Justification and Approval for AID-617-E-17-00003.pdf

JUSTIFICATION AND APPROVAL

TO: Admir Serifovic, Acting Supervisory Contracting Officer

FROM: Sheila Kyobutungi, Contracting Officer’s Representative (COR)

THROUGH: Patricia Mengech, Acting Director, Office of Health and HIV (OHH)

DATE: May 8, 2020

REFERENCE: Contract No. AID-617-E-17-00003, Blanket Purchase Agreement implemented by Beyond Logistics Limited

SUBJECT: Justification and Approval for Other than Full and Open using the

Expedited Acquisition and Assistance Procedures for USAID’s Activities and Programs Related to the Prevention, Care, and Treatment of HIV/AIDS.

We hereby request approval of this justification for use of other than full and open competition pursuant to the authorities under ADS 302.3.4.5 (b), AIDAR 706.302-70(b)(3)(i) or (ii) and the “Expedited Acquisition and Assistance Procedures for USAID’s Activities and Programs Related to the Prevention, Care, and Treatment of HIV/AIDS” (the “HIV/AIDS Expedited Procedures Package,” or EPP), approved on December 31, 2019.

Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (D&F for the Authorization of Less than Full and Open Competitive Procedures in the Modification or Award of Contracts) of the EPP.

a) The nature and/or description of the action being approved:

This is a request to approve a modification to the above referenced contract to:

● increase the period of performance for an additional two years from September 4, 2020 to September 5, 2022 and;

● increase the TEC by $1,500,000 from $5,000,000 to $6,500,000

On September 5, 2017, USAID/Uganda awarded a three-year $5,000,000 Blanket Purchase Agreement (BPA) to Beyond Logistics Limited, a local Ugandan company for the procurement of pharmaceutical and medical supplies including commodities that support Voluntary Medical Male Circumcision (VMMC) programs such as adrenaline injections, non-denatured alcohol, atropine, paracetamol, povidone iodine topical solution, sodium hypochlorite solution, non-electric autoclaves, reusable head caps and sterilizer drums. Additionally the BPA supported the procurement of commodities for other health programs including: maternal delivery sets, Mid-Upper Arm Circumference (MUAC) tapes, blood pressure (BP) machines, penguin suckers, examination gloves without powder, digital BP machines, infrared thermometers, chlorine granules, disposal bags for bio-hazardous waste with biohazard print and autoclavable polypropylene and 80% alcohol hand sanitizer with spray pumps.

The purpose of the BPA is to address supply chain gaps by establishing relationships between USAID/Uganda and local suppliers and providing a quick, feasible, and accountable system by which implementing partners can procure products critical to accomplishing USAID/Uganda’s health development objectives. Specifically, the BPA supports procurement of restricted health commodities and supplies. The activities under this BPA are undertaken as specified in BPA Firm Fixed-Price (FFP) call orders issued by USAID/Uganda. Each individual BPA call order is under the Simplified Acquisition Threshold of $250,000.

b) A description of the supplies or services required to meet USAID’s needs (including the estimated value)

Ensure uninterrupted supply of pharmaceutical and medical equipment for the implementation of a quality HIV/AIDS (including VMMC), maternal neonatal and child health, nutrition, family planning and other infectious disease programs as well as IPC commodities to respond to emerging pandemic threats.

Through this modification, the USAID/Uganda Health and HIV/TB Office (OHH) seeks to procure on a bi-monthly basis to maintain an uninterrupted supply of specific pharmaceutical and medical supplies that will ensure the continued implementation of a quality VMMC program and support IPC as the Mission responds to emerging pandemic threats. Some of the commodities the BPA is expected to procure that support the VMMC program include:

adrenaline injection, non-denatured alcohol, atropine, paracetamol, povidone iodine topical solution, sodium hypochlorite solution, non-electric autoclaves, reusable head caps and sterilizer drums. Additionally the BPA supported the procurement of commodities for other health programs including: maternal delivery sets, Mid-Upper Arm Circumference (MUAC) tapes, blood pressure (BP) machines, penguin suckers, examination gloves without powder, digital BP machines, infrared thermometers, chlorine granules, disposal bags for bio-hazardous waste with biohazard print and autoclavable polypropylene and 80% alcohol hand sanitizer with spray pumps. Attached is a detailed commodity list with estimated prices that have informed the TEC increase amount. Additional commodities may be added as new health challenges emerge.

The activities proposed to be undertaken under this modification are outlined in the Scope of Work (Attachment I) and are estimated to cost $1,500,000 over a period of two years, September 4, 2020 to September 5, 2022. An Independent Government Cost Estimate (IGCE) derived from the list of commodities to be procured is also attached (Attachment III).

c) Identification of statutory authority permitting other than full and open competition.

This action is permitted by ADS 302.3.4.5 (b), and AIDAR 706.302-70(b)(3)(i) or (ii); See Action Memorandum entitled “Expedited Acquisition and Assistance Procedures for USAID Activities and Programs Related to the Prevention, Care and Treatment of HIV/AIDS” (the “HIV/AIDS Expedited Procedures Package” or HIV/AIDS EPP) approved on December 31, 2019 (attached to this J&A).

