P03 - JA - COVID 19 Modeling Bridge - HCA Signed___R.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 6 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C776-21-AP-1920

1. Contracting Activity: Department of Veterans Affairs (VA), Program Contracting Activity

Central (PCAC) 6150 Oak Tree Blvd, Suite 300, Independence, Ohio 44131. Purchase request: 776-21-2-3235-0065.

2. Nature and/or Description of the Action Being Processed:

Healthcare Operations Center (HOC) at VA Headquarters requires continued support of the consulting services currently being provided for VHA’s Mission related to the National Strategy for COVID-19 Response and Pandemic-Preparedness. PCAC intends to execute a firm-fixed price open market contract to McKinsey & Company, Inc, 1200 19th St NW, Ste 1000, Washington, DC 20036. During Fiscal Year (FY) 2020, Contract 36E77620C0039 was awarded as an emergency acquisition on March 20, 2020 to McKinsey & Company, Inc.

Washington D.C. (McKinsey) by PCAC. This was a sole source contract awarded under the authority of Federal Acquisition Regulation (FAR) 6.302-2 Unusual and Compelling Urgency in support of the COVID-19 Pandemic and National Emergency. The current contract is expiring on March 19, 2021 and this bridge contract is necessary to ensure VA maintains service. During FY 2021, market research efforts began for a new acquisition

(Base period of 12-months and one (1) 6-month option period). The acquisition package for the anticipated replacement contract is currently undergoing internal reviews and once approved a synopsis will be released to industry. This proposed sole-source, bridge contract will be in direct support of the COVID- 19 HOC at VA Headquarters and is being executed as a stop- gap measure while the VA continues to prepare, finalize, and later synopsize its planned competitive requirement for the replacement contract. . This interim/bridge contract is necessary to ensure VHA’s Pandemic response and preparedness 1) remains consistent and without interruption due to the critical nature of the services being procured, 2) is specifically aligned with the current Presidential Administration’s strategies and requirements of VHA during an unprecedented pandemic and 3) enables the VA to manage unexpected events as VA still requires support during the COVID-19 pandemic and there is insufficient time constraints induced by such a large change in policy and direction to execute the full contract without an interruption.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The Veterans Health Administrations (VHA), requires real-time intelligence on operations across the globe country to inform their strategies and operations. The contractor shall provide ongoing and effective, global healthcare ecosystem focused, COVID-19 epidemiology models and rapid pandemic response options to VHA. Potential epidemiology

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Revision 03 Date: 02/11/2021 modeling solutions must be managed 24 hours a day/7 days a week by an integrated team of industry subject matter experts who are constantly updating and refining the model. The contractor shall provide integrated COVID-19 modeling for analytics capabilities to assess public health, clinical capability, epidemiology, supply chain capability, analytical models addressing expected disease burden and impact on capacity, workforce, and supplies by VISN / market for both general population and VA; expertise in healthcare and market-based modeling and analytics in order to provide accurate and effective scenario planning with regard to all general aspects of public health, including (but not limited to) epidemiology, beds, supplies, additional public space, from local level hospital / health care system to national level, including VHA, shall support HOC Morning Leadership Briefings by preparing and delivering a daily overview of COVID-19 transmission and growth across the United States at a micro-region level. The contractor shall also support VHA leaders with efforts to stand up and run a Rapid Field Response approach with direct links to VAMC and VISN leaders. To meet VHA’s full requirements, the Contractor shall provide rapid support – often within a 24-hour turnaround time- daily, to include weekends and holidays. The Contractor shall make available their executive- level key personnel for the following strategic and important calls: Healthcare Operations Center (5-7 days/week), PL&O (1day/week), Operations Leadership (1day/week), Chief of Staff Touchpoints (1day/week), and ad hoc emerging Healthcare Operations topics (5-7 days/week) such as financial considerations or COVID impacted care.

which will include a base period of one-month, plus a one-month option period.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.

Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or

Expert Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority):

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Revision 03 Date: 02/11/2021

The Contractor is currently providing a compartment-based epidemiological model, validated with leading epidemiologists, with projections of R_0, infection fatality rate, and other important aspects pertaining to the spread, morbidity, and mortality of COVID-19 across all US states, territories, counties, and 150+ global countries. Data must come from around the world; this data cannot be mined exclusively, or even in majority, from the VA.

