5.1.1-P00005_JOFOC_PBM_Options_Redacted.pdf

OFFICE OF ACQUISITION MANAGEMENT

ICE Acquisition Manual 3006.301-90

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 USC 3304 (A): USE OF NONCOMPETITIVE PROCEDURES

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(e) Type of funding: Determined when the option period is exercised.

(f) Year of funding: Determined when the option period is exercised

(g) Solicitation Number: N/A

(h) Background information about the requirement:

IHSC is responsible for providing health care services to illegal aliens (IAs) that are detained in facilities across the country. This care involves providing prescription medications to IAs. In order to support IAs’ pharmaceutical needs, ICE requires the support of a Pharmacy Benefit Manager (PBM).

3. Description of Supplies/Services.

IHSC requires ongoing support to ensure IAs have access to medically necessary prescription medications. This support, which was historically provided by the Veteran’s Administration (VA) Financial Services Center (VAFSC), was terminated by the VA on October 3, 2025. PBM support ensures IAs can continue receive both routine and life-saving medications. ICE requires uninterrupted PBM support to avoid any gaps in access to critical life-saving prescription medications. Therefore, ICE intends to add two (2), 12-month option periods and four (4), 6-month option periods to the contract to ensure continuity of these essential services.

4. Identification of statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. §3304 as implemented by FAR Subpart 6.103-1 (FAR Class Deviation 25-11) entitled “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Identification of Exception to the Buy American Statute

Not applicable.

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Ardent Group is the only responsible source that can immediately satisfy the Agency’s needs, provide continuous PBM support for the detainee population, and mitigate the risks associated with a lapse in services. Ardent is currently providing PBM support to IHSC and is positioned to seamlessly continue these services without interruption, thereby ensuring continuity of operations and consistent access to prescription medications. This ongoing support will prevent operational disruptions and a gap in support while ICE completes a reassessment of current requirements, operational capacity, related processes, conduct a re-competition of the effort, etc.

As described below, any lapse in PBM support would create immediate and significant risks to

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IHSC operations and to the health and safety of the detained population. Maintaining support through Ardent mitigates these risks because the contractor is already performing the required PBM services, has the necessary operational framework in place, and can continue support without delays or implementation risks.

Additionally, Ardent has fully transitioned into performance and is integrated into IHSC’s PBM-related processes, information flows, claims coordination, pharmacy network support, reporting, training, and operational workflows. Ardent also has direct experience with IHSC’s business rules, prescription benefit requirements, formulary considerations, utilization management processes, and coordination requirements for the detained population. This experience enables the most rapid and reliable continuation of PBM services, avoids the implementation and onboarding time that would be required for a new vendor, and minimizes the risk of service disruption. No other contractor can immediately provide this support because transitioning PBM services to a new provider would require multiple complex and time-sensitive activities before full performance could begin. For example, a new contractor would need to complete transition-in activities such as coordinating with the incumbent for knowledge transfer, becoming familiar with ICE and IHSC procedures, configuring benefit plan requirements, establishing or validating pharmacy network access, implementing claims adjudication processes, aligning formulary and prior authorization procedures, validating data exchange and reporting requirements, training applicable personnel, and coordinating support across multiple detention facilities. These activities would require an extended period to complete and would prevent an alternate vendor from immediately providing uninterrupted PBM support. Ardent is the only responsible source capable of immediately and continuously meeting ICE’s PBM requirements because it is the incumbent provider and has already completed the necessary transition, integration, and implementation activities.

Further, the abrupt termination of the prior VA agreement caused significant organizational disruption for ICE, as the Agency had previously fulfilled its operational needs through the VA partnership. Therefore, ICE is conducting a comprehensive assessment of its current requirements, evaluating operational capacity to determine how best to internally satisfy various needs, and reviewing related processes. This effort aims to ensure that the Agency is better positioned to address future challenges, optimize resource allocation, and enhance overall effectiveness moving forward. Conducting this assessment and evaluating these processes will require a thorough and deliberate approach and will take time to complete to ensure accuracy and effectiveness. It is not anticipated that this effort will be completed, nor will a re-competition be fully completed before expiration of the current contract. Therefore, continued support is needed to mitigate the significant risk of a lapse in support while ICE completes the above activities.

