JA HT001524C0003 P0007_Redacted.pdf
PDF 390 KB Posted
- Solicitation number
- FY26-0574
- Issued by
-
Defense Health Agency
About this file
This is a Justification and Approval (J&A) document for a non-competitive contract modification for Strategic Advisor Support services with the Defense Health Agency (DHA). The modification extends the current contract with incumbent Zygos Consulting LLC (contract number HT0015-24-C-0003) under a Firm Fixed Price structure. The modification covers three performance periods: a Base Period from March 23, 2026 to July 22, 2026, Option Period 1 from July 23, 2026 to November 22, 2026, and Option Period 2 from November 23, 2026 to March 22, 2027, all funded through Operations and Maintenance (O&M) appropriations.
The services provided include strategic consulting support to the DHA Program Executive Office Medical Systems (J-6) Directorate, encompassing needs analysis, concept development, strategic advice, program guidance, detailed analysis, evaluations, and recommendations for mission-critical challenges. The modification is justified under 10 U.S.C. 3204(a)(1) as a sole-source procurement due to an 18-month delay in the follow-on competitive solicitation (HT0015-24-R-0021), which was posted August 1, 2024, awarded July 18, 2025, and subsequently faced GAO protests and corrective actions still ongoing as of the document date. To prevent service disruption and mission failure for the DHA, extending the incumbent contract is deemed more efficient than recompeting or engaging a new contractor for the limited interim period. The Contracting Officer determined the anticipated cost to be fair and reasonable based on price analysis per FAR 15.404-1, and legal review confirmed the justification as legally sufficient. A notice of intent to extend was posted on SAM.gov on February 24, 2026, and a waiver for RFI/sources sought posting was approved on October 21, 2025.
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Text version
Control Number: FY26-0573
Source Selection Information - See FAR 2.101 and 3.104-4 corrective actions. Corrective actions are still ongoing with an unknown completion date. If any protests are received after corrective actions, then options are needed for the bridge due to the lengthy process of protests. A modification to this contract is needed to prevent a break in service due to these protests.
The follow-on award was solicited on 1 August 2024 and awarded on 18 July 2025. Corrective actions began on 26 September 2025 and are still in evaluations. From RFP Posting until now has been 18 months and the current performance ends in less than 25 days. Recompeting the requirement or executing a bridge to any other source or allowing current services to expire would result in a substantial loss of the current functionality and sustainment of the DHA. The cost and time it would take to bring on a new contractor for the limited time needed until award and start of performance for the new contract would lead to a break in service, loss of critical support, and mission failure for PEO Medical Systems (J-6). A loss of efficiency would also be a direct result of having a new contractor's learning curve meet existing metrics.
6. Efforts to Obtain Competition:
As required by RFO 5.101, a notice of intent to extend this contract was posted on SAM.gov, on
24 February 2026, notifying interested vendors that the Government plans to extend the period of performance. Further modifications would not be needed if no additional protests are received after re-affirming the award following corrective actions. The follow-on requirement was solicited on SAM.gov as a small business set-aside.
A request was approved, on 21 October 2025 by the Head of the Contracting Activity, to waive the requirement for posting an RFI or sources sought notice prior to completing a non-competitive acquisition.
7. Actions to Increase Competition/Remove or Overcome any Barriers to Competition:
A new follow-on requirement was competed under solicitation number HT0015-24-R-0021 and was awarded on 18 July 2025. This current request is needed due to delays after GAO dismissed protests and DHA went into corrective actions. The corrective actions have been delayed due to a confluence of factors that have impacted on the re-affirmation of award.
8. Market Research:
Market research was not completed specifically for this action. However, the follow-on requirement to HT0015-24-C-0002 was solicited as a 100% small business set-aside on
SAM.gov on 01 August 2024 with proposals received on 4 December 2024.
proposals were received, and evaluation of those proposals support that there are several vendors that can provide the services to meet the requirements. However, it is in the best interest of the Government to extend the current contract with the incumbent due to GAO protests following award. GAO protests were dismissed because DHA agreed to conduct corrective actions but there has been a delay in these corrective actions.
9. Other Facts:
File details come from the government source that posted it. Updated .