JA Other Than Full and Open Competition -OACT.pdf

JUSTIFICATION AND

FOR OTHER THAN FULL AND OPEN

COMPETITION

Acquisition Title: Purchase Estimates of Workmans’ Compensation Agency: Centers for Medicaid & Medicare Services (CMS)/OACT Acquisition Year: FY2021 Author: Joseph Benson

2. Description of Action:

Nature

__X_ New Requirement ____ Follow-On Order ____ Modification of Existing Contract Number

Contract Type _X__ Firm-Fixed Price ___ Time and Materials ____ Cost Plus Fixed Fee (CPFF)

• ____ Term

• ____ Completion

____ Cost Plus Award Fee (CPAF) ____ Other: ___________

Projected Cost / Price of contract (Base & All Options): $780,650

Funding Source (s): 009297

__X_: Basis for Approval (Far 6.303-1(d)

____: Individual Basis

____: Class Basis

Name of Proposed Contractor(s): National Academy of Social Insurance (NASI) Street Address: 1441 I Street, N.W., Ste. 530 City, State, Zip: Washington, DC 20005

3. Description of Services or Supplies:

CMS intends to award a new firm fixed priced contract with an estimated dollar amount of $780,650 (for all years) to provide data regarding workers’ compensation premiums earned in 2020, as well as medical and cash benefits paid and incurred for injuries occurring in 2019 for each state. The data collected will also include benefits paid and reserves set aside for future payments. The data will be used to construct national source of fund estimates for workers’ compensation in the National Health Expenditure Accounts (NHEA).

Anticipated Period of Performance is as follows:

Base Year June 8, 2021 through June 7, 2022 Option Year 1 June 8, 2022 through June 7, 2023 Option Year 2 June 8, 2023 through June 7, 2024 Option Year 3 June 8, 2024 through June 7, 2025 Option Year 4 June 8, 2025 through June 7, 2026

4. Authority and Rationale:

Identify the statutory authority, FAR title and FAR citation permitting other than full and open competition.

It may be one of the following most commonly used citations by the operating divisions of the Department of Health and Human Services (HHS), but other exceptions may apply per FAR Subpart 6.3.

Actions other than simplified acquisition procedures (select only one and provide an explanation):

__X___: FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements, 41 U.S.C. 253(c)(1)

NASI is uniquely qualified for the following reasons:

The National Academy of Social Insurance is a private nonprofit organization engaged in the collection and tabulation of social insurance information, including workers' compensation data. Other government agencies such as the Bureau of Economic Analysis and the Social Security Administration rely on the National Academy workers' compensation data for their research projects. These data are currently unavailable from any other source.

The data from the National Academy of Insurance will be used to update the National Health Expenditures Accounts, and serves as an important element of the National Health Statistics Group

(NHSG).

The National Academy of Social Insurance database is the only available source.

5. Bridge Contracts:

Not Applicable

6. Actions to Increase Competition:

In an effort to increase competition, per FAR 5.2, this effort was synopsized on Beta.SAM’s website from March 5, 2021 through March 20, 2021. , CMS did not receive any capability statements in response to our synopsis for APP No. 211130 Purchase Estimates Workman’s Compensation FY21.

7. Market Research:

A market survey was conducted with a synopsis published on Beta.SAM’s website from March 5, 2021 through March 20, 2021. As previously mentioned, CMS did not receive any capability statements to our response.

8. Procurement History:

Purchase order or contract number: Contract No. HHSM-500-2016-00043C The current contract, held by the National Academy of Social Insurance, will expire June 7, 2021.

Was Action Competed? ____Yes __X__ No

If action was not competed, state the cited authority, summarize rationale, and describe the actions that were supposed to be taken to increase competition and the results thereof:

The authority upon which the JOFOC was based is 41. U.S.C. 253 (c) (1), only one responsible source.

