EAP Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 6

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to all J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: 771 Enterprise Sourcing Squadron (771 ESS), Air Force Installation Contracting Center (AFICC)

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): Employee Assistance Program Services (EAP)

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $5.7M J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date Project Lead / Program Mgr / Requiring Activity Ms. Danna Plewe

AFMC HQ AFMC/A1R

Signature

Date Contracting Officer Ms. JoAnn Parks

AFICC 771 ESS/EGB

Signature

Date Local Legal Reviewer Mr. Tedd Shimp

AFLOA/JAQK

Signature

Date Chief of the Contracting Office (COCO) Lt Col Steven Vanden Bos

AFICC 771 ESS/CC

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

10 Oct 2019

Competition Advocate Mr. Robert A. Hixenbaugh

AFICC/KP, (937) 257-5529

Signature

PARKS.JOANN.1078889

Digitally signed by

PARKS.JOANN.1078889833

Date: 2019.10.07 12:11:38 -04'00'

SHIMP.TEDD.J.1229146188

2019.10.08 07:38:17 -04'00'

VANDEN

BOS.STEVEN.WAYNE.1233764252

Digitally signed by VANDEN

BOS.STEVEN.WAYNE.1233764252

Date: 2019.10.08 12:19:05 -04'00'

HIXENBAUGH.ROBERT.

ALLEN.1080487998

Digitally signed by

HIXENBAUGH.ROBERT.ALLEN.1080487998

Date: 2019.10.10 14:30:46 -04'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 6

I. Contracting Activity.

AFICC

771 Enterprise Sourcing Squadron (771 ESS) 1940 Allbrook Drive, Room 300 Wright-Patterson AFB, OH 45433

II. Nature and/or description of the action being processed.

This contract action is intended to bridge services with Magellan Healthcare, Inc. for psychological and life skill non-personal services supporting the Air Force (AF) Employee Assistance Program Services (EAP). The EAP program supports AF employees and their dependents.

This requirement was previously solicited and awarded by the Department of Health and Human Services (DHHS), Federal Occupational Health (FOH). The contract was awarded on a sole source basis to Magellan Healthcare, Inc. On 06 Sep 2019, in accordance with the 01 Jul 2019 Waiver to Section 801 of the NDAA for Fiscal Year 2008, FOH terminated their support the EAP contract effective immediately. Due to the cancellation clause of the AF's Interagency Agreement (IAA), FOH extended services until 09 Nov 2019. The Air Force is now faced with an urgent need to provide these critical and legislatively-mandated services. The mandate was issued by the Chief of Staff of the AF in 2015 and are supported by Executive Order 12564, Public Law 7901 Health Services Programs, Public Law 7904 EAP Programs, AFPD36-8 Employee Benefits, and AFI 44-121 ADAPT.

Due to the short notice of the termination of contract "HHSP233201400013C" and the limited time available to re-solicit the requirement, the AF intends to continue services with an award of a sole source Firm-Fixed Price task order from the Department of the Navy's (DoN) bridge contract with Magellan Healthcare, Inc. under the authority of FAR 6.302-1.

III. Description of supplies/services required to meet agency needs.

This requirement provides the AF comprehensive EAP services, and evaluation services that include in-person and telephonic consultation and problem solving for a wide range of personal concerns. The AF EAP program is mandated by the AF Chief of Staff.

The Chief of Staff requires this program to provide educational and motivational activities; referral, monitoring, and follow-up services; behavioral health consultation and coaching; short-term problem-focused counseling;

critical incident management support; and management consultation and coaching. Services shall be accessible through a toll-free telephone number and will be available 24 hours a day, 7 days a week, and 365 days a year.

This requirement was previously solicited and awarded by the Department of Health and Human Services (DHHS), Federal Occupational Health (FOH). The contract was awarded on a sole source basis to Magellan Healthcare, Inc most recently in 2014. On 06 Sep 2019, in accordance with the 01 Jul 2019 Waiver to Section 801 of the NDAA for Fiscal Year 2008, FOH terminated their support of the EAP contract effective immediately. Due to the cancellation clause of the AF's Interagency Agreement (IAA), FOH extended services until 09 Nov 2019. Due to FOH's cancellation of the AF IAA, the AF intends to award a sole source transition contract.

The 14 month and 22 days period of performance (10 Nov 19 - 31 Jan 21) will consist of a one-year base period and one two month and 22 days option period. The transition contract is structured with a period of performance that considers the critical holiday season when EAP usage is at its highest. Transitioning to a

March 2018 FOR OFFICIAL USE ONLY Page 3 of 6 potential new contractor at the height of the holiday season introduces risk to the health and well-being of AF employees. It also allows for sufficient time for the AF and Washington, D.C. Headquarters Services (WHS) to proceed with a competitive acquisition for the follow-on effort.

