OAGM Limited Source Justification_MODS_Final.pdf

FEDERAL SUPPLY SCHEDULE LIMITED-SOURCES JUSTIFICATION

Acquisition Title: Marketplace Outreach Data System

(MODS)

Agency: Centers for Medicare & Medicaid Services

(CMS)

Acquisition Year: 2023 Author: Brittany Brown

1. Description of Action:

Nature

• ____ New Requirement

• __X__ Follow-On Order

• ____ Modification of Existing Purchase Order / Contract Number

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: $9,997,500 Funding Source (s): Marketplace Direct Response, 001967

Name of Proposed Contractor(s): Blue Labs Analytics

Street Address: 700 14th St NW

City, State, Zip: Washington, DC 20005

2. Description of Supplies or Services:

CMS has a need for severable, commercial services from IT professionals for the period July 31, 2023-July 31, 2024. Those services will include the operation, maintenance and iteration of the Marketplace Outreach Data System (MODS) during this time.

Critical to this effort is the development, maintenance and technological improvement of MODS to support this targeted direct response outreach and includes tasks such as database system management, SQL query building, list cutting for segmented outreach and A/B testing, predictive modeling and extensive data analytics to support evaluation of the Marketplace program. Database system management and data analytics capabilities to evaluate consumer actions, response rates, and predictive modeling around consumer behavior help CMS inform and improve its direct response tactics.

In addition to any development work and resource identification necessary for the smooth operation of MODS, the Contractor is to establish and maintain interconnections with several other systems and data sources. The primary MODS interconnection is with Multidimensional Insurance Data Analytics System (MIDAS). MIDAS stores and shares consumer eligibility and enrollment data from the Federally Facilitated Marketplace (FFM).

MIDAS sends compressed flat files to MODS for daily list cutting by use of the CMS Electronic File Transfer (EFT) system. The Contractor will also provide for full support of the MODS system security control audit (SCA) so that MODS can operate in the CMS Virtual Private Cloud (VPC) environment. The Contractor shall ensure MODS meets all CMS systems Authority to Operate (ATO) standards and adheres to all Acceptable Risk Safeguards (ARS) and CMS Technical Risk Architecture (TRA) requirements.

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).

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

__: 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

__X__: 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

On December 29, 2022, President Biden signed into law the Consolidated Appropriations https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%208_4.html

Act, 2023 (“Omnibus”). This Omnibus legislation ended the continuous Medicaid enrollment provision (initially enacted by the Families First Coronavirus Response Act (FFCRA) in March 2020) as of March 31, 2023. All states began to return to normal Medicaid eligibility operations as soon as April 1, 2023. This process includes restarting Medicaid and CHIP eligibility renewals (known as the “Unwinding”) for all enrollees and terminations of coverage for individuals who are no longer eligible. States have up to 12 months to return to normal eligibility and enrollment operations. Potentially impacted, Medicaid-terminated consumers have from April 1, 2023 until July 31, 2024 to enroll in health coverage at the Marketplace at HealthCare.gov. To support the Unwinding, Blue Labs, as the incumbent contractor, has built and tested the initial integration between multiple data systems (e.g., MODS, MIDAS and CTAC) that are necessary to begin identifying the nation’s Medicaid/CHIP recipients impacted by the Unwinding.

In the interest of economy and efficiency, the work performed by Blue Labs is a logical follow on to work currently being performed by Blue Labs under a current Federal Suppply Schedule order. Blue Labs is uniquely capable of continuing this mission-critical outreach work associated with our Nation’s most vulnerable consumers as the nature and quality of the incoming data of impacted consumers from the States is still very dynamic and unsettled. BlueLabs has custom developed the integration between data systems and list cutting logic and must be available to continually monitor the incoming data for inconsistencies, provide reports and analyses, and provide CMS with system updates over the course of the Unwinding to ensure CMS is able to accurately identify those who’ve lost Medicaid coverage for Marketplace outreach.

This limited source justification will ensure that the estimated 15+ million potentially impacted consumers who will leave the Medicaid/CHIP program and experience coverage loss (ASPE Issue Brief August 19, 2022) will continue to receive critical outreach about their other healthcare coverage options (e.g., a Marketplace plan at HealthCare.gov) without interruption or delay. MODS system follows all Federal system security requirements. MODS system architecture, code and processes are all documented across several CMS IT security and development platforms including platforms such as Confluence, CFACTS and SCOUT.

However, having system architecture, code, and process documentation in place does not eliminate the operational risk in the event of contract lapse and/or transition to another vendor. Introducing a new vendor at this time (and an estimated minimum 3-4 month transition out/in period between vendors) would subject our Medicaid Unwinding outreach to an unnecessary risk as the quality and timing of incoming data from CCIIO systems that connect to MODS (including individual Medicaid consumer-level data from States) continues to be dynamic/highly variable and requires BlueLabs undivided attention to ensure we’re accurately reaching impacted consumers who may have lost their Medicaid coverage. In short, the system build/coding work and process documentation for the Medicaid Unwinding is in flux and will continue to be during the entirety of this calendar year as States send their data of impacted consumers to CMS on a timeline we do not control.

