P00009 - LSJ for 70FA4021A00000006 - extend to Dec 2022 (Final).pdf

FAR 8.405-6 (a)(1)(i)(A)

Limited Sources Justification (LSJ)

Medical Services

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41

U.S.C. 152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

1. Agency and Contracting Activity. Identification of the agency, contracting activity, and specific identification of the document as a “Limited-Sources Justification.”

The Department of Homeland Security (DHS), Federal Emergency Management Agency

(FEMA), Office of the Chief Component Procurement Officer (OCCPO), proposes to extend an interim Blanket Purchase Agreement (BPA) pursuant to FAR 8.405-6(c), Limiting Sources, for Medical Services because an urgent and compelling need still exists.

2. Nature and/or description of the action being approved. Describe the action being approved and include the name and address of the proposed contractor(s).

DHS/FEMA/OCCPO intends to limit the number of sources solicited pursuant to FAR 8.405-

6(a)(1)(i)(A) for the procurement of Medical Services in support of FEMA personnel at FEMA fixed (non-disaster) locations and disaster locations to Proposed Contractor: Spectrum

Healthcare Resources, Inc. 12647 Olive Boulevard, Suite 600, St. Louis, Missouri 63141.

3. Description of Supplies/Services. Describe the supplies or services to be acquired.

Provide the estimated total value (including options, if any).

FEMA, Office of the Chief Administrative Office (OCAO), Environmental Safety and Health

Office (ESH) requires contractor support to help develop and maintain the broadest health services possible for federal managers and their employees. The Contractor shall work in a partnership with FEMA Headquarters to support managers and workers alike to design and deliver comprehensive solutions to meet FEMA’s occupational health needs by customizing programs to help build a healthier and more productive federal workforce as well as a safer workplace for employees. To meet this need, FEMA requires medical oversight; occupational health center services and clinical staffing support; special testing for COVID-19; extended nursing hours to support the National Recovery Communication Center (NRCC) and/or Regional Recovery Communication Centers (RRCC); medical employability, fitness for duty, consultation immunizations and travel medication; respiratory clearances; and

Commercial Driver License (CDL) clearances be established FEMA wide at various locations to include fixed site and disaster sites (including remote areas) within the United

States and all Territories.

The extended interim BPA will be a hybrid structure consisting of Firm labor rates and Time and Materials (T&M) contract line-item numbers.

The total estimated amount for the interim BPA extension is $1,441,168.00. Call orders for fixed locations will use Fiscal Year (FY) 22 Office of Management and Budget (OMB) funding. Call orders for disaster locations will use Disaster Relief Fund (DRF) no-year funds.

Estimated Total Value:

July 1, 2022 to December 31, 2022

Medical – Fixed and Disaster Sites $1,441,168.00

Total: $1,441,168.00

4. Authority and supporting rationale.

This acquisition is being conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C. 152(3), Competitive Procedures, and 40 U.S.C. 501, Services for

Executive Agencies, in accordance with FAR 8.405-6(a), Limiting Sources. The extension of the BPA will be made pursuant to FAR 8.405-6(a)(1)(i)(A), because a continuation of the urgent and compelling need exists.

Medical services are currently provided for FEMA fixed locations and were previously provided for FEMA disaster locations through an Inter-Agency Agreement (IAA) with the Department of Health and Human Services, Program Support Center, Federal Occupational Health (FOH). In March of 2020, FOH indicated that it would not extend the IAA, therefore, because Spectrum performed under the FOH IAA and had the infrastructure already in place to support FEMA’s medical services need FEMA awarded a BPA to Spectrum under the unusual and compelling justification to Spectrum in December 2020. In addition, the nation’s overwhelming response to COVID-19 consumed the workforce, so there was limited time to conduct a competition. Since the initial award, FEMA has diligently worked on completing a Medical Services contract; however, while award and full implementation of services was expected to occur in June 2022, it has now been moved to September 2022. FEMA continues to have an urgent and compelling need to continue to provide these medical services in the interim while it continues the award of the follow-on contract.

There are two main requirements driving the urgency of this requirement. First, FEMA needs to continue coverage of the interim contract to protect the workforce by allowing the workforce to remain engaged in the mission without the need to vacate their workstations for long periods of time to receive treatment. Second, this contract affords FEMA the ability to conduct COVID-19 testing and vaccinations at disaster and fixed sites if needed.

The transmission of the COVID-19 virus is still a recognized hazard within the operating areas of FEMA. With COVID-19 numbers starting to increase again, FEMA has recognized that its own workforce is still at risk through infection and contact. This type of a disruption of services would be detrimental to accomplishing FEMA’s mission given the current

COVID- 19 pandemic.

Section 5(a)(1) of the Occupational Safety and Health Act (OSHA) 29CFR1910, requires an employer to furnish to its employees: “employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm.” Providing a Medical Health program is a necessary step in ensuring that the FEMA workforce and those places where FEMA sends its employees are free from such recognized hazards. If the Medical Services interim contract is not extended, there will be a lapse in service and FEMA would not be in compliance with the requirements of OSHA as a lack of coverage of medical services could lead to risking the health and safety of FEMA personnel at both fixed and disaster locations. FEMA’s mission generates a significant amount of stress and physical exertion upon its work force when dealing with various disasters to include natural disasters (i.e. hurricanes, wildfires, etc.), acts of terrorism, and other manmade disasters. FEMA’s mission requires long hours, often up to 16 hours in a workday, travel to unfamiliar locations, and little opportunity to seek care for medical treatment. Often, the employee will be required to demobilize or go on rotation in order to seek medical attention.

