JA15-0029_Baseline_Health_Policy_and_Analysis_Extension_(redacted).pdf

Tracking Number: JA15-0029

Justification and Approval for “Limited Source Justification”

FAR Part 8.405-6

1. Agency/Contracting Activity: This is a Limited Source Justification (LSJ) for a Defense Health Agency (DHA) Analytics Division, 7700 Arlington Boulevard, Falls Church, VA, 22042, acquisition, under the authority of Limited Sources, pursuant to 8.405-6 of the FAR. The Contracting Activity responsible for this action is the DHA Contracts Operations Division – Falls Church, 7700 Arlington Boulevard, Falls Church, VA, 22042.

2. Nature and/or Description of Action being approved: This is a request for modification of contract. The Government intends to negotiate a Time-and-Materials (T&M) extension with Lockheed Martin Federal Healthcare, Inc., via General Services Administration (GSA) contract GS-10F-0049J. The Determinations and Findings required by Class Deviation 2012-O0016 to FAR 16.601(d)(1) and DFARS 216.601(d)(i) and (ii) for use of T&M contracts was approved one level above the contracting officer on19 Nov 2014 and by the Head of Contracting Activity on 1 Dec 2014. The current contract number HT0011-12-F-0024 expires 30 Nov 2014.

Lockheed Martin Federal Healthcare, Inc., is the incumbent contractor.

3. Description of Services: This action extends Baseline Health Policy and Analysis Support services to develop, apply, update, forecast, and teach Military Health System (MHS) baseline information derived from DHA policy-driven measures and methodologies, for executive management decisions and systems development/implementation, through studies and analyses that use bio-statistical, financial, demographic, workload, and staffing data. The resulting baseline information supports the planning for and evaluation of the changing operational environment of the MHS beneficiary population, with focused attention on the care as provided by military treatment facilities, with consideration of care as provided from the private sector.

The period of performance of this extension will run from 1 Dec 2014 through 28 Feb 2015.

Estimated value of this effort is $xxxxxxx.

4. Statutory Authority Cited: FAR 8.405-6 (a)(1)(i)(C) - The new work is a logical follow-on to an original Federal Supply Schedule (FSS) order, the order was placed in accordance with FSS procedures, and the order was not issued under sole-source or limited sources procedures. The Government is currently in the process of procuring a follow-on contract for this requirement, but needs additional time to complete that action. Lockheed Martin Federal Healthcare, Inc., has the operational infrastructure and knowledge required for successful performance and the necessary skillsets to complete this effort without separating the services mid-stream. There is no material difference in the work scope of services currently provided under HT0011-12-F- 0024 and that planned in the contract extension. It will be time effective and cost efficient to utilize the resources already performing the contract to continue and complete these requirements and is the least costly choice for the Government.

5. Best Value Determination: The Contracting Officer hereby determines that this action represents the best value to the Government in accordance with FAR 8.404(d). The level of effort is consistent with the previous performance and the incumbent performer has expressed a willingness to extend performance at the rates currently in effect. These rates were determined to be fair and reasonable at the time of the last option exercise.

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6. Market Research: No market research was done specifically for the contract extension.

Market research for the follow-on contract included a Sources Sought synopsis that generated responses, some of which were found to demonstrate capability to perform the required tasks at low risk. Researchers also assessed capabilities of potential performers and available contract vehicles using commercial and Government web-based information sources. The market research did not identify two or more small businesses capable of performing all work and recommended unrestricted competition. While this market research included some collection and analysis of service information on the technical capabilities and prices from FSS schedules, the follow-on contract will be competed under fair opportunity. The FSS order resulting in the current contract generated only two proposals from large businesses.

7. Other Facts: The Government estimate of the contract extension uses the performer’s current schedule rates and level of effort continued over an additional 3 months of performance.

At the time of the last option exercise, the rates were determined to be fair and reasonable. No duplicative costs are anticipated.

8. Methods to Overcome Barriers: As required by FAR 8.405-6(a)(2)(i) and 5.301(a)(2)(i), notice of this action will be published on http://www.fedbizopps.gov/ within 14 days after placing the order. The follow-on requirement to the extended contract is being competed under fair opportunity open to all prospective contract holders on the United States Army Medical Research Acquisition Activity’s TRICARE Evaluation, Analysis, and Management Support (TEAMS) Indefinite Delivery/Indefinite Quantity contract. The Contracting Office and the program office have discussed the need to be proactive in submission of and follow-up to funding actions requiring continuing contractor support.