Redacted JA -- PAS Puget Sound - Bridge.v2 -- 25 Mar 2020_Redacted - JRD.pdf

Control Number: 20-HRCO-105

For Official Use Only (See FAR 2.101 and 3.104-4)

(25 February 2016)

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Health Readiness Contracting Office (HRCO), U.S. Army Medical Command (MEDCOM), 2199 Storage Street, Building 4197, Suite 68, Joint Base San Antonio (JBSA) Fort Sam Houston, Texas 78234-5074.

2. Description of Action: The HRCO requests approval to negotiate a Firm-Fixed Price (FFP) non-personal services bridge contract with incumbent, Humana Government Business Incorporated (Humana), to provide Patient Appointment Services (PAS) in support of the Puget Sound enhanced Multi Service Market (PS eMSM). PS eMSM includes Madigan Army Medical Center (MAMC) and subordinate clinics; Naval Hospital Bremerton (NHB) and subordinate branch clinics; Naval Hospital Oak Harbor (NHOH); and 62d Medical Squadron, Joint Base Lewis McChord. The proposed Period of Performance (PoP) for the bridge will include one six-month base period (1 Apr 20 through 30 Sep 20) and one three-month option period (1 Oct 20 through 31 Dec 20), and one six-month option period under Federal Acquisition Regulation (FAR) Clause 52.217-8, Option to Extend Services. The fund type for the six-month base period will be Fiscal Year (FY) 20 Defense Health Program (DHP) and FY 21 for the three-month option period. The proposed bridge is an interim contract that will provide services after bridge contract W81K04-19-C-0002 expires on 31 Mar 20.

3. Description of Supplies/Services:

a. PAS encompasses all activities needed to make appointments for eligible beneficiaries, by utilizing Military Treatment Facilities (MTFs) appointing criteria, which includes, but is not limited to, making and canceling appointments, correcting appointments, verifying registration information, and registering beneficiaries. This requirement supports the capability of the MTF staff to book health care appointments.

b. The estimated value of this proposed action is $4,130,748.00 for a six-month base period and three-month option period. The total estimated value of the requirement is $6,884,580.00, if FAR clause 52,217-9, Option to Extend the Term of the Contract and FAR clause 52.217-8, Option to Extend Services are exercised.

4. Authority Cited: The statutory authority permitting other than full and open competition is 41 United States Code 1901 as implemented in FAR 13.501(a)(1)(ii), sole source (including brand name) under the authority of Simplified Procedures for Certain Commercial Items.

5. Reason for Authority Cited: There is a current bridge contract in place for these services through contract number W81K04-19-C-0002. The PoP on current contract expires on 31 Mar 20 and all options have been exercised, including the FAR clause 52.217-8, Option to Extend Services. It is not possible to negotiate and award a

Patient Appointment Services (PAS) Puget Sound, Military Health System

For Official Use Only (See FAR 2.101 and 3.104-4)

(25 February 2016) contract with any source other than Humana Government Business Services, Inc.

(Humana), to avoid mission failure and ensure that all Department of Defense (DoD) beneficiaries receive quality healthcare, through on-time PAS within the PS eMSM.

Based on the information below, failure to obtain approval of the Justification and Approval (J&A) will result in unacceptable mission delays and a disruption of services.

a. On 4 Apr 19, the Government issued solicitation W81K04-18-R-0002, for a 5-year competitive follow-on contract with proposal due date of 6 May 19. On 3 May 19, the Government issued Amendment 0001 to the solicitation. On 15 May 19, following receipt of proposals, the Government received Government Accountability Office (GAO) protest B-417573 from protestor, Prairie Quest, Inc. On 13 Jun 19, the Army notified GAO that the Army would take corrective action. On 18 Jun 19, GAO issued a decision that the agency’s corrective action renders the protest academic. On 24 Sep 19, the Government issued Amendment 0002 to the solicitation. On 24 Oct 19, the Government issued Amendment 0003 to the solicitation addressing corrective action. On 28 Oct 19, Prairie Quest, Inc. filed a second GAO protest. On 27 Nov 19, the Army notified GAO that the Army would take corrective action. On 9 Dec 19, the Government issued Amendment 0004 to the solicitation. On 11 Dec 19, Prairie Quest filed a Notice of Withdrawal of Protest Grounds (i.e., partial withdrawal). On 31 Jan 20, GAO denied protest.

b. The Government is currently in the process of evaluating, negotiating, and awarding the follow-on contract. The anticipated PoP for the follow-on contract is 1 Jul 20 through 30 Sep 20 for phase-in period and 1 Oct 20 through 30 Sep 21 for full performance. The bridge contract will allow adequate time for the Government to award the follow-on contract and a 90-day phase-in period.

c. Based on the above information, failure to obtain approval of this J&A will result in unacceptable delays in ensuring our military members and their families receive timely and quality health care, which is crucial to the overall mission of our military services.

Without these services, the PS eMSM would be understaffed and unable to manage its appointment volume. This would cause not only the PS eMSM's critical appointment operations to fail but it would also cause the overall PS eMSM’s mission to suffer dramatically because of its inability to ensure beneficiaries receive timely appointments.

From a micro-perspective, receiving timely medical care affects each Soldier’s physical and emotional health and wellbeing. From a macro-perspective, if our Soldiers are unable to make appointments, it will directly affect our military members’ ability to be fit for combat, thus affecting our overall military mission. The Surgeon General and the Command would consider it unacceptable to allow any serious degradation of appointing services, or a single missed appointment, or a beneficiary’s inability to make an appointment.

