PSC313530-LSJ_APPROVED_6.12.2023.pdf

PDF 2 MB Posted Jun 12, 2023

Attached to: PSC/FMP Financial Management Service (FMS) Accounting Services
Solicitation number: GS23F0057W75P00120F80014
Issued by: Department of Health and Human Services Office of the Assistant Secretary for Administration

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Template for a Federal Supply Schedule (FSS) Limited-Sources Justification

Completion Instructions: HHS has established a standard template for the preparation of a Limited-Sources Justification (LSJ) pursuant to FAR Subpart 8.4. This template is for use with orders issued under the Federal Supply Schedule (FSS) program where the value exceeds simplified acquisition threshold and competition is restricted: (1) to fewer schedule contractors than required in FAR 8.405-1, 8.405-2, or 8.405-3, or (2) to an item peculiar to one manufacturer. See FAR Subpart 8.4 for additional guidance. This template is not for use with acquisitions other than those under FAR Subpart 8.4.

Tailor all aspects of this template to the individual acquisition. Consult FAR 8.405-6 for guidance. An addendum may be added in case additional space is needed.

When this document is printed, the blue italic instructions are automatically deleted on the printed version.

FEDERAL SUPPLY SCHEDULE

LIMITED-SOURCES JUSTIFICATION

Acquisition Title: Accounting support for PSC's FMP Accounts Receivable Branch (ARB) and Payment Management Service (PMS)

Agency: PSC

PSC Divisions: ASA - Assistant Secretary for Administration

Acquisition Year (FY): 2023-2024

Author: Joy Ganti

2. Description of Action:

Nature: New Requirement Follow-on Requirement

Modification to Existing Purchase Order/Contract Number: GS-23F-0057W / 75P00120F80014

Pricing: Firm-Fixed Price Time & Materials Cost

Other:

Funds: OMA Other Funds: FY23 - FY24 E8624F1, E8624H1, E9924FA - 25205

Name of Proposed Contractor(s): TFC Consulting, Inc

Street Address: 9200 Corporate Blvd Suite 260

City, State, Zip: Rockville, MD 20850-3864

Remove ContractorAdd Contractor

3. Description of Supplies and Services to Include Contract Vehicle/Number Utilized:

This acquisition will provide an extension to the current Task Order to continue receiving customer service, administrative, clerical, and accounting support/analysis for all financial activities while the follow-on competition is being conducted.

These services are a follow-on to Task Order # GS-23F-0057W / 75P00120F80014 awarded to TFC Consulting, Inc. (TFC) and issued by the Program Support Center (PSC).

The requested extension will have the same scope of work and complexity as the current task order and would have an overall extension period of performance 12-months to include a 6-month base with one 6-month option period, from September1, 2023 through August 31, 2024 if the option is exercised. This action increases the total potential value of the contract by 1,695,173.76; from: $5,706,046.43, to: $7,401,220.19. Six (6) months is anticipated to be needed in order for the Program Office to prepare the acquisition, obtain required approvals, solicit and award a follow-on task order that would include a 30-day transition period for a potentially new contractor. This will also provide additional time for the Contracting Office to hire and train new personnel required to support the desperately understaffed Branch supporting PSC. The additional 6-month option is anticipated in the case there are continued delays and staffing shortages.

The estimated value of the proposed action, including all options, is $ 1,695,173.76

Provide information for any options included in the order. If the action is a modification to an existing order, distinguish clearly between the work covered by the basic order and the work to be obtained by the proposed modification.

This request is for a 12-month extension, which includes a 6-month base and one 6-month option period. The 6-month option period is included to allow for a Transition Period in case Accounting Services does not have a new procurement awarded by the end of the 6-month base period. The current Task Order expires on 08/31/2023 with critical mission impact.

An extension is required to allow Accounting Services to, compete this requirement, award a new Task Order, and transition to a new contractor.

4. 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)(1)(i)(B));

• PSC Financial Management Portfolio (FMP) seeks to obtain Accounts Receivable Branch (ARB) and Payment Management Service (PMS) Support services under a Limited Source Justification for a 12-month period (6-month base with one 6-month option period) to allow Accounting Services to, compete this requirement, award a new Task Order, and transition to a new contractor. The extension is required to keep ARB and PMS financial activities operational and functional as the agency works to establish a safe and effective plan to prepare for the new contractor transition. This requirement has a significant impact on the Accounts Receivable Branch, Payment Management needs of the entire Department causing critical impact to HHS's agency missions.