Removing FEMA personnel from a disaster to seek medical treatment will impact disaster operations and the FEMA mission by reducing personnel with potentially no immediate replacement personnel.

As a result, FEMA intends to extend the Medical Service interim contract with Spectrum Healthcare Resources, DUNS 048441815/UEI SAM Z3JZT1J9TSG1, based on the urgent and compelling need for this contract. Spectrum Healthcare is uniquely positioned to be able to provide continuity of operations with the least impact on operations. In addition, Spectrum Healthcare already has an established infrastructure to perform COVID-19 testing, vaccinations, medical care, etc. It has the capacity to support FEMA’s disaster operations without a lapse in coverage. By extending this contract, it will prevent, to the highest degree possible, a lapse in coverage. Any such lapse in services could impact the Medical Services that are critical to the safety of FEMA’s federal employees.

5. Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with FAR 8.404(d).

The Contracting Officer has determined that extending the interim Medical Services contract with Spectrum Healthcare Resources, Inc. for the provision medical health services represents the best value to meet the Government’s immediate need. Current price research has confirmed that Spectrum’s current pricing is consistent with what FEMA has paid for these services historically. Orders will be placed in accordance with FAR 8.404, “Use of

Federal Supply Schedules.” The General Services Administration (GSA) has already negotiated fair and reasonable rates. Discounts to these GSA schedule rates will be requested. Additionally, prior to issuance of orders, the ordering activity will consider the level of effort and the mix of labor proposed to perform the specific task being ordered to determine that the total price is reasonable. The contractor’s labor mix and level of effort will also be compared to the Independent Government Cost Estimate (IGCE) for each order.

The Contracting Officer will further ensure that the anticipated orders issued from this BPA represents the best value by determining the price as fair and reasonable based on historical prices, an independent government estimate and previously negotiated/competed prices under the BPA. Additionally, wage determination rates will be used to establish the minimum basis for personnel pay. Because these interim contracts will be structured with T&M contract line items for services conducted at the disaster sites, labor costs will be reimbursed for actual hours worked and travel costs will be reimbursed for only reasonable, allowable, and allocable costs. These measures will provide FEMA confidence that cost will not substantially increase for this action and will be used to ensure fair and reasonable pricing.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

Extensive market research for this effort was conducted in June 2022. An analysis of the market research revealed that there are several vendors capable of providing Medical Services; however, these sources cannot provide the required services by July 1, 2022 as the limitations include security adjudication, transition of workloads to new contractors, staffing of call centers (previous services must be closed under current contract, and reopened under the new contract), implementing privacy processes, and the procurement acquisition lead time for the new awards. This process can take anywhere from sixty to ninety days.

7. Any other facts supporting the limited-sources justification. Additional facts may be stated in this section. If there are no additional facts, you must state that here.

FEMA has been working diligently on a competitive process for a new contract. Throughout the process of drafting the procurement package for the new competitive action there were many unknown factors that FEMA/OCAO/ESH were not aware of due to FOH having majority control of these services for many years. During the re-compete process, there were many unknowns, lessons learned and many changes that have occurred throughout the process. One major hurdle is the constant, last-minute scope change required by the OCAO, in response to the ongoing and evolving global pandemic. As a result of these unforeseen changes during the pre-award procurement process, this has delayed the solicitation for the follow-on competitive action.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited sources) before any subsequent acquisition for the supplies or services is made. Include a statement of actions taken or that will be taken to increase competition for future acquisitions of the same item/service (e.g., the government intends to revise overly restrictive technical specifications, acquire data rights, or pursue some other means to increase future competition).

Barriers that prevent this urgent and compelling contract from being competed in normal fashion include the transition period for an outside vendor to establish the infrastructure, as mentioned previously, to handle a contract of this magnitude on a national scale. Spectrum has pre-established relationships with medical and health providers (such as pharmacies and clinics) in every location that FEMA operates. They have been providing these services previously through FOH for nearly 20 years. Any other vendor, who would attempt to establish these same types of relationships would require a time frame extending beyond the period of performance in this contract extension request.

Medical Services

The Medical Services requirement is being re-competed with an estimated award date of September 2022. The solicitation for the re-compete will be publicized on the

Governmentwide Point of Entry (www.sam.gov) and will be based upon full and open competition which will ensure offers will be solicited from as many potential sources as possible. DHS/FEMA/OCCPO seeks approval of this Limited Sources Justification in order to extend the BPA with Spectrum Healthcare for Medical Services to prevent a lapse in services while the full contract is competed.

9. DHS intends to post this requirement on SAM.gov pursuant to FAR 8.405-6(a)(2)(i).

10. Technical/Requirements Personnel Certification.

Pursuant to FAR 8.405-6(c)(2)(x), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the Limited-Sources Justification, are accurate and complete.

Technical Representative/COR Date

11. Contracting Officer Certification and/or Approval *

Pursuant to FAR 8.405-6(c)(2)(ix), I certify that the Limited-Sources Justification is accurate and complete to the best of my knowledge and belief:

Sharon Edwards Contracting Officer

12. Approval

Tyuana Bailey

Component Competition Advocate

6/29/2022