Estimated Value & Appropriation Types

The current estimated total potential value for the 14 month and 22 days transition contract is ~$5.7M with a one-one year base period ($4,874,647.30) and a two-month and 22 days option period ($815,104.96). This acquisition will utilize FY20 and FY21 funds; therefore, approval of more than one fiscal year requirement is needed. The rationale for the additional FY21 funds is that EAP services are critical during the winter holiday season. Transitioning to a new contractor during this critical time period could prove to be detrimental to AF employees; therefore, it is in the Government's best interest to award a new contract after the beginning of the new calendar year.

The following appropriation types will be utilized:

3400 - O&M - Active Duty Air Force

Anticipated Contract Line Items (CLINs) & Type:

000X FFP Employee Assistance Program (EAP) (PoP 10 Nov19 - 09 Nov 20)

000X NSP Contract Data Requirements List

100X FFP Option Period 1 (PoP: 10 Nov 20 - 31 Jan 21)

100X NSP Contract Data Requirements List

IV. Statutory authority permitting other than full and open competition.

The statutory authority for this action is 10 USC 2304(c)(1), as implemented by FAR 6.302-1. Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Specifically, pursuant to FAR 6.302-1(a)(2)(iii) for DoD, services may be deemed to be available only from the original source in the case of follow-on contracts 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 requirements.

(See 10 U.S.C. 2304(d)(1) (B)).

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The current EAP requirement is being met under a contract awarded by DHHS, through FOH. Due to the FOH cancellation of the AF IAA, the period of performance will now end 09 Nov 2019. To avoid disruption of services, it is necessary to utilize other than competitive procedures to award a sole source transition contract to allow for continued coverage by the incumbent, Magellan Healthcare, Inc. Award to another source would result in unacceptable delays in fulfilling the AF's requirement. At this time, there is an anticipated delay of 12 months to support a competitive follow-on.

Highly Specialized Service. This contract provides critical comprehensive EAP, and evaluation services to the AF EAP program. This contract provides AF health professionals and life skill mentoring to all AF civilians in their times of need. It permits AF civilians to access a suicide prevention hotline with real time counselors at all times and the opportunity to participate in behavioral health consultation and coaching.

Therefore, this acquisition is for continued performance of a highly specialized service.

March 2018 FOR OFFICIAL USE ONLY Page 4 of 6

Gap in Highly Specialized Services Will Impact AF Personnel. The cancellation of the AF IAA does not allow for the lead time necessary to perform a competitive follow-on acquisition. Therefore, after 09 Nov 2019 the incumbent is under no contractual obligation to continue providing services to the AF or assist in the transition from FOH. This contract is supported by a team of behavioral health and wellness specialists remotely supporting 174,000 civilian employees across the AF.

Without a contractor who is ready to perform with proper access and security, the AF will not be able to provide an AF mandated service to its civilian employees. The Air Force Materiel Command (AFMC) anticipates that it will take at least 90 days after award for a new contractor to be prepared to meet mission requirements. No military personnel, either permanent party or temporary duty personnel, are available to backfill any potential loss in contracted services.

Failing to provide these services poses a substantial risk to the health and wellbeing of AF employees. The leading cause of death in the AF is personnel taking their own lives. The AF is currently on pace to lose more that 130 Total Force Airmen in calendar year 2019. This would represent a 30-percent increase above the average for the past nine years. EAP is a critical resource supporting our civilian workforce. The recent AF initiative for a resilience tactical pause, an increase in suicides service-wide, and the coming holiday period are all reasons why the AF must maintain access to this health and work/life balance resource. Civilian teammates are an essential part of the AF mission. It's only right that we take care of our Total Force by ensuring the programs that support their health and wellbeing. The services provided under this contract are essential to the success of the AF EAP program as a whole. The transition contract will require that the incumbent provide a transition plan subject to AF approval. The transition plan will allow for a seamless transition, if necessary, after the award of the competitive follow-on contract to ensure that all critical functions supported by the contract are not abruptly terminated. Accordingly, Magellan Healthcare, Inc. is the only firm capable of providing the services described in Section III above without the USAF experiencing unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

IAW FAR 5.201 a Notice of Proposed Contract Action/Special Notice, 541614 Human Resources Consulting Services, was posted on FedBizOpps (FBO) 20 September 2019. The posting remained open for fifteen days and no other party expressed interest.

