under task order 0004) at NHCNE Newport, RI. The contract has an ordering period ending 30 September 2019.

3. Description of supplies/services.

Loyal Source is currently providing Optometry (1 FTE) services under current task order N62645-15-D-5003- 0003 with a current period of performance of 01 October 2017 - 30 September 2018.

Loyal Source is currently providing Clinical Psychology (1 FTE) services under current task order N62645-15- D-5003-0004 with a current period of performance of 01 June 2018 through 30 September 2018.

The government intends to execute a bilateral modification to the aforementioned task orders by adding one option period to extend services through 30 September 2019 (for task order 0003), and to extend services through 31 May 2019 (for task order 0004) to allow for the healthcare services to continue at the Medical Treatment Facilities to align with the base contract ordering period extension. A modification will be completed to add an option at the task order level in lieu of issuing a Logical Follow On (LFO). In addition to the inclusion of the option at the task order level, FAR clause 52.217-9 will be updated in task order 0003, allow for twelve additional months of service, and on 0004 to allow for seven additional months of service. Further, the option period will also be exercised under the aforementioned task orders. This modification will be executed bilaterally utilizing the changes clause under FAR 52.243-1 (Alt. 1).

The estimated value of adding options for the aforementioned services on N62645-15-D-5003-0003 is $174,616.00, increasing the total value of the task order to $746,972.80

The estimated value of adding an additional option period for the aforementioned services on N62645-15-D- 5003-0004 is $99,697.56, increasein the total value of the task order to $597,087.48.

4. Identification of the exception to fair opportunity.

FAR 16.505(B)(2)(i)(C) states that, “The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.” An option is being added to the aforementioned task orders instead of issuing logical follow-on task orders due to the administrative ease of adding options. This requirement was originally competed in accordance with the applicable contract ordering procedures. Due to the nature of the acquisition for services currently being performed by the contractor under this MATO, it is in the best interest of the Government to negotiate an option period allowing for the most effective use of resources. Recompeting the services currently being filled would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Such costs include the time of technical and contracting personnel to review and evaluate the requirement, proposal and task order; as well as the costs associated with re-credentialing if a new contractor is chosen. No other vendors under this MATO will be disadvantaged as these services would have been extended through a logical follow-on with the same contractor. The option period will be added to the aforementioned task orders based on there being no change in scope to the current requirement and no changes to the Statement of Work.

5. Determination by the ordering activity Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

In order to determine whether the contractor’s proposed price is fair and reasonable for the additional option period, the Contract Specialist and Contracting Officer will review the proposed price against current market research information available. If the contractor’s proposed price appears to be questionable for reasonableness, a justification from the contractor will be required in order to determine whether the proposed price is fair and reasonable. The Contracting Officer will determine the price to be fair and reasonable before adding the additional option period.

6. Any other facts supporting the justification.

This contractor is successfully providing services and has already worked through recruitment costs and has established a system for tracking and providing staff that works well at the requiring MTF. Changing contractors could require a complete change in current staff, adding the costs associated with reviewing new credentialing packages and conducting orientation (during which time no services are provided).

7. Statement of actions to remove or overcome barriers that led to the exception to fair opportunity.

At this time there are no actions being taken to remove or overcome barriers leading to the exception to fair opportunity under this contract. The current contractor is successfully providing services under this contract. If the contractor does not continue to perform successful services under this contract, then it is possible that these services would be re-competed to all contractors under this MATO through a future competitive task order proposal request (TOPR) to allow contractors to propose pricing and competitively be awarded a task order.

8. By signing in block 11, the Contracting Officer certifies that this justification is accurate and complete to the best of their knowledge and belief.

9. By signing below, the technical or requirements personnel certify that any supporting data that is their responsibility and which forms a basis for the justification is complete and accurate.

TECHNICAL/REQUIREMENTS COGNIZANCE

Vincent Hill Code 05 301-619-8019 Date Program Analyst

LEGAL SUFFICIENCY AND CONCURRENCE

Office of Counsel Code 00L Date

10. By signing in block 11, the Approving Official determines that circumstances at FAR 16.505(b)(2)(i)(C) apply to this task order.

11. Signatures

CONTRACTING OFFICER/APPROVING OFFICIAL below $700,000

Tameka N. Davis Code 05 301-619-1677 Date Contracting Officer