JOFOC 75FCMC25RJ040.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: Firm-Fixed Price Time & Materials Cost

Other:

Funds: OMA Other Funds:

Name of Proposed Contractor(s):

Street Address:

City, State, Zip:

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 $

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.

https://www.acquisition.gov/far/part-8#FAR_Subpart_8_4 https://www.acquisition.gov/far/part-13 https://www.acquisition.gov/far/part-16#FAR_16_505 https://www.acquisition.gov/far/part-6#FAR_Subpart_6_3 https://www.acquisition.gov/far/part-6#FAR_6_303_1

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 indicates 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.

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/ 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 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.

https://www.acquisition.gov/far/part-6#FAR_6_302_1 https://www.acquisition.gov/far/part-6#FAR_Subpart_6_3 https://www.acquisition.gov/far/part-11#FAR_11_105 https://www.acquisition.gov/far/part-6#FAR_6_302_2 https://www.acquisition.gov/far/part-6#FAR_6_302_5

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.

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.

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 the marketplace 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).

9. Procurement History:

Purchase order or contract number:

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:

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

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.

11. Technical / Requirements Certification: By my signature below, I certify that the supporting data included in this

J&A is accurate and complete.

Program Manager

Name:

Position Title:

Email address:

Phone:

Program Manager Supervisor (or one level above Program Manager)

Name:

Position Title:

Email address:

Signature:

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.

Name: Phone:

Signature: Date:

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: Phone:

Signature: Date:

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

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.

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

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

Name:

Phone:

Signature:

Date:

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:

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)):

Concur:

Non-Concur:

(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:

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

For the better part of 30 years CMS has been in a contractual relationship to receive macroeconomic consulting services from INFORUM for use in conjunction with the long and short-range economic projections that underlie the Annual Report of the Medicare Trustees and related work product regularly produced by OACT. INFORUM possesses a unique, bottom-up model of the U.S. economy which uses Input-Output data about U.S. Industries at the NAICs level to produce detailed macroeconomic projections. At the behest of CMS the model has been adapted over the years to include a unique picture of the U.S. health sector encompassing both the supply and demand side elements of National Health Expenditures (NHE). The current 5-year macroeconomic consulting contract with INFORUM will expire in September 28, 2025; the expiring contract (like the 5-year contract that preceded it) was the result of a sole source acquisition process. It is proposed that the new acquisition also proceed as a sole source acquisition and that it be structured in exactly the same way as the expiring contact: Purchase of services for an initial contract year followed by four (4) successive option years.

Previous sole source contracts between CMS and INFORUM in both 2010, 2015 and 2020 were preceded by synopsizing the efforts in the Government’s Point of Entry (GPE) website to ensure that no other available sources were capable of meeting the requirement; on each of those occasions CMS did not receive any capability statements or other responses to the synopses. The most recent Sources Sought Notice concerning the requirement was published in SAMS.gov. on June 26, 2025 in accordance with FAR Subpart 5.2.

Since there were no submissions that were deemed capable from the SSN a Notice of Intent to sole source was posted on Sam.gov from July 25 to August 11, 2025. Two vendors submitted capability statements to the NOI that were evaluated by the OACT team and were deemed not capable of completing the requirements stated in the SOW.

Since there were no submissions that were deemed capable from the SSN a Notice of Intent to sole source was posted on Sam.gov from July 25 to August 11, 2025. Two vendors submitted capability statements A's Initiative LLC. and ICA to the NOI that were evaluated by the OACT team and were deemed not capable of completing the requirements stated in the SOW.

(a) Authority.

(1) Citations: 10 U.S.C.2304(c)(1) or 41 U.S.C.3304(a)(1).

(2) When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

Based upon CMS knowledge of the vendor community capable of meeting this requirement as determined through market research, a determination has been made to engage in a sole source award.

Since there were no submissions that were deemed capable a Notice of Intent to sole source was posted on Sam.gov from July 25, 2025 to August 11, 2025. Two vendors submitted capability statements to the NOI and evaluated by the OACT team and were deemed not capable of completing the requirements stated in the SOW.

The capability statement submitted by Zenith provided generalized claims to be in the business of macroeconomic forecasting, but beyond such generalized claims does not provide documentation that the SSN made clear would be needed to evaluate such claims.

Since there were no submissions that were deemed capable from the SSN a Notice of Intent to sole source was posted on Sam.gov from July 25 to August 11, 2025. Two vendors submitted capability statements to the NOI that were evaluated by the OACT team.

A's Initiative LLC. was evaluated and the OACT team and their evaluation response was: The capability statement that has been submitted makes generalized claims to be in the business of developing “data-driven solutions, but makes no claim of being in the business of macroeconomic forecasting. No documentation is provided which would indicate a capability or experience producing macroeconomic forecasts, being entirely unresponsive to the specific requirements of the SSN in that regard.

There is no reference to any macroeconomic model. There is no evidence of any experience in macroeconomic forecasting. There is no information concerning the credentials and experience of personnel which would indicate education or experience with econometric modeling techniques needed to construct and operate a macroeconomic model. The prospective offeror appears to have experience in government contracting in the areas of project management and cybersecurity, but are not evidence of competency in macroeconomic modeling or forecasting.

For the reasons stated the capability statement of A’s Initiative, LLC does not adequately address the detailed requirements of the Sources Sought Notice. The prospective offeror has failed to demonstrate a potential ability to meet the needs of the government.

The evaluation response by the OACT team of the capability statement submitted by ICA was: The capability statement that has been submitted makes specific claims to be in the business of IT management, AI, and generalized research such as production of literature reviews, but does not identify that it has a functioning macroeconomic model in its possession.

There being no macroeconomic model mentioned, obviously there is no description of any of the required model characteristics specified in the SSN. It is clear that the prospective offerer is not in the business of producing macroeconomic forecasts to a broad customer base such as would be expected of someone in the business of macroeconomic forecasting. There is no evidence of any experience with macroeconomic modeling. No written documentation has been submitted to describe any macroeconomic model or the history of its construction, its parameterization and its detailed characteristics. There is no description of personnel credentials that would evidence education or experience with econometric modeling techniques needed to construct and operate a macroeconomic model. The prospective offeror appears to have experience in government contracting in the areas of IT, AI and generalized research, but these are not evidence of capacity to generate a plausible macroeconomic forecast that would meet the needs of the government.