• FMP provides full accounting and fiscal services for HHS OPDIV customers and other Federal agencies. TFC is the only current vendor with in-depth knowledge and comprehensive experience with the ARB and PMS systems and processes (UFMS, IPAC, billing request processing, federal collection/payments/credit processing, trust funds, federal financial reports, etc.) to operate and maintain uninterrupted and continuous support. TFC Consulting, Inc staff are trained in revenue recording, receivable recording, collections, debt management, disbursements, fund accounting and financial reporting, cash management, scheduled grants and contract payments; review, negotiation and approval of rates for indirect costs, research, patient care, other special rates for organizations receiving, federally sponsored awards, approval of state local cost allocation plans using HHS Unified Financial Management System (UFMS) accounting system, FBIS, PRICES, Treasury IPAC, and PMS systems. Only the incumbent currently holds the specialized skills and experience to allow for uninterrupted services and a switch to a new contractor will require transition support in order to guarantee a smooth transition.

• Without the prompt sole source extension to TFC Consulting, Inc, the department is at significant risk of service disruptions that could cause out of balance situations, inability to process invoice payments, backlogs of financial work in ARB and PMS set of books. TFC is the only vendor with knowledge and experience to immediately provide services to ARB and PMS as well as to train potential future contractors.

• A competitive award to anyone other than an experienced contractor creates significant risk to the department, with backlogs of financial work. Without TFC providing their knowledge and experience to a potential new contractor, it will be impossible for a new contractor to meet the department's needs causing disruptions and delays to ARB and PMS related financial activities. The 12-month extension includes 6-month base with one 6-month option period to cover transition period to provide remote training and workload transition to a new contractor under a future competitive award.

• In summary, this limited source request is to extend the services of the incumbent contractor, TFC Consulting, Inc for a period of 12-months until a new contract is competed and awarded. A new inexperienced contractor cannot run HHS system processes until they are trained by the incumbent contractor TFC.

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

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)).

When competition is limited to items peculiar to one manufacturer, this justification must explain why the particular brand name, product, or feature is essential to the Government's requirements, and that market research indicates other companies' similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency's needs in accordance with FAR 11.105.

5. Market Research:

Describe the extent of the market research conducted among the schedule holders and the results, or a statement of the reason that market research was not conducted. Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s need.

Market research was conducted on 5/23/2023 by searching GSA under MAS 541219 and the Internet. While numerous contractors appear to have the technical capability to provide some of the tasks identified in the Statement of Work, it would be impossible to expect a contractor to have the full technical capability on day one to provide the full scope of services without some level of disruption. It is expected that there will need to be an overlap in services to allow for transition support and required training to be completed. Adequate transition time will be essential to allow a potential new contractor to become acquainted with HHS-specific technical knowledge and expertise with ARB and PMS financial activities. Based on the transition efforts that would be required, a new vendor would not be able to provide the services seamlessly. Therefore, to avoid a disruption to the current services this 12-month extension will serve as a short-term solution necessary to get a competitive solicitation in place and to allow transition activities to take place.

Based on the market research conducted, the extension of the existing contract with TFC Consulting, Inc for a 6-month base with one 6-month option period) is in the governments best interest. This approach will allow the government to take advantage of the lower FY23 labor rates offered by the incumbent contractor to maintain accounts receivable and payment management support services while a re-compete package is being prepared, solicited and a contract awarded. The incumbent contractor is the only known source capable of continuing to provide uninterrupted and continuous support to ARB and PMS.

6. Actions to Increase Competition:

Describe the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration prior to any subsequent acquisition for the supplies or services is made. If no such actions have been taken, explain why.

A 12-month extension to the period of performance is a short term solution necessary to ensure uninterrupted and continuous support services to ARB and PMS. Within this period, Accounting Services will works to, compete this requirement, award a new Task Order, and transition to a new contractor. A follow-on action is anticipated to be a competitive task order under GSA to be solicited within the first 6-months of this contract extension.

7. Any other facts supporting the justification:

8. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review which is included in this Limited-Sources Justification is accurate and complete.

Program Manager

Name: Jayashree Ganti

Position Title: Financial Management Specialist, Accounting Services

Email address: joy.ganti@psc.hhs.gov

Phone: 301-492-5350

Program Manager Supervisor (or one level above Program Manager)

Name: Karen Slater

Position Title: Branch Chief, Accounting Services

Email address: karen.slater@psc.hhs.gov

Signature:

Date: May 25, 2023

9. Best Value Determination: 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:

Describe in detail the basis for the determination that this order provides the best value, and that the price is fair and reasonable. Attach and/or summarize applicable market research, commercial prices lists, comparable GSA schedule pricing or other markers that were used in this determination.

