JOFOC-PSCFOH-QUEST-02272018_FBO_(2018-04-20).pdf

J&A under FAR Subpart 6.3 - Justification for Other than Full and Open Competition

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity.

a. Federal agency and contracting activity. Department of Health and Human Services/Program Support Center/Acquisition Management Services

b. Requiring activity. Federal Occupational Health

c. Requiring Activity Point of Contact (POC) information.

Name. Lutia Barber

Mailing address. 350 South Main Salt Lake City, UT 84101

E-mail address. Lutia.barber@foh.hhs.gov

Telephone number. (801) 866-7168

2. Nature and/or description of the action being approved.

a. Acquisition purpose and objectives. This sole source acquisition is for a short-term need to fulfill a gap while the current competitive acquisition is being awarded and the follow-on vendor has an opportunity to obtain an Authority to Operate (ATO) through the Department of Health and Human Services (HHS) Office of the Chief Information Officer (OCIO) Department. ATO is required for any Contractor Owned Contractor Operated (COCO) Information Technology System(s) that are identified within the proposal prior to performance on this contract. Competitive award is anticipated to award by April 2018.

The purpose of this Indefinite Delivery/Indefinite Quantity (IDIQ) Task Order is to acquire general clinical laboratory services to support Federal Occupation Health (FOH) under HHS. FOH Occupational Health Centers (OHC) and the FOH Private Provider Network (FOHNet) provide daily clinical laboratory services to federal employees nationwide. FOH customer agencies and the FOHNet contractor provide services under this contract. These laboratory services are essential to every day operations at FOH and it is crucial that these services remain uninterrupted, with no break in service or delays. As the occupational health provider of choice for the Federal Government, FOH strives to exceed our customers’ expectations by providing superior services that are delivered efficiently and cost-effectively. An interruption in services could negatively impact FOH’s credibility in providing superior occupational health services and negatively affect a large number of FOH clients with time-sensitive needs related to employee health and employment. The current test menu includes, but is not limited to the tests found in Appendix A.

b. Project background. The Government is actively pursuing a new contract award for these services. A Sources Sought Notice (SSN) was posted on FedBizOpps on September 5, 2017. The SSN indicated that FOH was interested in the obtaining information regarding: (1) potential solutions to meet Government’s draft requirements; (2) feedback/response on high-level objectives to shape future FOH program; (3) identify industry sources who may be interested in this program; (4) assessment of the market; and (5) size classification relative to the North American Industry Classification System (NAICS). FOH received responses from two (2) separate companies. The socioeconomic status could not be determined or verified for one, and the other was Quest Diagnostics. Efforts were made using Small Business Administration (SBA)’s Dynamic Small Business Search Engine and the most recent of SBA approved mentor protégé agreements dated July 5, 2017 to locate or identify additional companies who could be contacted to obtain capability statements. These searches did not result in any new companies to contact. Additional efforts to determine small business eligibility were made referencing General Services Administration (GSA) Federal Supply Schedule (FSS) 621 II Medical Laboratory Testing and Analysis Services. Only one small business contains line items across all Special Item Numbers (SINs) necessary to meet FOH requirements.

Based on reasonable acquisition milestones, the Government expected completion of a new contract award and transfer of services from the incumbent contractor to a successor contractor by April 2018.

The vendor shall be required to obtain an ATO through HHS OCIO Department for any COCO Information Technology System(s) identified within the proposal prior to performance on this contract. The ATO process may take approximately six (6) to twelve (12) months. This will impact the schedule of when services can be provided by the new contractor as they are required to obtain an ATO prior to performing services.

Until then, services must continue uninterrupted on a limited, short-term basis. Based on the forgoing, it is necessary to extend the current contract in order to avoid a disruption of critical services and closure of Occupational Health Service (OHS) clinics. The need for this extension arose due to unexpected results from obtaining an Authority to Operate (ATO) through DHHS OCIO Department. This process cannot be initiated until a contract has been awarded.

