JA Exception to Fair Opportunity.pdf

DEPARTMENT OF HEALTH & HUMAN SERVICES

Centers for Medicare & Medicaid Services 7500 Security Boulevard, Mail Stop B3-30-03 Baltimore, Maryland 21244-1850

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Acquisition Title: CMS Health Federally Funded Research and Development Center (FFRDC) Strategic Research and Critical Analysis for the Office of the Administrator Agency: CMS Acquisition Year: 2024 Author: Jennifer Davis, Contracting Officer

1. Description of Action:

A. Nature ☐ New Requirement ☐ Follow-On Order ☒ Modification of Existing Purchase Order / Contract Number

B. Order Against 75FCMC18D0047 Health FFRDC IDIQ Contract

C. Contract Type ☐ Firm-Fixed Price ☐ Time and Materials ☒ Cost Plus Fixed Fee (CPFF)

☐ Term ☒ Completion

☐ Cost Plus Award Fee (CPAF) ☐ Other:

D. Projected Cost / Price of contract (Base & All Options): $30,913,923 E. The total estimated value of the proposed sole source action (for modifications only): $0 F. Funding Source (s): N/A – No additional funding needed.

G. Basis for Approval (Far 6.303-1(d))

☒ Individual Basis

☐ Class Basis

CMS engaged the CMS Alliance to Modernize Healthcare (“Health”) Federally Funded Research and Development Center (FFRDC) to support the Office of Strategy, Performance and Results (OSPR) and the Office of the Administrator (OA) with rapid responses for CMS utilizing strategic research and critical analysis of high visibility, critical Administrator priorities.

The Office of the Administrator’s requirements include sensitive and complex agency initiatives, design and implementation of new policy, analysis and assessments of healthcare problems as well as identification of options to address specific policy issues and regulatory reform. The tasks often support cross-agency priorities that require initial analysis, feasibility assessment, scope and requirements definition, problem/initiative planning, procurement planning and other interim work products necessary for the Government’s pursuit of a separate and independent contract(s) or task order(s), if needed.

As these specific projects and topic areas are, by nature, unknown until the priority need arises, CMS utilizes the technique of issuing Technical Direction Letters (TDL’s) to allow for rapid launch of research and analysis efforts. These TDLs specify with more granularity the specific tasks, goals, outcomes, project duration and estimated level of effort needed to complete the priority project.

The task order (75FCMC19F0012) is in its last option period (Option Period 4) with a period of performance of August 30, 2023 to August 29, 2024. TDL #25 was issued in August 2024 to accommodate a need out of the Office of Information Technology (OIT) wherein they require a rapid assessment and implementation strategy for OIT enterprise cloud hosting platform service offerings and a roadmap for standing up OIT partner relationship management (PRM) capabilities using Fusion Teams. This work requires a duration of three (3) months to deliver final products in order to be successful. As the work began in August 2024, additional time is required to allow the Health FFRDC to complete the requirements. In addition, as this work is inherent to the Health FFRDC, utilizing its unique qualities of objectivity and independence, special access to sensitive information, quick response capability and its comprehensive knowledge of Agency needs, they are solely and uniquely qualified to provide support that cannot be provided by any other contractor.

2. Description of Supplies or Services:

In performance of this task order, The Health FFRDC Operator is required to perform the following general tasks as prescribed in the Statement of Work (SOW):

1. Task 1: General Management. This work includes the following:

a. Kickoff Meeting

b. Project Work Plans and Reporting

c. Quality Assurance Plans

d. Monthly Progress Reports

e. Quality Assessments

f. Project Value Summaries

g. Month End Financial Tracking Reports

2. Task 2: Strategic and Tactical Planning and Services. Specifically, this work includes:

a. Initial Analysis Briefings

b. Feasibility Assessments

c. Market Research/FFRDC Justifications

d. Problem and Initiative Planning

3. Task 3: Acquisition Assistance. In support of Tasks 1 and 2, if needed, they will provide acquisition management subject matter expertise to support CMS as it pursues separate and independent contract(s) and/or task order(s) related to high-priority Administrator requirements.