The current contract was awarded under GSA's Multiple Award Schedule. GSA has already determined the prices of supplies and services under schedule contracts to be fair and reasonable. This extension will include an evaluation of the level of effort; the level of effort will be based on continuance of the current level of effort. Labor rates will be evaluated for compliance with the GSA MAS pricing for the applicable period.

10. Contracting Officer's Approval (Required for proposed contract not to exceed $700,000 (value calculated including all options)): I hereby certify that this justification is accurate and complete to the best of my knowledge. I approve this justification subject to the availability of funds, and provided that the services and supplies herein described have otherwise been approved for acquisition.

Name: Debbie Hope Phone: (202) 934-4178

Signature: Date: 6/1/2023

11. Legal Review:

All J&As greater than $68 million must have a legal review from the General Law Division of the Office of the General Counsel prior to sending it to the Department.

12. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million (value calculated including all options)):

I have reviewed this justification and find that it adequately supports limiting sources.

Name: Carolyn C. Taylor Phone: 202-603-6685

Signature: Date: June 12, 2023

13. Office of Small and Disadvantaged Business Utilization:

I have reviewed this justification and find that it adequately supports limiting sources.

Name: Phone:

Signature: Date:

14. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million (value calculated including all options)):

Name: Phone:

Signature: Date:

15. Department Competition Advocate:

Concur: Non-Concur:

Name: Phone:

Signature: Date:

(The below approval paragraph is required if the cumulative contract value, including all options, exceeds $68 million.)

16. HHS Senior Procurement Executive (SPE) Approval:

Based on the foregoing justification, I hereby approve limiting sources for the above stated procurement, subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

State supplies/services being procured:

These services are a follow-on to Task Order # GS-23F-0057W / 75P00120F80014 awarded to TFC Consulting, Inc. (TFC) and issued by the Program Support Center (PSC).

from: $5,706,046.43, to: $7,401,220.19. Six (6) months is anticipated to be needed in order for the Program Office to prepare the acquisition, obtain required approvals, solicit and award a follow-on task order that would include a 30-day transition period for a potentially new contractor. This will also provide additional time for the Contracting Office to hire and train new personnel required to support the desperately understaffed Branch supporting PSC. The additional 6-month option is anticipated in the case there are continued delays and staffing shortages.

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304:

Name: Phone:

Signature: Date:

Template for a Federal Supply Schedule (FSS) Limited-Sources Justification

Tailor all aspects of this template to the individual acquisition. Consult FAR 8.405-6 for guidance. An addendum may be added in case additional space is needed.

When this document is printed, the blue italic instructions are automatically deleted on the printed version.

FEDERAL SUPPLY SCHEDULE

LIMITED-SOURCES JUSTIFICATION

2. Description of Action:

Nature:

Pricing:

Funds:

3. Description of Supplies and Services to Include Contract Vehicle/Number Utilized:

Briefly describe the supplies or services to be provided, including make & model number where appropriate. Indicate whether the item to be procured is peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer). If applicable, include quantities of supplies or period of performance for services. Provide information for any options included in the order. If the action is a modification to an existing order, distinguish clearly between the work covered by the basic order and the work to be obtained by the proposed modification.

4. Authority:

5. Market Research:

6. Actions to Increase Competition:

7. Any other facts supporting the justification:

8. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review which is included in this Limited-Sources Justification is accurate and complete.

Program Manager Name:

Position Title:

Email address:

Phone:

Program Manager Supervisor (or one level above Program Manager) Name:

Position Title:

Email address:

Signature:

Date:

Name:

Phone:

Signature:

Date:

11. Legal Review:

All J&As greater than $68 million must have a legal review from the General Law Division of the Office of the General Counsel prior to sending it to the Department.

12. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million (value calculated including all options)):

I have reviewed this justification and find that it adequately supports limiting sources.

Name:

Phone:

Signature:

Date:

13. Office of Small and Disadvantaged Business Utilization:

I have reviewed this justification and find that it adequately supports limiting sources.

Name:

Phone:

Signature:

Date:

14. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million (value calculated including all options)):

Name:

Phone:

Signature:

Date:

15. Department Competition Advocate:

Concur:

Non-Concur:

Name:

Phone:

Signature:

Date:

(The below approval paragraph is required if the cumulative contract value, including all options, exceeds $68 million.)

