Single_Source_J&A_Redacted.pdf

Single Source Justification (Simplified Acquisition)

Section A: General Contract Information

Contracting Activity: 501 Combat Support Wing (CSW)/ Regional Contracting Office (RCO)

Purchase Request/ Identification Number:

FA5570-16-Q-0026

Project/Program Name: Stavanger, Norway LNDH Employee Pension Insurance

Estimated Contract Cost (including Options):

Section B: Description of the Supplies/Services Required

In accordance with (IAW) with USAFE Instruction 36-752, Administration of Local National (LN) Direct Hire Civilian Employees in Norway, Chapter 15, the pension insurance must be contracted out to a company licensed to provide such insurance in Norway. The instruction outlines the agreed level of insurance coverage that the employer (USAF) must provide employees in Norway. The insurance covers the difference between pension payable from the Norwegian social security and of annual salary. Pension Insurance will provide for assigned to the and for .

Section C: Justification for Soliciting from a Single Source

Due to recent changes in Norwegian Pension Laws, insurance companies are required to apply a different standard than previous Norwegian law permitted. Previous law required the employer to cover the difference between Norwegian Social Security payments upon retirement and up to of the employee's salary. Air Force Instruction 36-752 was written to this standard and requires this coverage. Current law standards are more akin to a U.S. 401K plan wherein a percentage of the employee's salary is paid to the employee for their investment towards retirement. Current law also permits employers to maintain the pension insurance policies held under previous pension law. Employers that maintain pension insurance under the previous law are not allowed to transfer to another insurance company without changing the policy to the new standard. Should the United States Government transition, to a different insurance provider IAW the new labor law, the policy would violate USAFE Instruction 36-752.

Section D: Efforts to Obtain Competition

Recent changes in the Norwegian Pension Laws other service providers are not available to provide the same or similar pension coverage as mandated by USAFE Instruction 36-752. Two other pension insurance providers in Norway were recently contacted by phone during regarding their ability to provide same pension insurance scheme for LNDH personnel at as mandated by USAFE Instruction 36-752. Both of these companies have verified via email in that they could not provide the required pension insurance scheme to new customers as required under the USAFE Instruction 36-752. A follow-up review with and was conducted in , which revealed that this policy still stands within both companies. Thus, due to the recent pension reform mandated by Norwegian Law, the current pension insurance scheme mandated in USAFE Instruction 36-752, Chapter 15, is no longer available as an option on the open market. Companies with this particular pension insurance scheme are allowed to continue to keep it for its existing and future employees and as such, only remains a viable vendor.

Section E: Steps to Preclude Future Single Source Awards

Changes to the Norwegian Pension schemes reflect a very fluid and dynamic period in Norwegian Labor Law with updates and changes occurring many times a year. A comprehensive national evaluation has been set for to determine the viability of the recent changes and what, if any, national legislation needs to be implemented on pension rights. Norwegian Labor Law and pension requirements will be closely monitored by the to identify recommended changes to update USAFE Instruction 36-752 in accordance with Norwegian Labor law, current pension insurance market conditions, and commercially available pension coverage.