A detailed description of the requirement was included in the FBO notice. The notice advised that any interested responsible party that believed it was equally or otherwise uniquely capable of meeting the requirements should submit a capability statement. The notice also stated that supporting evidence must be furnished in sufficient detail to not only demonstrate the ability to fulfill the requirement but also demonstrate that competition would be advantageous to the government and would not create a break in service or degradation of performance quality.

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

This is an acquisition for a commercial item, and IAW FAR 15.403-1(c)(3) an acquisition of a commercial item is an exception from the requirement of certified cost or pricing data. IAW FAR 15.404(a)(1), price analysis will be performed in order to ensure that the overall price being paid is fair and reasonable. The fair and reasonable determination will be IAW FAR 15.404(b)(2)(ii), comparing the proposed prices to historical prices paid by the Government for the same and similar items; FAR 15.404(b)(2)(v), comparison of proposed priced with independent Government cost estimates; and FAR 15.404(b)(2)(vi), comparison of proposed prices

March 2018 FOR OFFICIAL USE ONLY Page 5 of 6 with prices obtained through market research for the same or similar items. Based on the comparisons listed above, the Contracting Officer anticipates that a determination regarding price fair and reasonableness is achievable and will be adequately supported.

IAW DFARS PGI 215.404-1(a)(iii), if the contracting officer cannot determine price reasonableness without obtaining data other than cost or pricing data, at a minimum, the contracting officer must obtain appropriate data on the prices at which the same or similar items have been sold previously. If previous sales data is not sufficient to determine price reasonableness, the contracting officer must then obtain "data other than certified cost of pricing data" and, if necessary, perform a cost analysis.

In this acquisition, the AF Procuring Contracting Officer (PCO) is working in conjunction with the DoN PCO to gain efficiencies by leveraging the economies of scale that can be gained by combining requirements. EAP services have been historically billed on a per-person basis. Combined, this contract will support approximately 375,000 employees (175,000 AF employees and 200,000 DoN employees). It is anticipated that the contractor's costs will be spread out over the combined number of employees which will result in a reduction of the per-person rate for the AF and DoN verses contracting the requirements independently. An increase to the per-person rate versus the historical rate could occur since the previous contract covered more than AF and DoN employees.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Upon initial notification of the requirement, GovSpend was used to gather information regarding the incumbent contractor. This search revealed the contractors DUNS, CAGE Code, number of employees, annual revenue, specialties and expertise, Government POCs, socio-economic status, and any existing government contract vehicles.

As described in Section VI above, market research, IAW FAR part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. On 20 September 2019, the Air Force published a Notice of Proposed Contract Action/Special Notice to FBO. The Notice, published was published for fifteen days, allowing any interested responsible party that believed it is equally or otherwise uniquely capable of meeting the EAP contract requirements to submit a capability statement or proposal for Government consideration. No interested party had responded.

Due to the limited time frame, a Request for Information to industry or other Federal, State, and local Governments was not issued.

In an effort to comply with regulatory instruction and guidance, the Integrated Project Team (IPT) researched mandatory sources and other existing contract vehicles to determine if a solution already existed for this effort.

After thorough review of the requirement, the AbilityOne Program indicated that the majority of the program was beyond its scope. There are vendors on the Federal Supply Schedule 738 X, category 595 28 who could provide EAP services in the future but there is insufficient time to solicit proposals.

According to an IBISWorld report, the majority of EAP suppliers have a small scope of operations, so they do not have the resources available to provide EAP support on an AF level in such a short period of time. About 90.4% of EAP firms have fewer than 10 employees while only 2.0% of EAPs have more than 100 workers.

Within this 2% EAP firms there would be enough to satisfy competition regulations however, it is not feasible to switch contractors within the 60-day time frame that was given in the interagency agreement cancellation notice from FOH.

March 2018 FOR OFFICIAL USE ONLY Page 6 of 6

Understanding the urgency of this requirement, the Market Research supports the award of a transition contract to the incumbent in order to not cause unacceptable delay in the provision of EAP services.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

It is anticipated that WHS will be responsible for the follow-on acquisition and will therefore be responsible for meeting the competition requirements as required by federal regulations. The AF requirements, as currently written, are competitive in nature and are not overly restrictive to the incumbent contractor. The AF Program Manager has stated that she understands the competition requirements and is committed to maintaining competitive written requirements that will be forwarded to WHS.

X. List of any sources that expressed, in writing, an interest in the acquisition.

At this time no source has expressed an interest in this acquisition as a result of the 20 September 2019 FBO Posting.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

EAP services have been previously solicited for and acquired by at the DoD level. It is anticipated that the DoD will be responsible for the subsequent acquisition.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.