MSI Justification 7-29-2021.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Acquisition Title: Consolidated Appropriations Act (CAA) Modification to the Marketplace

System Integrator (MSI) Contract

Agency: Centers for Medicare and Medicaid Services

Acquisition Year: 2021

Author: Tiffany Jackson-Dickey

1. Description of Action:

A. Nature

a. ____ New Requirement

b. ____ Follow-On Order

c. __X__ Modification of Existing Purchase Order / Contract Number HHSM-

500-2016-00015I

B. Order Against

a. (HHSM-500-2016-00015I) Multiple Award IDIQ Contract Number

C. Contract Type (Hybrid)

a. __X__ Firm-Fixed Price

b. ____ Time and Materials

c. __X__ Cost Plus Fixed Fee (CPFF)

i. _X___ Term

ii. ____ Completion

d. ____ Cost Plus Award Fee (CPAF)

e. ____ Other: ___________

D. Projected Cost / Price of contract (Base & All Options): _$218,520,481.99________

E. The total estimated value of the proposed sole source action (for modifications only):

_ $2,242,663 _________

F. Funding Source (s): 0007452 - Titles I (No Surprise Act) and II_(Transparency)

G. ____: Basis for Approval (Far 6.303-1(d)

__X__: Individual Basis

____: Class Basis

2. Description of Supplies or Services:

The Consolidated Appropriations Act (CAA) of 2021 became Public Law No: 116-260 on

December 27, 2020. CAA is a $1.4 trillion omnibus spending agreement that encompasses many different provisions. Two acts within the law apply to The Centers for Medicare and

Medicaid Services (CMS) Center for Consumer Information and Insurance Oversight

(CCIIO): Division BB, Title I, "No Surprises Act." and Title II, "Transparency." The No

Surprises Act (the Act) requires work to support healthcare provided to all commercially insured patients that provides much broader coverage and IT needs than just healthcare provided by the Affordable Care Act (ACA). The Act contains a large number of disparate requirements for insurance reporting, process attestation, and federal operations.

Booz Allen Hamilton (BAH) provides Information Technology (IT) operational support and oversight of the Exchange systems’ components through monitoring, coordination, collaboration, and communication in coordination with the eXchange Operations Center and business stakeholders, security, and program operations through the scope of the MSI task order. It also includes integration work for the Marketplace Exchange, which supports healthcare provided by ACA.

CMS did not contemplate that the MSI would be responsible for integrating the IT supporting healthcare for all commercially insured patients therefore this work is out of scope and requires a justification. The work required by the Act is similar in nature to the work currently performed by the MSI and given the short time frames to implement the Act mandates over the new few months, the MSI is best positioned to help CMS meet its legislative mandates to have the IT systems in place within the next 8-9 months.

BAH already facilitates integration tasks that the bill requires to stand up new the IT infrastructure; therefore, the MSI is best positioned to support the establishment of the shared services platform and defining operations such as system monitoring and hosting. The MSI contract provides a firm foundation of planning and process implementation that is critical to ensure development efforts operate smoothly as CCIIO adapts to engagement with development contractors.

The 8-9 month delivery timeline is the current delivery goal. CCIIO will need the MSI team available to support these development integration activities, plus any delays or contingency planning within their option year period.

The anticipated period of performance to support the services required by the Act is as follows:

Base: June 15, 2021 to July 22, 2021 (within the base period of the MSI task order)

Option 1: July 23, 2021 to July 22, 2022 (Option period I of the MSI task order)

3. Authority and Rationale:

The Contracting Officer shall give every awardee a fair opportunity to be considered for a delivery/task order exceeding $3,500 unless one of the following statutory exceptions applies.