The contractor conducts research and modeling based on that data, utilizing and interpreting the statistics in different ways to produce quantitative and qualitive pictures of real-time operational statuses. This work is being “manually” performed by the contractor as there is no software solution capable of replacing and/or replicating the work product of the human mind at this time in the Pandemic which will allow for the services necessary under this effort to be provided. The Contractor uses industry best practices, academically-rigorous compartmental, mathematical modeling informed by the latest peer-reviewed evidence on SARS-COV-2 and public health intervention impact to generate over forty near-term (~100 day) and long-term (~2 year) epidemic scenarios across over 170 countries and over 4,000 sub-country jurisdictions (including all U.S. counties). The combination of service-based consulting, along with an evolving, real-time epidemiology model, shall allow for leading (not lagging) projections that result in critical Course of Action suggestions for VA and DoD in addition to translating the data into a 60+page PowerPoint delivered daily in the HOC.

VHA’s primary mission is providing coordinated healthcare to Veterans, but VHA is also a critical component of the national federal response framework. In addition to VA contributions to a global model of care, the VA’s “fourth mission” is to absorb non-Veteran civilian or military patients in the event that hospitals overflow in an emergency, such as during a pandemic. The contractor is globally, and industry connected, and as such is able to help every Federal agency work on their mission set and contribute to President Biden’s newly established COVID-19 Response Team and Congress’s repeated requests for immediate assistance. Full implementation of the National Strategy for COVID-19 requires sustained, coordinated, and complementary efforts.

Any lapse in the support currently being obtained by VA with regard to the aforementioned COVID-19 modeling support services will introduce grave risk to not only our Veteran population, but also any recipients of Fourth Mission care such as Veteran spouses and other dependents, military members or private citizens. The contractor is the only source capable of meeting VA’s immediate needs under this proposed bridge contract effort, given both its short period of performance, and the level of effort necessary to ensure there is no gap in performance of these critical support services. A change in contractor at this time, while the planned replacement contract acquisition undergoes internal review and pending synopsis as a competed effort, would result in unacceptable delays in fulfilling the agency’s requirements and critical COVID-19 support services being unavailable to VA in its ongoing efforts to continually adjust its efforts in its response to the pandemic.

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Revision 03 Date: 02/11/2021

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Notice of Intent to Sole Source 36C77621Q0148 was published to Beta.SAM on February 28, 2021 with responses requested no later than March 5, 2021. The notice informed industry the purpose of the proposed bridge contract is to act as a stop gap measure while VHA is currently working on a competitive acquisition under Request for Information (RFI) 36C77621R0041.

Per the Department of Veterans Affairs Acquisition Regulation (VAAR) Sections 810.001-70 & 810.002, The Vendor Information Pages (VIP) was queried on January 21, 2021 utilizing NAICS 541611 to search for capable, verified Service-Disabled Veteran-Owned Small Business (SDVOSB) & Veteran-Owned Small Business (VOSB) concerns. The VIP search produced approximately 4,138 SDVOSB & VOSB businesses. Subsequently, all the businesses identified thru the aforementioned search were emailed on March 2, 2021 that provided the notification of the intent to sole source being published and a link to beta.SAM.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: The contracting officer will determine the price is fair and reasonable by comparing the proposed pricing to the Independent Government Cost Estimate (IGCE) per FAR 13.1063(a)(2)(vi)) to ensure that the price is determined to be fair and reasonable before the award is made.

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted:

As a result of the market research for the notice of intent to sole source, two (2) email responses were received. In the interest of transparency telephone calls were made to both vendors to discuss the rationale for the bridge contract and discuss concerns. During the calls, both vendors stated they understood and agreed with the approach.

Based on the market research conducted for this requirement, and the results obtained therein, it has been determined that there are not two (2) or more VIP verified and capable SDVOSBs or VOSBs which appeared capable of performing this proposed bridge contract requirement. In addition, no other-than SDVOSB/VOSB small business respondents in any of the other socio-economic groups were determined to be reasonably capable to perform the work for this effort, particularly in light of its very short period of performance. Therefore, it is in the best interest of the Government to execute the bridge contract directly to the existing service provider, McKinsey & Company, Inc.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The acquisition package for the planned replacement contract is currently undergoing internal reviews and once approved a synopsis will be released to industry. The replacement contract we be conducted on a competitive basis.

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Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Initiate Government Solutions, LLC. Bettermeant Federal

A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: VA will continue to perform market research in attempts to find other sources before exercising options and or soliciting new awards for the same or similar future acquisitions of the services being acquired.

Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition

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c. Director of Contracting: I certify the justification meets requirements for other than full and open competition.

d. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.