Medical and Dental Insurance Bridge JA_REDACTED_W519TC24C2008.pdf

Control No:

Contractor: Cigna Health Insurance

Service: Medical, Vision, and Dental Insurance Est Dollar Value:

Department of Army Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command – Rock Island (ACC-RI) Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: The Office of Program Management – Saudi Arabian National Guard (OPM-SANG) and Saudi Ministry of National Guard (MNG), requests a firm-fixed-price bridge contract for the services provided by contract with Cigna Worldwide Insurance Branch, a Joint Venture (JV) partnership with Saudi Arabian Coop Insurance Company (SAICO). ACC-RI projects award to Cigna Worldwide Insurance Branch, not the JV partnership, for and will obligate Foreign Military Sales funds. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

Efforts to conduct a competitive follow-on are underway, but for reasons described in paragraph 5, the new contract will not be in place prior to expiration of the current contract. This action is a bridge to ensure continuation of medical, vision and dental insurance coverage for MNG students and their families while in the U.S., while the Government works on the acquisition requirements package and recompetes the requirement.

3. Description of Supplies/Services: Cigna Worldwide Insurance Branch is a health services and insurance company based in the U.S. offering medical, vision, dental, disability, life and accident insurance and related products and services, mostly through employers and other groups.

Cigna Worldwide Insurance Branch will provide medical, vision and dental insurance to MNG students, and their accompanied dependents, who are attending training courses in the U.S. Cigna Worldwide Insurance Branch provides a medical, dental, and vision insurance policy, providing coverage for MNG students and their families throughout the year. Each MNG student and his dependents must be enrolled prior to departing for the U.S. and must remain on the policy for the duration of the training in the U.S. After the student completes their training and returns from the U.S., the student and their dependents must be withdrawn from the policy immediately. MNG is the policy holder and adjustments must be approved by MNG.

Service: Medical, Vision, and Dental Insurance Est Dollar Value:

The proposed contract will not include an option provision.

4. Authority Cited: 41. U.S.C. 1901, as implemented by Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii), Sole source under the simplified procedures for certain commercial items.

5. Reason for Authority Cited:

a. As described in FAR 13.501(a)(1)(i), the contracting officer may conduct sole source acquisitions only if the need to do so is justified in writing and approved at the levels specified in FAR 13.501(a)(2).

b.

On , the ACC-RI Contracting Officer and OPM-SANG made a determination to exercise the six-month option in accordance with (IAW) FAR 52.217-8 Option to Extend Services on contract to allow additional time to develop the procurement package for a competitive contract and conduct additional market research. The option would have extended the contract from

However, on Sultan Alhadi, Cigna

Worldwide Insurance Branch, notified ACC-RI that the Saudi Central Bank of KSA highly regulates health insurance policies, prohibits incremental extensions on medical insurance and short term medical policies are not allowed. KSA insurance and reinsurance is governed by the Law on Supervision of Co-operative Insurance Companies, Royal Decree No M/32 (Insurance Law). This applies to all registered companies undertaking insurance business in KSA. Health insurance is also regulated by the Council of Co-operative Health Insurance (CCHI) and Saudi Arabian Monetary Agency (SAMA). Per the SAMA Insurance Supervision Department, Insurance Market Code of Conduct Regulation, paragraph 41. “No insurance company, or employee of an insurance company may provide evidence of cover on a product unless the customer has committed to taking out a full annual policy that complies with the minimum standards set for that policy.” Therefore, the Government is not able to exercise the six-month option due to it being for less than one year.

Service: Medical, Vision, and Dental Insurance Est Dollar Value:

c. Since the discovery of this information prohibiting incremental extensions of less than one year, ACC-RI has focused efforts toward the bridge package, while concurrently developing the follow-on package.

d. Cigna Worldwide Insurance Branch possesses the unique capabilities and expertise to meet all policy health, vision, and dental coverage in the PWS and provide U.S.

coverage. Cigna is CCHI and SAMA certified in KSA, holds a VAT certificate, and a Saudi Arabian business license.

Service: Medical, Vision, and Dental Insurance Est Dollar Value:

6. Efforts to Obtain Competition: ACC-RI shall publish the notices required by FAR

5.201. Because this is a sole source action, effective competition is not applicable. The Government will achieve subcontracting competition because the contract will include Defense Federal Acquisition Regulation Supplement 252.244-7000, Subcontracts for Commercial Products and Commercial Services.

The Government posted a Sources Sought on Sam.gov to identify other sources available and solicit offers from as many potential sources as practicable. One response was received on , stating, “In regard to the above Notice ID, we will not be submitting a proposal on the solicitation as it is just outside of our service offerings.” No additional sources were identified at that time.

7. Actions to Increase Competition: Following the award of this bridge contract ACC- RI intends to increase competition by identifying and emailing vendors found through additional market research, that have the capabilities to provide the service requirements in the PWS. ACC-RI intends to award a follow-on contract based on adequate price competition by 01 September 2024.

8. Market Research: Market research was conducted to ascertain if there are other qualified sources available. ACC-RI posted a Sources Sought to SAM.gov, utilizing the PWS from the current contract ACC-RI received one response from a contractor, , that was unable to meet the requirement and stated would not submit a proposal when/if the requirement were solicitated.

ACC-RI performed further market research by completing web searches of insurance companies, that had been previously identified and contacted in

Control No: 24-008

Service: Medical, Vision, and Dental Insurance Est Dollar Value: $2,400,000.00

2021, regarding their capabilities, as well as attempting to locate additional companies, that had not previously been contacted, regarding their ability to provide health insurance in the U.S. while still meeting all qualifications in PWS.

9. Interested Sources: To date, no other sources have expressed a written interest in this requirement.

10. Other Facts:

Procurement History

Contract: W90BRJ-21-P-0003 Contractor: SAICO (JV partnership with Cigna Worldwide Insurance Branch) Award Date: 07 December 2021 Competitive Status: Competed, one offer received