2. Call Center Bridge (JOFOC - FULLY READABLE)-executed 5.23.22.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Completion Instructions: The Department of Health and Human Services (HHS) has established a standard template for the preparation of a J&A for Other Than Full and Open Competition. If this is an 8(a) set-aside, please note this form is not required unless the acquisition is valued (including all options) at greater than $22 million. This template is NOT applicable for actions using simplified acquisition procedures (FAR Part 13), Federal Supply Schedule orders (FAR 8.4) or task or delivery orders subject to fair opportunity (FAR 16.505).

Tailor all aspects of this template to the individual acquisition. Consult FAR Subpart 6.3 for guidance. An addendum may be added in case additional space is needed.

When this document is printed, the blue italic instructions are automatically deleted on the printed version.

Acquisition Title:

Agency:

Acquisition Year (FY):

Author and Title:

2. Description of Action:

Nature:

New Requirement

Follow-on Requirement ✔

Modification to Existing Purchase Order/Contract Number:

Pricing:

Cost $985,071,807 Firm-Fixed Price Time & Materials

Cost-Plus-Award Fee (CPAF) ✔ Other:

Funds:

Project Numbers 3707 and 1872 OMA ✔ Other Funds:

Name of Proposed Contractor(s): Maximus Federal Services, Inc.

Street Address:

City, State, Zip:

3120 Fairfax Park Drive, Suite 400

Falls Church, VA 22042

Naomi Johnson, Contracting Officer's Representative (COR) CCO

CMS

Contact Center Operations (CCO) Bridge Contract https://www.acquisition.gov/far/part-13 https://www.acquisition.gov/far/part-8#FAR_Subpart_8_4 https://www.acquisition.gov/far/part-16#FAR_16_505 https://www.acquisition.gov/far/part-6#FAR_Subpart_6_3

3. Description of Services or Supplies:

Basis for Approval (FAR 6.303-1(d)): ✔Individual Basis Class Basis

The total estimated value of the proposed action, including all options is $ 985,071,807

As applicable, briefly describe the services or supplies required to meet the agency's needs, including make & model number where appropriate. Include quantities of supplies or period of performance for services. Provide information for any options included. If the action is a modification to an existing contract, distinguish clearly between the work covered by the original contract and the work to be obtained by the proposed modification.

The Centers for Medicare & Medicaid Services (CMS) intends to issue a Bridge Contract to Maximus Federal Services, Inc. (Maximus) for Contact Center Operations (CCO) support. This CCO requirement is currently being re-competed utilizing full and open procedures;

however, the award will not be made in time to allow for an adequate transition period prior to the expiration of the existing CCO contract HHSM-500-2013-00103C (May 31, 2022). CMS requires that these critical CCO services to continue during the time period from May 31, 2022, when the current contract expires, through to the time the follow-on contract is awarded and fully transitioned.

Transition of a call center of this magnitude is extensive and is anticipated to take upwards of approximately 12 months. The Bridge Contract will ensure continued and uninterrupted support of the CMS call center operations until a new contract can be awarded and transitioned.

Since the current CCO being re-competed has an anticipated award date of 8/29/22, the full twelve-month transition will not be completed until 8/29/23, which is 3-months after the 12-month Base Period of the Bridge Contract ends on 05/31/23. Therefore, two (2) 3-month options will be included in the Bridge Contract to accommodate the POP requirement for transition. To illustrate, the Bridge Contract Base Period will commence on 06/01/22 and end on 05/31/23. Option Period 1 will commence on 06/01/23 and end on 08/31/23. The Base Period and Option Period 1 will cover the full 12-months of transition. However, Option Period 2 will be included in this bridge contract to account for any unforeseen delays in this procurement and will be exercised if and only when it is necessary. If exercised, Option Period 2 will commence on 09/01/13 and end on 11/30/23.

The CCO is a toll-free, nation-wide, 24 x 7 contact center with multiple sites that provides customer service and addresses inquiries, which includes 1-800 MEDICARE and the Marketplace (Exchange) call centers (Collectively called Contact Center Operations (CCO)). The operations include offering services across multiple contact channels such as telephone, written correspondence, TDD/TTY, and web chat.

