JA NEC IDIQ.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Acquisition Title:

Agency:

Acquisition Year (FY):

Author and Title:

2. Description of Action:

Nature: New Requirement Follow-on Requirement

NEC IDIQ Contractor Pool:

75FCMC18D0043, 75FCMC18D0044,

75FCMC18D0045, 75FCMC18D0046

✔Modification to Existing Purchase Order/Contract Number:

Pricing: ✔ Firm-Fixed Price IDIQ Contract – provides for task order pricing models inclusive of firm-fixed-price and time and materials or any combination.

✔ Time & Materials

Other:

Funds: OMA N/A – No funds required at the IDIQ level.

Other Funds:

Name of Proposed Contractor(s):

75FCMC18D0043:

Daniel J Edelman, Inc.

111 N Canal ST STE 1100 Chicago, IL 60606-7219

75FCMC18D0044:

Ketchum, Inc.

3001 Washington Blvd Arlington, VA 22201-2247

75FCMC18D0045:

Porter Novelli Public Services, Inc.

3050 K ST NW STE 100

Washington, DC 20007-

75FCMC18D0046:

IPG DXTRA, Inc.

(d/b/a Weber Shandwick)

909 3rd AVE FL 7 New York, NY 10022-4764

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: N/A

This justification authorizes a modification to extend the ordering period of the NEC IDIQ Contracts (75FCMC18D0043, 75FCMC18D0044, 75FCMC18D0045, 75FCMC18D0046), awarded to Daniel Edelman, Ketchum, Porter Novelli, and IPG DXTRA as required by FAR 6.303-1(a). As this action is at the IDIQ level, there are no funds or costs associated with the extension.

However, the IDIQ provides for a maximum ceiling of $3,000,000,000.00, inclusive of all costs over the life of all NEC IDIQs combined. This contract action will not change the maximum ceiling amount.

The purpose of the NEC IDIQ is to provide the Centers for Medicare & Medicaid Services (CMS) with a mechanism to support the agency in conducting a full range of activities associated with developing, implementing, and evaluating national integrated communications campaigns. The primarily focus is on conducting a full range of activities associated with executing CMS outreach, education, and communication campaign efforts and initiatives, coordinated with both internal and external stakeholders at a national, regional, state, and local level.

Deborah Lester, Contracting Officer

CMS

National Education Campaign & Outreach Contract (NEC) Indefinite Delivery, Indefinite Quantity (IDIQ) https://www.acquisition.gov/far/part-6#FAR_6_303_1

The current NEC IDIQ contract was awarded in fiscal year 2018 through Full and Open competition to a pool of four contractors. Its period of performance spans from September 1, 2018, through August 31, 2025. The recompetition of the NEC IDIQ is currently underway under solicitation number 75FCMC25R0001, also using Full and Open procedures.

Initially, when the solicitation was officially released, the award date was assumed to be September 1, 2025. Subsequently, solicitation amendment 0003 further updated the anticipated award date to September 9, 2025.

As a result of realized delays, and further anticipated delays in the recompete of the NEC IDIQ, a determination has been made that there is a continued need for the current (FY18) NEC IDIQ, past August 31, 2025. The extension will allow the Government to continue placing orders under the existing IDIQ contract beyond August 31, 2025, for a period not to exceed six (6) months with a 6-month option period. This is a temporary action to maintain critical services while the competitive follow-on IDIQ is finalized and awarded. The extension will provide CMS the ability for the NEC IDIQ to continue to serve as CMS' primary mechanism for supporting national integrated communications campaigns.

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)

The award of the follow-on NEQ IDIQ has been delayed by circumstances that were not reasonably foreseeable during procurement planning for the NEC competition, including a communication hold imposed by the incoming administration and the need for additional time to thoroughly evaluate proposals. Additionally, given the scope and complexity of the new NEC IDIQ procurement, there remains a potential for protest of award. To maintain uninterrupted services while the follow-on contracts are finalized, an extension of the current contract is necessary.

While it is still possible to complete the award in time to allow for a smooth transition, maintaining flexibility by extending the ordering period of the existing NEC IDIQ is a prudent measure. A six-month extension, with an additional six-month option period, is critical to prevent service interruptions prior to the transition to the new competitive NEC IDIQ. To address any potential overlap between the current and new contracts, a clause will be added to the existing NEC IDIQ specifying that any new requirements identified after the start of the new NEC IDIQ ordering period must be fulfilled under the new vehicle.

Allowing the IDIQ to expire before the replacement is in place would disrupt operations and negatively impact mission readiness. Continuing performance with the incumbent contractors will ensure uninterrupted mission support and avoid unnecessary disruptions, hand-offs, and additional transition costs that would result from awarding an interim bridge contract to different vendors. Extending services under the current contract until the new NEC IDIQ contract is fully transitioned ensures operational continuity and represents the most cost-effective and efficient path forward.

