J and A for SAM.gov.pdf

TAB 2 -

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION (J&A)

TO: Atul Gawande, Assistant Administrator, GH/AA

FROM: John Vivalo, Contracting Officer’s Representative , GH/FPR

DATE: March 1, 2024

SUBJECT: Justification and Approval (J&A) for Other than Full and Open Competition to Modify Contract #AID-OAA-I-15-00004/AID-OAA-TO-15-000010, Global Health Supply Chain-Procurement and Supply Management (GHSC-PSM) Task Order 3 Family Planning

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.302-70(b)(3)(i). This document was prepared by GH/PRH/CSL for the GHSC-PSM Family Planning/ Reproductive Health (FP/RH), Task Order 3 (contract AID-OAA-I-15-00004/AID-OAA-TO-15-000010).

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

This is a justification and approval for a non-competitive modification of Task Order Number AID-OAA-TO-15-000010 (“Task Order 3” or “TO3”) under GHSC-PSM. This award is a Cost-Plus-Fixed Fee completion (CPFF) term contract. TO3 was awarded on April 17, 2015 with a total estimated cost (TEC) of $1,113,239,313 and a task order period of performance (PoP) from April 20, 2015 to April 19, 2020. On February 9, 2016, the PoP was extended to November 28, 2020 to account for 223 days of contract performance lost due to the stop work orders resulting from the GAO protest and the subsequent case filed with the Court of Federal Claims.

On November 19, 2019, the TO3 PoP was extended again to November 28, 2023, based on the approved Action Memorandum dated July 15, 2019. Because the initial IDIQ was competitively awarded, the TO3 could be extended within the ordering period without requiring competition. The extension was meant to ensure the continuity of services during the GHSC-PSM follow-on contract design and award period. The extension also reduced the TEC to $672,319,913, and increased the LOE to 3,193,571 hours in support of field operations, and 747,000 hours in support of Headquarters operations.

Most recently, on August 22 2023, TO3 was extended to November 28, 2024; the TEC was increased from $672,319,913 to $753,794,114, and LOE increased to 3,319,731 hours in support of field operations and 747,000 hours in support of Headquarters operations.

The actions proposed here are to: 1) extend the PoP from November 28, 2024 to November 28, 2026; 2) increase the LOE in support of field operations by 830,978 hours from 3,319,731 hours to 4,150,709 hours; 3) increase the LOE in support of headquarters operations by 233,407 hours from 747,000 hours to 980,407 hours; and 4) increase the total estimated cost by $289,637,152 from $753,794,114 to $1,043,431,266. Under this action, Chemonics will continue to provide procurement and supply chain management technical assistance for family planning and reproductive health (FP/RH) commodities for USAID-supported countries.

The USAID GHSC-PSM project, Single Award Indefinite Delivery Indefinite Quantity (IDIQ) Contract promotes an uninterrupted supply of health commodities to prevent suffering, save lives, and create a brighter future for families across the globe. There are five Task Orders (TOs) under the IDIQ: TO3 which provides commodities and technical assistance related to FP/RH.

GHSC-PSM TO3 directly supports the Office of Population and Reproductive Health’s priority to ensure access and long-term availability of a wide range of high-quality contraceptives and family planning/reproductive health commodities for women, men, and youth to choose through public and private services. By providing these commodities and technical assistance to country governments and other key public and private sector stakeholders, improvement is reflected in forecasting and supply planning, procurement, distribution, quality assurance, and other supply chain functions. The project currently procures and delivers FP/RH commodities to 24 USAID supported countries and supports 20 countries with field offices that provide supply chain technical assistance/distribution assistance.

3. Description of the supplies or services required, including an estimated value:

Based on the current TO3 burn rate, the additional supplies and services require a TEC increase of $289,637,152 to absorb the additional requested 24 months of activities. The LOE in support of field operations will need to increase by 830,978 hours from 3,319,731 hours to 4,150,709 hours, and the LOE in support of headquarters operations, central procurement, and headquarters support to field programs will need to increase by 233,407 hours from 747,000 hours to 980,407 hours.

In FY23, TO3 operated in multiple countries throughout sub-Saharan Africa (inclusive of Madagascar), Asia, and Latin America/Caribbean with the mandate to supply FP/RH commodities and/or provide supply chain technical assistance. Each of these programs relies heavily on the availability of FP/RH commodities. It is expected that most or all of these programs will continue to require TO3 services during the proposed extension period.