The primary purpose of the proposed Bridge Contract to be awarded on June 1, 2022, for a 12-month base period and two (2) 3-month option periods, is to acquire continued support of CCO operations with an objective of providing customer service functions which efficiently handle and answer inquiries with a high level of service across the United States and its territories. The follow-on contract will be for a base year plus 9 option periods, which includes transition-out, and has an estimated value of approximately $6 billion.

4. Authority and Rationale: Identify the statutory authority, FAR title and FAR citation permitting other than full and open competition. It may be one of the following most commonly used citations by the operating divisions of the Department of Health and Human Services (HHS), but other exceptions may apply per FAR Subpart 6.3.

Actions other than simplified acquisition procedures (select only one and provide an explanation):

✔FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements, 41 U.S.C.

3304(a)(1) Explain why the intended contractor is the only responsible source who can provide the required supplies or s ervices.

Discuss the unique capabilities, expertise, etc. that support the lack of competition/why no other type of supplies or servic es will satisfy agency requirements. Explain factors/unique qualifications such as proprietary data or exclusive licensing rights, if applicable. When competition is limited to items particular to one manufacturer, this justification must explain why the particular brand name, product, or feature is essential to the Government's requirements, and that market research indicate s other companies' similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet the agency's needs in accordance with FAR 11.105. If in connection with a follow-on contract for continued development or production of highly specialized equipment, detail the substantial duplication of cost or unacceptable delays.

Only the incumbent contractor Maximus has the extensive infrastructure and organization in place to provide these services during the time period of this Bridge contract. Given the size and complexity of the CCO, another contractor would be unable to have the necessary infrastructure and organization in place by the expiration of the current COO contract to provide the CCO services during the time between the expiration of the current CCO contract and the new CCO award. Therefore, Maximus is the only contractor that can provide the agency with uninterrupted CMS call center operations support during this time period. In light of this, Maximus, as the incumbent, would be the only contractor that can transition the requirement to any follow-on contractor, a process that will take up to and possibly longer than 12 https://www.acquisition.gov/far/part-6#FAR_6_303_1 https://www.acquisition.gov/far/part-6#FAR_Subpart_6_3 https://www.acquisition.gov/far/part-6#FAR_6_302_1 https://www.acquisition.gov/far/part-11#FAR_11_105 months. By definition, only the incumbent can transition the requirement. The size and complexity of the CCO would require a vast amount of time and funding for any other contractor to transition. Based on past CCO experience CMS estimates between approximately $70M - $140M for transition (depending on the contractor’s level of excess capacity and infrastructure availability). The transition includes but is not limited to:

o Finalizing lease arrangements with facilities for new call center locations o Establishing voice and data connectivity to the facilities (Pre-established at 240 days) o Developing staffing projections and forecasting for upcoming call volumes o Recruiting and hire call center agents (which number in the thousands) o Training and onboarding new agents (each class is 3-5 weeks with staggered classes due to classroom size limitations) o Recommending and implementing changes in training materials and technology to account for potential changes in organization at the call center

Additionally, the CCO interfaces with a complex contracting network made up of training, quality, development, translation services, call routing, print, desktop, and help desk services that support contact center operations; however, all are managed through separate contracts. It would be impossible for CMS to award to any other contractor than the incumbent for this bridge contract due to the infrastructure and organization needed to perform the requirement, the 12-month time frame required for transition of the call center work, and the need to transition/change necessary ancillary agreements, all of which are a result of the magnitude of the effort involved in this requirement.

FAR 6.302-2: Unusual and compelling urgency, 41 U.S.C. 3304(a)(2) If unusual and compelling urgency is the basis for the justification, explain the chronological events leading up to the requirement and explain why time constraints cannot permit even a limited competition. Describe the detrimental effects/ serious injury to the mission of the requiring activity or to the government, financial or otherwise, that will result if this justification is not approved. Describe impact of required delivery/performance date. Describe the detrimental effects/ seriou s injury to the mission of the requiring activity or to the government, financial or otherwise, that will result if this justification is not approved and the product or service cannot be provided by the intended sole source contractor. Failure to plan for expiring funds is not a valid reason for citing this exception. May not exceed one year, including all options, unless the head of the agency determines that exceptional circumstances apply.

FAR 6.302-5: Authorized or Required by Statute, 41 U.S.C. 3304(a)(5) Provide a citation to the statutory authorization and a brief description of its content, or identify the specified source or other agency.

