Justification Approval - DME_Redacted.pdf

FEDERAL SUPPLY SCHEDULE LIMITED-SOURCES JUSTIFICATION

Acquisition Title: Durable Medical Equipment (DME) Claims Processing System Agency: Centers for Medicare & Medicaid Services Acquisition Year: FY2026 Author:

1. Description of Action:

Nature

New Requirement Follow-On Order Modification of Existing Purchase Order / Contract Number

Contract Type Firm-Fixed Price Time and Materials Cost Plus Fixed Fee (CPFF)

Term Completion

Cost Plus Award Fee (CPAF) Other:

Total Projected Cost / Price:

Name of Proposed Contractor(s):

General Dynamics Information Technology (GDIT) Street Address: 3150 Fairview Park Drive City, State, Zip: Falls Church, VA 22042

2. Description of Supplies or Services:

The estimated value of the proposed action, is:

Medical Equipment (DME) claims are processed under Medicare Part B, which covers physician and other practitioner services, outpatient services, and Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS). The DME Shared System Maintainer (SSM) is responsible for computer software services supporting the Durable Medical Equipment (DME) Prosthetics, Orthotics, and Supplies (DMEPOS) claims processing system, including maintenance, development, modernization and special projects as required by the Centers for Medicare & Medicaid Services (CMS).

On January 29, 2021, CMS issued a task order under the GSA Multiple Award Schedule (MAS) Information Technology Professional Services SIN 54151S (Contract No. GS-35F-

080CA/75FCMC21F0012) for severable professional services supporting the DMEPOS claims processing system. The contract included a 12-month base period, four consecutive 12-month option periods, and a four-month optional continuation/transition-out period.

Period of Performance:

Base Period- 2/1/2021-1/31/2022 Option Period One- 2/1/2022-1/31/2023 Option Period Two- 2/1/2023-1/31/2024 Option Period Three- 2/1/2024-1/31/2025 Option Period Four- 2/1/2025-1/31/2026 Option Period Five- 2/1/2026-5/31/2026

On February 9, 2026, CMS awarded a new task order (Contract No. GS-35F- 694GA/75FCMC26F0029) following a GSA MAS competitive order, with a period of performance from February 9, 2026, to February 8, 2031.

Because the DME effort requires a four-month transition involving concurrent performance by the outgoing and incoming contractors, CMS determined that a bridge order is necessary to cover the transition-out period and . The follow-on order will be awarded to the incumbent contractor, General Dynamics Information Technology (GDIT), as a Time and Materials (T&M) order.

Bridge Order Period of Performance:

Base period:

3. Authority:

: ORDER AGAINST FSS: Authority of the Multiple Award Schedule Program, Title III of the Federal

Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.); Title 40 U.S.C. 501, Services for Executive Agencies; and Section 803 of the National Defense Authorization Act of 2002 (PL 107-

107) and implemented by GSAM 538.7104-3. Mark the applicable exception and for each discuss how the cited authority applies in accordance with GSAM 538.7104-3

The order should be based on a sole source basis in the interest of economy and efficiency because it is a logical follow on to an FSS order already issued on a competitive basis Awarding a follow-on order to GDIT is the most economical and efficient approach for the following reasons:

Economy: Competition for transition-out services would be unlikely to yield cost savings, as a new contractor would need to replicate work already completed by GDIT.

Efficiency: A competitive procurement would require approximately 135 days from solicitation release to award—based on current CMS procurement lead time standards—and could not be completed before the end of May 2026.

Resource Impact: Competing this requirement would place unnecessary demands on CMS resources, including solicitation development, proposal evaluation, and source selection.

GDIT, as the incumbent contractor, possesses unique knowledge of the DME system, ongoing work, and transition requirements. No other contractor can perform these specific transition-out activities without significant disruption and cost to the Government.

4. Market Research:

Market research was not conducted for this modification as it represents a logical follow-on to competitively awarded work under FAR 8.4. Conducting a new competition at this time would require a new contractor to repeat work already completed, resulting in program disruption, inefficiency, and increased cost to the Government.

5. Actions to Increase Competition:

CMS already conducted a full and open competition for the required services. The need for this bridge order is

6. Any other facts supporting the justification:

This sole source task order will greatly benefit CMS by allowing DME transition out tasks. This will allow DME services to continue until a new contractor is on-boarded and avoids major disruptions to CMS on transition activities. This task order will also mitigate the risk for premature loss of essential staff resources expertise during this period.

I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

____N/A_______________________________________________ Name / Date

5. Office of Small and Disadvantaged Business Utilization

____N/A_____________________________________________

6. OGC Legal Review

____N/A_____________________________________________

7. HHS Competition Advocate Approval

____________N/A_______________________________________

8. Senior Procurement Executive (SPE) Approval

Based on the foregoing justification, I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

_____N/A____________________________________________