JA MSD bridge order.pdf

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JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Acquisition Title: Marketplace Service Desk (MSD) Agency: CMS Acquisition Year: 2022 Author: Shawn Hunter, Center for Consumer Information and Insurance Oversight

1. Description of Action:

A. Nature a.__X_ New Requirement b.____ Follow-On Order

c. ____ Modification of Existing Contract Number

B. Order Against

a. Multiple Award IDIQ Contract Number: 75N98120D00060

i. Quality Technology, Inc.

4600 Forbes Blvd, Suite 400 Lanham, MD 20706

C. Contract Type

a. _X_ Firm-Fixed Price

b. ____ Time and Materials

c. ____ Cost Plus Fixed Fee (CPFF)

i. ____ Term

ii. ____ Completion

d. ____ Cost Plus Award Fee (CPAF)

e. ____ Other: Hybrid of Firm Fixed Price (FFP) and Cost Plus Award Fee (CPAF)

D. Projected Cost / Price of contract (Base & All Options): $8,653,680.00

E. The total estimated value of the proposed sole source action (for modifications only): N/A

F. Funding Source (s): 000753 – Enterprise Architecture and Operational Support

G. Basis for Approval (FAR 6.303-1(d))

X : Individual Basis

____: Class Basis

2. Description of Services or Supplies:

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CMS requires a contractor to provide short-term bridge service desk support to assist the users and stakeholders of various CCIIO information technology (IT) systems that support the Patient Protection and Affordable Care Act (PPACA or ACA) of 2010. These users are CCIIO application development organizations (ADO), issuers, agent brokers, Health Insurance Marketplaces, state agencies, insurance companies, third-party administrators (TPA), and other healthcare stakeholders.

CMS conducted a competitive procurement for continuation of these services. CMS awarded a task order to Quality Technology, Inc. (QuTech) on February 28, 2022. An unsuccessful offerer submitted a timely protest to the United States Government Accountability Office (GAO) on March 7, 2022. CMS therefore issued a Stop Work Order to QuTech on March 9, 2022.

CMS’ predecessor task order providing these services expires on March 18, 2022. The order does not include the FAR clause 52.217-8, Option to Extend Services. QuTech is the incumbent contractor on this task order. The order will reach the end of its fifth year when it expires. HHSAR 317.204 prohibits contracts from exceeding five years unless approved by the HHS Senior Procurement Executive which cannot be practicably obtained.

The period of performance for the short-term bridge services identified above is March 19, 2022 through March 18, 2023 (if CMS exercises all options). CMS plans to include three, two-month options for continued services as well as a three-month option for transition-out services should CMS need to select a new contractor. The APP for this action is 221298.

3. Authority and Rationale:

The Contracting Officer shall give every awardee a fair opportunity to be considered for a delivery/task order exceeding $3,500 unless one of the following statutory exceptions applies. FAR 16.505(b)(2). Mark the applicable exception:

X Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized [FAR 16.505(b)(2)(i)(B)]:

QuTech is the only responsible contractor at this time who can provide the required help desk services with no lapse in service. QuTech is currently serving in this role and has all necessary personnel, knowledge, and skill to operate and maintain the help desk. To bring in a new contractor while GAO considers the issues in the protest would be a waste of Government resources and significantly increase the operational risk of the Federal Exchange. Furthermore, the amount of time and effort necessary to bring a contractor up to QuTech’s operational effectiveness will not meet the Government’s immediate need.

It is not cost effective or realistic to expect a contractor other than the incumbent QuTech to perform during the interim period considering the amount of transition effort expected when transferring this work to a new contactor. CMS built a three-month transition period into the base period of the protested task order. Due to the nature of the work, CMS decided that the incumbent contractor must transition the work over to a new contractor gradually over this time frame. GAO requires approximately 100 days to resolve a protest.

It would be unwise to have the incumbent contractor transition this work to a new contractor while the GAO adjudicates the protest over the same time frame, especially if CMS successfully defends the protest and can continue with the award to QuTech.

4. Provide a statement of the actions, if any, the agency may take to remove or overcome any barriers that

[3] led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made:

The need for a sole source task order is a direct result of a protest. The agency and OPDIV have taken steps to remove barriers to competition as demonstrated through the ongoing effort to recompete these services. As a result of the ongoing competitive process, there are no additional actions that need to be taken to increase competition or reduce barriers to fair opportunity.

5. Additional Information to support the justification

None

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Approvals:

Program Office Certification. This is to certify that portions of this justification have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for Exceptions to Fair Opportunity, which form the basis for this justification.

__SHAWN HUNTER_________03/09/2022____________________

Contracting Officer Representative (COR) / Date

Program/Project Manager (P/PM) / Date

Best Value Determination. By my signature below, after review of the relevant documents, I have determined that the order subject to this Justification represents the best value for the Government as set forth in FAR 16.505(b)(2)(ii)(B)(5),and constitutes a fair and reasonable price. The basis for my determination is as follows:

In accordance with FAR 15.403-4, the contracting officer will obtain a certificate of current cost or pricing data from the contractor. In addition, pursuant to FAR 15.404-1, the Contracting Officer will perform cost realism and price analysis on the contractor’s proposal to determine that the negotiated price will be fair and reasonable.

Contracting Officer Certification: This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief, the information and/or data provided to support the rationale and recommendation for approval, is accurate and complete.

Contracting Officer / Date

Additional OAGM Approvals:

I hereby confirm the circumstances described above apply and approve the justification for Exceptions to Fair Opportunity.

Andrew Mummert, Director, Division of Information System Contracts / Date

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Benjamin M. Simcock, Director, Information Technology Contracts Group / Date

Head of Contracting Activity (HCA) Approval

I hereby confirm that the circumstances described above apply and approve this Justification for Exception(s) to Fair Opportunity.

Derrick Heard, Director, Office of Acquisition and Grants Management / Date

Competition Advocate Approval

I hereby confirm that the circumstances described above apply and approve this Justification for Exception(s) to Fair Opportunity.

N/A Name / Date

OGC Legal Review

Office of Small and Disadvantaged Business Utilization

Senior Procurement Executive (SPE) Approval

I hereby confirm the circumstances described above apply and approve the Justification for Exceptions to Fair Opportunity.

SPE Name / Date s77c Typewritten Text 03/14/2022