Other (See FAR Subpart 6.3 for additional authority) Provide the authority and citation to the applicable section of FAR 6.3.

Provide a full explanation to justify use of the exception.

5. Agency Actions to Take or Remove Barriers That Led to Other Than Full and Open Competition (If applicable):

Describe the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration prior to any subsequent acquisition for the supplies of services is made. If no such actions have been taken, explain why.

This CCO competitive follow-on requirement is currently being recompeted utilizing full and open procedures. As a result of the ongoing competitive process, there are no additional actions that need to be taken to increase competition.

6. Bridge Contracts:

For contract extensions or bridge contracts when a competitive follow-on is in the process of being developed, summarize history of current contract and explain the reasons for any delays in the acquisition. Include discussion of the milestones f or the follow-on action; the milestones should be as efficient as possible. Discuss why it would be neither cost effective nor realistic to expect another contractor to perform during the brief interim period; include issues such as start -up costs, phase-in, transfer of GFP, recruitment and staffing, etc. If the action is because of a protest, provide a brief discussion of the protest including the date the protest was filed and the basis of the protest. Explain that the action will provide the minimum quant ity or performance period.

History of Current Competition: Procurement planning for the CCO full and open competition began in November 2019 with the posting of a request for information and then a sources sought announcement in January 2020. Capability statements were received and reviewed by February 25, 2020. Beginning in March 2020, essential program resources (i.e., Program Manager, COR and other program support personnel) were required to pivot away from the procurement to address the unprecedented impact of COVID 19 on the call center operations. While procurement planning and preparation such as drafting the solicitation, pre-solicitation Conflict of Interest (COI) memorandum and other pre-solicitation documents, did not completely stop during this period, intended milestones were delayed by several months. By January 2021, a draft RFP was published for comment followed by a pre-solicitation conference in March 2021. Significant interest in the procurement from Congress and special interest groups resulted in a second draft RFP in May 2021. The final solicitation was posted in July 2021. Phase 1 and Phase 2 proposals are now currently being evaluated. However, award is not anticipated by the time that the current contract period of performance ends. Furthermore, the incumbent must participate in the transition of services of this magnitude, and this will take up to and possibly longer than 12 months to accomplish.

Milestones for Bridge Contract: The notice of intent to issue a sole source Bridge Contract was posted on SAM.gov on March 11, 2022.

This J&A provides justification for the sole source Bridge action. The competitive follow-on award will not be made in time to allow for an adequate transition period prior to the end of the existing CCO contract (May 31, 2022). It is anticipated that award of the Bridge Contract will occur on June 1, 2022. Transition of a call center of this magnitude is extensive and is anticipated to take upwards of 12 months. The Bridge Contract will ensure continued and uninterrupted support of the CMS call center operations until a new contract can be awarded and transitioned.

To bring on a new contractor while a competitive process is underway would not be cost effective and would significantly increase the operational risk to the call center operations. Only the incumbent contractor has the extensive logistics and organization in place to provide these services during the time period of this Bridge contract. The size and complexity of the CCO would require a vast amount of time and funding for any other contractor to transition. Based on past CCO experience, CMS estimates between approximately $70M - $140M for transition (depending on the contractor’s level of excess capacity and infrastructure availability).

The amount of time and effort necessary to transition a contractor in and bring them up to operational effectiveness will not meet the Government's immediate needs. By maintaining the current contractor on this Bridge Contract, the need for extensive infrastructure implementation, and training of staff will be nonexistent. Furthermore, the Bridge Contract will eliminate the need for duplicative transition costs, resulting in a significant cost savings to the Government. The Bridge Contract also minimizes disruption to the work being performed.

7. Actions to Increase Competition:

Describe efforts made to compete the action, including whether a notice was or will be publicized as required by FAR Subpart

5.2 or which exception under FAR 5.202 applies. If a notice was publicized, discuss the number of written responses to the synopsis and the results of the assessment of the written responses. List sources, if any, that expressed, in writing, an interest in the acquisition. Provide rationale if interested sources were rejected. If applicable, state that no other sources have expressed interest, but all offers received shall be considered. Describe what actions will be taken to increase competition before subsequent acquisition of the supplies or services is required. You may state that an action is a one-time requirement, but if a similar requirement arises, every effort will be made to compete it to the maximum extent possible. If action is sole source because of proprietary data or licensing rights and there will be a continuing need for the requirement, there must be evidence that advanced planning has been initiated to overcome the barriers to competition, or there should be documentation to support an analysis that replacement costs/licensing purchase costs outweigh the benefits of competition. If the action is a contract extension or bridge, explain actions to compete the follow-on. If action is an urgent new requirement and a competitive follow-on is anticipated, explain that efforts are underway to facilitate a full and open competition.

