FAARR FSS Sole Source Justification Publication.pdf

DEPARTMENT OF HEALTH & HUMAN SERVICES

Centers for Medicare & Medicaid Services 7500 Security Boulevard Baltimore, MD 21244-1850

Division of Financial Services

FEDERAL SUPPLY SCHEDULE SOLE SOURCE JUSTIFICATION

Per Revolutionary Federal Acquisition Regulation Overhaul (RFO) 8.401 and General Services Administration Acquisition Regulation (GSAR) 538.7104-3(b)

Acquisition Title: Financial Alignment Actuarial and Rate-Review Services Agency: Centers for Medicare & Medicaid Services (CMS) Author: Jeannine Bohlen, Contracting Officer

1. Description of Action:

• Contract Number GS-00F-090CA, Task Order Number 75FCMC26F0116

• Task Order Award Date: August 10, 2026

• Total Price: $ $2,799,412.30, includes all options

• Period of Performance:

o Base Year August 10, 2026 - August 9, 2027 o Option Year 1 August 10, 2027 - August 9, 2028 o Option Year 2 August 10, 2028 - August 9, 2029

• Name of Contractor: Actuarial Research Corporation

2. Description of Supplies or Services:

The contractor will be responsible for providing actuarial support, rate review, and analysis services to support ongoing Medicare-Medicaid financial alignment model demonstrations for individuals enrolled in both Medicare and Medicaid (dually eligible beneficiaries). These demonstrations enable CMS and states to test new integrated, high-quality care approaches for dually eligible beneficiaries. The contractor will review Medicaid components of capitated payment rates for Medicare-Medicaid Plans, provide technical assistance for demonstration operations across multiple states, and conduct ongoing analytics to monitor demonstration financing issues.

3. Sole Source, Logical Follow-On Rationale This acquisition is a sole source logical follow-on to the existing Financial Alignment Initiative (FAI) actuarial and rate review services contract. The capitated and managed fee-for-service demonstrations under the FAI concluded on December 31, 2025. However, significant post-demonstration work remains that cannot be completed until sufficient claims and encounter data have run out following the demonstrations' close. This follow-on contract will continue and complete that remaining body of work. This represents the final phase of actuarial and rate review support for the FAI demonstrations. This Task Order represents a fair and reasonable price. Upon completion, this work will be fully concluded and will not be recompeted.

4. Authority:

Pursuant to GSAR 538.7104-3(b)(iii), this task order was issued on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to a Federal Supply Schedule (FSS) order already issued on a competitive basis.