GHSC-PSM TO3 currently ends on November 28, 2024. The current TEC of TO3 is $753,794,114. The design and solicitation of the follow-on contracts are underway. USAID is replacing the current

Global Health Supply Chain Program with the Next Generation Global Health Supply Chain Suite of Programs (NextGen), and the solicitations for the NextGen contracts are underway. However, absent an extension in TO3, the expected award dates will result in insufficient overlap and a gap in FP/RH commodity procurement and delivery services resulting in an interruption of services. The last date of order entry for some countries is fast approaching, depending on the lead time to the destination. USAID presumes the last order to arrive by September 30, 2024 to allow for all residual costs to be invoiced, booked, and paid for by TO3’s current end date. The last orders entered for GHSC-PSM TO3 will occur on average 27-57 weeks prior to the last delivery date. These last order entry dates significantly predate when the NextGen awards will be fully operational and able to accept and process orders.

4. Statutory authority permitting other than full and open competition:

This action is requested under the authority of AIDAR 706.302-70(b)(3)(i) which states “An award for which the Assistant Administrator responsible for the project or program makes a formal written determination, with supporting findings, that compliance with full and open competition procedures would impair foreign assistance objectives, and would be inconsistent with the fulfillment of the foreign assistance program.”

5. The nature of the acquisition requires use of the authority cited:

The principal reason for the extension to GHSC-PSM TO3 is to avoid impairment of the U.S.

Government’s foreign assistance objectives in global health, in particular to prevent child and maternal deaths. Ensuring the availability of FP/RH commodities is a critical input to achieving these objectives. The proposed extension is needed to ensure that there is no disruption in ensuring access to a range of high-quality contraceptives and FP/RH commodities and supply chain technical assistance to country programs during USAID’s transition from the GHSC Program to the NextGen follow-on contracts. USAID is the second largest procurer of commodities worldwide in support of country FP/RH programs. A gap in the services provided by TO3 risks significant disruption in these critical, lifesaving programs. It is imperative that the NextGen follow-on contractors have adequate time to assume 100% responsibility for USAID’s FP/RH commodity supply chain from the incumbent contractor. There is now an unacceptably high probability of not ensuring adequate time, which could result in an interruption of FP/RH supply of commodities to countries unless the GHSC-PSM TO3 is extended to November 2026.

It is imperative that the NextGen follow-on contractors have adequate time to assume 100% responsibility for USAID’s global health commodity supply chain from the incumbent contractor.

Experience has taught USAID that a transition and overlap period of 18 months is required for the new contractor(s) to assume full responsibility. One of the lessons learned during the transition from the previous DELIVER contract to the GHSC-PSM project was that the 12-month overlap was not sufficient for a flexible transition period to ensure a seamless supply of FP/RH commodities and services. A House Foreign Affairs Committee investigation into performance challenges early in the GHSC-PSM project noted that a longer overlap period would have helped manage the transition and recommended a longer period of overlap for future supply chain programs. The transition will be a gradual process, through which the new contractor(s) will be given increasingly greater responsibility while GHSC-PSM will continue to serve a role in ensuring adequate supplies needed to avert possible stock outs and/or meet other important requirements, resulting in the new contractor(s) eventually having 100% responsibility for the next iteration of USAID’s supply chain program.

To provide the needed flexibility, USAID is planning for an overlap period of at least 18 months, with the transition expected to begin in May 2024, to allow the new contractor(s) to plan, implement and complete an orderly transition by November 2026. GHSC-PSM TO3 will be transitioning activities to at least four of the NextGen awards -- Comprehensive Technical Assistance for Health Supply Chain and Pharmaceutical Management (CompTA) IDIQs awarded January 2024, with the Task Order awards expected later in 2024; Procurement Service Agent-Malaria, Family Planning and Reproductive Health, Maternal and Child Health and Nutrition and Other Health Elements (Integrated PSA) expected in May 2024; In-country Logistics (ICL) expected in December 2024; and Qualifying Testing Issuing (QuTI) expected in May 2024. Given the commodity procurement lead times associated with family planning commodities and the projected award dates for these NextGen awards and expected start up period, an extension for TO3 is needed until November 2026. This extension will provide a minimum period to allow for these and other NextGen awards to be made, start-up of operations of the new awards, and a transition period of at least 18 months.

