NSB JOFOC for FY2024 and FY2025_executed copy.pdf

DEPARTMENT OF HEALTH & HUMAN SERVICES Public Health Service

Alaska Area Native Health Service

4141 Ambassador Drive, Suite 300 Anchorage, Alaska 99508-5928

DEPARTMENT OF HEALTH AND HUMAN SERVICES

INDIAN HEALTH SERVICE / ALASKA AREA NATIVE HEALTH SERVICE

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. PURPOSE:

This Justification for Other Than Full and Open Competition (JOFOC) is prepared in accordance with Subpart 6.303 of the Federal Acquisition Regulation (FAR). Subpart 6.303-1 requires Contracting Officer to prepare a written determination for a contract awarded without providing for full and open competition. Furthermore, FAR Subpart 6.304 requires approval by the designated procuring activity Advocate for Competition for contract actions over $750,000 up to $15,000,000.

II. AGENCY IDENTIFICATION:

Contracting Officer:

Gladys C. Wheeler Contract Specialist Indian Health Service Alaska Area Native Health Service 4141 Ambassador Drive, Suite 300 Anchorage, AK 99508 Email: gladys.wheeler@ihs.gov

Competition Advocate:

Valerie Heart Broker, Lead Contract Specialist Acting Competition Advocate & Deputy Director U.S. Department of Health and Human Services Indian Health Service Office of Management Services Division of Acquisition Policy (DAP) 5600 Fishers Lane, 9E-22 Rockville, MD 20857 Email: Valerie.Heartbroker@ihs.gov mailto:gladys.wheeler@ihs.gov mailto:Valerie.Heartbroker@ihs.gov

III. DESCRIPTION OF ACTION:

Based on the circumstances identified herein, the Indian Health Service, Alaska Area Native Health Service (IHS) intends to award a non-competitive contract to the North Slope Borough (NSB) for providing community health aide, emergency medical and substance abuse treatment services for communities/villages located on the north slope of Alaska. This contract will be for the period October 1, 2023 thru September 30, 2024 with 1 one-year option to extend the contract.

IV. DESCRIPTION OF SERVICE AND ESTIMATED COST:

Under the law, the IHS is responsible for providing healthcare to Alaska Native and American Indian beneficiaries within the State of Alaska. This healthcare system is provided predominately thru a statewide IHS funded, tribally managed healthcare delivery system that serves 158,000 Alaska Native and American Indian people and includes 6 IHS funded and tribally managed hospitals, 24 ambulatory care clinics and over 160 community health aide clinics. Funding for these tribally managed facilities is provided pursuant to the Indian Self- Determination and Education Assistance Act (ISDEAA), P.L. 93-638, as amended, which authorizes tribes and tribal organizations to manage their own affairs using funding provided by the IHS.

As part of this large healthcare network, the IHS is responsible for care to IHS beneficiaries in the Alaska north slope villages/communities of Utqiagvik (Barrow), Atqasuk, Kaktovik, Nuiqsut, Point Lay and Wainwright. Until the mid-1980’s, the IHS maintained a service unit in the village of Barrow which provided these services. At that time most healthcare for the north slope, including management of a hospital in Barrow, was assumed under ISDEAA by the Arctic Slope Native Association (ASNA), Maniilaq Association (MA) and Tanana Chiefs Conference (TCC). Consequently, the IHS closed the Barrow Service Unit. At the time services were assumed by ASNA, community health aide, emergency medical and substance abuse treatment services were left with the IHS. The rationale for this decision was based on limited funding available to provide these services and because the North Slope Borough (NSB), the local government for the north slope, already owned and maintained clinics in these villages and provided many of the same services. Since the IHS did not have the staffing or funding to provide the required services, it was determined most prudent to provide the available funding to the NSB, essentially subsidizing the existing services provided. The best mechanism available to the IHS to provide the funding to the NSB is a FAR based, commercial contract. Accordingly, since closure of the Barrow Service Unit in the mid-1980’s, the IHS has contracted with the NSB to continue the services. Approximately $748,825 in recurring and $15,731 in non-recurring base funding is available for these services in Fiscal Year 2024 and it is anticipated comparable funding will be made available in subsequent years identified for this contract. Additional formula driven and non-recurring funding may be available throughout the year and any funding made available to the IHS for the services described herein will be made available to the contractor. The total estimated amount of this contract for the entire 24 months (assuming all options are exercised) is $1,529,112.