Specific risks of a lapse in support include:

• Interruption of medically necessary medications: IAs may be unable to receive routine, urgent, or life-sustaining prescriptions in a timely manner. IAs already stabilized on prescribed medications may experience adverse reactions or worsening symptoms due to interrupted treatment.

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• Operational disruption at detention centers: Medical staff may need to devote substantial time to manual workarounds, emergency procurements, or case-by-case coordination with pharmacies, reducing clinical capacity.

• Risk to life and health: Lack of PBM clinical review may increase the risk of drug interactions, duplicate therapies, contraindications, inappropriate dosing, or medication errors. Additionally, delays in access to medications for chronic, acute, or life-threatening conditions could result in severe deterioration, hospitalization, or death.

• Public health risk: Delayed treatment for communicable diseases or other conditions requiring consistent medication could increase the risk of transmission, outbreaks, or broader health impacts within detention settings

• Compliance and oversight concerns: A lapse may impair ICE’s ability to meet applicable detention standards, health care obligations, contract requirements, and internal oversight expectations related to timely access to care.

• Transition and implementation delays: If PBM services lapse before a successor arrangement is in place, onboarding a new vendor, establishing pharmacy network access, loading formularies, and configuring claims systems could take significant time.

As evidenced by the above risks, these are critical services and it is imperative there is no gap in support.

Additionally, an overlapping transition period is necessary to enable parallel performance between Ardent and a future PBM provider, facilitate thorough knowledge transfer, validate pharmacy network access and claims adjudication processes, configure and test eligibility, formulary, prior authorization, utilization management, billing, and reporting requirements, and ensure all required coordination and training are completed before any transfer of responsibility.

These transition activities are critical to reducing the risk of service disruption, maintaining timely access to prescription medications, supporting continuity of care for individuals in ICE custody, and ensuring a controlled and orderly transition to a future competitively awarded contract.

Given the complexity of the services and the multiple phases involved, the above described efforts are expected to require significant time to successfully complete. Also, taking into account the complexity of the requirements, there could be unexpected delays in both the re-competition and transition process. As previously noted, there can be no gap in these critical services due to the plethora of risks outlined above. Therefore, to ensure an effective re-competition is conducted, allow adequate transition time for a vendor to successfully assume responsibilities, safeguard against unexpected delays, and to prevent any gap in this critical support, ICE is adding option periods. Additionally, option periods are not guaranteed, and the government is not required to exercise all option periods which gives ICE flexibility to end this contract early if an incoming vendor is able to transition-in sooner than expected. This is why the later option periods are limited to six (6) months rather than twelve (12) months.

As outlined above, Ardent is the only source capable of immediately and continuously providing PBM support while ICE completes its internal assessment, conducts a follow-on competition, and ensures overlapping transition support for any successor contractor. Maintaining support with Ardent through the addition of option periods will preserve continuity of PBM services and

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 USC 3304 (A): USE OF NONCOMPETITIVE PROCEDURES

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7. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

OAQ publicized this requirement, prior to award, as required by subpart 5.101(a) (FAR Class Deviation 25-17) by posting a notice on sam.gov. Publication was made on September 2, 2026.

8. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer determines that the anticipated price(s) will be fair and reasonable based on comparison to historical prices paid for same or similar services. The determination will be in the file.

9. Description of Market Research.

ICE posted an RFI to the System for Award Management (SAM) on June 16, 2026, which focused only on PBM support. The RFI was posted the same day the contract with Ardent was definitized.

The CO received some engagement from industry in response to the RFI. While there was some interest, for the reasons already cited above, Ardent remains the only contractor that can immediately provide support while ICE continues to spearhead their market research and re-competition efforts.

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

None.

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

As previously noted, ICE published an RFI to spearhead market research for the re-competition of this contract. ICE also publicized this requirement in accordance with FAR 5.101(a) (FAR Class Deviation 25-17). The companies below expressed interest:

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12. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for supplies or services required.

ICE is actively performing all acquisition activities relating to competitively awarding a contract for the above-described support. Once award is made, ICE will have support in place which will eliminate the need for any subsequent justifications.