class JA_Coronavirus response_eSigned (002).pdf

Justification for other Than Full and Open Competition

“Source Selection Information- see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity.

a. Federal agency and contracting activity. HHS

Health & Human Services/Assistant Secretary for Preparedness and Response/Office of Resource

Management/Division of Strategic National Stockpile (HHS/ASPR/ORM/DSNS)

b. Sponsoring organization.

HHS/ASPR/ORM/DSNS

c. Project Officer Information.

i. Project Officer Name. David Kelley

ii. Mailing address. 2945 Flowers Rd. S. Atlanta, GA 30341

iii. E-mail address. Vrb7@cdc.gov

iv. Telephone number. (404) 639-2662

2. Nature and/or description of the action being approved.

Requesting a class Justification & Approval (J&A) in accordance with 6.302-2, Unusual and Compelling Urgency for the below group of contract actions supporting the 2019 Novel Coronavirus 2019-n-cov. This class J&A is needed for the first days of the initial response phase which is approximately 30 days.

Commodity Contractors Contract Type

Estimated Contract value

Period of Award

Contract Performance

Transportation Services Estes Express

Firm-Fixed Price $2,000,000

6 Feb

Base Period 6 months + one 6 month option period

Transportation Services C.H.

Robinson

Firm-Fixed Price $2,000,000

6 Feb

Base Period 6 months + one 6 month option period

MedSurge-Pharmaceuticals McKesson Firm-Fixed Price $1,000,000

6 Feb

Base Period 6 months + one 6 month option period

Repair and Maintenance Support Service Contracts for Equipment Agiliti

Firm-Fixed Price $2,000,000

7 Feb

Base Period 6 months + one 6 month option period

Medical Resupply -NDMS Cache and other Related Medical Supplies Cardinal

Firm-Fixed Price $1,000,000

10 Feb

Base Period 6 months + one 6 month option period

Medical Resupply -NDMS Cache and other Related Medical Supplies Medline

Firm-Fixed Price $1,000,000

10 Feb

Base Period 6 months + one 6 month option period

a. Acquisition purposes and objectives.

The requirement is to purchase critically needed pharmaceutical items, medical supply products, repair and maintenance support contracts for medical equipment, decontamination services, Pharmaceuticals-PPE and transportation services to respond to the Novel Coronavirus (2019-nCOV) global outbreak. These items are needed to support the current and future repatriation sites with the current locations being in California, Texas, Alaska, and Nebraska, as well as emerging needs as the coronavirus spreads in the general population. There is an immediate need for medical supplies, equipment, pharmaceuticals, transportation, and related services to be deployed at repatriation sites identified by medical officials and public health experts to contain the outbreak.

CDC, under statutory authority of the HHS Secretary, has issued federal quarantine orders for all passengers inbound from China. Those quarantined will be monitored and treated by various health officials to prevent further transmission of this virus. The quarantine will last 14 days from when each plane departs China and sufficient support is needed to ensure the safety of not only the health officials and those repatriated but also their families and the American Public. The impact that the Coronavirus is expected to have on the public health will result in the need for similar supplies and services to protect American citizens.

On January 30, 2020, the International Health Regulations Emergency Committee of the World Health

Organization declared the outbreak a “Public Health Emergency of International Concern” (PHEIC). On January

31, 2020 Health and Human Services Secretary Alex M. Azar II declared a Public Health Emergency (PHE) for the United States to aid the nation’s healthcare community in responding to 2019-nCoV. Also, on January 31, the

President of the United States signed a presidential “Proclamation on Suspension of Entry as Immigrants and

Nonimmigrants of Persons who Pose a Risk of Transmitting 2019 Novel Coronavirus”. These measures were announced at a press briefing by members of the President’s Coronavirus Task Force.

b. Project background.

This justification for unusual and compelling urgency is due to the public health emergency caused by the

Coronavirus, which was declared as a public health emergency of international concern by the World Health

Organization.

Three additional cases of the new coronavirus were confirmed in the U.S. on Sunday, February 2, 2020, all in

California. As of February 5, 2020, the number of people in the country with the disease totaled 11. Additionally, as of Wednesday, February 5, 2020, there were at least 20,628 confirmed cases in more than two dozen countries, the vast majority of them in China, according to the World Health Organization. There have been 425 deaths, the vast majority of them in China; there was one confirmed death in the Philippines on February 3, 2020.

The ultimate spread, length of time, and severity of the coronavirus outbreak is unknown at this time, but it is anticipated that the coronavirus will spread exponentially, which is the typical pattern for an epidemic. As a point of reference, the 2009 H1N1 Pandemic was declared a public health emergency of international concern by WHO on April 25, 2009 and WHO announced the end of 2009 H1N1 influenza pandemic on August 11, 2010.

https://www.cdc.gov/flu/pandemic-resources/2009-pandemic-timeline.html

This duration of almost 16 months occurred even though there are effective vaccines and treatments for influenza.

