JA Limited Source Justification-IMRE 4-24-24_Redacted.pdf

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Attached to
Insurance Market Reform Enforcement Federal contract opportunity
Solicitation number
CMS190737
Issued by
Department of Health and Human Services Centers for Medicare and Medicaid Services

About this file

This document is a Limited Source Justification (LSJ) for extending the existing contract GS-23F-0081X, titled "Insurance Market Reform Enforcement," for the Department of Health and Human Services Centers for Medicare and Medicaid Services (CMS).

The LSJ states that the incumbent contractor, ER, is the only source capable of providing the required services, which include assisting CMS in meeting its statutory obligation to enforce the Affordable Care Act's market-wide reforms by conducting reviews of plan documents and making recommendations for certification as qualified health plans. The extension is necessary to avoid a significant lapse in service, as the new task order award is uncertain due to a protest filed by ER. The extension will allow ER to continue the plan review process from May through October 2024. Pricing is determined to be reasonable as it is within the established GSA schedule rates. CMS will post this LSJ on SAM.gov within 14 days of the extension completion.

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Text version

CLIN

0004 09/25/2019

As needed after new award or re-award of protest OY2- Task 9 (Optional Task)

Total Not-To-Exceed Amount $47,434,475.68

3. Authority:

:ORDER AGAINST FSS: Authority of the Multiple Award Schedule Program, Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.); Title 40 U.S.C. 501, Services for Executive Agencies; and Section 803 of the National Defense Authorization Act of 2002 (PL 107-107) and implemented by FAR 8.405-6. Mark the applicable exception and for each discuss how the cited authority applies in accordance with FAR 8.405-6(c)(2)(iv).

Only one source is capable of providing the supplies or services required at the level or quality required because the supplies or services are unique or highly specialized (FAR 8.405-6(a)(i)(B))

At this point in time, ER is the only source who can continue to provide the services required by this program. Only the incumbent contractor, ER, has the extensive infrastructure, organizational, and institutional knowledge to provide these services during the time period of this extension which needs to begin as soon as possible to avoid a significant lapse in service. One of the purposes of this contract is to assist CMS in meeting its statutory obligation to enforce the Affordable Care Act's market-wide reforms by conducting reviews of plan documents and making recommendations for certification as qualified health plans (QHPs) to be sold on the federally-facilitated exchange in states where CMS is serving as the regulator in the place of the state. The review period for the plan documents is generally May through October each year. The plan document reviews as part of the QHP certification process requires one continuous contract in place through the end of October 2024 to mid-November 2024.

The requirement was recompeted via Request for Quote (RFQ) 240258 and awarded to another contractor, StrategyGen Co. on February 22, 2024. On March 6, 2024, a Protest was filed by ER. CMS has opted to take voluntary corrective action (VCA). Therefore, a firm date for award of the new task order is uncertain but is not expected to exceed November 17, 2024 at this time. As a result, due the necessity of having one contractor starting and concluding the plan reviews, the 1¾ month extension beyond the 5-year limit is supported by this LSJ.

4. Market Research:

For the existing competitive acquisition (RFQ 240258), extensive market research was conducted. These activities included:

GSA Market Research as a Service (MRAS) request for information (RFI) posted on GSA eBuy (February 2023) .

A Sources Sought Notice (SSN) posted on Sam.gov (February 2023)

A comprehensive market research memo and report generated by the program office.

All of these activities culminated in the decision to post a RFQ to GSA eBuy .

As stated above, award was made StrategyGen Co. on February 22, 2024. On March 6, 2024, a Protest was filed by ER. CMS has opted to take voluntary corrective action. Therefore, extending ER’s current task order is the only solution for the continuation of this requirement.

CMS will post this LSJ on SAM.gov with 14 days of completion of this extension in accordance with FAR 8.405- 6(a)(2).

5. Actions to Increase Competition:

Per Section 3 of this LSJ, a follow-on requirement was competed via RFQ 240258. As a result of the ongoing competitive process, there are no additional actions that need to be taken to increase competition.

6. Any other facts supporting the justification:

As discussed in section 3, due to the nature of the work, the length of the extension is necessary as once a contractor starts the review work (in this case, May), the same contractor must continue the work to completion (late October to mid-November). Otherwise, there is risk of disruption and inaccuracy that would result in CMS’ failure to meet statutory requirements.

In addition, if the VCA results in a new award or a re-award before the end of this extension, there will be safeguards against the conducting duplicative work. Although the tasks will be the same, the contractor in new task order will be conducting separate plan reviews.

Based on the information above, maintenance of continued operations for the extension is important and necessary.

Based on the language contained in FAR 52.217-8, which says ��within the limits and at the rates specified in the contract, CMS anticipates receiving this same discount during the extension. As such, the pricing is still determined to be reasonable as it is well within the GSA schedule rate

Contracting Officer / Date

OAGM Approvals

I verify that this justification is accurate and complete to the best of my knowledge and belief.

Mark Smolenski, OAGM Division Director

Juanita Wilson, OAGM Group Director

3. CMS Competition Advocate Approval I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

Name / Date

Head of Contracting Activity (HCA) Approval I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

Name / Date

Office of Small and Disadvantaged Business Utilization

___N/A______________________________________________

Name / Date

Malissa M.

Shin -S

Digitally signed by Malissa M. Shin -S Date: 2024.03.28 07:53:28 -04'00'

Mark Smolenski -S

Digitally signed by Mark Smolenski -S Date: 2024.03.28 08:22:54 -04'00'

Mark Smolenski -S

Digitally signed by Mark Smolenski -S Date: 2024.03.28 08:23:21 -04'00'

Douglas D. Bergevin -S Digitally signed by Douglas D. Bergevin - S Date: 2024.04.04 13:40:03 -04'00'

Digitally signed by Donald Knode -S Date: 2024.04.05 16:02:42 -04'00'

6. OGC Legal Review

____N/A_____________________________________________ Name / Date

7. HHS Competition Advocate Approval

___N/A________________________________________________ Name / Date

8. Senior Procurement Executive (SPE) Approval Based on the foregoing justification, I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

___N/A______________________________________________ Name / Date

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