JA16-0087_THP_PM_support_(public_release).pdf

Tracking # JA16-0087

Justification and Approval for Other than Full and Open Competition Sole Source Acquisition

FAR Subpart 6.3 Other Than Full and Open Competition

1. Identification of the agency and contracting activity: Defense Health Agency (DHA), Contract Operations Branch—Falls Church, 7700 Arlington Blvd, Falls Church, VA 22042.

2. Nature and/or Description of Action being approved: Approval is being requested for award of a Firm Fixed Price sole source contract to Axiom Resource Management, Inc., to support the existing level of effort, currently being provided under HT0011-15-C-0001, which ends June 19th, 2016. The proposed contract will have no new work.

3. Description of Services: The proposed contract will provide support and analysis to the TRICARE Health Plan (THP) and subordinate Health Plan Integration (HPI) directors, managers, and staff in the executive level program management areas and functions. These areas and functions include management and administration of HPI programs; management of the Military Health System (MHS) health plan and associated managed health care programs and activities; program and acquisition management of TRICARE purchased health care services;

management and administration of human resources programs and activities; operation of the HPI Front Office; and overall accomplishment of the missions, functions, and tasks of the HPI enterprise and its organizational entities.

The contract will have a base Period of Performance (PoP) of 6 months from approximately June 20th, 2016 to December 19th, 2016. It will include FAR 52.217-8, Option to Extend Services, allowing up to an additional 6 months of performance within the limits and at the rates specified in the contract. The estimated value for this 6-month contract is approximately XXXXXXX. The maximum estimated value of the option to extend under FAR 52.217-8, if it were exercised, is an additional XXXXXXXX for a total amount of XXXXXXXX. The contract action will be funded utilizing FY16 Operations and Maintenance (O&M) funds.

4. Statutory Authority Cited: The statutory authority permitting other than full and open competition for this acquisition is 10 U.S.C. 2304(d)(1)(B)(ii) as implement by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(B) – Only one responsible source and no other supplies or services will satisfy agency requirements. For DoD, services may be deemed to be available only from the original source in the case of follow-on contract for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirement.

5. Reason for Authority Cited: THP and its predecessor organizations were attempting to fully define requirements for a support contract. However, this requirements definition has been impacted by the “stand-up” of the Defense Health Agency on October 1st, 2013 and the subsequent reconciliation of organizational functions to eliminate redundancies. Additionally, the June 2014 released Report, GAO-14-505, highlighted problems with the transition to a new managed care support contractor and led to the development of a “verify and validate” process to support transitions starting in 2017. These factors have substantially impacted the definition of requirements, which would allow for a planned competitive award of a contract for the services supporting THP. Additionally, only Axiom Resource Management, Inc., has the knowledge of jkelley2 Highlight jkelley2 Highlight jkelley2 Highlight the current circumstances and the ability to provide the much needed, required support during the duration of this contract without a loss of efficiency and without an unacceptable delay in fulfilling the Agency’s needs, which would impact both the Agency’s current operations and its ability to later competitively award a support contract to meet its developing requirements.

6. Efforts to Obtain Competition: Bids, proposals, or quotations have not been solicited from additional sources due to the expected duration of this contract; however, proposals will be solicited for the follow on contract, under a full and open competition. A contract awarded under this approval for other than full and open competition will be synopsized in accordance with FAR 5.207. Pursuant to FAR 5.102(e), the Government is only required to provide copies of a solicitation issued under other than full and open competition to those firms requesting a copy that were not initially solicited, after advising those firms of the determination to limit the solicitation to a specified firm or firms as authorized under part FAR 6.3.

7. Actions to Increase Competition: The Agency anticipates release of a solicitation for a competitive award by XXXXXXXXXXX, with an award anticipated by XXXXXXXXXXXXX. The Government estimate of the price for the bridge contract covering the service gap from June 20th to December 18th, 2016, is based on the pricing of previous, similar contracts: HT0011-15-C- 0001, HT0011-14-C-0017, and HT0011-13-C-0021, as well as competitively awarded contract:

W81XWH-08-D-0024-0002, whose prices were all determined to be fair and reasonable. The Agency has assessed the level of effort and the labor mix employed under the referred contracts to ensure the activities required are for the same services as the proposed contract.

8. Market Research: Market research for the proposed contract included review of the General Services Administration’s Professional Services Schedule 874-7, Integrated Business Program Support Services. This schedule includes contracts with 710 companies providing acquisition management support. While adequate competition is likely, a competitive procurement at this time would result in unacceptable delays in fulfilling the Agency’s requirement. On June 17th, 2016, the Head of Contracting Activity signed a waiver to USD(ATL) Policy Memorandum, “Action to Improve Department of Defense Competition,” August 21, 2014, requirement for Request For Information/Sources Sought Synopsis for sole source justifications citing FAR 5.302-1.

9. Other Facts:

a. A performance work statement for competitive award of a fixed-price management support contract could not be completed until the Agency established a “verify and validate” process for transition of managed care support contractors. That process has been finalized, but there is not sufficient time to incorporate the new requirements for award a follow-on contract by XXXXXXXXXX with resulting in an unacceptable delay with a break in services that would adversely affect preparation for managed care support contractor transitions in 2017.

b. Historical data:

(1) DHA awarded contract HT0011-15-C-0001 under other than full and open competition (FAR 6.302-1, only one responsible source) for 8 months of performance, starting June 20th, 2015, to continue services performed under contract HT0011-14-C-jkelley2 Highlight jkelley2 Highlight

0017. On February 19th, 2016, the Agency extended the contract term an additional 4 months under FAR 52.217-8, Option to Extend Services.

(2) DHA awarded contract HT0011-14-C-0017 under other than full and open competition (FAR 6.302-1, only one responsible source) for 6 months of performance, starting June 20th, 2014, with one option to extend the contract term by 3 months, to continue services performed under contract HT0011-13-C-0021. On December 2nd, 2014, the Agency exercised the option. On March 19th, 2015, the agency extended the contract term an additional 3 months under FAR 52.217-8, Option to Extend Services.

(3) DHA awarded contract HT0011-13-C-0021 under other than full and open competition (FAR 6.302-2, urgent and compelling need) for 6 months of performance, starting September 20th, 2013, with one option to extend the contract term by 3 months, to continue services performed under delivery order W81XWH-08-D-0024-0002. On March 19th, 2014, the Agency exercised the option.

(4) On behalf of the TRICARE Management Activity, the United States Army Medical Research and Acquisition Activity (USAMRAA) awarded delivery order W81XWH-08- D-0024-0002 under fair opportunity for 12 months of performance, starting April 20th, 2008, with four options, each to extend the term of the contract by 12 months. This contract provided program management support to Health Plan Operations, a predecessor to the TRICARE Health Plan directorate. USAMRAA exercised all four option periods, with the final year of performance ending April 19th, 2012. USAMRAA extended the contract term an additional 6 months under FAR 52.217-8, Option to Extend Services.

10. Interested Sources: has no written statements of interest from industry for the planned contract covering performance from XXXXX to XXXXXXXXXXXXX, but anticipates adequate competition in response to a future solicitation.

11. Methods to overcome barriers: Release of a competitive solicitation is anticipated on or about XXXXXXXXXXX, for award no later than XXXXXXXXXXXXX.

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