FFS-B Justification for an Exception to Fair Opportunity FINAL_Redacted.pdf

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 work associated with FFS Claims Processing was anticipated to be transformed in some respects in way of how the work is accomplished, and in any event, transitioned to a pair of new contracts: The Managed Infrastructure Service Provider (MiSP) contract (Contract Number GS-35F-116A Task Order 75FCMC22F0131), which was awarded in September 2022, and the Infrastructure as a Service (IaaS) contract which is currently being planned but not yet awarded. However, the MiSP contract performance was delayed until January 2023 due to a pre-award protest of the agency’s award decision, which was subsequently denied. This in turn delayed some of the planning activities for IaaS and the subsequent award of that contemplated contract.

CMS is establishing a new model for how data center-based hosting services are developed, implemented, and operated by OIT / IUSG. CMS is seeking to adopt industry best practices for separating physical infrastructure services from application hosting services for (primarily) on-premises application workloads. This modernization will include an operational model that is analogous to the cloud operating model that reduces barriers to enable customers to move to the cloud in the future. By adopting this model and instituting industry best practices, IUSG has the opportunity to significantly reduce costs; minimize deviations of widely deployed IT infrastructure, reduce physical data center footprint per the Federal Data Center Consolidation Initiative (FDCCI); and reduce unnecessary variances in services, security, and operations between data centers and hosting providers. The FFS Workload B requirement is complex, necessitating a programmatic transition period up to approximately twelve (12) months. As a result, there is not a sufficient amount of time to effectively transition the work from the existing contract to the MiSP contract without taking significant risk and jeopardizing this mission critical application.

A new bridge contract is required in order to provide coverage between performances during this twelve (12) month transition period. Furthermore, the functions of this legacy contract that will continue to be needed by CMS has been or will be competed as part of the Continuously Available CMS Hosting Environment (CACHE) acquisition strategy (i.e., MISP and IaaS). Accordingly, it is not feasible nor in the Government’s interest to compete the transition and maintenance of this legacy requirement to facilitate the transition to the new CACHE strategy. In the meantime, however, the continuation of these services is necessary to enable the transition to the new strategy.

As a result, CDS is the only contractor capable of meeting the Government's minimum requirement. CDS’ employees and key personnel have gained a unique position and obtained highly specialized technical knowledge and experience with the FFS Part B systems and programs. This specialized experience, along with the contractor’s intimate understanding of the Shared Claims Processing Systems and Infrastructure Services that relate to FFS Part A and Part B processing is imperative for contract performance at an acceptable level of quality. CDS has also gained a specific understanding on how all of the pertinent review contractors, including MACs, Recovery Audit Contractors (RACs), and the Supplemental Medical Review Contractor (SMRC), access the Medicare Fee-For-Service system for the correlating regions and states to conduct medical reviews. While it is possible that another contractor could develop a comparable level of expertise, CDS is the firm currently delivering the needed services, and there is not sufficient time to transition the work to an alternate source prior to when the services described above are needed. Also, the main purpose of this bridge contract is to transition to the new contracting strategy, which has or is in the process of being competed. It is unreasonable to believe that any firm other than CDS would be determined best value in light of these conditions were the contract awarded using fair opportunity.

The Government considered issuing a modification under the current Task Order 75FCMC18F0001 as an alternate solution to the lapse of services during this transition period. However, the ordering period under Base IDIQ Contract HSM-500- 2013-00012I expired in November 2022 and Task Order 75FCMC18F0001 expires on 31 May 2023. Therefore, the Government could not cover the full twelve (12) month transition period that CMS requires. Consequently, Task Order 75FCMC18F0001 cannot be modified to extend the services provided under this effort. Therefore, this request is for a new sole source order to be issued via the SPARC IDIQ, to CDS based on its unique service position.

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:

The needs to be satisfied under the task order contemplated in this justification were recently the subject of the CMS Hosting Environment (CACHE) - Infrastructure as a Service (IaaS) solicitation and the CACHE Managed Infrastructure Service Provider (MISP) awarded using fair opportunity. As a result, all necessary steps to remove barriers to competition have already been implemented. The extension of services under this bridge contract will provide CMS with sufficient time to avoid a lapse in services while simultaneously running effective competition on the new IaaS procurement.

5. State any other facts supporting the justification:

No additional facts supporting the justification

HCA Name / Date

5. Office of Small and Disadvantaged Business Utilization

______________ Not Applicable _______________________ Name / Date

6. OGC Legal Review

______________ Not Applicable ________________________

7. HHS Competition Advocate Approval

______________ Not Applicable _______________________

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.

______________ Not Applicable ________________________ SPE Name / Date