LSJ - MIST Bridge 15Apr2021 redacted.pdf

Department of Health & Human Services Centers for Medicare & Medicaid Services 7500 Security Boulevard, Mail Stop B3-30-03 Baltimore, Maryland 21244-1850

REVISED FEDERAL SUPPLY SCHEDULE LIMITED-SOURCES JUSTIFICATION

Acquisition Title: Bridge Contract for Medicare Integrated System Testing (MIST), As Modified

Agency: Department of Health & Human Services, Centers for Medicare & Medicaid Services (DHHS/CMS)

Acquisition Year: 2021

Author: (COR)

1. Description of Action:

Nature

• ___ New Requirement

• ____ Follow-On Order

• __X__ Modification of Existing Purchase Order / Contract Number: GS-35F- 161CA/47QTCA19D00AB, Task Order 75FCMC21F0023

Contract Type

• _X__ Firm-Fixed Price

• ____ Time and Materials

• ____ Cost Plus Fixed Fee (CPFF)

• ____ Term

• ____ Completion

• ____ Cost Plus Award Fee (CPAF)

• ____ Other: ___________

Projected Cost / Price:

Funding Source(s): This acquisition was funded using FY2021 appropriated funds.

Name of Proposed Contractor(s): Contractor Teaming Agreement (CTA) comprised of Sparksoft Corporation of Baltimore, MD (Sparksoft) and Skyward IT Solutions, LLC of Gaithersburg, MD (Skyward)

2. Description of Supplies or Services:

The estimated value of the proposed action is .

CMS executed a Limited Sources Justification for the MIST Bridge contract, which it publicly posted on March 11, 2021. CMS awarded a task order to acquire MIST Bridge services for a base period of four months, with options to extend for no more than one year, to satisfy an immediate need for severable services for integrated testing of the Information Technology (IT) eco-system which enables the payment of Medicare claims. The MIST Bridge contract was intended to bridge the gap between the expiration of existing essential contracts supporting Medicare Fee For Service systems testing – specifically, the Single Test Contractor (“STC”) contract and the Medicare Payment System Modernization (“MPSM”) Modular Integration Testing (“MIT”) contract, which was held by Skyward – while the Agency completes the contractor selection and award process for the MIST Task Order requirement following earlier protests of the award of that order. The MIST Bridge contract, as awarded, represented a subset of the MIST Task Order requirement, but also included work previously performed under the STC and MPSM MIT contracts.

Following a post-award protest of the MIST Bridge contract to the Government Accountability Office (GAO), CMS elected to take corrective action which included partially terminating the MIST Bridge contract to remove all non- MPSM MIT work. The Agency also removed all optional periods of performance from the MIST Bridge contract.

CMS continues to have an immediate need for a short-term bridge contract of approximately two months in duration in order to acquire the MPSM MIT services that are included in the MIST Bridge contract. This need exists because the Agency is still continuing the award process for the MIST Task Order requirement, in which the Agency anticipates making a new award by the end of April 2021. CMS had, and continues to have, an urgent and compelling need for integrated testing of the IT eco-system which enables the payment of Medicare claims and a need to maintain current Modular and End-to-End Integration Testing efforts supporting the product teams involved in the MPSM MIT project.

The MIST bridge contract is intended to be a short-term effort to bridge the gap between the expiration of the MPSM MIT contract with Skyward and resolution of protests related to the MIST task order award. Performance under the legacy MPSM MIT contract ended with no options available for further extension. Under the bridge contract, CMS will acquire MIT services during the month of April 2021.

MPSM MIT includes Modular and End-to-End Integration Testing services to align with the agile development and program release/increment cycle established for the MPSM program. It emphasizes modular innovative approaches and techniques to best meet the overall objectives of CMS and integrate the testing of all Application Development Organizations (ADO) services quality and performance. Specific tasks include the following items:

A. Smoke testing B. Performance and stress testing across integrated components of the FFS C. Security testing D. Modular end-to-end testing with other systems and contractors E. Integration testing F. API contract testing G. Compliance verification and validation of 508 accessibility mandates H. Testing of Extract, Transform, Load (ETL) of data exchange with external interfaced systems I. Testing of data validation and data quality on data from users, claims, measurements, scoring, and cost J. Create integration and performance testing reports for product owners K. Work collaboratively with the STC on existing testing cycle for MPSM L. Work collaboratively with potential System Integration (SI) teams and multiple ADOs on release readiness M. Utilization of CMS’ Agile Tool Suite (JIRA, Confluence, GitHub and HipChat)

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 FAR 8.405-6. Mark the applicable exception and for each discuss how the cited authority applies in accordance with FAR 8.405-6(c)(2)(iv).

_X__: An urgent and compelling need exists, and following the procedures would result in unacceptable delays (FAR 8.405-6(a)(1)(i)(A));

Performance under the legacy MPSM MIT contract to Skyward ended on March 31, 2021 and the Agency anticipates the time and actions required to establish a sole source award to Skyward, the MPSM MIT incumbent contractor, could lead to an unacceptable lapse in MPSM MIT services. Accordingly, this is the only option that would ensure that CMS is able to timely receive MPSM MIT contract services without a lapse in service. Medicare claims processing is a core, mission-critical business process of CMS. Any interruption in the validation aspects of these processes would severely impact the viability of these systems, contributing to inadequate performance, and costly delays. For example, CMS has modernized its pricing services for claims processing, and without thorough testing, claims could be paid incorrectly or not at all and that could have a significant impact on healthcare providers across the nation.

