DSH_Sole_Source_FBO.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIROPPORTUNITY

Acquisition Title: Data Services Hub (DSH) operations and Maintenance Seruices

Agency; CMS

Acquisition Year: 2019

Author:

Descr¡ption of Action:

A. Nature

a. _ New Requirement

b. _X_ Follow-On Order c.

Modification of Existing Task Order

B. Order Against

a. HHSM-500-2016-000141

C. Contract Type

a. __ Firm-Fixed Price b.

Time and Materials c.

-X-

Cost Plus Fixed Fee (CPFF)

i. _ Term

ii. _ Completion

d. _ Cost Plus Award Fee (CPAF) e.

other:

D. Projected Cost / Price:

E. The total estimated value ofthe proposed sole source action (for modifications only):

F. Funding Source (s):-TBD-- G. _: Basis forApproval (Far 6,303-1(d)

_X*: lndividual Basis

_: Class Basis

This justification authorìzes and approves an award of a sole source task order for the Data Seruices

Hub (DSH), which will allow for continued development, operation and maintenance support beyond

March 31 , 2019, due to a protest on a compet¡t¡ve procurement.

The DSH is a critical compuler system which enables the continual operation of the Federal Facilitated

Marketplace (FFM). The DSH main role is to enable various federal agency computer systems and databases to communicate with each other, For example, DSH facilitates the gathering and utilization of information when a member of the public logs into the FF|\il to look for and purchase health insurance through the marketplace.

cl\4s awarded the existing DSH task order to QSSI on september 2,2016 as a costplus-Award-Fee (cPAF) sole source tásk order because the procurement to re-compete the DSH requirement took longer than anticipated. The cunent task order expires on March 31 , 2019.

The total dollar amount obllgatêd to date: 9105,117,594,65.

2. Description of Supplies or Services:

The estimated value of the proposed action, including all oplions, is: $

CMS needs contractor support to perform software system maintenance and enhancement services for the DSH while CIVS completes a competitive procurement for the continuation of the DSH services.

CMS is conducting a competitive procurement forthe continuation of the DSH services. An unsuccessful offeror submitted a United States Government Accountability Office (GAO) protest and the GA0 sustained the protest.

The Contracting Officer will add a period for continued operations and maintenance seruices from April 1 , 2019 through December 31 , 2019, thÌs will include opt¡ons to begin transition out earlier if possible.

Therefore, this justification authorizes and approves the total potential period of performance of this task order from April 1 , 2019 through l\4arch 31, 2020.

3. Authority and Rat¡onale:

The Contract¡ng Officer shall give every awardee a fair opportunity to be considered for a delivery/task order exceed¡ng $3,000 unless one of the following statutory except¡ons applies. FAR 16.s05(b)Ì2).

Mark the applicable exception:

The agency need for the supplies or seruices is so urgent that providing a fair opportunity would result in unacceptable delays IFAR 16. b0S(b)(2Xi)(A)];

_X_Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or seruices are unique or highly specialized IFAR 16.505(bX2)(il(B)l;

QSSI is the only responsible source who can immediately provide the required services on site at CMS.

, OSSI is currently serving in this role and has all necessary personnel, knowledge, and skill to operate and maintain the DSH. To bring in a new contractor while a competitive process is underway would be a waste 0f Government resources, significantly increase the operat¡onal risk to the DSH and subsequently the marketplace, and would be quickly replaced as a result of the ongoing competition.

Furthermore, the amount of time and effort necessary to bring a contractor up to QSSI's operational effectiveness will not meet the Governments immediate need. As a result of the aforementioned, QSSI is the only capable source of the required services.

_ 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 IFAR 16.505(b)(2)(i)(C)];

or

_ lt is necessary to place the order to satisfy a minimum guarantee IFAR 16,505(bX2Xi}(D)1, _ A statute expressly authorizes or requires that the purchase be made from a specified source.

4. Any Other Facts Supporting the Justificat¡on

This order will greatly benefit CMS by allowing continuation of the DSH services until a new contractor is on-boarded and by avoiding major disruptions to CMS business and technical staff to focus on

0&M activities, This order will also mitigate the risk for premature loss of essential QSSI technical staff resources and expertise during this period.

5. Efforts to Remove Baniers from Fair Opportunity

The need for the sole source task order is a direct result of a protest. The agency and OPDIV have taken steps to remove barriers to competition as demonstrated that through the ongoing effort to re-compete these services, As a result of the ongoing competit¡ve process, there are no additional actions that need to be taken to increase competition or reduce baniers to fair opportunity.

6. Fair and Reasonable Determinat¡on

By my signature below, after revrew of the relevant documents, I have determined that the order subject to this Justification represents the best value for the Government as set forth in FAR 16.505(bX2X¡iXBX5), and constitutes a fair and reasonable price. The basis for my determination is as follows:

The total estimated cost plus fixed fee price amount of for the order was determined by using the actual prices paid against recent monthly invoices submitted by QSSI under the cunent

DSH task order, The total estimated price for this order falls in line with historical costs incuned for the same effort and therefore, has been determined to be fair and reasonable. ln accordance with FAR 15,403-4, a certificate of current cost or pricing datawill be obtained from the contractor. ln addition, pursuant to FAR '15.404-1, the Contracting Officer will perform cost realism and price analysis on the contractor's proposal to determine that the negotiated price will be fair and reasonable.

Approvals:

Program Office Certification. This is to certify that porlions of this justification have been developed by the undersigned program office personnel, including supporting information and/or data verifuing the Government's minimum needs, schedule requirements and other rationale for Exceptions to Fair Opportunity, which form the basis for this justification.

DamOn L. UnderWOOd Digitally signed by Damon L, Underwood -5-S Date:2019.03.1i r3ì54i45 -04'00'

Contracting officer Representat¡ve (C0R) / Date

R i c a rd o O tt - S 3:1"':i¿,','Jr,:îiiiå:;ii&ï.1

Program/Project Manager (P/PM) / Date

Contracting Officer Certification: This is to certify that the justification for the proposed acquisition has been rev¡ewed and that to the best of my knowledge and belief, the information and/or data provided to support the rationale and recommendation for approval, is accurate and complete.

Digitally signed by Adam T.

Forgione -s

Date: 201 9.03.1 2 07:33:38 -04'00' contracting officer / Date â&4*^-*y-:*-

Additional OAGM Approvals:

I hereby confirm the circumstances described above apply and approve the justification for Exceptions to Fair 0pportunity.

Andrew iä::'J;i:1"j"?, Mummert _S Dãtero]e.03.1207:51:04

OAGM Division D¡rector / Date Digitally signed by Lyandra

LYandra Emmanuel -$ rrñmanuet -s Date: 201 9,03,1 2 14:58:36 -04'00' oAGM Group Director i Date

Head of Contract¡ng Author¡ty (HCA) Approval I hereby confirm that the circumstances described above apply and approve this Justification for Exception(s) to Fair 0pportunity.

Derrick L. Heard -s 3iÌllXï*ü1fi,i$i.:.ii"

HCA Name / Date

Competition Advocate I hereby confirm that the

Approval circumstances

Exception(s) to Fair 0pporlunity.

described above apply and approve this Justification for zlz+ln