JEFOC_Clinical Health Services - QTC_Redacted.pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION DIRECTORATE

Control No. 2020-WHS-0019

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

Clinical Health Services, Private Provider Network. This action will be a firm-fixed price contract with a total estimated value of $1,694,877.84 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

Clinical Health Services, Private Provider Network 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. Clinical

Health Services, Private Provider Network provides general medical laboratory services on a full range of medical laboratory tests. All laboratory services will be provided by the Contractor or its sub-contracted reference laboratories. The Contractor shall be required to provide: a courier to pick up the specimens, requisitions for services, necessary supplies to sites identified by the Contracting Officer Representatives

(COR). This requirement will be procured as a Firm Fixed Priced (FFP) contract.

Performance Periods Performance Period Dates Amount

Base Period November 10, 2019 – November 9, 2020 $1,694,877.84

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

Clinical Health Services, Private Provider Network support, which includes a wide variety of services and programs aimed at helping individuals achieve healthy lifestyle choices. This requirement will be procured as a Firm Fixed Priced (FFP) contract.

In September 2019, Health and Human Services (HHS) notified DoD of its decision to terminate the Clinical

Health Services, Private Provider Network contract which DoD utilizes for Clinical Health Services, Private

Provider Network. The HHS Clinical Health Services, Private Provider Network contract terminates on

November 9, 2019. Failure to award this bridge contract to the incumbent, QTC Medical Services, Inc., would result in substantial duplication of costs to the Government, estimated in the amount of $1.6M, which is not expected to be recovered through competition. The estimated $1.6M 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. QTC Medical Services, Inc. is currently providing seamless Clinical Health Services, Private Provider Network support to various DoD 4th Estate agencies.

Implementing a new vendor to provide these services could

1155 DEFENSE PENTAGON

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 QTC

Medical Services, Inc., 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 QTC

Medical Services, 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 QTC Medical Services, 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.

SMITH.TAIWANN Digitally signed by

SMITH.TAIWANNA.R.1074327989

A.R.1074327989 Date: 2019.11.20 14:37:47 -05'00'

Taiwanna Smith Date

Technical POC, DHRA

MONTGOMERY.ANDREA.M.10 Digitally signed by

MONTGOMERY.ANDREA.M.1048202167

D_a_te_: 2_0_19_.1_1.2_0_1_4:5_8_:3_9 -_05_'0_0'

Andrea M. Montgomery Date

Contracting Officer, WHS/AD

1155 DEFENSE PENTAGON

APPROVAL

This justification is approved.

KAO.DAVID.HOBERT.

_1_1_1_21_7_2_8_7_0

Digitally signed by

KAO.DAVID.HOBERT.1112172870

D_a_t_e:_2_01_9_.1_1._21 08_:4_3_:0_6_-0_5_'0_0'

David H. Kao Date

Competition Advocate, WHS/AD