The CCO requirement is currently being re-competed utilizing full and open procedures however, the award will not be made in time to allow for an adequate transition period prior to the expiration of the existing CCO contract (May 31, 2022). This Bridge Contract is a one-time requirement to continue CCO performance while the work is being recompeted, awarded and transitioned. If a similar requirement arises, every effort will be made to compete it to the maximum extent possible.

A notice of CMS's intent to issue a sole source Bridge Contract was published on SAM.gov on March 11, 2022. There was one response to the notice received from . The CO considered the response but found that it did not show clear, compelling and convincing evidence that competition for the Bridge Contract would be effective and advantageous to the Government. Specifically, while CMS believes https://www.acquisition.gov/far/part-5#FAR_Subpart_5_2 https://www.acquisition.gov/far/part-5#FAR_Subpart_5_2 https://www.acquisition.gov/far/part-5#FAR_5_202 that a realistic transition period will likely take up to 12 months, indicates that it could transition quickly. However, this assertion does not account for transition activities required to establish secure network connections to the center locations.

infrastructure and virtual call

As part of the transition approach, a new contractor would need to work with CMS to establish the necessary network connectivity for voice and data lines. Because we are required to use GSA’s Enterprise Information Services (EIS) contract, the timelines for ordering and implementing these orders is pre-established. Historically we have found that the process takes up to 240 days to order and install new voice and data circuits for new locations. In addition to network connectivity, the following activities also contribute to the transition time frame:

finalizing lease arrangements with facilities for new call center locations; developing staffing projections and forecasting for upcoming call volumes; recruiting and hiring call center agents; training and onboarding new agents; and, recommending and implementing changes in training materials and technology to account for potential changes in organization at the call center. Finally, the CCO interfaces with a complex contracting network made up of training, quality, development, translation services, call routing, print, desktop, and helpdesk services that support contact center operations; however, all are managed through separate contracts. CMS would also need to consider all the various contractors with whom the CCO contractor currently interfaces that would be affected during any transition. For example, if CMS were to transition this workload, a new contractor would need to coordinate and transition various functions such as the National Data Warehouse feeds, Training Delivery workload in collaboration with the Training, and Content contractor, Network Services synchronization, and IVR coordination with Verizon.

CMS also notes that contractor. As such, even if did not participate in the competition for the follow-on contract, therefore it will not be the follow-on were qualified and able to perform the bridge contract (which has not been established), CMS would need to transition twice – once from the incumbent to , and again from to the newly awarded follow-on contractor. This would be wasteful of resources and bring an unnecessary risk to successful performance of the requirement during this time frame.

8. Market Research:

Describe the extent of the market research conducted to identify all qualified sources and the results thereof. “Market Research” is defined as those attempts you made to ascertain whether other qualified sources exist, and can include contact with knowledgeable experts regarding similar or duplicate requirements, contact with industry, results of a sources sought synopsis, or draft solicitations. Research of themarketplace may consist of written, electronic (i.e. email) telephonic, or world wide web inquiries. Lack of advanced planning is not an acceptable reason for the lack of market research, but true urgency may necessitate abbreviated market research that is limited to readily available historical and commercial information. If ac tion is a contract extension or bridge contract, describe the market research efforts underway or completed for the follow-on. See FAR 10.002(b)(2).

For the existing follow-on competitive acquisition, market research was conducted utilizing a Request for Information (RFI) to encourage early involvement of industry in the procurement planning process, a sources sought, two draft RFPs for industry comment and a pre-solicitation conference.

CMS also posted its intent to issue a sole source Bridge Contract on SAM.gov. There was one response received. The CO considered the response but found that it did not show clear, compelling and convincing evidence that competition for the Bridge would be effective and advantageous to the Government.

