FY369002001_LSJ_Extension.pdf

Limited Source Justification

Task Order: FY369002001 October 28, 2015

Limited Source Justification (LSJ)

In Accordance With FAR 8.405-6

1) Identification of the Agency, Contracting Activity, and Document being approved:

Procurement Office: AAS Region 7

Agency: GSA

Task ID: FY369002001

Contractor: KForce Government Solutions (KGS)

Contract Type: Time & Materials

Name: Electronic Data Interchange (EDI) Services

Client: Department of Veterans Affairs (VA) Financial Services Center (FSC), Austin, TX.

Estimated Dollar Value: $2,314,307.02 (181 Day Extension (if all options are exercised))

Period of Performance for this action:

Protest Extension Option 01 - 61 days - November 1, 2015 through December 31, 2015

Protest Extension Option 02 - 30 days – January 1, 2016 through January 30, 2016

Protest Extension Option 03 - 29 days – February 1, 2016 through February 29, 2016

Protest Extension Option 04 - 31 days – March 1, 2016 through March 31, 2016

Protest Extension Option 05 - 30 days – April 1, 2016 through April 30, 2016

– Total of 181 days

GSA Schedule Contract Number: GS-35F-0163Y

2) Description of action being approved:

This limited sources justification is in support of a sole source 181 day extension consisting of one (1) 60 day option, and four (4) monthly options to allow for continued performance of Task Order FY369002001, VA

Electronic Data Interchange (EDI) Services. KForce Government Solutions (KGS) was awarded Task Order

FY369002001 under GSA Schedule GS-35F-0163Y, utilizing competitive procedures on November 1, 2009.

This task was awarded as a Time and Materials type task. This task is currently in the “Extension of Services” under FAR 52.217-8, which began May 1, 2015 and expires on October 30, 2015.

The Task Order FY369002001, EDI requirement (along with similar services provided under Task Order

FH361006) was re-competed under Task Order ID07140021 and subsequently awarded to Camber Corporation on February 25, 2015. Following award, a timely formal GAO protest was filed by KGS (Incumbent) on March

6, 2015, against the award to Camber citing potential Organizational Conflicts of Interest (OCI). As required, performance was immediately suspended on Mar 6, 2015, pending the Government’s response and ultimately the GAO decision. The GAO dismissed the protest as academic on March 24, 2015, with the caveat that the

Government would continue to take corrective action to fully investigate these allegations until the successful mitigation or elimination of alleged OCI issues.

This sole source extension of the current task FY369002001 will provide for the continuity of critical information technology (IT) support services for VA-FSC operations. This extension should allow sufficient time to resolve the current OCI investigation.

2) FAR 8.405-6 Limited sources justification and approval.

Task Order: FY369002001

Orders placed under Federal Supply Schedules are exempt from the requirements in Part 6. However, an ordering activity must justify its action when restricting consideration in accordance with paragraphs (a) or

(b) of FAR 8.405-6:

FAR 8.405-6(a)(1): Circumstances justifying limiting the source:

___X___(1) An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays; FAR 8.405-6(a)(1)(i)(A).

_____ (2) Only one source is capable of responding due to the unique or specialized nature of the work; FAR 8.405-6(a)(1)(i)(B).

_____ (3) The new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures; FAR 8.405-6(a)(1)(i)(C).

3) Description of Supplies or Services Required:

This limited sources justification is to support a modification for an extension (total of 181 days) on a sole source basis to the incumbent vendor, KForce Government Solutions (KGS), to provide support services and products for VA Electronic Data Interchange (EDI) Services, which includes the following services:

a. EDI Technical Services

1) EDI Production Support

2) EDI Application Support

3) EDI Help Desk

b. EDI Administrative Services

1) EDI Business Analyst

2) EDI Operations Manager

3) EDI Project Coordinator

4) EDI Project Management

5) EDI Quality Assurance

6) EDI Technical Writer

7) EDI Senior Manager

4) Identification of Authority and Supporting Rationale: This acquisition is conducted under the authority of FAR 8.405-6(a)(1)(i)(A) and FAR 8.405-6, titled “Limited Sources,” for orders placed against the Multiple

Award Schedule Program utilizing FAR Part 8 as the procurement guide.

5) Demonstration that the Acquisition Requires the Use of the Authority Cited:

As a direct result of the timely protest and ultimate OCI investigation there exist urgent and compelling http://acquisition.gov/far/current/html/FARTOCP06.html#wp280339 justifications for the extension of the Task Order on a sole source basis. This requirement was re-competed;

however, immediately following award, the performance was required to be suspended due to a timely GAO protest and subsequent OCI investigation. The current EDI Task Order is due to expire on October 30, 2015;

meanwhile, the Government’s OCI investigation is ongoing. A stay of performance has been filed so services cannot start under the new task order until the OCI investigation is completed. As a result, there is insufficient time to re-compete this requirement.