It should be recognized the services and funding for these services could be assumed by ASNA, MA and TCC under ISDEAA at any time and the contract terms and conditions will reflect this possibility.

V. STATUTORY AUTHORITY:

Subpart 6.3 of the FAR prescribes policies/procedures and identifies the statutory authority for contracting without providing for full and open competition. This contract will provide all funding received for Fiscal Year 2024 by the IHS and not already obligated under an existing contract, to the contractor for providing the services described herein. The contract will further provide all appropriated funding received in the subsequent 2 fiscal years for this purpose, upon proper execution of the contract clause entitled “Option to Extend the Term of the Contract”.

This contract will be awarded pursuant to the authority of FAR 6.302-1, as authorized by Title 41 U.S.C. 2304(c)(1). This authority provides for an agency to acquire services on a non-competitive basis when “only one responsible source and no other supplies or services will satisfy agency requirements.” It is herein determined no other source for the services can be solicited since there is no other known entity which could possibly provide the services, within the funding available for the IHS. The NSB already owns and maintains clinics in these communities and the logistics and high costs for providing services in these remote villages would not be possible with the funding available to the IHS. Currently, the NSB spends approximately $5 million per year to provide healthcare services to these communities and the IHS funding only subsidizes the costs of providing these services. The NSB has demonstrated their capability to perform and provide these services for over 30 years. Title 41 U.S.C.

3304(a)(1), as implemented by the FAR in Subpart 6.302-1, allows for obtaining services required by the agency from only one responsible source when there is only one known source.

VI. EFFORTS TO OBTAIN ADDITIONAL SOURCES:

As noted above, there are currently no other commercial sources besides the NSB who can provide these services. The only other potential entities are ASNA, MA and TCC, but they have not elected to assume these services under ISDEAA. Therefore, per the FAR, IHS will announce its intent to provide a sole source contract to NSB via the Federal Government’s business opportunities website at https://sam.gov/content/home.

VII. OTHER FACTS SUPPORTING OTHER THAN FULL AND OPEN COMPETITION:

Since the mid-1980’s, the IHS, NSB, ASNA, MA and TCC have worked together to provide comprehensive medical care to all IHS beneficiaries on the north slope of Alaska. Together, we have developed programs to serve the residents of these villages/communities in the most cost effective and non-duplicative manner possible. The NSB contributes its own resources to provide the community health aide, substance abuse and emergency medical services required and the IHS subsidizes the program with all of the available funding allocated for the services.

This unique collaboration provides the highest possible services for IHS beneficiaries, within available funding.

https://sam.gov/content/home

VIII. DETERMINATION OF FAIR AND REASONABLE COST:

As described herein, the IHS will be providing all available funding received for these services, within the timeframe identified, to the NSB. This funding only subsidizes the existing services provided by the NSB. Without the existing program and cooperation of the NSB, IHS beneficiaries of these communities would not have nearly the level of service now provided.

This is a win-win situation for all parties, especially IHS beneficiaries.

IX. SOURCES WHICH EXPRESSED INTEREST IN ACQUISITION:

Throughout the long history of the NSB providing these services, no other source has ever expressed an interest or the capability to perform these services. However, NSB notified IHS of its intent to decline 505 funding and wanted transfer all of their programs, services, functions and activities (PSFA) covered by this contract to ASNA on February 15, 2023. But since MA and TCC also cover some of their PSFA’s, some will be transferred them.

X. CONTRACTING OFFICER’S CERTIFICATION:

The Contracting Officer’s signature on this document certifies the information is accurate and complete to the best of the Contracting Officer’s knowledge and belief.

Signature: Date: September 18, 2023 Glady C. Wheeler Contracting Officer Indian Health Service Alaska Area Native Health Service

XI. ADVOCATE FOR COMPETITION APPROVAL:

Signature: Date: September 18, 2023 Valerie Heart Broker, Lead Contract Specialist Acting Competition Advocate & Deputy Director Division of Acquisition Policy Indian Health Service Office of Management Services vheartbroker Cross-Out