Even with MODS system architecture and processes documented in Confluence, CFACTS, and other information security systems, any potential switch/transition to a new vendor would create a burdensome and lengthy turnover of system knowledge and create an unacceptable delay of any system updates based on incoming state data updates/issues. Continuity of operations with Blue Labs will ensure impacted consumers receive timely and uninterrupted critical outreach about their healthcare coverage options.

The transition risk of using a vendor other than Blue Labs would trump any other consideration in a best value determination.

An award based on a limited source justification will ensure consistent and uninterrupted outreach tactics, including mission-critical outreach for impacted consumers associated with the Unwinding, and will seamlessly build off the work that has been completed under the current task order. This work is critical to the agency and it is important that there is no gap in service or interruption/delay in outreach. Therefore, the correlation between the original order and the work associated with the limited source justification is highly aligned and efficient as it provides a continuation of the outreach and education services that is based on the framework delivered in the original order.

Under the previous task orders, Blue Labs Analytics has demonstrated an excellent track record and has proven successful in developing, executing and monitoring direct-to-consumer outreach campaigns that effectively reach the target audiences for CMS.

This award will be a follow-on to the Marketplace Open Enrollment Firm-Fixed Price task order 47QTCA18D002T/75FCMC18F0063 under the GSA IT Schedule 70 which was competitively awarded with a Period of Performance from July 31, 2018 – July 30, 2023.

CMS acquired software as a service to continuously improve the data analytics and outreach capabilities. Services included development, maintenance and technological improvement of the Marketplace and Outreach Database System, (MODS) to support targeted direct response outreach and included tasks such as database system management, SQL query building, list cutting for segmented outreach and A/B testing, predictive modeling and extensive data analytics to support evaluation of the Marketplace program.

____: 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:

Market research conducted within the past eighteen (18) months identifies that there are several firms capable of meeting the agency’s need (e.g., DASH BPA holders).

https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%208_4.html

Potential alternative vendors could include either marketing companies with significant Marketplace data expertise, or data-focused companies such as the incumbent with significant marketing expertise.

The marketing companies that are most well positioned within CMS are those on the National Education Campaign (NEC) vehicle: Ketchum, Edelman, Porter Novelli, and Weber Shandwick.

While Weber Shandwick is a subcontractor to the BlueLabs team where they provide content creation and editing support, none of these companies market/provide data lake experience as a core offering. Weber Shandwick has the most exposure to marketplace data, However, none of the above companies have direct experience querying or analyzing individual-level eligibility & enrollment information as required under the MODS contract/order.

Firms with significant data warehousing experience at CMS and use of MIDAS data include Sparksoft, Reli Group, Analytica, and Index Analytics. A review of their capabilities statements does not indicate expertise with large scale marketing campaigns, analysis of outreach effectiveness, or development of marketing-specific data systems as required under the MODS contract/order.

As noted above, the Unwinding work is currently being performed by Blue Labs under a current Federal Suppply Schedule order. Blue Labs is uniquely capable of continuing this mission-critical outreach work associated with our Nation’s most vulnerable consumers as the nature and quality of the incoming data of impacted consumers from the States is still very dynamic and unsettled. BlueLabs has custom developed the integration between data systems and list cutting logic and must be available to continually monitor the incoming data for inconsistencies, provide reports and analyses, and provide CMS with system updates over the course of the Unwinding to ensure CMS is able to accurately identify those who’ve lost Medicaid coverage for Marketplace outreach.

For the reasons noted above and the unique constraints of developing an unwinding-specific marketing campaign, we have only identified a single potential offeror (the incumbent BlueLabs Analytics) as being capable of delivering this capability.

5. Actions to Increase Competition:

A new Marketplace Direct Response contract with an anticipated start date of August 1, 2024 is intended to be competed in the Spring/Summer of 2024; this new contract will be representative of normal Marketplace direct response operations that will not include Unwinding-specific outreach.

6. Any other facts supporting the justification:

N/A

Approvals:

1. 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, which form the basis for this Limited Source Justification.

Contracting Officer Representative (COR) / Date

Program/Project Manager (P/PM) / Date

2. Contracting Officer Certification and Best Value Determination: 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.

By my signature below, after review of the relevant documents, I have determined that the order subject to this Limited-Sources Justification represents the best value for the Government as set forth in FAR 8.404(d), and constitutes a fair and reasonable price.

The basis for my determination is as follows:

The contractor proposed pricing will be compared to the contractor’s GSA price list as well as the Independent Government Cost Estimate, market research, and historical data to include a comparison with the rates established on their current GSA contract and the previous task orders. Based on this analysis, the Contracting Officer will negotiate a fair and reasonable price. A further determination will be made by the Contracting Officer that the action represents a fair and reasonable cost to the Government by conducting both a technical and price evaluation as part of a fair and reasonable price determination.

Contracting Officer / Date

OAGM Approvals

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

OAGM Division Director / Date

OAGM Group Director / Date

3. CMS Competition Advocate Approval

Source Justification.

Name / Date

4. Head of Contracting Activity (HCA) Approval

Source Justification.

N/A

5. Office of Small and Disadvantaged Business Utilization

6. OGC Legal Review

Name / Date s77c Typewritten Text 05/31/2023

7. HHS Competition Advocate Approval

8. Senior Procurement Executive (SPE) Approval

Based on the foregoing justification, I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

N/A