In contract, there are currently no known treatments or vaccines for coronavirus.

Decontamination TBD TBD $5,000,000 10 Feb

Base Period 6 months + one 6 month option period

Other MedSurge-Pharmaceuticals-PPE Multiple Firm-Fixed Price $2,000,000 TBD

Base Period 6 months + one 6 month option period

2019-nCoV is a betacoronavirus, like MERS and SARS, all of which have their origins in bats. The sequences from U.S. patients are similar to the one that China initially posted, suggesting a likely single, recent emergence of this virus from an animal reservoir.

Chinese officials report that sustained person-to-person spread in the community is occurring in China. Person-to-person spread has been reported outside China, including in the United States and other countries. In addition, cases asymptomatic spread of the virus have been reported.

Outbreaks of novel virus infections among people are always of public health concern. The risk from these outbreaks depends on characteristics of the virus, including whether and how well it spreads between people, the severity of resulting illness, and the medical or other measures available to control the impact of the virus (for example, vaccine or treatment medications).

This is a serious public health threat. The fact that this virus has caused severe illness and sustained person-to-person spread in China is concerning, but it’s unclear how the situation in the United States will unfold at this time.

The risk to individuals is dependent on exposure. At this time, some people will have an increased risk of infection, for example healthcare workers caring for 2019-nCoV patients and other close contacts. For the general

American public, who are unlikely to be exposed to this virus, the immediate health risk from 2019-nCoV is considered low. The goal of the ongoing U.S. public health response is to prevent sustained spread of 2019-nCov in this country.

The Division of Strategic National Stockpile (DSNS) has a requirement to provide medical and pharmaceutical related material to various locations across the US during this public health emergency and response effort. DSNS anticipates receiving Mission Assignments from HHS to purchase and distribute required product and equipment.

Any delay in providing critical medical supplies and equipment could cause irreparable harm and put American citizens at an increased risk of transmission and exposure. Every effort must be made to provide this product to the location of need in the most expedient manner. Additional vendor(s) are needed to ensure the Government can transport lifesaving medical supplies to the affected areas.

3. Description of the supplies or services required to meet the agency’s needs (including estimated value).

a. Project title. Coronavirus Response- Pharmaceutical PPE, Decontamination Services, Transportation

Services, Support Service Contracts, Resupply and other medical related supply products.

b. Project description.

The ASPR/DSNS is working in tandem with HHS, CDC, and other Federal Agencies which, among others, are providing disaster medical assistance teams to provide medical relief and assistance to those current areas impacted by the Coronavirus. In support of these efforts, the DSNS has been tasked with delivery and sustainment of medical caches. The Government is in urgent need of these contract supplies and services to deliver potentially lifesaving and preventative medical countermeasures.

The Program Office has been requesting availability of transportation assets from various sources.

ASPR/SNS will utilize the current contracts with UPS, FedEx, and Panther, to the fullest extent possible before using C.H. Robinson or Estes Express. ASPR/SNS has been challenged with timely responses from

UPS, FedEx and Panther. The Program must have a redundancy capability built into the transportation requirement. Estes Express and C.H. Robinson partnership provides the ASPR-SNS with enhanced transportation capabilities to support mission critical movement of life sustaining products to impacted communities nationwide.

There is an immediate and on-going request for MedSurge and Pharmaceutical items in order to sustain the current supplies deployed to the field. ASPR/SNS will utilize existing contract vehicles for these supplies to the fullest extent possible before using Cardinal Health, Medline, and other sources. The Program Office must have this redundancy capability in order to meet the requirements given the anticipated volume of product requests and current shortages in the market place.

•••• Requirement type.

Research & development (R&D)

R & D support services

Support services (non-R&D)

Supplies/equipment

Information technology (IT)

Construction

Architect-engineer (A & E) services

Design-build

Other (specify):

•••• Type of action.

New requirement

Follow-on

Other (specify):

•••• Proposed contract/order type.

Firm-fixed-price

Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee):

Cost-plus-fixed-fee

Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee):

Time and materials

Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________

Other (specify): ___________

Completion Form Term form

•••• Acquisition identification number.

b. Total estimated dollar value and performance/delivery period.