9. Procurement History:

Purchase order or contract number: HHSM-500-2013-00103C

Was action competed? ✔ Yes

No

If action was not competed, state the cited authority, summarize rationale, and describe the actions that were supposed to be taken to increase competition and the results thereof:

N/A

10. Additional Information to support the justification:

If applicable, explain why technical packages or specifications to facilitate competition were not developed or available;

describe actions taken to remedy the situation.

N/A

11. Technical / Requirements Certification: By my signature below, I certify that the supporting data included in this J&A is accurate and complete.

s https://www.acquisition.gov/far/part-10#FAR_10_002

Program Manager

Name: Robert Pierce

Position Title: Information Technology Specialist (Security)

Email address:

robert.pierce@cms.hhs.gov

Phone: 410-786-5323

Program Manager Supervisor (or one level above Program Manager)

Name: Frances Harmatuk

Position Title: Director, Call Center Operations Group

Email address:

frances.harmatuk@cms.hhs.gov

Signature: Frances Harmatuk -S Digitally signed by Frances Harmatuk -S Date: 2022.04.26 11:11:55 -04'00'

Date:

12. Fair and Reasonable Price/Cost Determination: As Contracting Officer, by my signature below, I hereby determine that the anticipated price/cost to the Government for this contract action will be fair and reasonable.

Provide the basis for this determination, e.g., describe techniques to be used to determine fair and reasonable price (FAR Subpart 15.402), such as price analysis, cost analysis, cost realism. Per FAR Subpart 15.403-4(a)(1), the threshold for obtaining cost or pricing data is $750,000.

The business proposal evaluation will consist of a cost analysis utilizing certified cost or pricing data to determine the reasonableness of the proposed costs. Independent of the cost analysis, a cost realism analysis will also be performed. This process will consist of review and evaluation of specific elements of the offeror‘s proposed cost estimate to determine whether the estimated proposed cost elements are realistic for the work to be performed; reflect a clear understanding of the requirements; are consistent with the unique methods of

Name: Deborah S. Lester Phone: 410-786-5136

Signature:

Digitally signed by Deborah

Deborah Lester -S Lester -S Date: 2022.04.26 11:21:51 -04'00'

13. Contracting Officer's Approval (Required for proposed contract not to exceed $700,000 (value calculated including all options)): I hereby certify that this justification is accurate and complete to the best of my knowledge. I approve this justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Name: Deborah S. Lester Phone:

Signature:

Deborah Lester - Digitally signed by Deborah

Lester -S

S Date: 2022.04.26 11:22:28 -04'00'

14. Legal Review:

All J&As greater than $68 million must have a legal review from the General Law Division of the Office of the General Counsel prior to sending it to the Department.

On April 25, 2022, the Office of the General Counsel reviewed the JOFOC and found it to be legally sufficient.

15. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million (value calculated including all options)):

mailto:robert.pierce@cms.hhs.gov mailto:frances.harmatuk@cms.hhs.gov https://www.acquisition.gov/far/part-15#FAR_15_402 https://www.acquisition.gov/far/part-15#FAR_15_402 https://www.acquisition.gov/far/part-15#FAR_15_403_4

I have reviewed this justification and find that it adequately supports other than full and open competition.

All J&As greater than $68 million must have a review from the Office of Small & Disadvantaged Business Utilization (OSDBU) prior to sending it to the Department. The OSDBU at their discretion may review any J&A.

16. Office of Small and Disadvantaged Business Utilization Review: (Required for contracts exceeding $68 million (value calculated including all options)):

Concur: ✔ Non-Concur:

Name: Anita Allen Phone:

Signature:

Digitally signed by Anita K. Allen

Anita K. Allen -S -S Date: 2022.05.04 12:17:38 -04'00'

Date:

17. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million (value calculated including all options)):

18. Department Competition Advocate (Required for contracts exceeding $68 million (value calculated including all options)):

(The below approval paragraph is required if the cumulative contract value, including all options, exceeds $68 million.)

19. HHS Senior Procurement Executive (SPE) Approval:

Based on the foregoing justification, I hereby approve other than full and open competition for the above stated procurement, subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

State supplies/services being procured:

Sole source Bridge Contract to Maximus Federal for Call Center Operations (CCO) support for a 12 month base period and two (2) 3-month option periods.

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304:

FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements, 41 U.S.C. 3304(a)(1)