The HIV/AIDS EPP provides for restriction to eligibility for specific programs involving HIV/AIDS. Citing AIDAR 706.302-70 Impairment of foreign aid programs, the Administrator made a formal written determination that it is necessary to restrict eligibility in the modification of awards related to USAID’s HIV/AIDS activities and programs to avoid the impairment of U.S. foreign assistance and foreign policy objectives. The HIV/AIDS EPP is essential to USAID’s ability to maintain vigilance, flexibility, and responsiveness in HIV/AIDS activities.

d) A discussion of the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited.

OHH proposes modification of the current Blanket Purchase Agreement with Beyond Logistics Limited based on the following rationale:

The Administrator-approved Expedited Procedures Package (EPP) for HIV/AIDS, (Attachment V) states that “as a matter of law and policy, USAID's normal practice is to follow standard competitive procedures in the award and modification of contracts and assistance agreements. However, in exceptional circumstances, these interests must give way to the overriding objective of providing humanitarian assistance on a timely basis.”

The USAID Administrator further noted that:

“As missions design and develop programs under the second phase of PEPFAR, there may be a need to extend existing programs and their implementing instruments beyond their present scopes to bridge gaps between existing programs and activities and the establishment of new programs and activities. The provision of commodities and services must not be interrupted during programmatic switches. Continuation of treatment regimens such as ARVs is of utmost importance during program changeovers. Expedited procedures authorizing the extension of programs beyond their present scopes will enable USAID to maintain treatment regimens and patient relations, while moving the goals of the HIV/AIDS program forward.”

The proposed modification will ensure continuation of essential HIV prevention services, critical for HIV epidemic control. Any interruption in service delivery will significantly compromise efforts to curb the epidemic, particularly closing the tap on new infections that is critical as Uganda gets so close to achieving epidemic control. In addition, the modification will help USAID to maintain the current momentum of its HIV/AIDS activities especially in the context of OGAC-assigned new and ambitious targets, and constantly shifting mandates and priorities, allowing the program to be responsive to evidence demonstrating which interventions are the most effective. Additionally the modification will ensure availability of critical IPC commodities to respond to emerging pandemic threats.

A competitive contract to another partner was not considered based on the authority cited in

(c) above.

The EPP authority covers activities funded from all sources of Agency funding, including prior year funding, as well as current and future fiscal year appropriations, unless special rules for these appropriations are enacted by Congress. This action authorizes the award of new contracts, grants, and cooperative agreements using less than fully competitive procedures. It also authorizes non-competitive amendments to existing contracts, grants and cooperative agreements for additional work. This authority may be applied when more than 50% of the total estimated cost of the award is for HIV/AIDS activities. HIV/AIDS funds constitute 68% of the total amount required to fund this modification.

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

No efforts were made to solicit offers for other potential sources as it is deemed impracticable.

Soliciting offers from other sources may lead to interruption in the provision of critical services including VMMC for more than 312,000 eligible males because it is anticipated that Beyond Logistics contract will expire before USAID/Uganda awards the local supply chain mechanisms. Moreover there will be no changes made to the current Scope of Work.

Interruption in services will have negative consequences on PEPFAR efforts to control the HIV epidemic, negative impacts on other health programs in Uganda and affect our ability to have necessary IPC commodities in place to respond to emerging pandemic threats.

Further, USAID/Uganda is in the process of procuring new local supply chain activities responsive to the OGAC mandate to transition PEPFAR implementation to local partners as a strategy to enhance indigenous capacity and the sustainability of the HIV response. These new awards will be fully and openly competed and the activities included in this BPA and the commodities it procures will be absorbed under the new local awards. Extending the performance period and increasing the TEC for this BPA allows ample time for the procurement of USAID/Uganda’s local supply chain mechanisms.

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

An independent government cost estimate is attached.

g) A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason(s) market research was not conducted.

No market research was conducted given that this action entails a continuation of existing services.

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

Not applicable. Please see section (e) above.

i) A statement of the actions, if any, USAID may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

Any subsequent acquisition for these services if needed is expected to be done through full and open competition.

RECOMMENDATION

It is recommended that you approve this justification for use of other than full and open competition pursuant to the Action Memorandum “Expedited Acquisition and Assistance Procedures for USAID’s Activities and Programs related to the Prevention, Care, and Treatment of HIV/AIDS,” approved on December 31, 2019. Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (D&F for the Authorization of Less than Full and Open Competitive Procedures in the Modification or Award of Contracts) of the EPP.

CERTIFICATION:

The requirement for technical certification at FAR 6.303-2(b) is fulfilled through:

1. The signature of the Technical Officer below certifying the specific supporting data for this J&A; and

2. The EPP entitled “Expedited Acquisition and Assistance Procedures for USAID’s Activities and Programs related to the Prevention, Care, and Treatment of HIV/AIDS,” approved on December 31 , 2019 (attached).

Technical Officer:

I hereby certify that the supporting data which form a basis for the justification are complete and accurate to the best of my knowledge and belief.

Sheila Kyobutungi e-clearance Date 5/8/2020 Technical Officer

APPROVED

DISAPPROVED

Admir Serifovic

Admir Serifovic

Acting Supervisory Contracting Officer

08/03/2020

Acting Supervisory Contracting Officer

Date

Date

CLEARANCE :

RLO: Laura Gonzales e-clearance Date 6/5/2020