The estimated value of these services is $16,000,000.00 based upon the estimates shown above and historical information from federal presidentially declared responses for similar public health emergencies such as Zika and H1N1. The needs and extent of services will continue to evolve as the virus spreads across the nation. In the face of a potential public health disaster, the exact needs and locations can change rapidly due to new information and therefore the planned emergency acquisitions under this Class J&A takes this into account in estimating the value. This class J &A if for all supplies and other related services under Section 2- Nature and/or description of the actions being approved. The exact length and breadth of this response cannot be determined at this time and therefore, these services are being requested for a base period of 6 months and one (1) 6-month option period. This is consistent with FAR 6.302-2(d)(ii).

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

This acquisition is conducted under the authority of 41 United States Code (U.S.C.) 253(c)(1) as set forth in Federal Acquisition Regulation (FAR) 6.302- 2 Unusual and compelling urgency.

This acquisition is conducted under the authority of section 4202 of the Clinger-Cohen Act of

1996.

This acquisition is conducted under the authority of the Services Acquisition Reform Act of 2003

(41 U.S.C. 428a).

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s).

Commodity Contractors Address Contract Type

Estimated Contract value

Period of Award

Contract Performance

Transportation Services Estes Express

3901 West Broad Street, Richmond, VA 23230

Firm Fixed Price $2,000,000 6 Feb 2020

Base Period 6 months + one 6 month option period

Transportation Services C.H.

Robinson

101 Marietta St NW, Suite 1700, Atlanta, GA 30303

Firm Fixed Price $2,000,000 6 Feb 2020

Base Period 6 months + one 6 month option period

MedSurge- Pharmaceuticals

McKesson Medical Supply

6555 State Hwy 161m Irving Tx 75039

Firm Fixed Price $1,000,000 6 Feb 2020

Base Period 6 months + one 6 month option period

Repair and Maintenance Support Service Contracts for Equipment Agiliti

6625 West 78th Street, Suite 300, Minneapolis, MN 55439

Firm Fixed Price $2,000,000 7 Feb 2020

Base Period 6 months + one 6 month option period

Medical Resupply - NDMS Cache and other Related Medical Supplies

Cardinal Healthcare

7000 Cardinal Pl Dublin, OH, 43017-

Firm Fixed Price $1,000,000 10 Feb 2020

Base Period 6 months + one 6 month option period

Medical Resupply - NDMS Cache and other Related Medical Supplies

Medline Industries

3 Lakes Dr Northfield, IL, 60093-

Firm Fixed Price $1,000,000 10 Feb 2020

Base Period 6 months + one 6 month option period

Decontamination Steris Corporation

5960 HEISLEY RD

MENTOR, OH, 44060-

Time and Materials $5,000,000 10 Feb 2020 Base Period

6 months + one 6 month option period

Other MedSurge- Pharmaceuticals-PPE Multiple TBD

Firm Fixed Price $2,000,000 TBD

Base Period 6 months + one 6 month option period

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Estes Express Inc was identified by the SNS-Atlanta Contracting Team as a prospective contractor to provide transportation and logistics services. Estes Express is one of the largest privately held less-than-truckload carrier in the U.S. that controls and owns over $3B in company assets. Additionally, they have seventeen

(17) years of experience in national disaster and emergency response missions with federal, state, and local entities. The company was awarded federal and state emergency response contracts in excess of $500M supporting national responses for both Conus and OCONUS operations. They have complete CONUS coverage with over 200 Estes Terminals and OCONUS operations and capabilities to AK, HI, PR and territories. Estes Express Inc.’s experience with emergency response will aide in ASPR-SNS requirements to provide trucks, assets, and personnel within hours fora mission critical incident.

Moreover, Estes has a full range of services including LTL, TL, Time-Critical, and Dedicated delivery, final-mile delivery, LCL/FCL marine shipments, air-forwarding and Disaster Response Logistics. Asset ownership and inventory includes over 7500 tractors & trucks, and over 25,000 trailers—all company owned. Trailers include dry “53 vans, 28 pups, reefers, flatbeds, box trucks to meet different cargo requirements. Preferred carrier with the largest commercial retailers in the U.S and they have a wide range of ways to electronically connect with clients using EDI, API, and FTP. Below are additional support requirements offered during a Disaster Response:

• Executive-level support for and involvement in Disaster Response Work.

• Estes Forwarding Worldwide Services for Domestic and International Services to include International Air Freight Services, Ocean Freight Services, Customs Brokerage Services and Consular preparation and automated shipment status updates.

• Dedicated Software System to manage drivers and record all relevant mission information.

• Cross dock operations to transload supplies from vendor onto a rental trailer. Shuttle drive fleet, set up a dedicated fleet for shuttling loads from cross dock facility to client designated staging area

• Delivery Driver Fleet. Setup a dedicate fleet for delivery supplies to designated locations.