This task order is vital to the VA as it directly supports the financial services within the VA as well as other government agencies (OGAs). EDI Services and EDI Data Analytics are the most profitable product lines of the

FSC. More specifically, EDI allow customers to implement reports and metrics used by the VHA to track fraud, waste, and abuse in the billing to 3 rd party payers (i.e. insurance companies) for medical services provided to veterans for non-service connected disabilities. The potential lapse in EDI services would severely hamper the current VA workforce in sustaining the VA/FSC and VHA’s medical care revenue collection activities which exceed over $3B a year. Therefore, the decision to award this sole source extension to KGS (the incumbent) takes into account the Government's need for continuity of operations and the potential costs of disrupting operations. In light of the new award requiring corrective action as a result of a protest, it was decided that executing the modification to extend the existing task order would be the most advantageous and cost effective to the Government, price and other factors considered, in lieu of issuing a completely new bridge task.

These events have occurred beyond the control of the Contracting Officer, and the delay in awarding a follow-on task was not due to poor planning. Again, this extension is to ensure there is no break in-service, as it fulfills an existing Government need, and funds are available to cover this extension.

6) Description of Efforts to Solicit as Many Offers as Practicable or Exception: Considering the extension is based upon the prescription under FAR 8.405-6(a)(1)(i)(A), “urgent and compelling” only the incumbent will be solicited for the follow-on services required under Task Order FY369002001.

7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be

Fair and Reasonable and Represents the Best Value:

A quote was received from KGS on October 12, 2015 and the pricing for the 181 day effort was determined to be fair and reasonable by the Contracting Officer. KGS will be providing services at the same rates for this sole source extension Option 01 (November 1, 2015 through December 31, 2015), Option 02 (January 1, 2016 through January 30, 2016) Option 03 (February 1, 2016 through February 29, 2016) Option 04 (March 1, 2016 through March 31, 2016) Option 05 (April 1, 2016 through April 30, 2016) as those in the Extension of Services

Option 3 (September 1, 2015 and expires on October 30, 2015) which was previously approved. Also, services will continue during the period of performance covered by this sole source extension at the same rates and level of effort as that in Option Year four (4). Option Year 04 expired October 31, 2014. As mentioned in paragraph

6 above, the existing task order FY369002001 was awarded to KGS under their Consolidated Contract GS-35F-

0163Y, utilizing competitive ordering procedures for Federal Supply Schedules as identified under FAR 8.405.

As services will continue in the modified period of performance extension at the same rates as that of the existing contract/task, prices have already been determined fair and reasonable at the time option four (4) was exercised, and again when Extension of Services Option 3 was exercised. The total estimated value of this 181 day extension is estimated at $2,314,307.02. The current total funded amount for the base and four year period to include the past extensions is $34,517,328.37. With this extension in the amount of $2,314,307.02, the total funded amount will be $36,831,635.39. This additional amount does not raise the overall ceiling for the task order FY369002001 and remains at $41,116,151.00.

The CO has determined that, under the circumstances described herein, the offer from KGS for the 181 day extension for FY369002001 represents the best business option and the overall best value (including the level of effort and pricing) consistent with 8.404(d) – See 8.405-6(c)(2)(v). This sole source extension shall be prepared and fully executed by the contracting officer upon approval of this LSJ. The LSJ shall be posted within 14 days of the award of the modification, and shall remain posted for a period of at least 30 days.

8) Description of market research conducted: The Government intends to make a sole source award to the incumbent KGS for this 181 day extension. Market research was utilized to ensure that the current prices that will be awarded under the sole source modification to this task order are still considered fair and reasonable. Additionally, this justification shall be posted on FBO.gov, in accordance with the requirements at

FAR 8.405-6(a)(2)

9) Other facts supporting the justification: Not applicable.

10) List of sources that expressed an interest in the acquisition: KForce Government Solutions, 2750

Prosperity Ave., STE 300, Fairfax, VA 22031-4312

11) Statement of Actions to overcome barriers of competition: The government has re-competed this requirement and made an award. However, as a result of a protest being filed, there is an urgent and compelling need to award a sole source extension to this task order pending the resolution of the OCI investigation.

Based on the above information, it is hereby determined by the signatories below that the circumstances identified in this document are accurate and complete to the best of our knowledge and represent the best business decision to meet the Government’s need. Therefore, limiting sources under the prescription of

FAR 8.405-6(a)(1)(i)(A) is fully justified. Information regarding this requirement was obtained from the Client

Agency, and was solely relied upon in the preparation of this LSJ.

Project Manager Date

John Grant

Contracting Officer Date

Sheila Morrison Date

AOD Branch Manager

GSA Legal Date

I, the approving authority, determine that the circumstances identified in this document are accurate;

therefore, limiting sources under FAR 8.405-6(a)(1) and FAR 8.405-6(a)(1)(i)(A) is justified. The signature below also represents approval of this Limited Sources Justification.

Shaloy Castle-Higgins Date

Competition Advocate