Redacted_Attach 1 JA Other Than Full Open Competition_75R60220P00009_MOD 3.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Acquisition Title:

Agency:

Acquisition Year:

Author:

2. Description of Action:

Nature: New Requirement Follow-on Requirement

✔ Modification to Existing Purchase Order/Contract Number:

Pricing: ✔ Firm-Fixed Price Time & Materials Cost

Other:

Funds: OMA Other Funds:

Name of Proposed Contractor(s):

Street Address:

City, State, Zip:

3. Description of Services or Supplies:

Basis for Approval (FAR 6.303-1(d)): ✔ Individual Basis Class Basis

The total estimated value of the proposed action, including all options is $ $8,000,316

4. Authority and Rationale: Identify the statutory authority, FAR title and FAR citation permitting other than full and open competition. It may be one of the following most commonly used citations by the operating divisions of the Department of Health and Human Services (HHS), but other exceptions may apply per FAR Subpart 6.3.

Provider Relief Fund (PRF), Program Management Office (PMO)

HRSA

Andrea Giuliano

McKinsey & Company, Inc.

1200 19th Street NW, Suite 1100

Washington, DC 20036

This action is being process in accordance with FAR 6.302-1 as only one source and no other services will satisfy the agency requirements. The original contract action was awarded using a limited competition under the HHS Class Justification for Unusual and Compelling urgency.

Actions other than simplified acquisition procedures (select only one and provide an explanation):

FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements, 41 U.S.C. 3304(a)(1)

FAR 6.302-2: Unusual and compelling urgency, 41 U.S.C. 3304(a)(2)

FAR 6.302-5: Authorized or Required by Statute, 41 U.S.C. 3304(a)(5)

Other (See FAR Subpart 6.3 for additional authority):

5. Bridge Contracts:

6. Actions to Increase Competition:

N/A

This action represents a one-time requirement. In the future if a similar requirement arises, every effort will be made to compete it to the maximum extent possible.

7. Market Research:

6. Procurement History:

Purchase order or contract number:

Was action competed? ✔ Yes No

If action was not competed, state the cited authority, summarize rationale, and describe the actions that were supposed to be taken to increase competition and the results thereof:

7. Additional Information to support the justification

10. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review which is included in this J&A is accurate and complete.

Program Manager

Name: Tonya Bowers

Position Title: PRF Project Manager

Email address: tbowers@hrsa.gov

Phone: 301-594-4110

Program Manager Supervisor (or one level above Program Manager)

Name: Diana Espinosa

Position Title: HRSA Deputy Administrator

Email address: despinosa@hrsa.gov

Signature Diana Espinosa -S Digitally signed by Diana Espinosa -S Date: 2020.07.16 10:56:49 -04'00'

Date:

75R60220P00009

In accordance with FAR 9.104-1, McKinsey & Company, Inc. has demonstrated they have adequate financial resources to perform the contract; past performance was determined to be satisfactory; and has been determined to be responsible based upon review of System Award Management (SAM) record.

mailto:tbowers@hrsa.gov mailto:despinosa@hrsa.gov

11. Fair and Reasonable Price Determination: As Contracting Officer, by my signature below, I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

12. 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 sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Name: Donald Wheatley Phone:

Signature: Donald C. Digitally signed by Donald C.

Wheatley -S

Wheatley -S Date: 2020.07.16 11:05:47 -04'00'

13. Legal Review

14. 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 other than full and open competition.

Name: Wendy Ponton Phone:

Signature:

Digitally signed by Wendy B.

Wendy B. Ponton -S Ponton -S Date: 2020.07.16 11:55:40 -04'00'

15. Office of Small and Disadvantaged Business Utilization

I have reviewed this justification and find that it adequately supports other than full and open competition.

Name: Wayne Berry Phone:

Digitally signed by Wayne M. Berry

Wayne M. Berry -S8 -S8 Date: 2020.07.16 16:47:33 -04'00'

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

Name: Alexandra B. Garcia Phone:

Digitally signed by Alexandra B.

Alexandra B. Garcia -S Garcia -S Date: 2020.07.16 17:13:06 -04'00'

N/A

HHS Senior Procurement Executive (SPE) Approval

Based on the foregoing justification, I hereby approve the procurement of (state supplies/services being procured) on an other than full and open competition basis pursuant to the authority of (state the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304), as implemented by FAR 6.301), subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Name:

Phone:

After the market research, a solicitation was issued and competitive award made to McKinsey. For this modification, historical and commercial information was utilized to conduct the market research.

Text2: McKinsey competed for and was awarded a PMO contract to support HRSA’s disbursement of more than $175B in Provider Relief Fund (PRF) monies based on their superior technical rating. The PRF was designed to ensure the resiliency of the nation’s health care infrastructure. Expending additional time to compete another award could negatively impact the US health care infrastructure and reduce access to health care. This harm to the American public must be avoided as any delay in the disbursement of these funds to health care providers and institutions could cause irreparable harm by impacting their ability to test, treat, care for and otherwise respond to the COVID-19 pandemic.

The purpose of the PMO contract is to develop and then implement a framework that touched key areas of program execution – from program integrity and outreach to analytics and staffing. This contract was awarded one-month after HRSA began its new work.

HRSA does not have the luxury of additional time to issue a new contract and McKinsey is uniquely qualified to continue performing this work to ensure constancy and avoid a lapse in services. The existing contract included a higher level of support in the initial 1-3 months anticipating the program would reach a more steady state at that point. COVID-19 has evolved and similarly so have our needs. Evolution in payment waves and the methodologies that dictate execution of those payments means our approach also has to evolve, and each new layer builds on the one prior. Introducing a new team to this work would require educating them to the processes, data and partners that are mandatory for HRSA to disburse provider payments. It would delay the work at a time when HRSA is sending new, unique payment files forward 4-5 days per week, are in the process of introducing our reporting structure and have ten supervisory positions at a critical point in the hiring process, among other things. Contracting with a new entity at this point would result in significant delays in the day-to-day work and the path we are on to build a self-sustaining organization.

Text3: The existing contract's purpose is to develop and implement a framework for project management and project planning, which will be applied across the Provider Relief Fund (PRF) portfolio of projects. In meeting the objectives of the contract, HHS/HRSA is addressing core responsibilities for the fiscal oversight and project management of investments and assets. The scope of this activity include: 1) Project Management; 2) PRF Program Management Support; 3) Program Integrity, Monitoring and Risk Management Support; 4) Strategic Outreach and Stakeholder Engagement/Information Management; 5) Reporting and Data Analytics Support; 6) Staffing and Organizational Structure. HRSA is in need of immediate assistance in scaling up its capacity to implement, manage and monitor the PRF payments, as well as assistance in establishing the internal controls, audit strategies, and policies and procedures necessary to ensure efficient and comprehensive management of the various phases and associated vendors and to ensure compliance with the most rigorous program integrity standards. The PRF is a brand new line of business and program that was established due to the COVID19 Pandemic. Because this is a new line of business for HRSA, after award was made the government realized that the contract’s level of effort to support the contract will be greater. HRSA requires further services for Tasks 2, 3, 4, and 5. (Note: The original award value was $4,985,983.00. After this modification the total estimated new contract value is $12,986,299.)