JA_Portsmouth_Med_Surg_MATO_Bridge_Feb_Biz.doc

Portsmouth Medical/Surgical MATO Bridge Contracts

CLASS JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

J&A #10000-14

1. Contracting Activity.

Naval Medical Logistics Command (NMLC), Acquisitions Management Directorate, Code 02, 693 Neiman Street, Fort Detrick, Maryland 21702, acquiring on behalf of the military treatment facilities (MTFs) located in the Commonwealth of Virginia.

2. Description of the Action Being Approved.

The government intends to establish D-type bridge contracts with the Portsmouth Medical/Surgical Multiple Award Task Order (MATO) contractors currently providing services. The current MATO contracts that require bridge services are as follows: N62645-09-D-5019 (CasePro, Inc. (CasePro)); N62645-09-D-5020 (Professional Performance Development Group, Inc. (PPDG)); N62645-09-D-5021(Chesapeake Educational Services, LLC (Chesapeake)) and N62645-09-D-5022 (InGenesis Arora Healthcare, LLC (InGenesis)).

3. Description of supplies/services.

The MTFs identified in Paragraph 1, above, are receiving multidisciplinary contract medical services via the Medical/Surgical (Med/Surg) MATO contracts; the contracts expire 30 June 2014. For these services, NMLC intends to shift from multidisciplinary labor band MATO contracts to market segmented contracts in effort to better align with the health care industry and to attract companies specializing in their respective market segments. The services currently encompassing the Med/Surg MATO will be competed onto the Northeast Physician MATO and the Northeast Ancillary MATO. The two Northeast MATOs are at differing points in the acquisition process and will have different performance start dates; the MATOs will not be awarded prior to expiration of the Med/Surg MATO (30 June 2014). Therefore, bridge contracts are necessary to continue the existing physician, allied health, technologist, technician and assistant services currently provided via the Med/Surg MATO as well as any new requirements that may precipitate during the bridge period in anticipation of the competitive, long-term procurements.

The bridge contracts shall be placed in anticipation of the award of the competitive Northeast Physician MATO (physician services) and the Northeast Ancillary MATO (allied health, technologist, technician and assistant services) solicitations in the Northeastern United States. During the procurement of each of the market segmented MATOs, delays have been experienced which have led to the need for bridge contracts to mitigate the risk of a lapse of services. The current set of MATO contracts are set to expire on 30 June 2014. It has always been the intent of this office to roll all of those requirements onto the new Northeast Physician MATO and Northeast Ancillary MATO upon award. The plan of action and milestones contained in the new procurement had an original start date of 01 July 2014. Due to a delay in obtaining the required approvals from higher levels of authority for pre-solicitation and solicitation documentation, the milestones originally established were not met. Personal medical services contracts are unique and highly specialized requirements, which necessitate a longer review period thus impacting the planned timeline for award.

Given the significant lead time required in the procurement of a MATO Indefinite Delivery, Indefinite Quantity (IDIQ) contract, the acquisition cannot sustain such a delay without the need to adjust the milestones and award schedule. Since the new Northeast Physician MATO and Northeast Ancillary MATO will not be able to accommodate a start date of 01 July 2014, the revised milestones project an anticipated award date of 01 September 2014 for the Northeast Physician MATO (with an effective date of 01 February 2015) and 03 March 2015 for the Northeast Ancillary MATO (with an effective date of 01 August 2015). The bridged physician services will include a six month base period of 01 July 2014 through 05 January 2015 and a three month option period of 06 January 2015 through 31 March 2015. The bridged ancillary services will include a one year base period of 01 July 2014 through 30 June 2015 and a three month option period of 01 July 2015 through 30 September 2015. Traditionally, the milestones have incorporated 120 days for “start-up” of services, which included the competitive ordering process after the award of the basic contracts. Recent IDIQ awards with this type of “start-up” allotment has shown this 120 days is not sufficient to accommodate the competitive ordering process as well as the on-boarding time (assembling of candidate packages, credentialing/privileging, security, etc.) required by contractors and the MTFs receiving the services. The revised milestones include an additional 60 days, which will enable the competitive ordering process to occur without infringing necessary time to complete the onboarding process. The bridge period of performance provides sufficient time to ensure the new competitive procurements have appropriate timetables to evaluate proposals, award contracts, issue subsequent task orders, and to efficiently transition current services from the expiring vehicles.

There are currently no MATO contracts in place that encompass sufficient hours for all current and new physician, allied health, technologist, technician and assistant requirements in support of NMCP during the performance period of 01 July 2014 through 30 September 2015. Therefore, the above referenced four contractors are in the best position to fulfill current requirements and new requirements that may precipitate during the bridge period. The bridge contracts will be utilized minimally for new requirements; new requirements at NMCP may be procured through another MATO vehicle. For competitive task orders, the Contracting Officer reserves the right to request any contract company to verify its business size; the Contracting Officer reserves the right to not award a competitive task order to any contract company that no longer reflects a small business size status, since the referenced contracts were initially awarded via a small-business set-aside MATO. Contract Action Reports for the resulting contracts will be coded to reflect accurate business size status when awards are made. The Contracting Officer reserves the right to terminate, in accordance with the contracts, any contract or task order if another contract becomes available to procure services (e.g. the Northeast Physician MATO or Northeast Ancillary MATO is awarded prior to anticipated dates). Options were included in the bridge contracts based on giving higher levels of authority the maximum amount of review time for the Northeast Physician MATO (physician services) and the Northeast Ancillary MATO (allied health, technologist, technician and assistant services). If lesser time is taken to receive approvals/create contracts, the Contracting Officer reserves the right to not exercise the options affiliated with the bridge contracts.

