FY20 DJ028 - JA ATP2 (SDVOSB) Final .pdf

SOURCE SELECTION SENSITIVE IN ACCORDANCE WITH FAR 2.101 AND 3.104

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

6.302-5 – Authorized or required by statute

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Acquisition Operations Strategic Acquisition Center 10300 Spotsylvania Ave, Suite 400 Fredericksburg, VA 22408

2. Description of Action Being Approved: This activity proposes to negotiate a non-competitive award (sole-source) with ATP2 LLC, a verified Service-Disabled Veteran-Owned Small Business (SDVOSB) to perform medical claims support services for the Veterans Affairs Financial Services Center (VA-FSC) in Austin, Texas. This requirement will result in the issuance of a Firm-Fixed-Price contract as a direct award to a Service-Disabled Veteran-Owned Small business (SDVOSB), based from solicitation 36C10G20Q0059, and the anticipated period of performance is:

Base: June 13, 2020 – Sept 12, 2020

3. Description of Services:

The Department of Veterans Affairs Financial Services Center (VA-FSC) is a Franchise Fund under the Government Management Reform Act, P.L. 103-356.

Consequently, the VA FSC receives no federally appropriated funding and thus is required to market its services to customers. As such, VA-FSC provides financial services to the Department as well as to other government agencies (OGAs).

VA-FSC processes medical claims in support of their customers. Vendors providing medical services and care to individuals send claims to the VA-FSC for adjudication in accordance with appropriate fee schedules based on customer program requirements. The VA-FSC is responsible for processing the associated medical claims submitted by the medical providers in accordance with the Prompt Payment Act and customer program requirements and reimbursing medical care providers on behalf of customers. Current VA-FSC customers include, but are not limited to, 21 Veteran Integrated Service Networks (VISNs) throughout the United States (US), Department of Health and Human Services, dialysis medical claims (Medicare), and compensation claims resulting from Veterans’ exposure to contaminated water at Marine Corps Base Camp Lejeune, North Carolina. The Contractor utilizes the VA- FSC’s existing claims processing system to process these claims, therefore, services have historically been provided at the Government’s facilities in Austin and Waco, TX. The Contractor must assist in the management of, as well as, process a large volume of medical claims efficiently and within specific timeframes.

The total estimated value of the proposed action for the base award amount only is for $3,395,967.74.

4. Statutory Authority:

The statutory authority permitting other than full and open competition for this procurement is 41 U.S.C. § 3304(a)(5) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-5 entitled, “Authorized or required by statute.” The applicable statute is Public Law 109- 461: “Veterans Benefits, Health Care, and Information Technology Act of 2006” specifically, the “Veterans First Contracting Program” outlined in 38 USC §8127(c).

5. Rationale Supporting Use of Authority Cited Above:

VAAR 819.7007 states explicitly “A determination that only one SDVOSB can meet the requirement is not required,” and that using this authority, the following must verify:

(1) The anticipated award price of the contract (including options) will not exceed

$5 million; the estimated value of the proposed action is $3.4M and does not exceed $5M.

(2) The Justification prepared pursuant to FAR 6.302-5(c)(2) (ii) is posted in accordance with FAR subpart 5.301(d);

The J&A will be posted on FBO.

(3) The SDVOSB concern has been determined to be responsible with respect to performance; and, ATP2, LLC is registered and VIP-verified as owned and controlled by a service-disabled veteran. ATP2, LLC has successfully performed and currently provides these services to the VA, demonstrating that they have the expertise and experience required for successful performance.

ATP2, LLC is registered in the System for Award Management (SAM) as a SDVOSB under the applicable North American Industry Classification System (NAICS) code.

(4) In the estimation of the contracting officer, contract award can be made at a fair and reasonable price that offers best value to the Government. This determination will be based on a comparison of the proposed price to the Independent Government Cost Estimate and other price analysis.

6. Efforts to Obtain Competition:

IAW VAAR § 819.7007 Sole source awards to service-disabled veteran-owned small business concerns (b), “The contracting officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer. A determination that only one SDVOSB concern is available to meet the requirement is not required.”

A notice of the proposed action will be synopsized via the Government Point of Entry (GPE) in accordance with FAR Section 5.201, and the agency will make publicly available the justification required by 6.305(a) within 14 days after contract award.

7. Price Reasonableness:

Price Reasonableness will be determined by using the rates on the current contract, the Independent Government Cost Estimate, a comparison with similar contracts in the same industry, and knowledge and previous experience of the Program Office.

The current contract incorporated labor rates from a revised Service Contract Act wage determination, so the current contract rates are in line with industry standards.

A price analysis was conducted by comparing the unit prices to the unit prices listed on GSA schedules for similar work. It was determined from this analysis that the pricing was still fair and reasonable and that no savings would be gained from resoliciting as a new procurement would generate administrative costs, training costs for new contracted personnel and bringing a new contractor up to the required performance level.

8. Market Research:

Market research was conducted and ATP2, LLC has been determined to be a responsible source with respect to performance. They are registered and certified in VetBiz.gov as a SDVOSB with the NAICS code for this requirement which in accordance with Public Law 109-461 Section 502(c) meets the requirements of this statute to sole source to a SDVOSB. In addition, a review of their Representations and Certifications was conducted in the System for Award Management (SAM) and ATP2, LLC has no exclusions.

In addition, the Federal Awardee Performance and Integrity Information System (FAPIIS) was reviewed and FAPIIS shows no reports for ATP2, LLC that would indicate defective pricing, instances of contractor fault or recipient not-qualified, terminations for cause, default or material failure to comply, or non-responsibility of the contractor.

9. Other Facts:

In accordance with Public Law 109-461, codified at 38 USC § 8127, in order to increase contracting opportunities for small business concerns owned and controlled by veterans and small business concerns owned and controlled by veterans with service-connected disabilities, contracting officers of the VA are given specific statutory authority to award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures (i.e. a “sole source” contract). The contracting officer may do so in accordance with VAAR 819.7007.

10. Listing of Sources Expressing an Interest:

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P270_38161

A Request for Quotation (RFQ) was posted in May 2020 for the re-competition of the follow-on contract. Approximately 15 vendors responded to questions from that posting; of that quantity of interested vendors, four were large businesses, one was a small business, and 11 were SDVOSBs.

11. Actions to Overcome Barriers to Competition:

All future requirements will be solicited and award competitively, and managed and administered in accordance with FAR/VAAR and other applicable acquisition strategy policies and procedures related to the requirement.

12. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature: _________________ Date: _________________ Sharon Redman Contracting Officer Strategic Acquisition Center

13. I certify that all supporting data which form the basis of this justification is complete and accurate.

Signature: _________________ Date: _________________ Stephen L. Spurlin FSC Program Manager Financial Healthcare Service

Approval

Upon the basis of the above justification, I hereby approve, as advocate for competition for the procuring activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 38 U.S. Code 8127(c).

Donald (Jason) Jones Date Competition Advocate Competition Advocate Strategic Acquisition Center (SAC) Tracking Number: DJ028

06/08/2020 vacojonesd12 Typewritten Text 6/8/2020