Most importantly, GHSC-PSM will begin placing last orders for countries approximately 18 months prior to the proposed extension date of November 2026, to ensure that final deliveries are made prior to the end of period of the extension. This aligns with the lead time necessary for the incumbent to place orders with suppliers, for suppliers to make commodities ready at places of origin and to complete the international transportation necessary to deliver those shipments to partner countries. This will better enable a seamless transition to the NextGen procurement service agents and technical assistance awards.

It is important to extend the period of performance and increase the TEC and LOE now to provide timely assurance to Missions that these services will continue to be available to them as part of an orderly and seamless Bureau for Global Health (GH) and Mission transition to the NextGen contracts.

In addition to the time it would take for open competition, it would take an implementing partner up to a year to establish the needed procurement systems and competitively award subcontracts with suppliers and establish field offices. This competitive process is already underway for the NextGen awards. With the transition timeline unlikely to be completed by November 2024, it is critical that GHSC-PSM TO3 is allowed to begin to renegotiate and/or extend subcontracts now, and allow manufacturers to plan extended manufacturing schedules with sufficient lead time for FP/RH commodities. Finally, the GHSC-PSM TO3 and other GHSC contractors will need approximately three months for in-country and HQ office close-out during which no additional procurement or technical assistance will be undertaken.

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

Given the nature of the action, solicitation of offers from other sources is not applicable. Publication of a notice to amend the contract is not required per the determination at AIDAR §705.202(b). See Section 9 below for further justification.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer has determined that the anticipated cost or price of the additional quantities of supplies/services to be acquired from Chemonics International, and covered by this J&A, will be fair and reasonable. This anticipated cost is based on an Independent Government Cost Estimate (IGCE) prepared by the COR and the historical costs incurred under the current contract.

There is no change in the scope of work. All previously-incurred costs were determined to be fair and reasonable.

8. Description of the market research conducted, and the results or a statement of the reasons market research was not conducted:

Additional market research was not conducted because, as discussed above, the extension is intended to provide continuity of services and a seamless transition to the NextGen follow-on contracts.

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

USAID considered the option of awarding a bridge contract using full and open competition, which could allow the Agency to obtain additional value or better contractual terms, but concluded that this is not a viable alternative. Any potential benefits are offset by the associated risk to the program as a result of multiple transitions, as well as the cost of start-up and close-out of a new contract in such a short period of time. With a program that is established in multiple countries and across multiple task orders, supported by a management information system that is operational and responsive to client countries’ needs, GHSC-PSM could not transition to a bridge contract in the near term without significant disruptions to the health commodity ordering and delivery, as well as provision of technical assistance. Other unacceptable risks that may threaten human lives (i.e., an impairment of a foreign aid objective) during a bridge contract and thus preclude other sources from practicably competing for this requirement include: the risk of significant delayed deliveries potentially leading to stock-outs in life saving commodities for women and girls; untested quality control practices; and incalculable time and resources dedicated to establishing complex new subcontracts and training for a new ordering platform and/or information system.

In addition to the gaps in service noted above, there is also an inherent risk associated with unforeseen challenges and costs of multiple transitions. Each transition adds complexity and risk to

JOHN JOSEPH

VIVALO (affiliate) Date: 2024.03.27 16:02:55 -04'00'

ROBERT PATRICK PATRICK COMBS (affiliate)

COMBS (affiliate)

-04'00' the seamless supply chain of life saving commodities. Therefore, the best and most viable option is an extension of the current task order through November of 2026 to allow time for the NextGen awards discussed above to be awarded and for activities to fully transition.

10. Sources, if any, that expressed an interest, in writing, in the acquisition:

None.

11. The actions the Agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

USAID is in the process of competing the follow-on to the GHSC-PSM contract and all the other NextGen contracts for the same or similar services of the GHSC Program.

12. Technical or Requirements Personnel Certification:

In accordance with FAR 6.303-1(c), I hereby certify that the technical statements included above and which form a basis for the justification are complete and accurate.

John Vivalo, Technical Office Representative Date

13. Contracting Officer Certification:

In accordance with FAR 6.303, I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Robert Combs, Contracting Officer Date