The extension does not increase the contract’s ceiling or materially alter its scope. It is a temporary administrative action necessary to ensure acquisition continuity.

The current NEC IDIQ remains the only vehicle that ensures CMS can continue its full range of outreach, education, and communication activities nationwide without interruption.

FAR 6.302-2: Unusual and compelling urgency, 41 U.S.C. 3304(a)(2)

FAR 6.302-5: Authorized or Required by Statute, 41 U.S.C. 3304(a)(5)

Other (See FAR Subpart 6.3 for additional authority)

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

This NEC IDIQ competitive follow-on requirement is currently being recompeted utilizing Full & Open procedures.

https://www.acquisition.gov/far/part-6#FAR_Subpart_6_3 https://www.acquisition.gov/far/part-6#FAR_6_302_1

As a result of the ongoing competitive process, there are no additional actions that need to be taken to increase competition.

6. Bridge Contracts:

N/A

7. Actions to Increase Competition:

CMS has initiated the recompete of the NEC IDIQ under Full and Open competition procedures. While there is a need to extend the current NEC IDIQ to maintain continuity of services, CMS remains committed to awarding the new NEC IDIQ competitively, even though delays in the award are possible. To help promote competition, this modification is intended as a one-time measure to bridge the gap in services between the current and future NEC IDIQ contracts.

The proposed extension includes a 6-month base period, with an optional 6-month extension, allowing CMS flexibility to limit the extension based on actual need. If the competitive award of the new NEC IDIQ is delayed by less than 6 months, CMS does not intend to exercise the optional extension.

To address the possibility of overlap between the current and new NEC IDIQ contracts, a clause will be added to the current NEC IDIQ to ensure that any new requirements identified after the start of the new contract's ordering period are fulfilled under the new vehicle.

A notice of CMS's intent to extend the ordering period of the NEC IDIQ on a sole source basis was published on SAM.gov on May 30, 2025. There were five (5) responses received, discussed in the Market Research section below.

8. Market Research:

Market research was conducted for both the current and upcoming follow-on competition for the NEC IDIQ. As part of this effort, CMS published a Sources Sought Notice on SAM.gov on May 25, 2023, to assess the feasibility of a small business set-aside. Based on the responses received, it was determined that no small businesses possessed the full range of capabilities required to perform as a prime contractor for the NEC IDIQ.

To ensure small business participation, the solicitation required large business prime offerors to submit a subcontracting plan at the IDIQ level. Additionally, a small business utilization evaluation factor was included in the solicitation to encourage meaningful subcontracting opportunities.

The market research also concluded that HHS mandatory-use contracting vehicles were not suitable for fulfilling the NEC IDIQ requirements.

To further engage industry, CMS released a draft Statement of Work for the NEC IDIQ on July 11, 2024. A pre-solicitation conference was subsequently held on July 25, 2025, providing interested vendors an opportunity to receive information and ask questions about the solicitation.

On May 30, 2025, CMS published a notice on SAM.gov announcing its intent to extend the ordering period of the NEC IDIQ on a sole source basis. Five responses were received. After reviewing the submissions, none provided clear, compelling, and convincing evidence that competing the short-term 6-month extension and optional 6-month period would be effective or beneficial to the Government. Initiating a competition, conducting evaluations, and onboarding a new group of contractors for such a brief period, especially while the broader competition is ongoing, would introduce unnecessary risks, including duplication of effort and transition challenges.

SAM.gov SAM.gov

9. Procurement History:

Purchase order or contract number: 75FCMC18D0043, 75FCMC18D0044, 75FCMC18D0045, 75FCMC18D0046

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:

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.

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.

This action pertains to the extension of the NEC IDIQ. There are no costs linked to the IDIQ vehicle, and this action will not raise the IDIQ’s maximum ceiling.

Seth Edlavitch

Program Manager, Division of Campaign Management seth.edlavitch@cms.hhs.gov

410-786-4925

Barbara Johanson

Division Director, Division of Campaign Management barbara.johanson@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

Name: Deborah Lester 410-786-5136 Phone:

Signature: Date: 06/24/2025

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 Lester 410-786-5136 Phone:

Signature: Date: 06/24/2025

14. Legal Review: N/A – J&A < $68M

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:

N/A

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:

Name:

N/A

Phone:

Signature: Date:

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

Name:

N/A

Phone:

Signature: Date:

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

Concur: Non-Concur:

Name:

N/A

Phone:

Signature: Date:

(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:

Name:

N/A

Phone:

Signature: Date: