JA24-025 - LHSS Justification Posted.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

TO: Jami J. Rodgers, Head of the Contracting Activity M/OAA/OD

VIA: Abibou Oussantidja, Contracting Officer, M/OAA

FROM: Scott Stewart, Contracting Officer’s Representative, GH/OHS

DATE: November 9, 2023

SUBJECT: Justification for an exception to fair opportunity, Task Order Contract #7200AA19F00014, Local Health Systems Sustainability (LHSS) award

1. This document sets forth the facts and rationale justifying an exception to fair opportunity in accordance with FAR subpart 16.505. This document was prepared by the USAID/Bureau for Global Health/Office of Health Systems (GH/OHS) Task Order Contracting Officer’s Representative (TOCOR) for the Local Health System Sustainability (LHSS) task order awarded to Abt Associates (“Abt”).

2. The nature and/or description of the action being approved:

This is a request for an exception to competition increasing the total estimated cost by $42,347,024 from $209,425,192 to $251,772,216 and to extend the end date of the period of performance from August 28, 2024 to August 28, 2025, with an increase in technical professional LOE to a total of 253,926 person-days accounting for the total period of performance, for the Local Health System Sustainability (LHSS) task order awarded to Abt Associates. Under this action, LHSS will continue to provide integrated technical assistance to countries supporting country-level efforts to strengthen health systems in ways that expand financial risk protection related to the cost of health services, increase population coverage ensuring access to health services, and improve the quality of essential health services.

The LHSS task order (7200AA18D00023/7200AA19F00014) is a term Cost-Plus-Fixed-Fee (CPFF) contract with a 5-year period of performance, August 28, 2019 to August 28, 2024 and a total estimated cost (TEC) of $209,425,192 under the Integrated Health Systems (IHS) multiple-award, Indefinite Delivery Indefinite Quantity (IDIQ) contract, managed by the Bureau for Global Health’s (GH) Office of Health Systems (OHS). There have been no prior modifications to the scope of work, period of performance, or TEC of the task order.

The Integrated Health Systems IDIQ has a period of performance of September 20, 2018 through September 19, 2025. Per the IDIQ contract, the maximum dollar value of task orders awarded to all contractors must not exceed the contract ceiling of $500,000,000. The cumulative ceiling for all task orders awarded under the IHS IDIQ is currently $320,255,145. The requested action for the LHSS Task Order is within the IDIQ period of performance and within the maximum award ceiling.

3. Description of the supplies or services required, including an estimated value:

The LHSS task order was issued in 2019 to increase financial risk protection related to the cost of health services, population coverage ensuring access to health services, and improve the quality of essential services in USAID priority countries. LHSS is USAID’s flagship initiative in integrated health systems strengthening. It helps low- and middle-income countries achieve strong, sustainable health systems as a means to achieve universal health coverage (UHC). LHSS works with in-country stakeholders to advance equitable access to essential health services, build resilient health systems, promote quality health care services, optimize the use of health resources, foster localization and sustainability, facilitate continuous learning, and increase financial protection related to the cost of health services. The program has supported over 720 local partners, grantees, contractors and collaborators to increase local financing, leadership and implementation of health system functions that fosters sustainable health system outcomes and advances USAID’s Localization Vision and Approach. LHSS provides technical assistance in 25 countries supporting multiple health element portfolios. In Nigeria, an additional 151,797 Lagos State residents were enrolled in the Lagos State Health Scheme through LHSS Nigeria’s collaborative support with the Lagos State Healthcare Management Authority and Lagos State AIDS Control Agency. In Ukraine, LHSS strengthened the capacity of 324 health care facilities to enhance access to primary and specialized health services through telemedicine, to the benefit of 6,098 patients. In Colombia, LHSS has supported the Colombian health authorities to enroll more than 90,0000 Venezuelan migrants in the national health insurance system. LHSS’s services are critical for USAID’s development assistance in health.

The sustainability of USAID’s investments into health systems strengthening via this award will rely on work completed under LHSS by domestic government authorities, responsible local stakeholders, and appropriate USAID award mechanisms focused on health systems strengthening. At least one new mechanism is forecast for award within the extension period.

The increase of the TEC is by $42,347,024 in the additional extension year.

4. Identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited.

Logical Follow-on - FAR 16.505(b)(2)(i)((C) In the interest of economy and efficiency, this action must be issued on a sole-source basis because it is a logical follow-on to order no.

7200AA18D00023/7200AA19F00014, already issued under the contract, and all awardees were given a fair opportunity to be considered for the original order.

A logical follow-on should be issued on a sole-source basis to Abt for the following reasons:

● Abt Associates has strong expertise in key health systems strengthening technical areas, organizational capacity, country presence, and unique ongoing relationships with Ministries of Health and other relevant government entities that are critical to the success of the remaining activities and in achieving expected results. Abt has established offices and experienced staff already working in 25 USAID priority countries and Abt’s presence allows for a continued, quality response to USAID’s global health security and health systems strengthening priorities while the design process for a successor award continues. LHSS’ presence allows for a continued, quality response to USAID’s global health security and health systems strengthening priorities while the design process for a successor award continues. Abt has performed well on the LHSS task order and each of the annual Contractor Performance Assessment Reporting System evaluations reflect that. The economy and efficiency of using the existing LHSS task order outweigh the significant amount of time and resources needed to design, launch, and implement a new mechanism between now and the current task order end date. This effort would be inefficient and duplicative as a successor award is already in the design phase.

● The LHSS task order was fully competed and sourced through the Integrated Health Systems (IHS) Indefinite Delivery Indefinite Quantity (IDIQ) contract holders.

5. A demonstration by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer has reviewed this justification and determined that the anticipated costs to the Government will be fair and reasonable as they are based on rates in line with the original independent Government cost estimate (IGCE), as well as the existing operations of this award.

Activities are managed out of existing country offices that are already fully equipped. Staff salaries and other labor costs will be consistent with the current award.

6. Other facts supporting the use of exception to fair opportunity:

Strategic designing is underway for the future of this program and this extension will allow for an appropriate overlap between LHSS and the future award(s). Over the program's period of performance, Abt has developed the capacity to respond to a broad range of integrated health system strengthening needs quickly and efficiently. The prime contractor has gained the confidence of host government counterparts by leveraging resources such as seasoned experts in capacity strengthening, global health security, and health financing which cannot be easily built in the short period of a bridge contract. Abt’s efforts in health systems strengthening have underpinned other health investments and has led to greater resilience and global health security, a key goal of USAID’s Health Systems Strengthening Vision 2030.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made:

USAID will perform market research (including a planned RFI) to obtain insights to be used in the design of a new award(s) to support USAID’s efforts to prepare for and respond to health systems strengthening priorities.

8. Technical or Requirement Personnel Certification

In accordance with FAR 16.505(b)(2)(ii)(B)(9), I hereby certify that the technical statements included above, which form a basis for the justification, are complete and accurate.

9. Contracting Officer Certification

Based on the exception to a full and open competition provided under FAR 16.505(b)(2) and the justification provided above, I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

10. Approving Official Determination

I have determined that FAR 16.505 (b)(2)(i)(C), as described above, appropriately applies to this order.

_______Scot R . Stewa ________________ ___01/18/2024____

Scott Stewart Task Order Contracting Officer’s Representative

Date

_Abibou Oussantidja____________ __01/18/2024____________

Abibou Oussantidja Task Order Contracting Officer

Date

Jami J. Rodgers Head of the Contracting Activity

Date

Digitally signed by JAMI JASIN

RODGERS

Date: 2024.02.14 09:21:43 -05'00'