JA19-0098_JA_McKinsey_REDACTED.pdf

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

DHA PGI 208.405-6, Attachment 1 (06-21-2018)

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

Limited Source Justification Federal Acquisition Regulation (FAR) 8.405-6

J&A Tracking No. 19-0098

1. Identification of the agency and contracting activity: The Defense Health Agency, Contracting Office - Falls Church (CO-FC), plans to place an order, on a limited source basis, against a General Services Administration (GSA) Federal Supply Schedule (FSS) contract.

2. Nature and/or Description of Action being approved: Approval is being requested for a new contract; to support Department of Defense via the existing GSA contract. Approval is being requested for a follow-on to be awarded to McKinsey & Company, Inc. via the existing Professional Services Schedule (PSS) 00CORP GS-10F-0118, SIN 874-7 and 874-7RC, Integrated Business Program Support Services.

The Contractor shall provide continued support services to the DHA that are currently being provided under contract FA701418F5134 in-order to prevent any break or lapse in services. The current ceiling on the AF contract had reached its ceiling cap. This contract for Program Management Support services was issued by Air Force District Washington, and is scheduled to expire 31 July 2019. This sole source award does not provide for new work or a change in scope.

McKinsey & Company is uniquely and optimally qualified to provide these services which will allow for continuity of critical program support during the term of the contract.

3. Description of Supplies/Services required to meet the agency’s needs: As defined by NDAA 2017 Section 721, the MHS "shall establish a process to define the military medical and dental personnel requirements necessary to meet operational medical force readiness requirements". While Service-specific requirements have been generated, Congress requested an independent assessment of the process, metrics, and ultimate outcome of required force size to ensure readiness.

The Government contracted with McKinsey & Company (McKinsey) to help meet Congressional requirements by:

(a) Documenting the process and underlying assumptions that define military medical and dental personnel requirements,

(b) Creating a model to understand the sensitivity of various assumptions and the resulting impact on Service-defined requirements, and

(c) Reviewing outcomes and aligning on implications with Service medical and operational leadership to support drafting a report for relevant Congressional stakeholders. Completion of this effort will directly impact leaders' ability to make decisions that drive medical readiness holistically across the Military Health System.

DHA PGI 208.405-6, Attachment 1 (06-21-2018)

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

The initial base period will be 8/1/2019 thru 9/30/2019 the approximate total cost of this requirement is FY19 Operations and Maintenance funds shall be utilized for this Firm-Fixed Price (FFP).

4. This acquisition is conducted under the authority of the Multiple Award Schedule Program, 41 U.S.C. 152(3) and 40 U.S.C. 501, and Regulatory Authority FAR 8.405- 6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to a FSS order, placed in accordance with FSS ordering procedures, and the original order or BPA was not a sole-source or limited-source acquisition.

5. Rationale Justifying Use of the Regulatory Authority Cited: To date, McKinsey has completed the first two parts of the defined objectives (a) and (b). In order to understand and document the process and underlying assumptions that define military medical and dental personnel requirements, McKinsey conducted multiple meetings with representatives from each Service to understand, document, and refine current practices and assumptions. This included an analysis of medical substitution policies which was supplemented by industry research to compare military and civilian practices. Given differences in processes and assumptions across Services, McKinsey created an enterprise framework and analytical tool to model the sensitivity of various assumptions across the Services. The output highlighted several assumptions that have a significant impact on military medical and dental requirements. The model was built in collaboration with many Service representatives (Army, Navy, and Air Force), and findings are currently being refined and shared with key stakeholders.

6. Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d): Bids, proposals, or quotations have not been solicited from additional sources as prescribed by FAR 5.207(c)(15). Based on the expected short term of the contract and the authority of FAR 8.405-6(a)(1)(i)(C), the Government may make and award to the incumbent in the case of follow-on contracts.

7. Description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted: Market Research was not conducted. As a logical follow-on, the McKinsey team is uniquely situated to leverage learnings from 3 months of meetings with the Services and MHS leadership, knowledge from industry research on medical substitution practices, and a deep understanding of the analytical model that was built to test underlying assumptions.

8. Other Facts: N/A

9. Actions to overcome barriers: Describe the actions, if any, the agency may take, or is taking, to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

(a) Efforts to Obtain Competition. This is the final completion phase, any other requirements will be competitively done.

DHA PGI 208.405-6, Attachment 1 (06-21-2018)

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

(b) Actions to Increase Competition. This is the final completion phase, any other requirements will be competitively done.

(c) Follow-on Order. This is the final completion phase, any other requirements will be competitively done.