JOFOC_Redacted.pdf

Subject: Justification for Other Than Full And Open Competition For An Acquisition Under Simplified Acquisition Procedures

Date: July 24, 2023

I. Sole Source in accordance with (IAW) FAR 13.106-1(b) and IAW 41 U.S.C.1901:

1. The Administration For Children and Families (ACF), Office of Government Contracting Services (GCS), is using the Simplified Acquisition Procedures IAW FAR 13.5 to solicit and enter into a contract with Insurance Services Office, Inc. on a sole source basis.

2. This acquisition is estimated at $3,961,980.00 for a six-month base period of performance from August 1, 2023, to January 31, 2024. There is also one six-month option period from February 1, 2024 to July 31, 2024. Also included is FAR 52.217-8 Option to Extend Services, which be used to extend the contract up to 6 months if needed.

3. The period of performance is a six-month base period and one (1) six-month option period will allow the Office of Child Services (OCSS) and GCS to continue market research in attempt to gain potential new entrants for a future long term competitive Insurance Match services acquisition. It will also allow GCS to perform additional market research on the best suited pricing structure for a long term (ie 5 year) contract. It is anticipated that services cannot be lost or interrupted. If a long term contract is not in place at the end of the Base Period, the option will be exercised to continue service.

II. Description Of Item Or Service:

1. OSCE is responsible for an Insurance Match Program. This program encompasses a need to assist state IV-D agencies in their efforts to collect past-due child support. Program tasks include:

A. Provide a centralized, standardized, and cost-effective method for identifying insurance claims that may be used by state IV-D child support programs to collect past-due child support;

B. Minimize the burden on insurers (or their agents) and thereby increase their participation in the insurance match; and

C. Increase the collection of past-due support owed to children receiving IV-D child support services.

III. Background:

1. The Deficit Reduction Act of 2005 amended section 452(m)(1)(A) of the Social Security Act to authorize OCSE, through the FPLS, to conduct comparisons of information concerning

DEPARTMENT OF HEALTH & HUMAN SERVICES

Administration for Children Families

GOVERNMENT CONTRACTING SERVICES

individuals owing past-due child support with information maintained by insurers (or their agents) concerning insurance claims, settlements, awards, and payments.

2. In addition, as amended, the Act provides that OCSE may furnish information resulting from the data matches to the State agencies responsible for collecting past-due child support from the individuals. 42 U.S.C. 652(m)(1)(B). The Act also confers non-liability to insurers.

3. Insurance Match Services has been on ongoing service from approximately 2007. The current contract period of performance is from August 1, 2018, through July 31, 2023, for a total of $6,001,833.89.

III. The Determination For Use Of Other Than Full And Open Competition Is Based On The Following:

1. Only One Responsible Source:

A. Insurance Services Office, Inc. (ISO) is the only known source in the insurance industry maintaining a comprehensive claims database that contains information necessary to compare individuals who owe past-due child support with insurance claims, payments, settlements, and awards. ISO owns and maintains the ClaimSearch® database and is the only entity that has access to the information required to conduct data matches.

This program is critical because it helps child support agencies collect money that is sent to individuals via insurance claims/settlements/payments who otherwise owe past due child support. Any disruption of services would have a significant negative impactful on the children and families OCSS and State agencies serve.

Since the Insurance Match program is mandated, we could potentially be out of compliance with the 42 U.S.C. 652 statute.

B. Insurance Services Office, Inc. conducts data match for the purposes of enforcing child support obligations. They have a minimum of 5 years of experience conducting large data matches and have the ability to accept and process a file containing at least 5 million records. ISO is able to conduct a daily match, accept updates from OCSE, and able to transmit data in a secure electronic manner while meeting OCSE security requirements.

C. OCSE and GCS have conducted market research with negative search results and replies to a Request For Information – Sources Sought notice. An RFI sources sought notice was posted to SAM.gov on 3/27/2023 to 3/31/2023 that included a draft statement of work. This notice was posted because the Insurance Match requirement was a new requirement to GCS. GCS attempted to gain information about any capable sources other than the incumbent, ISO.

However, the posting resulted in 1 respondent which is the current incumbent, ISO.

OCSE and GCS are continuing market research in an attempt to gain additional potential entrants and analyze a new pricing structure for a future long term competitive Insurance Match services acquisition. An intent to sole source was not issued.

IV. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

The above RFI was released in an attempt to find any potential sources who could successfully perform this effort. No potential sources were found and no additional efforts can be made.

IV. Certifications:

1. Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.

Administration of Children and Families US Department of Health and Human Services

2. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief

Government Contracting Services

3. Competition Advocate :

Government Contracting Services