Specifically, for TDL #25, entitled, “PRM: OIT CX Optimization Support”, the Health FFRDC Operator is tasked with two primary outcomes:

• Conduct a rapid assessment and develop an implementation strategy (e.g., goals, objectives, OKRs, roadmap) for optimizing OIT’s enterprise cloud hosting service offerings for CMS component use, clarify and better communicate OIT’s value proposition to its customers; and,

• Develop an implementation strategy (e.g., goals, objectives, OKRs, roadmap) for standing up a customer-focused “fusion team” type capability building on OIT’s Partner Relationship Management capability.

This specific work is associated with Executive Order 14058 on Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in Government. (HHS Office of the Chief Data Officer, Data Strategy 2023-2028.)

This task order was awarded to MITRE, with a one-year base period and four (4) one-year option periods (ultimate completion date of August 29, 2024). CMS is planning to extend these services, with no changes to the work, for an additional three-month option period (August 30, 2024 – November 30, 2024) through means of a contract modification.

3. Authority and Rationale:

The Contracting Officer shall give every awardee a fair opportunity to be considered for a delivery/task order exceeding $3,500 unless one of the following statutory exceptions applies. FAR 16.505(b)(2). Mark the applicable exception:

☐ The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays [FAR 16.505(b)(2)(i)(A)];

☒ Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized [FAR 16.505(b)(2)(i)(B)];

The unique institutional characteristics of the Health FFRDC (as defined in FAR 35.017) allow the Health FFRDC Operator to provide the agency with seamless continuation of current, ongoing and necessary work. FFRDC’s, as defined in the FAR, are themselves unique and are established to meet special research and development needs which cannot be met as effectively by existing in-house or contractor resources. An FFRDC, in order to discharge its responsibilities to the sponsoring agency (CMS), has access beyond that which is common to the normal contractual relationship, to Government and supplier data, including sensitive and proprietary data.

This task order requires the continued services of the Health FFRDC, and only the Health FFRDC is able to comply with the specialized, immediate and sensitive initiatives and needs of OSPR and OA.

☐ The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order [FAR 16.505(b)(2)(i)(C)]; or

☐ It is necessary to place the order to satisfy a minimum guarantee [FAR 16.505(b)(2)(i)(D)].

☐ A statute expressly authorizes or requires that the purchase be made from a specified source. [FAR 16.505(b)(2)(i)(E)].

4. Provide a statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made:

TDL #25 is underway, with project completion planned no later than November 20, 2024. This critical work is planned to be finalized with no follow-on requirements and no transition will be required.

5. State any other facts supporting the justification: N/A

Approvals:

1. Program Office Certification. This is to certify that portions of this justification have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for Exceptions to Fair Opportunity, which form the basis for this justification.

Contracting Officer Representative (COR) / Date

Program/Project Manager (P/PM) / Date

2. Contracting Officer Certification and Best Value Determination:

This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief, the information and/or data provided to support the rationale and recommendation for approval, is accurate and complete.

By my signature below, after review of the relevant documents, I have determined that the order subject to this Justification represents the best value for the Government as set forth in FAR 16.505(b)(2)(ii)(B)(5), and constitutes a fair and reasonable price. The basis for my determination is as follows:

TDL #25 is at a critical assessment and implementation strategy phase and the Health FFRDC is the only organization capable of continuing to provide the necessary support. The Health FFRDC possesses the technical knowledge and agility, strategic thought leadership, freedom from conflicts of interest, health care quality experience, and the subject matter expertise needed to provide informed solutions with only the government’s best interests in mind. The Health FFRDC has proven to be a reliable contractor in support of this work and it is in the best interest of the Government to continue with the current contractor to allow for final deliverables and completion of the last project for this task order.

Contracting Officer / Date

3. CMS Competition Advocate Approval I have reviewed this Exception to Fair Opportunity and find that it adequately supports other than full and open competition.

_____N/A – total cost of modification is $0 Name / Date

4. Head of Contracting Activity (HCA) Approval I hereby confirm that the circumstances described above apply and approve this Justification for Exception to Fair Opportunity.

______N/A – total cost of modification is $0 HCA Name / Date

5. Office of Small and Disadvantaged Business Utilization

______N/A – total cost of modification is $0

6. OGC Legal Review

__ N/A – total cost of modification is $0

7. HHS Competition Advocate Approval

____ N/A – total cost of modification is $0

8. Senior Procurement Executive (SPE) Approval Based on the foregoing justification, I hereby confirm the circumstances described above apply and approve the Justification for Exceptions to Fair Opportunity.

___ N/A – total cost of modification is $0 SPE Name / Date