16. HHS Senior Procurement Executive (SPE) Approval:

State supplies/services being procured:

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304:

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304 Name:

Phone:

Signature:

Date:

11.0.0.20130303.1.892433.887364 Justification & Approval - Federal Supply Schedule Health and Human Services Justification & Approval - Federal Supply Schedule

AcquisitionTitle: Accounting support for PSC's FMP Accounts Receivable Branch (ARB) and Payment Management Service (PMS)

Agency: PSC

PSCDrop: ASA - Assistant Secretary for Administration

NIHDrop:

PSCOther:

AcqusitionYear: 2023-2024

Author: Joy Ganti

CheckBox4: 0

CheckBox5: 0

CheckBox1: 1

Order/Contract Number:: GS-23F-0057W / 75P00120F80014

CheckBox8: 0

CheckBox7: 1

CheckBox6: 0

CheckBox9: 0

Other Pricing:

CheckBox10: 0

CheckBox11: 1

Funding amount: FY23 - FY24 E8624F1, E8624H1, E9924FA - 25205

TextField5: TFC Consulting, Inc

TextField5: 9200 Corporate Blvd Suite 260

TextField5: Rockville, MD 20850-3864

Button2:

Button1:

3. Description of Supplies or Services:: This acquisition will provide an extension to the current Task Order to continue receiving customer service, administrative, clerical, and accounting support/analysis for all financial activities while the follow-on competition is being conducted.

These services are a follow-on to Task Order # GS-23F-0057W / 75P00120F80014 awarded to TFC Consulting, Inc. (TFC) and issued by the Program Support Center (PSC).

TextField7: 1,695,173.76

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304: This request is for a 12-month extension, which includes a 6-month base and one 6-month option period. The 6-month option period is included to allow for a Transition Period in case Accounting Services does not have a new procurement awarded by the end of the 6-month base period. The current Task Order expires on 08/31/2023 with critical mission impact. An extension is required to allow Accounting Services to, compete this requirement, award a new Task Order, and transition to a new contractor.

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304: • PSC Financial Management Portfolio (FMP) seeks to obtain Accounts Receivable Branch (ARB) and Payment Management Service (PMS) Support services under a Limited Source Justification for a 12-month period (6-month base with one 6-month option period) to allow Accounting Services to, compete this requirement, award a new Task Order, and transition to a new contractor. The extension is required to keep ARB and PMS financial activities operational and functional as the agency works to establish a safe and effective plan to prepare for the new contractor transition. This requirement has a significant impact on the Accounts Receivable Branch, Payment Management needs of the entire Department causing critical impact to HHS's agency missions.

CheckBox12: 1

CheckBox13: 0

CheckBox13: 1

CheckBox13: 0

Describe in detail the basis for the determination that this order providers the best value, and that the price is fair and reasonable. Attach and/or summarize applicable market research, commercial prices lists, comparable GSA schedule pricing or other markers that were used in this determination.: Market research was conducted on 5/23/2023 by searching GSA under MAS 541219 and the Internet. While numerous contractors appear to have the technical capability to provide some of the tasks identified in the Statement of Work, it would be impossible to expect a contractor to have the full technical capability on day one to provide the full scope of services without some level of disruption. It is expected that there will need to be an overlap in services to allow for transition support and required training to be completed. Adequate transition time will be essential to allow a potential new contractor to become acquainted with HHS-specific technical knowledge and expertise with ARB and PMS financial activities. Based on the transition efforts that would be required, a new vendor would not be able to provide the services seamlessly. Therefore, to avoid a disruption to the current services this 12-month extension will serve as a short-term solution necessary to get a competitive solicitation in place and to allow transition activities to take place.

Program Manager name: Jayashree Ganti

Program Manager position title: Financial Management Specialist, Accounting Services

Program Manager email address: joy.ganti@psc.hhs.gov

Program manager phone number: 301-492-5350

Program Manager Supervisor name: Karen Slater

Program Manager Supervisor Position title: Branch Chief, Accounting Services

Program Manager Supervisor email address: karen.slater@psc.hhs.gov

HHS Senior Procurement Executive (SPE) signature:

Program Manager Supervisor date: 2023-05-25

filepath:

Contract Officer's Approval name: Debbie Hope

HHS Senior Procurement Executive (SPE) phone: (202) 934-4178

HHS Senior Procurement Executive (SPE) phone: 202-603-6685

Contract Officer's Approval date: 6/1/2023

HHS Senior Procurement Executive (SPE) name: Carolyn C. Taylor

DateField6: June 12, 2023

Office of Small Business date:

OPDIV HCA date:

Concur with Acquisition: 0

Non-Concur with Acquisition: 0

HHS Senior Procurement Executive (SPE) date:

State supplies/services being procured: This acquisition will provide an extension to the current Task Order to continue receiving customer service, administrative, clerical, and accounting support/analysis for all financial activities while the follow-on competition is being conducted.

These services are a follow-on to Task Order # GS-23F-0057W / 75P00120F80014 awarded to TFC Consulting, Inc. (TFC) and issued by the Program Support Center (PSC).

File details come from the government source that posted it. Updated Jun 12, 2023.