Lilongwe LE Staff Insurance 8 mo extension JA (Updated).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 LILONGWE

Requiring Activity

U.S. Embassy Lilongwe LE Staff Health Insurance – scope modification for period of performance of contract 19M16020D0001 per FAR 6.302-1.

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

Embassy Lilongwe is requesting approval to solicit and award on a sole-source basis a modification to extend the period of performance by eight months of contract 19M16020D0001 with Medical Aid Society of Malawi (MASM) for providing Locally Employed Staff Health Insurance as described in Section 3.

The current period of performance ends 31 March 2025. We are seeking an eight-month extension of the period of performance per guidance from Global Acquisitions to allow more time for post to work with GA and GTM to issue a solicitation and award a new contract under full and open competition.

The existing contract is fixed price with economic price adjustment. It was signed 18 November 2019. The total value of the original agreement and all options was $2,883,686, and the value of a previous four-month extension of the period of performance was NTE $250,000, for a total of $3,133,686.

The actual amounts obligated and expected to be obligated are:

- Total obligated through FY24 $2,239,910.20.

- Payments for October and November 2024 (the last two months of the original period of performance) are estimated to be approximately $125,000.

- Payments for the previous four-month extension of the period of performance (December through

March) are estimated to be approximately $246,000.

- The maximum estimated value of the proposed eight-month extension is $500,000.

Together this makes the total amount spent over the life of the agreement expected to be approximately $3,110,910 – below the projected value of the original base contract.

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

The Contractor shall provide the Health Insurance services to employees of the Government of the United States of America in Lilongwe, Malawi as described in Section C and the Exhibits in Section J of the original contract 19M16020D0001 attached hereto.

The estimated value for this eight-month extension is NTE $500,000

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 6.302-1 – Only one responsible source and no other supplies or services will satisfy agency requirements

SECTION 5: DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

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

CITED

MASM is the only responsible source that can meet our requirements, and no other type of supplies or services will satisfy our needs.

Post needs health insurance suitable for the Malawi market, consistent with GTM coverage requirements and our Local Employee Handbook. MASM is the only insurance provider in country currently offering approved, compliant coverage.

No other insurance provider in country has an insurance plan available that meets our specific GTM approved requirements, and modifying off-the-shelf plan would take time.

We need an interim extension to the existing agreement to allow more time for working with GA and GTM to finalize a solicitation to select a new insurance provider via full and open competition – a project we started some two years ago.

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

This eight-month extension of the period of performance of the current agreement is to allow more time for working with GA and GTM to finalize a solicitation to select a new insurance provider via full and open competition. Until we have an GA and GTM approved solicitation for a new contract, we are prohibited from seeking alternative providers of these services.

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 to the Government of the supplies/services covered by this justification will be fair and reasonable based on current contract costs.

The Contractor is offering to maintain current pricing should we proceed with an eight-month extension.

Actual monthly invoices fluctuate based on personnel covered. The detailed price proposal from the Contractor is for $486,8369.12 for the eight-month extension period.

By signing the justification, the Contracting Officer makes a determination that the cost 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

We conducted market research as part of preparing for the full and open competition solicitation under development. Our current coverage requirements are unique and there are no off-the-shelf plans in the market that meet our coverage requirements, so it is not possible to make a direct comparison to our current pricing, but our current coverage cost is assessed to be fair and reasonable for the general market environment. Until we have an GA and GTM approved solicitation for a new contract, we are prohibited from seeking alternative providers of the specific coverages authorized by GTM.

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

COMPETITION

This request is only to extend the existing agreement by eight months to allow more time to develop a solicitation and make an award using full and open competition. Post is prohibited from soliciting other service providers without a solicitation approved by GTM and GA.

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

IN THE ACQUISITION

No other sources expressed interest in the acquisition nor the previous limited extension of the period of performance.

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 intends to use the limited extension of the existing agreement to continue working with GA and GTM to issue a solicitation and award a new contract under full and open competition.

SECTION 12. CERTIFICATIONS

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

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12)) [sic – that is FAR 6.303-2(b)(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.

SIGNATURE:

20 Feb 2025 Mark Palermo Date Contracting Officer and Head of Contracting Activity U.S. Embassy Lilongwe

SECTION 13. APPROVALS

A/GA/AP/PO/FS – Desk Officer

SIGNATURE:

Abdul Malcolm Date Procurement Analyst, AF Desk Officer

A/GA/APD/PO/FS

NOTE: Each review must stipulate and include lower-level signatory concurrence only prior to the higher dollar threshold approval. Signatories shall not exceed FAR or U.S.C. dollar threshold authority.

Approved via email to Post and AF 9 March 2025