Description of the market survey conducted and the results, or a statement of the reasons a market survey was not conducted:

A study panel of experts from the Center for Medicare & Medicaid Services (CMS), the Social Security Administration, the Bureau of Labor Statistics, the Workers' Compensation Research Institute, the National Council on Compensation Insurance, the AFL-CIO, and Princeton University have reviewed the availability and quality of workers' compensation data currently available. The study panel supports the position that the National Academy is the only single source of comprehensive workers' compensation cost data for all states and the nation.

9. Additional Information to support the justification

Until 1994, the Social Security Administration produced a national workers' compensation cost database, however, the program was discontinued due to budget considerations. Since 1995, the only single source of workers' compensation data is the National Academy of Social Insurance. The National Academy generates workers' compensation estimates using data gathered from state workers' compensation agencies, insurance rating bureaus, and special funds. These data are supplemented and reconciled with information obtained from other government records as well as data purchased from a private firm specializing in gathering information from private insurance companies.

10. Listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

No capability statements were received from our Beta.Sam’s Sources Sought Notice.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required

Since 1995, solely the National Academy of Social Insurance has been performing this type of data collection and reporting; with no additional entities in the marketplace self-identifying as capable of performing this body of work CMS is not able to remove or overcome any barriers to competition. However, CMS/OACT will continue to stay current with the field and look for other potential contractors for this work, such as posting another Sources Sought Notice in the future.

12. Recommendation/approval:

For the reasons indicated above, it is recommended that a sole source contract in the amount of $780,650 (for all years) be awarded to the National Academy of Social Insurance, for the project titled “Purchases Estimates Workman’s Compensation FY21.”

(a) This certifies that, to the best of my knowledge and belief, the data necessary to support the recommendation for other than full and open competition are accurate and complete, as required by FAR subsection 6.303-2(b)(12).

Approvals:

1. 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, which form the basis for this justification for other than full and open competition.

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 6.303-2(b)(7), and constitutes a fair and reasonable price. The basis for my determination is as follows:

The National Academy of Insurance provided this work for $134,651 last year. The program office estimated a 5% increase of the total previous contract and applied it to calculate the new estimated total. Based on proprietary value of the data and the historical prices paid, we take no exception to the proposed base year costs of $141,349, which we determined to be both a fair and reasonable price for the Federal Government to obtain this comprehensive database. A final determination of fair and reasonable pricing will be determined after evaluating the proposal.

Breakdown by Year:

Base: $141,416 Option Year 1 $148,381 Option Year 2 $155,837 Option Year 3 $163,629 Option Year 4 $171,810

2. 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

3. OAGM Approvals

I hereby confirm the circumstances described above apply and approve the justification for other than full and open competition.

Joseph R.

Benson -S

Digitally signed by Joseph R. Benson -S Date: 2021.04.21 08:40:11 -04'00'

Stephen Heffler -S

Digitally signed by Stephen Heffler -S Date: 2021.04.21 09:27:51 -04'00'

Louis P.

Anderson -S

Digitally signed by Louis P. Anderson -S Date: 2021.04.21 10:28:28 -04'00'

OAGM Division Director / Date

OAGM Group Director / Date

4. Head of Contracting Activity (HCA) Approval

HCA Name / Date

5. CMS Competition Advocate (CA) Approval

______N/A____________________________________________ HCA Name / Date

6. Senior Procurement Executive (SPE) Approval

Based on the foregoing justification, I hereby approve the procurement of (state supplies/services being procured) on an other than full and open competition basis pursuant to the authority of (state the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 253(c)(1)), as implemented by FAR 6.302-1), subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

______N/A___________________________________________ Name / Date

Carol Sevel -S Digitally signed by Carol Sevel -S Date: 2021.04.21 10:16:52 -04'00'

Jason G. Vollmer - S

Digitally signed by Jason G.

Vollmer -S Date: 2021.04.21 12:48:12 -04'00'

Melissa A. Starinsky - S

Digitally signed by Melissa A.

Starinsky -S Date: 2021.04.21 14:34:10 -04'00'