JOFOC_EAP Support_Redacted.pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION DIRECTORATE

Control No. 2020-WHS-0002

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

UNDER FEDERAL ACQUISITION REGULATION SUBPART 6.3

1. AGENCY AND CONTRACTING ACTIVITY: The Contracting Activity is the Department of Defense

(DOD), Washington Headquarters Services (WHS), Acquisition Directorate (AD), Enterprise Security

Services Directorate (ESSD). Requiring Agency is the Department of Defense (DoD) Fourth (4th) Estate.

2. DESCRIPTION OF ACTION: This action requests the approval to issue a follow-on bridge contract for

Employee Assistance Program (EAP) Support Services. This action will be a firm-fixed price contract with a total estimated value of $4,550,000 utilizing Fiscal Year (FY) 2020 Operations & Maintenance (O&M) funding. The period of performance is for 12-months with an expected start date of November 10, 2019.

3. DESCRIPTION OF SUPPLIES/SERVICES: The DoD 4th Estate requires a follow-on bridge contract for

EAP Support Services in order to maintain continuity of support for the various 4th Estate agencies, while a competitive acquisition is being pursued in Fiscal Year (FY) 2020. EAP is a voluntary, work-based program that offers free and confidential assessments, short-term counseling, referrals, and follow-up services to employees who have personal and/or work-related problems. EAPs address a broad and complex body of issues affecting mental and emotional well-being, such as alcohol and other substance abuse, stress, grief, family problems, and psychological disorders. EAP counselors also work in a consultative role with managers and supervisors to address employee and organizational challenges and needs. Many EAPs are active in helping organizations prevent and cope with workplace violence, trauma, and other emergency response situation.

Performance Periods Performance Period Dates Amount

Base Period November 10, 2019 – November 9, 2020 $4,550,000

4. AUTHORITY CITED: This action is authorized under provisions of 10 U.S.C. 2304(c) (1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements.” For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

5. REASON FOR AUTHORITY CITED: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. Various DoD 4th Estate agencies and their members require

Employee Assistance Programs (EAP) support, which includes behavioral health services such as, but not limited to: serious mental illness, autism, and opioid and substance abuse. From help with daily tasks to working on more complex issues, EAP provides coaching, counseling, self-care apps, manager support, critical incident response, child and elder care resources, legal, financial, and identity theft programs and a variety of services to address employee and organizational challenges and needs.

In September 2019, Health and Human Services (HHS) notified DoD its decision to terminate the EAP support contract which DoD utilizes for EAP services. The HHS EAP contract terminates on November 9, 2019. Failure to award this bridge contract to the incumbent, Magellan Healthcare, would result in substantial duplication of costs to the Government, estimated in the amount of $2.0M, which is not expected to be recovered through competition. The estimated $2.0M include costs for the additional labor hours for the contract personnel needed from another vendor to onboard and process security badges to begin executing performance on November 10, 2019. Magellan Healthcare is currently providing seamless EAP support to various DoD 4th Estate agencies. Implementing a new vendor to provide these services could

1155 DEFENSE PENTAGON

Date: 2019.11.20 14:44:54 -05'00' result in unnecessary delays, interruptions in services, increased costs, and unnecessary hardships to members and their families who rely on these essential services. Therefore, a bridge contract to Magellan

Healthcare is required to ensure continuity of support for these essential services while the Government is working a competitive acquisition in FY20.

6. EFFORTS TO OBTAIN COMPETITION: On October 9, 2019, Washington Headquarters Services

(WHS) Acquisition Directorate (AD) issued a “Notice of Intent to Sole Source” this requirement to

Magellan Healthcare Inc. on Federal Business Opportunities (FBO). The Notice of Intent was posted for fourteen days and closed on October 22, 2019. No vendors responded to the notice to challenge the bridge contract to Magellan Healthcare Inc.

7. FAIR AND REASONABLE COST DETERMINATION: The Government will make a determination of fair and reasonable pricing, using the procedures in FAR 15.404-1- Proposal Analysis Techniques;

specifically, FAR 15.404-1(b) (2) (ii) “Comparison of proposed prices with independent Government cost estimates.” Since this requirement will be solicited to the incumbent vendor, historical prices paid from the current contract were used to develop the Government estimate and will be utilized to determine fair and reasonable pricing.

8. MARKET RESEARCH: Market research has been limited to the pre-solicitation notice described under efforts to obtain competition, which was posted for 14 days on Federal Business Opportunity (FBO). No vendors challenged this bridge effort.

WHS/AD will solicit this effort as a follow-on bridge contract in order to maintain continuity of support for various DoD 4th Estate agencies. The bridge contract will be issued as the most logical and cost effective strategy and solution to the Government which will avoid duplicative costs and unacceptable delays in fulfilling the agency’s requirement and a potential gap in performance of critical services while a competitive acquisition is taken place.

CERTIFICATION

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

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Taiwanna Smith Date

Technical POC, MONTGOMERY.ANDREA.M.104 Digitally signed by

8202167 MONTGOMERY.ANDREA.M.1048202167

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Andrea M. Montgomery Date

Contracting Officer, WHS/AD

1155 DEFENSE PENTAGON

8_7_0

APPROVAL

This justification is approved.

KAO.DAVID.HOBERT.1112172

Digitally signed by

KAO.DAVID.HOBERT.1112172870

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David H. Kao Date

Competition Advocate, WHS/AD