JOFOC for bridge contract - LES Health Insurance Services.pdf

SENSITIVE BUT UNCLASSIFIED

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (OVERSEAS CONTRACTING ACTIVITIES)

1. I recommend that U.S. Embassy, Abu Dhabi, United Arab Emirates (UAE) use other than full and open competition for Health Insurance Services Contract for the Locally

Employed Staff (LES). The estimated cost is $3,913,548.00.

2. Nature and/or description of the action being approved:

The purpose of this award is to bridge a contract with the incumbent contractor, MetLife Insurance. The Embassy is under the fourth option year of the current Health

Insurance Services Contract which ends on December 31, 2019. Per the current

Contract, 52.217-8, an extension of the services not to exceed 6 months is permissible. However, MetLife cannot exercise 6 months extension, because in accordance with the UAE Law, Healthcare Insurers Manual of the Department of

Health (DOH) of the Emirate of Abu Dhabi, “the health insurance policies will be valid for a minimum of one (1) year from the commencement date of the policy, except the visitor health insurance product”. The health insurance law in the host country also says, “the insurance policies will be valid for 1 year after the date of issuance and should be renewed annually”.

The U.S. Embassy Abu Dhabi’s Human Resources Office began working with

HR/OE on the new health insurance benefits plan for the new contract solicitation.

But there is not enough time to prepare for the solicitation of a new health insurance contract which would allow fair competition processing for competitive contract award. Per HR/OE guidance the new health insurance services solicitations must be based on the Global Medical Coverage (GMC) program. Since the GMC is a new program, it needs careful legal analysis to ensure consistency with the applicable

UAE laws which adds more time to the process.

The bridge contract must be awarded on or before December 8, 2019, to provide enough time for the service provider to continue services for employees and their dependents, and to notify all health-care providers.

3. A description of the supplies or services required to meet the agency’s needs:

To provide Health Insurance Services for all active employees and their dependents within the U.S. Mission (including Embassy Abu Dhabi and Consulate General

Dubai). The medical benefits coverage remains the same as in the current contract.

The incumbent Contractor is ready to continue the same premium rate of the 4th option year for the period of a one-year bridge contract.

4. An identification of the statutory authority permitting other than full and open competition: 41 U.S.C. 3304(a)(2)

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited (for sole source acquisitions; also required for unusual and compelling urgency where more than one offer will not be solicited):

Continuing with the current incumbent Contractor will help to meet the short deadline. Also, the incumbent Contractor’s overall performance was good during the period of the contract and they are willing to continue the health coverage with the same premium rate of the 4th option year.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable:The description should include whether a

FedBizOpps notice was or will be publicized, as required by FAR 5.2, and if not, which exception under FAR 5.202 applies (e.g., blanket waiver provided in DOSAR

605.202-70):

The sole source solicitation will not be publicized in FedBizOpps as this is a “bridge” contract to provide contractual coverage on a noncompetitive basis, due to the expiration of a competitive contract on December 31, 2019, and allow Embassy to complete the re-competition of a new contract. Once the HR/OE authorizes the new

GMC, the Embassy will work with A/OPE for re-soliciting the same service and the requirement will then be publicized.

7. A determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable:

The current insurance provider has confirmed that they will continue with the same terms and conditions of the last option year without an increase in the premium charges. The total estimated premium for one-year bridge contract is $3,913,548.00.

8. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted:

A market survey was not conducted because the Embassy expected to continue either the 6-month extension per the current Contract, 52.217-8, and/or sign a bridge contract. Another reason is that the Embassy did not get an authorization from

HR/OE for the new GMC plan which should substitute the current medical benefits plan.

9. Any other facts supporting the use of other than full and open competition:

FAR 6.302-2, Unusual and compelling urgency. In order to guarantee an uninterrupted medical coverage for all active employees and their dependents, we need to award a bridge contract to the incumbent contractor for the period of one (1) year.

10. A listing of sources, if any that expressed, in writing, an interest in the acquisition:

There is no listing of sources since there is no solicitation conducted.

11. A 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:

N/A

CERTIFICATIONS

I certify that this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition.

_December 3, 2019 ______/signed/______________________

Date Anthony Chang, Contracting Officer

Requirements Office

I certify that this submission is accurate, and that it contains complete information necessary to enable other officials to make an informed recommendation for approval or disapproval.

_ December 3, 2019 ______/signed/______________________

Date Hunter Chen, Human Resources Officer

APPROVAL

Contracting Activity Competition Advocate

(Required for actions exceeding $550,000 but not exceeding $11,500,000)

APPROVED BY:

_ December 3, 2019 ______/signed/______________________

Date Martin Aversa, Deputy Management Counselor