The project is a continuation of an ongoing order, HHSP23320110001DI_ HHSP23337001T, and:

(i) the name of the incumbent contractor is Quest Diagnostics Clinical

Laboratories, Inc.,

(ii) period of performance expires on April 6, 2018;

(iii) total dollar amount obligated to date is $21,762,934.16;

(iv) the initial award was awarded using other than full and open competition per 41 USC 253 0).

The project is a continuation of contract

HHSP23320110001DI_HHSP23337001T

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project title. Clinical laboratory Services

b. Project description. This Task Order is for general clinical laboratory testing services performed by the Contractor on behalf of FOH for a full range of medical laboratory tests, including but not limited to, tests listed in Appendix A. All laboratory services will be provided by the Contractor or its subcontracted laboratories. The Contractor shall also be required to provide a courier to pick up the specimens, provide requisitions, provide the necessary supplies to all of the location noted in Appendix A, provide lab kits to the FOHNet Contractor and a network of phlebotomy stations for difficult to obtain specimens.

FOH’s test menu is driven by its customer agencies, and thus, FOH requests that the Contractor shall provide all required tests as designated on the FOH test list. When new testing requirements arise throughout the duration of this Task Order, the Contractor must submit a competitive price to FOH for approval before the item can be billed. All FOH required testing performed at an approved sub-contracted facility shall be provided to FOH at the Contractor’s negotiated price and not additionally billed by the referenced laboratory

Requirement type.

Research & development (R&D) R & D support services

Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): ____________________

Proposed contract/order type.

Firm-fixed-price Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ Cost-plus-fixed-fee

Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________

Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________

Other (specify): _Task Order__ Completion Form Term form

Acquisition identification number.

HHSP23320110001DI_HHSP23337001T

c. Total estimated dollar value and performance/delivery period. Total Estimated Dollar Value: $2,500,000.00

Base Period (4/7/2018 – 10/6/2018) $1,250,000.00 Option Period 1 (10/7/2018 – 1/6/2019) $625,000.00 Option Period 2 (1/7/2019 – 4/6/2019) $625,000.00

4. Identification of the statutory authority permitting other than full and open competition.

Federal Acquisition Regulation (FAR):

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1).

6.302-2 Unusual and compelling urgency. This acquisition is

U.S.C. 2304(c)(2) or 41 U.S.C. 3304(a)(2).

6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services. This acquisition is

U.S.C. 2304(c)(3) or 41 U.S.C. 3304(a)(3).

6.302-4 International agreement. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C.

2304(c)(4) or 41 U.S.C. 3304(a)(4).

6.302-5 Authorized or required by statute. This acquisition is

U.S.C. 2304(c)(5) or 41 U.S.C. 3304(a)(5).

6.302-6 National security. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(6) or 41 U.S.C. 3304(a)(6).

6.302-7 Public interest. This acquisition is conducted under the authority of United States Code (U.S.C.) 10 U.S.C. 2304(c)(7) or 41 U.S.C. 3304(a)(7).

13.501(a)(1)(ii) Sole source, including brand name, under Simplified Procedures for Certain Commercial Items. This acquisition is using this justification format, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C. 1901 or the authority of 41 U.S.C.

1903.

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s). Quest Diagnostics Clinical Laboratories, Inc., 1201 South Collegeville Road, Collegeville, PA 19426-2998

b. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

Government need is for uninterrupted services. As the incumbent vendor Quest Diagnostics is capable to perform without interruption until awardee vendor under current solicitation obtains an ATO through HHS OCIO Department. Clinical Laboratories requires laboratory and specimen resulting electronically transmitted via an information system as a primary source. Utilization of an information system to transmit results requires an ATO. The ATO process may take approximately six (6) to twelve (12) months. This will impact the schedule of when services can be provided by the new vendor as they are required to obtain an ATO prior to performing services and providing any results.