• Yard Operation. Manage the movement and organization of trailers to various client staging locations.

McKesson Medical Supply has the largest chain of distribution centers for quick and efficient delivery of over 4000 medical supplies within their inventory supply chain systems. Additionally, they have a nationwide network of 37 distribution centers, have the capacity to ship 77 million lines of inventory per year, and to track shipments utilizing state-of-the-art scanning and inventory management technology. Moreover, they have a comprehensive staff of 900+ delivery professionals, and exclusive partnership agreements with common shipping carriers. They offer flexible delivery services which includes same, next day and two day shipping available nationwide. They deliver 5 days a week for customers in support of disaster response.

McKesson Medical Supply have dedicated supply chain staff that consists of professionals that provided 7 by 24-hour technical support for catalog online ordering of medical supply requirements.

Agiliti HealthCare Corporation Agiliti is a company that has over 3,000 medical and surgical equipment management experts nationwide. The firm’s primary line of business is providing maintenance and repair work on medical equipment to include infusion pumps, ventilators, imaging devices and clinical engineering services. Agiliti Health Care Corporation has the expertise to manage and provide maintenance services on ASPR/DSNS medical and non-medical equipment.

C.H. Robinson was identified by the technical office as the prospective contractor because they are a transportation and logistics vendor with the largest broker market share in the industry at more than 25%.

Market research, discussions, and previous contract performance during the Hurricane Dorian response indicate they have an unprecedented ability to source transportation assets through their existing agreements with over 3,000 small and local transportation subcontractors. These factors allow the Government access to additional transportation assets not currently available under the existing contracts or any other known vendor. In addition, C.H. Robinson developed a proprietary asset tracking platform that will allow the

Government real-time access and updates to the product being shipped.

Navisphere® is a proprietary, global TMS technology platform that provides a virtual network, connecting people, customers and service providers across all regions they do business, enabling improved processes, greater visibility to shipments and comprehensive business intelligence. This is critical when providing updates to leadership, states, hospitals, and interested parties. Unlike Estes Express, C.H. Robinson does not own their assets, trucks or personnel. However, they are an excellent company that can augment the SNS

Transportation capability.

Medline is the largest privately held manufacturer and distributor of medical supplies uniquely positioned to provide products, education and support across the continuum of care. Their ability to bring best practices from one care setting to another — from large healthcare systems and independent physician practices to home health patients and their families, is what makes them a unique and extremely capable vendor. Their team is made up of clinicians, researchers, engineers, financial experts and 1,200 direct sales representatives with outstanding expertise. They know the healthcare business from the bottom up and top down.

Cardinal Health provides medical products and services to many of America’s medical institutions. Most

U.S. hospitals (95%) use Cardinal products and services to provide care for their patients. With nearly 100 years of experience in wholesale distribution of medical products and numerous distribution centers strategically located across the Nation, Cardinal Health is one of the leading providers of medical supplies in the United States. Their network delivers more than 95% of all orders to health systems within 24 hours.

They operate 24 hours a day, 365 days a year, and ensure the delivery process is accurate, on time and responsive to specific requirements. They also have a formalized disaster preparedness plan to support the healthcare supply chain in an emergency. Through their Pharmaceutical Supply Chain business, Cardinal

Health consolidates product orders from hundreds of manufacturers into pharmacy-specific deliveries for retail, hospital and alternate-site customers.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

It is unlikely that the ASPR/SNS would receive any benefit from advertising or competing the requirement; it is also unlikely that other vendors would be able to meet all of ASPR/SNS’ requirements for immediate services. Due to the urgent nature of this requirement and the uncertainties of the current environment, in accordance with FAR

5.202(a), exception 2, this requirement will not be synopsized. Complying with the time periods specified for synopsis in FAR 5.203 would seriously injure ASPR/SNS and American Citizens.

Due to the unusual and compelling urgency of this requirement, expedited procedures will be utilized. These are commercial items, therefore in accordance with FAR Part 12 and 13, simplified procedures may be utilized for some actions, including informally requesting quotes via telephone or email, or other electronic means.

When the agency’s need for the supplies or services is of such an unusual and compelling urgency that the

Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

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Í Î Ï Î Í Ð Í ÐÑ Ò Ó Ò Ñ Ô Ñ ÔSteven A.

Adams -S

Digitally signed by

Steven A. Adams -S

Date: 2020.02.05

12:50:14 -05'00'

David M.

Allen -S

Digitally signed by David M. Allen

-S

Date: 2020.02.05

12:54:56 -05'00'

Annette

Wright -S

Digitally signed by

Annette Wright -S

Date: 2020.02.05

13:02:32 -05'00'

2/5/2020

2/5/2020