Approved_JA16-0142_(public_release).pdf

Tracking # JA16-0142

Justification and Approval for Other than Full and Open Competition Sole Source Acquisition

FAR Subpart 6.3 Other Than Full and Open Competition

1. Identification of the agency and contracting activity: Defense Health Agency, Contract Operations Division, 7700 Arlington Blvd, Falls Church, Virginia, 22042.

2. Nature and/or Description of Action being approved: Approval is being requested for award of a Firm Fixed Price sole source contract to Axiom Resource Management, Inc., to support a portion of the level of effort previously provided under W81XWH-08-D-0039-0018, which ended August 15th, 2016. The proposed contract will have no new work.

3. Description of Services: The proposed contract will provide Program Management Support Services to the TRICARE Health Plan (THP) directorate for the Operations Division, located in Aurora, Colorado.

The Contract is anticipated to have a Period of Performance (PoP) of 119 days from August 23rd through December 19th, 2016. It will include FAR 52.217-8, option to Extend Services, allowing up to 6 months of performance within the limits and at the rates specified in the contract. The estimated value of the base period of this contract is XXXXXX. The maximum estimated value of the option to extend services under FAR 52.217-8, if it were exercised, is an additional XXXXXxx for a total amount of XXXXXX. The contract will be funded utilizing FY16 Operations and Maintenance (O&M) Funds.

4. Statutory Authority Cited: The statutory authority permitting other than full and open competition for this acquisition is 10 U.S.C. 2304(c)(1) as implement by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(B) – “Only one responsible source and no other supplies or services will satisfy agency requirements.” For DoD, services may be deemed to be available only from the original source in the case of follow-on contract for the continued provision of highly specialized services, when it is likely that award to any other source would result in – unacceptable delays in fulfilling the agency’s requirement.

5. Reason for Authority Cited: DHA is preparing to issue a solicitation for competitive award of program management support services supporting THP at multiple locations. Organizational reconciliation to eliminate redundancies after “stand-up” of DHA on October 1st, 2013, as well as procedural changes to address findings in the June 2014 report, GAO-14-505, highlighting transition problems for managed care support contracts delayed development of solicitation requirements for the competitive award. For the Aurora, Colorado, site, THP received program management support from W81XWH-08-D-0039-0013, and its bridge W81XWH-08-D-0039- 0018, which ended August 15th, 2016. The follow-on award, W81XWH-16-F-0060, does not include the portion of services that supported THP in Aurora, Colorado, creating a gap in services which must be bridged until a competitive contract can be awarded.

Lockheed Martin Services, Inc. (Lockheed Martin), the incumbent performer on W81XWH-08- D-0039-0018, and DHA could not agree on conditions for negotiating a contract. Lockheed

Martin subsequently divested its capability to provide services. DHA reviewed existing contracts for related support at Aurora, Colorado, and found that only Axiom Resource Management, Inc., has the knowledge of the current circumstances THP directorate requirement and the ability hire displaced personnel to provide the much needed, required support during the duration of this contract without a loss of efficiency and without an unacceptable delay in fulfilling the Agency’s needs, which would impact both the Agency’s current operations and its ability to later competitively award a support contract.

6. Efforts to Obtain Competition: Bids, proposals, or quotations have not been solicited from additional sources due to the expected short term of this effort; however, proposals will be solicited for the follow on contract, under a full and open competition. A contract awarded under this approval for other than full and open competition will be synopsized in accordance with FAR 5.207. Pursuant to FAR 5.102(e), the Government is only required to provide copies of a solicitation issued under other than full and open competition to those firms requesting a copy that were not initially solicited, after advising those firms of the determination to limit the solicitation to a specified firm or firms as authorized under part FAR 6.3.

7. Actions to Increase Competition: The Agency anticipates release of a solicitation for a competitive award by XXXXXXXX, with an award anticipated by XXXXXXXXXXXX. The Government estimate of the price for this contract covering the service gap from August 23rd to December 19th, 2016, is based on the pricing of previous, similar contracts, WX1XWH-08-D- 0039-0018 and the competitively awarded W81XWH-08-D-0039-0013, whose prices were all determined to be fair and reasonable. The Agency has assessed the level of effort and the labor mix employed under the referred contracts to ensure the activities required are for the same services as the proposed bridge contract.

8. Market Research: Market research for the proposed contract included review of the xxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. While adequate competition is likely, a competitive procurement at this time would result in unacceptable delays in fulfilling the Agency’s requirement. On August 19th, 2016, the Head of Contracting Activity signed a waiver to USD(ATL) Policy Memorandum, “Action to Improve Department of Defense Competition,” August 21, 2014, requirement for Request For Information/Sources Sought Synopsis for sole source justifications citing FAR 6.302-1.

9. Other Facts:

a. A performance work statement for competitive award of a fixed-price management support contract could not be completed until the Agency established a “verify and validate” process for transition of managed care support contractors. That process has been finalized, but there is not sufficient time to incorporate the new requirements for award a follow-on contract starting on or soon after August 16th, 2016 without resulting in an unacceptable delay and a break in services that would adversely affect preparation for managed care support contractor transitions in for 2017.

b. Historical data:

(1) On behalf of the DHA, the United States Army Medical Research and Acquisition Activity (USAMRAA) awarded delivery order W81XWH-16-F-0060 under fair opportunity, starting August 16th, 2016, for 12 months of performance and four option periods, each to extend the term of the contract by 12 months. This award continued all services provided under W81XWH-08-D-0039-0018 and -0013, except those services exclusively supporting the THP directorate in Aurora, Colorado.

(2) On behalf of the DHA, the United States Army Medical Research and Acquisition Activity (USAMRAA) awarded delivery order W81XWH-08-D-0039-0018 under less than full and open competition, only one responsible source, starting July 15th, 2016 for 12 months of performance. The contract continued all services provided under

W81XWH-08-D-0039-0013.

(3) On behalf of the TRICARE Management Activity (TMA), a predecessor to DHA, the USAMRAA awarded delivery order W81XWH-08-D-0039-0013 under fair opportunity for performance, starting July 14th, 2011, with a 6-month base period and four options, each to extend the term of the contract by 12 months. This contract provided program management support to several TMA organizations in Aurora, Colorado, including Health Plan Operations, a predecessor to the TRICARE Health Plan directorate.

USAMRAA exercised all four option periods, with the final year of performance ending January 15th, 2016. USAMRAA extended the contract term an additional 6 months to July 15th, 2016, under FAR 52.217-8, Option to Extend Services.

10. Interested Sources: DHA has no written statements of interest from industry for the planned bridge contract covering performance from August 23rd to December 19th, 2016, but anticipates adequate competition in response to a future solicitation.

11. Methods to overcome barriers: Release of a competitive solicitation is anticipated on or about XXXXXXXXXX, for award no later than XXXXXXXXXXXX.