JOFOC LES Health Bridge.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

(OVERSEAS CONTRACTING ACTIVITIES)

I recommend that the U.S. Embassy in Asunción use other than full and open competition for the acquisition of health insurance services for Locally Employed (LE) Staff. The estimated cost is $848,045.02 to award an interim contract with ASISMED SA for a one‐year period of performance (3‐ month base period plus three 3‐month option periods).

1. Nature and/or description of the action being approved.

The Government requires health insurance coverage for its employees. The current contract for health insurance with ASISMED SA, a local provider, will expire on June 4, 2023.

This interim contract will provide continuity of health insurance coverage for the Locally Employed (LE) staff at the U.S. Embassy Asuncion, Paraguay as required by the Local Compensation Plan. The period of performance is one year (3‐month base period plus three 3‐ month option periods). The award date, and services provided under the contract, will commence on or about June 5, 2023, to ensure no lapse in coverage.

The State Department’s Bureau of Global Talent Management, Office of Overseas Employment (GTM/OE) is working through issues associated with a change to the plan for the forthcoming, multi‐year solicitation. As the solicitation language has yet to be confirmed, a new contract cannot be executed. U.S. Embassy Asuncion has no choice, but to execute an interim contract continuing the existing contract until GTM/OE provides final language for the competitive multiple year solicitation. As soon as the solicitation is final, Embassy Asuncion will begin the acquisition process for a multiple year contract.

It is imperative that there is no break in continuity of the basic health insurance coverage for the Embassy’s LE Staff to avoid serious legal and financial implications to the Government.

2. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

Embassy Asuncion requires Health insurance services for LE Staff, as well as the managerial, administrative, and direct labor personnel to accomplish all work as required under the contract.

3. An identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 USC 3304(a)(1) – Only one responsible source and no other supplies or services will satisfy agency requirements.

As the current interim contract expires on June 4, 2023, and GTM/OE has not approved the solicitation language, post does not have the time needed to procure a large, multiple year contract, which thereby precluding it from ensuring full and open competition. Further, a delay in award of contract will potentially create a lapse in health insurance coverage for over 150 employees and their dependents. A lapse in coverage potentially means a denial of health care.

A denial of care of could cause devastating effects, including:

When coverage is restored, individuals will be treated as new members and every claim for treatment will be denied as a pre‐existing condition.

Pre‐existing conditions are seldom covered by new providers, or new providers make it significantly harder to be accepted, or previous providers will not re‐accepted people with pre‐existing conditions.

The Government could be exposed to liability related to injuries or illness of employees. The Local Compensation Plan guarantees health insurance coverage as a condition of employment.

Participation in the healthcare plan is a mandatory requirement for employment. If the government does not provide said insurance, it is in violation of its employment agreements.

4. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited (for sole source acquisitions; also required for unusual and compelling urgency where more than one offer will not be solicited).

The incumbent contractor, ASISMED SA, has provided coverage for the Embassy’s locally employed staff for the past five years and is the current contractor. ASISMED SA can provide the required services until post can conduct a full and open competition and award a new, competed LE Staff health insurance contract.

5. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. The description should include whether a SAM.gov notice was or will be publicized, as required by FAR 5.2, and if not, which exception under FAR 5.202 applies (e.g., blanket waiver provided in DOSAR 605.202‐70).

As part of the GMC program, U.S. Embassy Asuncion is working towards finalizing agreement of the GMC benefit levels that the Department will authorize. These levels must be determined before we can solicit. All interested additional sources will be given the opportunity to participate in the solicitation for the new contract under full and open competitive procedures when the solicitation is released on SAM.gov.

6. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Independent Government Cost Estimate (IGCE) expects a 8‐15% increase in insurance pricing; where the current pricing the U.S. Embassy Asuncion has determined that the anticipated costs to the Government will be fair and reasonable based on key market factors: 1) Interannual inflation which hovers around 8%, and 2) the lifting of key subsidies over the last year which have raised and will continue to raise the costs of doing business in Paraguay.

7. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted.

ASISMED was the only company to respond to the previous solicitation for health and life insurance. With the next multiple year, competitively awarded contract, we will transition from the SOW in the current ASISMED contract to the GTM/OE’s Global Medical Coverage plan/SOW.

We will not have permission from GTM/OE to solicit for services (market survey, etc.) under Global Medical Coverage plan until GTM/OE approves the new benefit levels.

8. Any other facts supporting the use of other than full and open competition.

The Department (GTM/OE) proposed to make a global medical coverage plan for Local Compensation Plans worldwide, but it potentially conflicts with the local labor law of the host nation. The Embassy has been working collaboratively with GTM/OE to determine if the global medical coverage template will be legal under local labor law. As a result, the Mission has been unable to proceed with a solicitation for a health insurance contract for the LE Staff to be place in effect on June 5, 2023.

9. A listing of sources, if any, that expressed, in writing, an interest in the acquisition.

Not Applicable

10. 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.

A solicitation for a competitive acquisition will be prepared and processed for release to all interested prospective offerors as soon as the benefit levels are approved by GTM/OE.