By selecting this vendor, the transitional period of approximately three (3) months necessary for a new vendor to transition operational performance from the incumbent would be eliminated and no break in essential clinical laboratory services to FOH clinics (approximately 400), the FOH Private Provider Network clinics (approximately 1,100) and at FOH customer agency clinics would occur. Patient care to thousands of federal agency employees would continue uninterrupted. The proposed Contractor will deliver these services with no transitional start-up/mobilization delays.

FOH strives to exceed our customers’ expectations by providing superior services delivered efficiently and cost effectively. An interruption of these services would impact the missions of the FOH federal agency client base and damage our reputation as the occupational health provider of choice for the federal government. Any disruption in services and/or sub-standard level of service will compromise the FOH mission of improving the health, safety, and productivity of our federal employees.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

5.202 applies. Based on the definition of “commercial item” in FAR 2.201, the notice period was shortened to ten (10) calendar days as is allowable by FAR 5.203(a)(1). The intent to sole source was posted on FedBizOps for ten (10) calendar days from February 27, 2018 to March 9, 2018. There were no responses received.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable. Based on the last pre-priced option and the current pricing in the commercial marketplace for the same services, pricing was determined to be fair and reasonable. Pricing for this extension will remain the same as the last pre-priced option period that ends on April 6, 2018. Due to the exception at FAR 15.403-1(3)(b), certified cost or pricing data is not required.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

A Sources Sought Notice (SSN) was posted on FedBizOpps on September 5, 2017. FOH received responses from two (2) separate vendors. The socioeconomic status could not be determined or verified for one, and the other was Quest Diagnostics. In further research of the first vendor, no information could be discovered. All attempts to contact the vendor via web search, phone, and email were futile and capabilities provided did not address the minimum SSN requirements. Additional, efforts was made using SBA’s Dynamic Small Business Search Engine and the most recent of SBA approved mentor protégé agreements dated July 5, 2017 to locate or identify additional companies who could be contacted to obtain capability statements. These searches did not result in any new companies to contact. A review of GSA Federal Supply Schedule 621 II Medical Laboratory Testing and Analysis Services was completed. A total of twenty (20) vendors were identified as participants on this schedule. Four (4) vendors have schedules across 13-14 of the total 15 SINs:

one is a small business, and three are large businesses. A review of the FOH test listing demonstrated requirements are needed in 13 of the 15 SINs to meet FOH testing requirements. The market research concluded there is only one potential small business vendor that may be capable to provide the services required by FOH (via GSA Schedule 621 II) therefore full and open competition would be necessary when soliciting for FDOH Clinical Laboratory Services. The current incumbent Quest Diagnostics is the only vendor capable to perform without interruption until the new awardee vendor under current solicitation obtains an ATO through HHS OCIO Department.

9. Any other facts supporting the use of other than full and open competition.

If the current contract were to expire without the extension granted, FOH would not be able to provide clinical laboratory services to our federal clients and their employees. This would immediately impact the ability of customer agencies to fulfill their missions. Re-competition of this contact is in progress. The selected contractor shall be required to obtain an ATO through HHS OCIO Department for any Contractor Owned Contractor Operated Information Technology System(s) identified within the proposal prior to performance on this contract. The ATO process can take anywhere from six (6) to twelve (12) months to complete and obtain final approval. This will impact the schedule of when services can be provided by the new contractor as they are required to obtain an ATO prior to performing services.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition. Based on the results of the intent to sole source posting on FedBizOps, no sources expressed written interest in this acquisition.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services. FOH has plans to continue the acquisition process to procure the same type of supplies and services. All efforts will be taken to overcome barriers to competition for future acquisitions.

There will be a follow-on Clinical Laboratories Support Services contract that will be conducted as a competitive acquisition to ensure necessary competition requirements are met.

12. Program office certification.

This is to certify that the portions of this justification that have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum