Redacted_LSJ_0006-0012.docx

LIMITED SOURCE JUSTIFICATION FOR FSS ORDER

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

This justification is executed by the Naval Medical Logistics Command, Fort Detrick, Maryland on behalf of Naval Health Clinic Patuxent River hereafter referred to as the medical treatment facility (MTF).

2. NATURE/DESCRIPTION OF CONTRACT ACTION:

The government intends to negotiate a logical follow-on call order with Seaborn Health Care, Inc. (Seaborn) for the existing Medical Administrative Support services currently being provided under GSA Federal Supply Schedule (FSS) 621-039, Blanket Purchase Agreement (BPA) N62645-15-A-0006, call order 0003. The current call order has a period of performance ending 30 September 2016. The new call order will have a period of performance of 1 October 2016 through 30 September 2017. Additionally a 3 month option period of 1 October 2017 through 31 December 2017 will be placed on the call order.

3. DESCRIPTION OF REQUIRED SUPPLIES/SERVICES:

The follow-on call order will mirror the Medical Administrative Support services that Seaborn is currently providing. The follow-on call order will have a performance period of 1 October 2016 through 30 September 2017. The estimated value of this requirement is $260,506.00. The estimated value of the 3 month option is $65,126.50. The total estimated value including the option is $325,632.50.

4. IDENTIFICATION OF THE JUSTIFICATION RATIONALE AND/OR DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

The statutory authority which permits restricting consideration of schedule contractors to fewer than that required in FAR 8.405-1 is 41 U.S.C. 253, as implemented by FAR 8.405-6(a)(1)(i)(C) 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. As required, the original order currently in effect was not issued under sole-source or limited-sources procedures.

The Call Order Ordering Procedures in Section H of the BPA state “The Government at its sole discretion may issue call orders with a base period of performance and that also include option periods that provide for continued performance of the call order. Call orders issued with option periods will include FAR clause 52.217-9 “Option to Extend the Term of the Contract.” Option periods will be exercised in writing by the issuance of call order modifications.

Due to the nature of the acquisition for services currently being performed by Seaborn Health Care, Inc. under the FSS BPA, it is in the best interest of the Government to negotiate a logical follow-on and an option period allowing for the most effective use of resources. Recompeting the services currently being filled would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Such costs include the time of technical and contracting personnel to review and evaluate the requirement, proposal, and call order; as well as the costs associated with the recruitment and hiring of personnel if a

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new contractor is chosen. The current services will be followed on with Seaborn based on there being no change in scope to the current requirement.

5. DETERMINATION OF BEST VALUE:

The contractor’s quote for the requirements of the current call order was determined to represent the best value out of all six quotes submitted by contractors holding BPAs under the FSS. The price under the current call order was determined to be fair and reasonable based on competition. In order to determine whether the contractor’s proposed price for the LFO is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed price against current market research information available. If the contractor’s proposed price appears to be questionable for reasonableness, justification for the proposed price and the proposed price for the option period from the contractor will be required. The Contracting Officer will determine the price to be fair and reasonable before awarding a new call order.

6. DESCRIPTION OF MARKET RESEARCH:

Market research was performed for issue of the base BPA contracts. That market research is under 18 months old and is still considered current. Therefore, a comparison may be made between the Employment Cost Index from the Bureau of Labor Statistics and the price increase proposed for the LFO. A price increase not exceeding the current Employment Cost Index rate may indicate that the proposed price is fair and reasonable. Other current market conditions may be considered in the reasonableness determination. Market research may include comparing the prices for similar requirements provided by other contractors holding BPAs under the FSS.

7. ANY OTHER SUPPORTING FACTS:

This contractor is successfully providing services and has already worked through recruitment costs and has established a system for tracking and providing staff that works well at the requiring MTF. Changing contractors could require a complete turnover of current staff, adding the costs associated with reviewing new worker packages and conducting orientation (during which time no services are provided).

8. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION:

At this time there are no actions being taken to remove or overcome barriers leading to the exception to fair opportunity under the FSS. It is possible that option periods may be added to future competitive call order requests for quotes (CORFQs) to allow contractors holding BPAs under the FSS to propose prices. A call order would then be competitively awarded for current and subsequent years of service. The use of options for CORFQs would eliminate the need to issue logical follow-on call orders, which require the use of the exception to fair opportunity.

9. CONTRACTING POINT OF CONTACT:

The point of contact at Naval Medical Logistics Command, Fort Detrick, Maryland.