The bridge contracts will contain the hours necessary to ensure the new competitive procurements have an appropriate timetable to evaluate, award, and implement new contracts and subsequent task orders. Since the acquisitions have already experienced delays, the bridge contracts will be awarded with a performance period of 01 July 2014 through 30 September 2015 (physician services will include a six month period of performance of 01 July 2014 through 05 January 2015 with a three month option period of 06 January 2015 through 31 March 2015; allied health, technologist, technician and assistant services will include a one-year period of performance of 01 July 2014 through 30 June 2015 with a three month option period of 01 July 2015 through 30 September 2015), with an effort to ensure there is sufficient time to transition current services and on-board hundreds of health care workers to the new, competitive contracts.

Without skilled physician, allied health, technologist, technician and assistant services, the MTFs served by these contracts will not be able to deliver the total scope of care required for them to meet mission requirements. The MTF will need to refer patients out to the Tricare network at a greater cost to the Government. Most importantly, access to care will be delayed, particularly to the Wounded Warriors who depend on the MTFs covered by these contracts for their care. In order to meet known mission requirements (deliver the current scope and level of care) and allow for the possibility of additional contract requirements that arise through the ordering period, the bridge contracts will have an estimated aggregate value of approximately $70M, between FY14 and FY15 funds. New requirements will be issued via Task Order Proposal Requests (TOPRs) and subject to FAR 16.5 – Fair Opportunity for Consideration to all eligible contractors holding a bridge contract.

The total estimated dollar value of the acquisition is $69,969,764.84.

Appropriations:

General Defense Health Program (DHP)

Wounded, Ill and Injured (WII)

Overseas Contingency Operations (OCO) Psychological health/Traumatic Brain Injury (PH/TBI)

Medical Home Port (MHP)

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c) (1): Only one responsible source or only a limited number of responsible sources

5. Rationale Justifying Use of Cited Statutory Authority.

CasePro, PPDG, Chesapeake and InGenesis already have personnel in place to continue providing health care services during the six month base period of performance and three month option period for physician services and one year period of performance and three month option period for allied health, technologist, technician and assistant services. Due to the expiration of the FY2009 MATO, bridge contracts are proposed. This action is required to establish stop-gap measures to provide the required services to meet the existing missions of all affected activities. The Acquisition Strategies for the new, competitive Northeast Physician MATO and Northeast Ancillary MATO have been approved by all required levels.

CasePro, PPDG, Chesapeake and InGenesis are the only known sources that are able to meet this requirement during the specified timeframe. There are no known performance issues with any of the referenced contractors that would prevent them from obtaining a bridge contract. However, if performance issues arise during the bridge period, the contracting officer reserves the right to compete the services among remaining contractors. There is not sufficient time to competitively procure the services via a new MATO. Additionally, no other contractors would be able to recruit, submit employee packages and immunization forms, obtain credentialing (as necessary), complete orientation and have their employees in place in order to avoid a lapse in service. Further, there are no existing MATO contracts with sufficient hours to accommodate the current and new physician, allied health, technologist, technician and assistant requirements in support of NMCP during the performance period of 01 July 2014 through 30 September 2015.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Upon approval of this Class J&A, an announcement will be published on Federal Business Opportunities (FedBizOpps) pursuant to Part 5 of the Federal Acquisition Regulation indicating the Government’s intent to award contracts for physician, allied health, technologist, technician and assistant requirements in support of NMCP during the performance period of 01 July 2014 through 30 September 2015 (physician services will include a six month period of performance of 01 July 2014 through 05 January 2015 with a three month option period of 06 January 2015 through 31 March 2015; allied health, technologist, technician and assistant services will include a one-year period of performance of 01 July 2014 through 30 June 2015 with a three month option period of 01 July 2015 through 30 September 2015) on a sole-source basis to CasePro, PPDG, Chesapeake and InGenesis.

7. Determination of Fair and Reasonable Cost.

The prices for the services currently being provided were determined fair and reasonable. The contracting officer will use a procedure similar to that used to negotiate logical follow-on task orders in order to assure a fair and reasonable price for these services. In the event this process fails to produce acceptable negotiated prices or should new requirements arise, limited competition between the four MATO contract holders will be used to ensure that the requirements under the interim contracts will be awarded at fair and reasonable prices.

8. Actions to Remove Barriers to Future Competition.

The services in the bridge contracts are the existing requirements currently in place on the FY 2009 Portsmouth Medical/Surgical MATO. Upon award of the new Northeast Physician MATO and Northeast Ancillary MATO, all requirements will be competed among the successful contractors.

9. Contracting Point of Contact.

The point of contact at NMLC is Ms. Jeanette Wolfe, Code 02, at (301) 619-2464 or jeanette.wolfe@med.navy.mil.