Limited_Source_Justification_-_FBO.docx

LIMITED SOURCE JUSTIFICATION

Pursuant to FAR 8.405-6

1. Identification of the Agency and the Contracting Activity

Department of Health and Human Services Centers for Medicare and Medicaid Services (CMS)

Contracting Officer’s Representative: Dr. Confidence Gbarayor (410) 786-0553 Center for Medicare

Contracting Officer: Mark Smolenski (410) 786-0175 Office of Acquisition and Grants Management (OAGM)

2. Nature and/or Description of Action Being Approved

This justification for limited source contracting supports a logical follow-on award to Acumen, LLC (Acumen) to conduct planned and ad hoc analysis for the Medicare Prescription Drug (Part D) program specifically related to analysis of Prescription Drug Event (PDE) data. The original task order (HHSM-500-2011-00038G) was awarded competitively using the GSA Mission Oriented Business Integrated Services (MOBIS) schedule.

The period of performance for the proposed logical follow-on task order will be January 1, 2014 through June 30, 2015. The work to be performed under this task order will be a completion effort. The estimated value of the delivery order is approximately $500,000.

3. Description of the Supplies or Services Required to Meet the Agency's Needs

The Medicare Prescription Drug Benefit Program was enacted into law on December 8, 2003, in section 101 of the Medicare Prescription Drug, Improvement and Modernization act of 2003 (MMA) and is codified in §§ 1860D-1 through 1860D-42 of the Social Security Act (the Act). Section 101 of the MMA amended Titles XVIII of the Act by re-designating Part D as Part E and inserting new Part D, which establishes the Voluntary Prescription Drug Benefit Program (hereinafter referred to as “Part D”).

The Patient Protection and Affordable Care Act (PPACA), as amended by the Health Care & Education Affordability Reconciliation Act of 2010 (HCERA), and collectively known as the Affordable Care Act establishes the Discount Program by adding sections 1860D-43 and 1860D-14A of the Act. Effective January 1, 2011, the Discount Program makes manufacturer discounts available to applicable Medicare beneficiaries receiving applicable covered Part D drugs while in the coverage gap. In general, the discount on each applicable covered Part D drug is fifty percent of an amount equal to the negotiated price. An applicable drug will only be covered under Part D if the manufacturer has a signed agreement with CMS to provide the discount on coverage gap claims for all of its applicable drugs and remains compliant with the terms of that agreement. Beginning in 2011, Part D sponsors must provide the discounts for applicable drugs in the coverage gap at Point-of-Sale (POS). Through a third-party administrator, CMS will coordinate the collection of discount payments from manufacturers and payments to Part D sponsors that provide the discount to applicable beneficiaries. This coordination will involve a standard process based on information submitted to CMS through PDE data.

4. Identification of Justification Rationale

FAR 8.405-6(b) (2) provides for the restriction of competition when the required work is a logical follow-on to an original GSA schedule delivery order that was competitively awarded. This proposed task order to Acumen is a logical follow-on to an original GSA MOBIS schedule task order that was competitively awarded to Acumen on May 16, 2011. With the passage of the Affordable Care Act, there is an increased need to perform high priority Part D analyses to support Health Care Reform implementation and progress. Acumen is continuing to assist CMS in performing and completing ad-hoc requests that require immediate attention and data output to address CMS strategic goals, Office of the Inspector General, White House, background analysis for yearly advance notice/call letters, etc. Acumen has been performing the work above under the existing task order in a satisfactory fashion thus far and CMS continues to have an immediate need for this work. In addition, Acumen possesses unique historical knowledge, data setup and management of the analytic work behind the Affordable Care Act and Part D. The most efficient and effective way to continue providing on-demand analysis is for CMS to maintain this task order.

5. A Determination by the Ordering Activity Contracting Officer that the Order Represents the Best Value

In accordance with FAR 8.404(d), the ordering activity is not required to make a separate determination of fair and reasonable pricing as GSA has already determined rates for services offered at hourly rates under schedule contracts to be fair and reasonable. In accordance with FAR 8.405-2(d), however, CMS will evaluate Acumen’s proposed pricing and level of effort and mix of labor projected to perform the task order. In addition, CMS will use the independent government cost estimate along with historical pricing data to ensure that this logical follow-on procurement strategy represents the best value to the government. Prior to execution of this proposed logical follow-on task order, the Contracting Officer will make a fair and reasonable determination.

6. A Description Of The Market Research Conducted Among Schedule Holders and the Results Or A Statement For The Reasons Market Research Was Not Conducted

The original GSA task order was competed among three GSA MOBIS contractors in 2011. Since the original award was in accordance with competitive procedures, and based on this requirement for continued services, a logical follow-on is justified since the incumbent is performing well. Thus, no market research was conducted.

7. Any Other Facts Supporting the Justification

N/A. Please see the information provided in Sections 3 and 4 of this document.

8. Actions the Agency May Take to Remove or Overcome Any Barriers to Competition

If there is a continued need for this work after the logical follow-on task order concludes, this requirement will be competed.