Additionally, Medicare is the largest health insurer in the country and any disruption to health care provider cash flow as a result of design defects in Medicare payment systems can have significant impacts on their financial viability and hence, their ability to provide health care services to the most vulnerable population in our country, especially during a global pandemic.

____: Only one source is capable of providing the supplies or services required at the level or quality required because the supplies or services are unique or highly specialized (FAR 8.405-6(a)(i)(B)); or

___: In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal

Supply Schedule order provided that the original order was placed in accordance with the applicable

Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited sources procedures (FAR 8.405-6(a)(1)(i)(C)); or

____: An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product, peculiar to one manufacturer). A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer. (FAR 8.405-6(b);

4. Market Research:

Skyward provided MPSM MIT services under Contract 75FCMC19C0016 which ended March 31, 2021 with no options available for further extension. The MPSM MIT contract supported integration testing of the Application Development Organizations (ADOs) responsible for developing micro-services to replace the Agency’s legacy shared systems. This requirement emphasized modular, innovative approaches and techniques and integrates the testing of all ADO services quality and performance. Skyward’s performance of that order was more than acceptable as documented in CPARS.

As noted above, the agency seeks to bridge the gap between testing currently performed under MPSM MIT and integrated testing to be performed under the protested MIST Task Order requirement. CMS awarded the MIST task order, which includes aspects of both STC and MPSM MIT, to Sparksoft & Skyward under a CTA following competition under GSA FSS. Given the results of the evaluation and subsequent best value determinations for MIST described above, while there may be more than one source capable of delivering the needed services, only a few were willing to provide a quotation to CMS in response to the MIST solicitation. Of those, the source most likely to offer the best value was deemed to be Sparksoft / Skyward CTA. Further, Skyward’s previous performance of MPSM MIT demonstrated their ability to successfully perform the required work.

When performing market research for this bridge contract, the Contracting Officer considered and determined that the Sparksoft / Skyward CTA was best suited to ensure that MPSM MIT requirements for testing support are met during the protest period. The Contracting Officer reviewed Sparksoft / Skyward CTA’s quote submitted in response to the MIST solicitation, and determined them to be capable, responsible, and likely to be successful in performing the task order contemplated by this document. Further, an examination of agile testing contracts across CMS shows a few other potential sources, including

However, given Skyward’s previous experience successfully performing MPSM MIT, and , the Contracting Officer determined that Skyward, as part of the Sparksoft/Skyward CTA, is/are best suited to perform the needed work given the ability to leverage specific experience, staff and methods that any other contractor would require time to ramp-up before being productive.

Therefore, the Agency has determined that the best option with regard to the MPSM MIT requirement is to continue the MPSM MIT services under the MIST Bridge, as modified. Although the MIST Bridge, as modified, will continue to be performed by the Sparksoft/Skyward CTA as opposed to Skyward alone, this is the only option that would ensure that CMS is able to timely acquire services necessary to maintain current Modular and End-to-End Integration Testing efforts supporting the product teams involved in the MPSM project and receive MPSM MIT contract services without a lapse in service. As stated, a lapse in service would significantly impact the type of Medicare claims processing services provided through MPSM MIT and, in turn, severely impact the viability of these systems on a national level.

5. Actions to Increase Competition:

CMS is currently in the process of performing corrective action for the MIST Task Order requirement, using the fair opportunity ordering procedures set forth in FAR 8.405-2.

6. Any other facts supporting the justification:

This justification is the second prepared for bridge efforts between the end of legacy contracts responsible for testing Medicare payment systems and the beginning of MIST. Specifically, it reflects a truncated period of performance and a reduction in scope from the original MIST Bridge contract.

Award of this short-term MIST bridge contract is appropriate during pendency of the protest and does not constitute a de facto override of the automatic stay of performance required for the prior MIST task order award. See the Matter of Access Systems, Inc. v. U.S., 84 Fed. Cl. 241 (2008); SVD Stars II, LLC v. U.S., 138 Fed. Cl. 483 (2018).

In Access Systems, Inc. v. U.S., the Court of Federal Claims (COFC) held that there was no functional equivalent of an override where the bridge contract did not disturb the status quo with respect to the original contract under protest before GAO, specifically where the bridge contract was a “separate, self-contained contract” and a new contract “with a distinct character and function” than the original contract awarded. Id. Characteristics that demonstrated the bridge contracts were separate and self-contained were the fact that the services under the bridge contract would only be provided during the pendency of the protest or a short period afterwards, the appropriation used to fund the bridge contract was separate from that used to fund the original contract and the appropriated funds for the original contract remained untouched, and the bridge contract’s term was independent of the term of the original contract (the bridge contract will not lessen the amount of work on the original contract). Id.

All of those factors are present here. COFC also held that the fact alone that the bridge contract and the original contract were for the provision of the same services “is insufficient to prove that the bridge contract is an iteration, in whole or in part, of the original contract and, thus, an override. Contracts may share the same subject matter and yet remain separate and distinct from one another.” Id.

3. Head of Contracting Authority (HCA) Approval

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

4. CMS Competition Advocate (CA) Approval

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

____N/A__________________ Name / Date

5. Senior Procurement Executive (SPE) Approval Based on the foregoing justification, I hereby approve the procurement of (state supplies/services being procured) on an other than full and open competition basis pursuant to the authority of (state the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 253(c)(1)), as implemented by FAR 6.302-1), subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

____N/A________________ Name / Date

N/A