DHA_JA18-0019_HIPAA_Amendment_REDACTED.pdf

Tracking Number: JA18-0019 (amendment 01) Bridge Number: 1

Amendment 01 to Justification and Approval for Other than Full and Open Competition Sole Source

Acquisition FAR Subpart 6.3 Other Than Full and Open Competition

Paragraph 2. Nature and/or Description of Action being approved, the subsequent sentence is hereby amended as follow:

(Base JA) From:

A longer follow-on competition is in process and is expected to be awarded no later than 28 May 2018.

(Amended JA) To:

A longer follow-on competition is in process and is expected to be awarded no later than 30 September 2018 with a requirement for a one (1) month phase-out period.

Paragraph 3. Description of Supplies/Services is hereby amended in its entirety as follow:

(Base JA) From:

This award provides for the continued support for the Defense Health Agency (DHA) Information Management (IM) Office HIPAA Electronic Standards Program Coordination and Analysis. The requested action will have a base period of performance of three (3) months from 28 December 2017 through 27 March 2018, and a possible three month extension pursuant to FAR clause 52.217-8 “Option to Extend Services” with three option periods of performance from 28 March 2018 through 27 April 2018, from 28 April 2018 through 27 May 2018, and from 28 May 2018 through 27 June 2018. The contract has an estimated value of $753,861.34 for the six (6) month period. The contract will be funded utilizing Fiscal Year (FY) 2018, Operations and Maintenance (O&M) funds. The short term contract will provide enough time to make the re-compete award needed by the date of 28 May 2018 and provide the desired one (1) month transition time, in order to transition the contracted services from the incumbent to another contractor.

(Amended JA) To:

This award provides for the continued support for the Defense Health Agency (DHA) Information Management (IM) Office HIPAA Electronic Standards Program Coordination and Analysis. The requested action will have a base period of performance of three (3) months from 28 December 2017 through 27 March 2018, and a possible three month extension pursuant to FAR clause 52.217-8 “Option to Extend Services” for a total period of six months as follows: with three option periods of performance from 28 March 2018 through 27 April 2018, from 28 April 2018 through 27 May 2018, and from 28 May 2018 through

27 June 2018 and a three-month period from 28 June 2018 through 27 September. The contract has an estimated value of $753,861.34 for the six (6) month period. The contract will be funded utilizing Fiscal Year (FY) 2018, Operations and Maintenance (O&M) funds.

The short term contract will provide enough time to make the re-compete award needed by the date of 28 September 2018 and will allow for an desired one (1) month transition time, in order to transition the contracted services from the incumbent to another contractor.

Because the award of the contract is projected for the end of fiscal year 2018, the Government will require one (1) month of additional services from 28 September 2018 through 27 October 2018 using FAR Clause 52.212-4 Contract Terms and Conditions – Commercial Items. This will allow for proper transition activities and the current incumbent to support the annual Accredited Standards Committee (ASC) X12 meeting on 1 October 2018 in Cincinnati, Ohio. ASC X12 develops electronic data interchange standards for national and global markets. X12 maintains the standards and associated guidelines for many types of business and commerce and has various subcommittees that focus on specific areas. The incumbent contractor’s support is critical to the success of this meeting from DHA’s prospective. A new awardee would not have the knowledge or ability to support his meeting that close to the projected award date of 30 September 2018.

The one (1) month extension has an estimated value of $127,100.00, which includes Other Direct Costs in the amount of $4,500.00. Two optional one (1) month Contract Line Item Numbers (CLINs) should be added to allow for additional performance after 27 October 2018 in case there is delay in the new contract award. The period of performance for these CLINs would be 28 October 2018 through 27 November 2018 and 28 November 2018 through 27 December 2018. The estimate value for each CLIN is $122,882.89.

The total contract value is $1,507,722.68 if all options are exercised through 27 December 2018.

Paragraph 4. Statutory Authority Cited permitting other than full, the subsequent sentence is hereby amended as follows:

(Base JA) From:

The quantified cost of the unacceptable delays in fulfilling the agency’s HIPAA requirements is as follows: $740,000.00 for a period of six-months.

(Amended JA) To:

The quantified cost of the unacceptable delays in fulfilling the agency’s HIPAA requirements is as follows: $1,480,000.00 for a period of twelve months including all options.

Paragraph 5. Reason for Authority Cited is hereby amended in its entirety as follow:

(Base JA) From:

Deloitte Consulting, Inc., has the operational infrastructure and knowledge required for successful performance and the necessary skillsets to complete this effort without a loss of efficiency and impact to the DHA for analysis and coordination of the tasks and activities required to prepare for and achieve compliance with the federally mandated electronic standards requirements of HIPAA. It will be time effective and cost efficient to utilize the resources already on contract to continue the requirements and is the least costly choice for the Government. The follow-on action referenced in paragraph 2 has adequate time built in for proper transition. The following estimate represents the cost that would be duplicated (that is not expected to be recovered through competition) if this award was made to any other source: $376,930.67 for a period of six months.

