JA-Kenya DzU-CA_Redacted.pdf

This is a Justification and Approval (J&A) document for other than full and open competition for a non-competitive contract extension under the Department of State's Office of Acquisitions Management.

The document requests approval for a two-year extension of contract 72061521C00003 with the Mission for Essential Drugs and Supplies (MEDS) without a ceiling increase, effective June 29, 2026, through June 28, 2028. The contracting activity is the Department of State's Dawa za Ubora (DzU) activity, formerly managed by USAID in Kenya, now under DOS oversight. The extension supports the continuation of life-saving HIV/AIDS services including antiretroviral therapy (ART), viral load testing, and HIV testing during the transition of program oversight from USAID to DOS. The estimated extension spend is approximately $15 million, with pricing continuing under the existing contract baseline and same rate structure. The current period of performance expires June 28, 2026, and the extension will maintain the same scope of services and pricing terms.

The justification relies on AIDAR 706.302-70(b)(3)(ii) and the Expedited Procurement Procedures (EPP) for HIV/AIDS prevention and treatment, valid through December 31, 2029. MEDS has established unique qualifications including a robust procurement system delivering over $327 million in health commodities to 10,268 health facilities across 47 Kenyan counties, extensive logistics networks, and 95 percent inventory accuracy. Competition was not pursued due to the urgency and complexity of the agency transition, limited timeframe, and the critical nature of maintaining service continuity for 1.3 million HIV-positive individuals. Limited informal market research was conducted through internal consultations with USAID subject matter experts. No formal synopsis was published per FAR 5.202(a)(11) due to the emergency context and foreign assistance sensitivity. The Contracting Officer determined pricing to be fair and reasonable based on historical cost analysis from the original award and 2023 scope modification. Future acquisitions will pursue full and open competition once the DOS transition is complete and institutional capacity is established.