JA-11-4-006_Increase_Premiums_03-29-2017_Redacted.pdf

Office of Acquisition and Management IN REPLY TO 1111 20th Street, NW, 4th Floor PC-11-4-006

Washington, DC 20526 J&A No. 17-02

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY.

The United States Peace Corps, Office of Acquisition and Contracts Management(OACM)on behalf of the Office of Health Services (OHS).

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

Approval is requested to award a fixed unit price modification under contract PC-11-4-006, task order 5, with Seven Corners, Inc., 303 Congressional Blvd, Carmel, IN 46032 for an additional 243 short term group health insurance (AfterCorps) premiums for volunteer End of Services (EOSs) through April 30, 2017 in support of the Office of Health Services using other than full and open competition.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS (INCLUDING THE ESTIMATED VALUE).

Peace Corps offers short term group health insurance to Returned Peace Corps Volunteers (RPCVs), and eligible dependents. Short-term health insurance is available for up to three months after EOS. Peace Corps pays the first month’s health insurance premium for RPCVs. The RPCV has the option to buy an additional two months of the same coverage at the same monthly rate that Peace Corps pays. The proposed modification will increase the number of short-term health insurance premiums by 243, from 23,692 to 23,935 and extend the Period of Performance (PoP).

The PoP will be extended one month, from March 31, 2017 through April 30, 2017

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. The proposed modification is for an estimated value of $55,000.00. The current contract value is $5,041,964.29. The proposed modification will increase the contract value by $55,000.00, from $5,041,964.29 to $5,096,964.29.

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN FULL

AND OPEN COMPETITION.

41 U.S.C. 3304(a)(1) as implemented in by FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements.

PC-11-4-006

J&A No. 17-02

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE OF THE

CITED STATUTORY AUTHORITY.

Seven Corners was awarded competitive contract PC-11-4-006 August 2, 2011 for short-term health insurance. A follow-on competitive solicitation for these Services was issued by the Peace Corps via Federal Business Opportunities October 12, 2016, and the resulting contract was awarded to International Medical Group, Inc. (IMG) February 21, 2017. The new contract allows for a sixty (60) day transition period following contract award. It is expected that these services will be fully transferred from the incumbent, Seven Corners, Inc. to IMG May 1, 2017.

During this transition period, Seven Corners, as the incumbent contractor, is the only responsible source capable of transition of services currently provided under the aforementioned contract.

Awarding to any other contractor will risk transition of duties, activities and functions of tasks necessary to ensure continuation of vital health care benefits to RPCVs. Seven Corners is the only contractor that is capable of providing the knowledge transfer of service activities to Volunteers and stakeholders.

The estimated transition period for another vendor to adequately prepare to deliver health care benefits services is 60 days. Adverse impacts to Peace Corps health services to Volunteers will occur if the required services are allowed to lapse or are not successfully transferred. Negative impacts include but are not limited to the inability to provide health care access and secure comprehensive short-term health insurance to RPCV’s.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

The proposed contract action was not synopsized. The proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of 5.207 with respect to the current proposed contract action. No additional market research was conducted because it is not practical, for reasons discussed in paragraph 5 above, for any other company other than Seven Corners, Inc. to provide the required services. To date, no other company has expressed interest in performing this requirement.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COSTS TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable.

8. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS OR A STATEMENT

OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED.

Market research was completed for the Seven Corners contract and most recently before the solicitation of the follow-on contract. The Peace Corps has determined that further market research in support of the services covered by this J&A would not yield meaningful additional information and that it is in the best interest of the Government to contract with Seven Corners for the required services.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

A full and open contract was awarded to IMG on February 21, 2017. IMG is expected to provide coverage May 1, 2017 after the transfer period.

10. LIST OF THE SOURCES, IF ANY THAT EXPRESSED, IN WRITING, AN INTEREST IN

THE ACQUISITION.

None

11. STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITIONS

FOR THE SUPPLIES R SERVICES REQUIRED.

The Peace Corps awarded the follow-on competitive contract to IMG on February 21, 2017. The proposed transition services will allow a smooth transition to the newly awarded follow-on contract.

CERTIFICATION

Requesting Office:

I certify the facts and representations included in this justification form are complete and accurate basis for the justification.

__________________________________________ __3/29/2017 Devin Meredith Date Contracting Officer Representative

APPROVAL

Contracting Officer:

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

__________________________________________ ____3/29/2017 Sonja Truehart-McKinney Date