This estimate was derived by multiplying the current IGCE by 50% as the first three months of effort would not reflect actual support for all the areas of the PWS and instead would consist of hiring, training and transitioning new staff without benefit of assistance from the incumbent contractor. A new contractor to would not be able to perform the efforts as described until the fourth month (at the earliest) as they would lack the first-hand knowledge and have highly specialized skills that the current incumbent possess.

(Amended JA) To:

Deloitte Consulting, Inc., has the operational infrastructure and knowledge required for successful performance and the necessary skillsets to complete this effort without a loss of efficiency and impact to the DHA for analysis and coordination of the tasks and activities required to prepare for and achieve compliance with the federally mandated electronic standards requirements of HIPAA. It will be time effective and cost efficient to utilize the resources already on contract to continue the requirements and is the least costly choice for the Government. The follow-on action referenced in paragraph 2 has adequate time built in for proper transition. The following estimate represents the cost that would be duplicated (that is not expected to be recovered through competition) if this award was made to any other source: $753,861.34 for a period of twelve months.

This estimate was derived by multiplying the current IGCE by 50% as the first nine months of effort would not reflect actual support for all the areas of the PWS and instead would consist of hiring, training and transitioning new staff without benefit of assistance from the incumbent contractor. A new contractor to would not be able to perform the efforts as described until the tenth month (at the earliest) as they would lack the first-hand knowledge and have highly specialized skills that the current incumbent possess.

Paragraph 6. Efforts to Obtain Competition, the subsequent sentence is hereby amended to read as follow:

(Base JA) From:

It is anticipated the contract award will be completed no later than 28 May 2018.

(Amended JA) To:

It is anticipated the contract award will be completed no later than 30 September 2018.

Transition-in will be completed between 30 September 2018 and 29 October 2018. Two optional one (1) month Contract Line Item Numbers (CLINs) should be added to allow for additional performance after 27 October 2018 in case there is delay in the new contract award. The period of performance for these CLINs would be 28 October 2018 through 27 November 2018 and 28 November 2018 through 27 December 2018.

Paragraph 9, Other Facts, section (a) and (b) the subsequent sentence is hereby amended as follow:

(Base JA) From:

Historical data. The current services are being provided by Deloitte through a TEAMS ID/IQ order.

Unusual and compelling urgency. There is no material differences in the work scope of services currently provided under W81XWH-08-D-0028-0032 and those planned in this short-term contract.

(Amended JA) To:

Historical data. Previous services were being provided by Deloitte through a TEAMS ID/IQ order.

Unusual and compelling urgency. There is no material differences in the work scope of services that were provided under W81XWH-08-D-0028-0032 and those planned in this short-term contract.

All other justification information remain unchanged.

Signature: ________________

Coordination:

Technical/Functional Representative:

I certify that the supporting data under my cognizance which are included in the amended justification is accurate and complete to the best of my knowledge and belief.

Typed me: _ aniel W. a yer _ te: _9 /1 7 /_2_0 1 8

SAWYER.DANIE Digitally signed by

Title: _Chief, B unctional Requirements__ ignature: __ _____________________

Requirements Certification:

I certify that the supporting data under my cognizance which are included in the amended justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Jonathan A. Billings te: _1 7 S e p 201_8

Title: _Chief, Information Management Support & BILLINGS.JONATHAN.A.1007675 puty for Information nagement ion ignature: _A_N_.A_.1_0_07_6_7_50_5_0

Fair and Reasonable Cost Determination: The Contracting Officer will make a separate amended determination that the anticipated cost to the Government is considered fair and reasonable. This amended determination will include a price analysis. The amended cost determination will be based off the IGCE. Certified cost or price data will not be required because these are commercial services as per the exception in FAR Part 15.403-1(b)(3).

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Typed Name: Robert E. Leblanc te: _9/17/_1_8

Title: Contracting Officer

LEBLANC.ROBERT.EDWARD.10

BILLINGS.JONATH

LEBLANC.ROBERT.E

Legal Review:

I have reviewed this amended J&A and it is deemed to be legally sufficient.

Typed Name: _M. Aaron Lee te: _9 /1 7 /_2_0 1 8

LEE.MELVIN.AARON.128728493

Title: Assistant General Counsel ignature: ___________

Contracting Officer: This certification shall be made by the contracting officer who will sign the contract resulting from this amended justification and approval (J&A).

I certify that this amended justification is accurate and complete to the best of my knowledge and belief.

Typed Name: _ Robert E. Leblanc te: _ __ _

LEBLANC.ROBERT.EDWARD.10 DWARD.1011576075

Title: Contracting Officer ignature: ____________

Approval:

Competition Advocate (CA):

Based on the foregoing amended justification, I hereby approve the procurement of Defense Health Agency (DHA) Information Management Office HIPAA Electronic Standards Program Coordination and Analysis on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(d)(1)(B), FAR 6.302-1(a)(2)(iii)(B), subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

Typed Name: Jake L. Lewis Date:

Title: Competition Advocate ignature: _________________________

LEE.MELVIN.AAR

LEBLANC.ROBERT.E