Justification and Approval CHEGAR _Redacted.pdf

AIDAR 706.302-70(b)(3) and FAR 6.303-2 allows USAID (now the Department of State) to limit competition when compliance with full and open competition procedures would impair foreign assistance objectives. More specifically, AIDAR 706.302-70(b)(3)(ii) states that full and open competition is not required for:

USAID makes a formal written determination with supporting findings (D&F), see Attachment 1 to this J&A, that compliance with full and open competition procedures would i

The authority for the D&F under the HIV/AIDS EPP is based on 40 U.S.C. 113(e)(2) and 48 CFR 706.302-70. Tab 1 of the EPP procedures, specifically the D&F, is provided as Attachment 1 to this J&A.

The EPP specifically authorizes the use of AIDAR 706.302-70(b)(3)(ii) for contract actions, stating:

"You have the authority to extend the EPP under the following: for contracts, Section 706.302- Foreign Aid Programs; for assistance awards, ADS Chapter 303.3.6.5, Restrictions to Eligibility; and for the source-and-nationality waiver, Section 228.31 of Title 22 of the Code of Federal Regulations (CFR)."

The current EPP is effective from January 1, 2025, through December 31, 2029, and was approved by the USAID Administrator.

Although the EPP is specific to USAID, a memorandum of understanding between USAID and the Department of State delegates authority to DOS to carry out applicable PEPFAR programming under USAID procedures and regulations. Accordingly, this justification relies on AIDAR 706.302-70 as the basis for limiting competition, as proceeding with full and open competition at this stage would risk impairing the effective implementation of a critical foreign assistance program.

SBU - CONTRACTING AND ACQUISITIONS

SECTION 8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE

PART 10) AND THE RESULTS OR A STATEMENT OF THE REASON MARKET

RESEARCH WAS NOT CONDUCTED

In 2019 the USG conducted market research through a request for information (RFI). Based on the results of the RFI a determination was made to limit competition to local and locally established partners.

In 2024 an Industry Day was conducted for market research and support the development of the activity new design. The market research indicated that there are several companies in Mozambique with long-term presence that are recognized by the Government of Mozambique as local companies. Additionally, a new design has been developed for this activity and has not been implemented due to the ongoing transition of program responsibility from USAID to the Department of State and the limited timeframe.

The Government will conduct full and formal market research to support the follow-on full and open competition once the transition of program responsibility is complete and sufficient time is available. At this stage, the information collected does not support a safe or reliable transition to a new provider. The ongoing market research supports the need for an extension of the current contract to protect critical services and ensure stable program performance.

SECTION 9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER

THAN FULL AND OPEN COMPETITION

The approval of this extension will allow the contractor to continue implementing the critical services of distribution of medical commodities to the last mile where the needs for primary health commodities are more acute and will avoid gaps in the availability of critical lifesaving HIV commodities and other essential medicines in health facilities following the completed transition of program oversight from USAID to the Department of State (DOS). It aligns

-95- -based, patient-centered programming.

The extension also provides DOS with the necessary time to consolidate institutional capacity and deepen its understanding of this multifaceted program. It establishes a stable foundation for effectively managing HIV programming under the DOS-led development model, including

SECTION 11. 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

The Department of State (DOS) recognizes the importance of full and open competition and values expanding vendor participation in future acquisitions for Health commodities distribution in Mozambique. Following the completed transition of program oversight from USAID to DOS, the Government plans to take deliberate steps to remove existing barriers to competition as institutional capacity is consolidated and administrative priorities are finalized.

These actions will include developing validated technical data packages, tailoring performance specifications to program needs, and enhancing market research to identify qualified vendors.

DOS will also actively engage with potential offerors to broaden the competitive field. Once internal capacity is fully established and future requirements are assessed, acquisitions will be planned to encourage full and open competition, ensuring the continued effectiveness and sustainability of Health commodities distribution.

SECTION 12. CERTIFICATIONS

All reviews and approvals should be completed in the order listed unless otherwise authorized or required.

Approval of this J&A constitutes the justification for other than full and open competition, as required by Tab 1 (the D&F within the EPP), which is provided as Attachment 1 to this J&A for actions taken under the HIV/AIDS EPP authorities.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Signature and Approval Note:

The Competition Advocate and Head of the Contracting Activity are not required to sign EPP J&As, as stated in Attachment 1. This differs from standard J&A approval requirements. EPP operates under a unique authority, and signature authority has been delegated to the operational awareness. The Contracting Officer is also required to notify the GA front office, and that notification has been completed.

J&A Attachments:

1.

Than Full and Open Competition in the Award or Modification of Contracts Funded

Findings (D&F).