JA18-0033B3_PM_Spt_for_THP_(Aurora)_Redacted.pdf

Tracking # JA18-0033 3rd Contract Extension

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, Contracting Office, 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 previous level of effort provided under HT001117C0021, which ends March 6th, 2018.

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 25 days, starting March 7th, 2018, and ending March 31st, 2018. The estimated value of this contract is $ . The contract will be funded utilizing FY18 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 issued a solicitation on December 1st, 2017, for competitive award of program management support services supporting THP at multiple locations. The agency received one quote and initiated evaluations on January 10th, 2018. The decision authority requires additional time to review evaluations documents, complete the award decision document, and complete the contract review board. For the Aurora, Colorado, site, THP receives program management support from HT001117C0021, which ends March 6th, 2018, creating a break in services which must be restored until a competitive contract can be awarded. Axiom Resource Management, Inc., has the knowledge of the THP directorate requirement 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 (FAR 5.207(15) 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: DHA released a competitive solicitation for services on December 1st, 2017. Quote evaluations are currently underway with an anticipated award date of

, for start of service on . The Government estimate of the price for this contract covering the service gap starting March 7th, 2018, to March 31st, 2018, is based on the pricing of previous, similar contracts HT001117C0021, HT0011-16-C-0022, 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 sole source follow-on contract.

8. Market Research: Market research for the proposed contract included review of

. This schedule includes contracts with over 700 companies providing acquisition management support. While adequate competition is likely, a competitive procurement at this time would result in unacceptable delays in fulfilling the Agency’s requirement. On March 6th, 2018, the Head of Contracting Activity received a request for waiver to the requirement at DFARS PGI 206.302-1, paragraph (d), for Request For Information/Sources Sought Notice for sole source justifications citing FAR 6.302-1.

9. Other Facts:

a. The Performance Work Statement is complete and incorporated in the solicitation issued on December 1st, 2017. The technical evaluation board convened January 10th, 2018.

Additional time is required to complete the award decision. A break in service would suspend changes to the TRICARE Manuals, creating unacceptable delays to healthcare pilot programs essential to implementation legislative mandates for the Military Health System.

b. Historical data:

(1) DHA awarded contract HT001117C0021 under less than full and open competition (FAR 6.302-1, only one responsible source, see JA17-0075) starting June 28th, 2017, for approximately 71 days of performance. The contract provides those services performed in support of the THP directorate in Aurora, CO, under HT0011-16-C-0022. On September 7th, 2017, the Agency extended the contract to its final end date of March 6th, 2018.

(2) DHA awarded contract HT0011-16-C-0022 under less than full and open competition (FAR 6.302-1, only one responsible source, see JA16-0142) starting August 26th, 2016, for approximately 119 days of performance. The contract provides those services performed in support of the THP directorate in Aurora, CO, under W81XWH-08-D- 0039-0018 and -0013, but not included in W81XWH-16-F-0060. On December 20th, 2016, and again on March 29th, 2017, the Agency extended the contract to its final end date of June 20th, 2017.

(3) 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.

(4) 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 1 month of performance. The contract continued all services provided under W81XWH- 08-D-0039-0013.

(5) 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 sole source follow-on contract covering performance from March 7th, to March 31st, 2018, but is currently in evaluations for a competitive award.

11. Methods to overcome barriers: Quote evaluations from a competitive solicitation are currently underway with an anticipated award date of , for start of service on