FAR 16.505(b)(2). Mark the applicable exception:

_ __ The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays [FAR 16.505(b)(2)(i)(A)];

_X_Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized [FAR

16.505(b)(2)(i)(B)];

The Act contains a large number of disparate requirements for insurance reporting, process attestation, and federal operations. By Tri-Agency agreement, CCIIO is undertaking virtually the entire IT build associated with these efforts, which will affect not only marketplace and non-marketplace private insurers, but will also require outreach and engagement with the population of the Employee Retirement Income Security Act of

1974 (ERISA) and self-insured plans which is estimated to number above 1.5 million firms. Fifteen provisions of the bill were identified as having implications for Information

Technology, which have been summarized into seven different work streams, six of which have operational deadlines within the next 8-9 months.

Booz Allen Hamilton (BAH) is the only responsible contractor at this time who can provide the required program management support. BAH’s current expertise, as the

Marketplace System Integrator (MSI), affords them the inherent understanding of the

Cloud environment interconnections of CCIIO processes, inter-organizational

(Government and Application Development Organizations) and operational knowledge that would not be readily available to another vendor at this time. Critical time will be lost in the acquisition cycle if CCIIO would attempt to have fair opportunity.

The implementation of the new Act requires CMS to act quickly to ensure new policies, and procedures are available for external stakeholders (e.g. Issuers, Third Party

Administrators, Pharmacy Billing Managers) to meet compliance requirements by the effective date of January 1, 2022. BAH is currently serving in this role and has all necessary personnel, knowledge, and skills to operate as the System Integrator for this work. A new contractor would not benefit the Government and would significantly increase the operational risk in meeting the legislative timeline set forth. Furthermore, the amount of time and effort necessary to bring a contractor up to BAH’s operational effectiveness will not meet the Government’s immediate need.

____ The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order [FAR

16.505(b)(2)(i)(C)]; or

___ It is necessary to place the order to satisfy a minimum guarantee [FAR

16.505(b)(2)(i)(D)].

____ A statute expressly authorizes or requires that the purchase be made from a specified source. [FAR 16.505(b)(2)(i)(E)].

4. Provide a statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made:

At this time new development is not expected after the initial IT infrastructure for the Act is operational. CMS, therefore, would have the opportunity to solicit an open bid for a

CAA System Integrator should new scope be required.

5. State any other facts supporting the justification:

BAH is the only contractor that can fulfill CMS’ immediate need. They currently have all the necessary personnel, knowledge, and skills to operate and maintain the system integration of this expanded scope of work. No other offeror can fulfill CMS’ need without a lengthy transition period and increased risk to CCIIO’s current operations and incorporation of MSI Task 1 – XOC Operations.

Approvals:

Program Office Certification. This is to certify that portions of this justification have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for Exceptions to Fair Opportunity, which form the basis for this justification.

Contracting Officer Representative (COR) / Date

Program/Project Manager (P/PM) / Date

Best Value Determination. By my signature below, after review of the relevant documents, I have determined that the order subject to this Justification represents the best value for the Government as set forth in FAR 16.505(b)(2)(ii)(B)(5), and constitutes a fair and reasonable price. The basis for my determination is as follows:

I will perform a cost analysis evaluation of the separate cost elements and profit to determine a fair and reasonable price for the effort.

Contracting Officer Certification: This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief, the information and/or data provided to support the rationale and recommendation for approval, is accurate and complete.

Contracting Officer / Date

Additional OAGM Approvals:

I hereby confirm the circumstances described above apply and approve the justification for

Exceptions to Fair Opportunity.

OAGM Division Director / Date

OAGM Group Director / Date

Head of Contracting Authority (HCA) Approval

I hereby confirm that the circumstances described above apply and approve this

Justification for Exception(s) to Fair Opportunity.

HCA Name / Date

Competition Advocate Approval

I hereby confirm that the circumstances described above apply and approve this

Justification for Exception(s) to Fair Opportunity.

N/A___________________________________________________

Name / Date

Senior Procurement Executive (SPE) Approval

I hereby confirm the circumstances described above apply and approve the Justification for

Exceptions to Fair Opportunity.

_N/A________________________________________________

SPE Name / Date