Justification and Approval.pdf

This is a Justification and Approval (J&A) document for other than full and open competition under Federal Acquisition Regulation (FAR) Parts 6 and 12, Class Deviation 2026-O0017, Revision 1.

The Defense Health Agency Contracting Activity, Healthcare Contracting Division–Northeast, seeks approval to exercise FAR 52.217-8, Option to Extend Services, under Contract W91YTZ23D0002 with BRSI, LP for continued Third-Party Collection Services. The extension period runs from January 1, 2027 through April 5, 2027, with an estimated value below the simplified acquisition threshold and DHP funding. The services support six military treatment facilities: Womack Army Medical Center (Fort Bragg, North Carolina); Guthrie Army Health Clinic (Fort Drum, New York); Ireland Army Health Clinic (Fort Knox, Kentucky); Kirmbrough Ambulatory Care Center (Fort Meade, Maryland); Kenner Army Health Clinic (Fort Lee, Virginia); and McDonald Army Health Center (Joint Base Langley-Eustis, Virginia). These commercial Third-Party Collection Services involve collecting payments from applicable third-party payers and insurance companies for healthcare services provided to eligible Department of Defense beneficiaries.

The restriction of competition is justified under FAR 12.102(a) because BRSI, LP is the only contractor capable of providing uninterrupted Third-Party Collection Services during the limited extension period. The original contract was competitively solicited and awarded. A non-incumbent contractor would require substantial transition time including system-access approvals, data transfer and validation, payer enrollment or credentialing, interface testing, workflow validation, staffing, training, and facility coordination—activities that cannot be completed before January 1, 2027 without risking service disruption. The extension is necessary to support award and transition to a competitive enterprise follow-on contract projected for award on or about April 5, 2027. The extension will use existing Option Year Four pricing with no scope changes. The contracting officer determined the anticipated price is fair and reasonable based on established contract rates and certified the justification as accurate and complete.