Puget Sound, Military Health System

For Official Use Only (See FAR 2.101 and 3.104-4)

d. Humana has the unique qualifications and infrastructure to perform these services given that they already have the required clearances, certifications, resources and trained workforce; and they have completed all in-processing requirements for their employees. Having the incumbent, Humana, provide these services negates the required phase-in period, which is 90 days to get a new contractor in place and trained in order to perform services by the required performance start date. Humana has demonstrated the necessary experience and resources to provide the required services successfully during the interim period. Based on the aforementioned, the incumbent, Humana is the only logical source that can immediately perform a bridge contract of this magnitude and complexity for the period of 1 Apr 20 through 30 Sep 20.

6. Efforts to Obtain Competition:

a. Effective Competition. The Government is in the process of completing a competitive acquisition for these services with an expected start date of 1 Jul 20. In addition, the Government has conducted market research and there are no known sources that have the capability to meet the award timelines. No other effort will be made to obtain competition for this proposed bridge contract as only one responsible source, Humana, is capable of meeting the Government’s requirements prior to the expiration of the current contract.

b. Subcontracting Competition. A subcontracting plan is required per FAR 19.702(a)(1); however, a Determination and Findings document will be completed that states no subcontracting possibilities exist because the incumbent contractor will use their in-house staff.

7. Actions to Increase Competition: Due to the protests and resultant corrective action, it is not possible to complete the competitive follow-on acquisition in time for services to commence on 1 Apr 20; however, the Government is continuing to work the competitive follow-on contract to be awarded by 1 May 20. The competitive follow-on acquisition was posted through the Federal Business Opportunities (FBO) website.

Additionally, a synopsis was posted in accordance with FAR 5.201.

8. Market Research: In addition to market research for the current bridge contract and the competitive follow-on acquisition, completed within the past six to twelve months, market research has been completed for this proposed bridge contract. Based on this research, the incumbent contractor, Humana, remains the only responsible source capable of meeting the Government’s requirements prior to the expiration of the current bridge contract.

9. Interested Sources: To date, as a result of presolicitation notice posted on 13 Feb 20, two sources submitted responses to the notice; however, after careful consideration, it was determined that the incumbent is the only logical and responsible source with the

Puget Sound, Military Health System

For Official Use Only (See FAR 2.101 and 3.104-4) necessary management, structure, experience, and resources already in place to ensure successful continuity of services starting 1 Apr 20. The notice required by FAR

5.201 of the Government’s intent to award a sole-source contract was published on beta.SAM.gov website.

10. Other Facts: Below are additional facts supporting the use of other than full and open competition:

a. Procurement history.

(1) Contract numbers and dates of the last several contracts.

(a) A bridge contract, W81K04-19-C-0002 was awarded to Humana Government Business Services, Inc., 305 N. Hurstbourne Parkway, Louisville, Kentucky 40202-5146 by the HRCO; the PoP was 1 Mar 19 through 31 Jul 19. The contract includes a two-month option which was exercised pursuant to FAR 52.217-9, Option to Extend the Term of the Contract, from 1 Aug 19 through 30 Sep 19. The option was exercised for six months pursuant to FAR clause 52.217-8, Option to Extend Services; the new expiration date is 31 Mar 20.

(b) A bridge contract, W81K04-17-P-0017 was awarded to Humana Government Business, Inc., 305 N. Hurstbourne Parkway, Louisville, Kentucky 40202- 5146 by HRCO; the PoP was 1 Oct 17 through 30 Sep 18. The extension of services clause was exercised through 28 Feb 19.

(c) A bridge contract, W81K04-16-P-0014, was awarded to Humana Government Business, Inc. 305 N. Hurstbourne Parkway, Louisville, Kentucky 40202- 5146 by HRCO; the PoP was from 1 Oct 16 through 30 Mar 17. The extension of services clause was exercised through 30 Sep 17.

(d) Contract, W81K04-11-D-0004, was awarded by HRCO using competitive acquisition procedures. The award was made to Humana Military Healthcare Services, Inc., 500 West Main Street, Louisville, Kentucky 40202-2946 the initial PoP was from 1 Dec 10 through 30 Nov 15. The extension of services clause was exercised and the contract expired on 31 May 16. The Regional Health Contracting Office-Pacific, issued a task order prior to 31 May 16 that extended performance through 30 Sep 16.

(2) Competitive Status of These Actions. The contract awarded under W81K04-11-D-0004 was awarded using competitive acquisition procedures.

(3) Authority previously cited if less than full and open competition was used. The statutory authority used previously permitting other than full and open

Puget Sound, Military Health System

For Official Use Only (See FAR 2.101 and 3.104-4) competition was 41 United States Code 1901 as implemented in FAR 13.501(a)(1)(ii), sole source (including brand name) under the authority of Simplified Procedures for Certain Commercial Items.

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results. It was not possible to complete the competitive follow-on acquisition in time for services to commence by expiration of the contract. The addition of Referral Management Services (RMS and Clear and Legible Reporting Services (CLRS) to the follow-on PAS contract proved challenging as the requiring activity had to completely re-define the scope of work of the entire requirement. The incumbent contractor, Humana, was the only logical source that could immediately perform services prior to expiration of the contract.

(5) If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the circumstances causing this action to now limit sources. Contract, W81K04-11-D-0004 was solicited as full and open basis; however, due to the implementation of MHS Genesis, a required transition period of 90 days and the addition of RMS and CLRS to the PAS requirement has caused several delays in awarding the follow-on contract.

(6) An explanation of unusual patterns that may be revealed by history, e.g., several consecutive, urgent buys. This action is the second of two bridge contracts. This action became necessary due to receipt of a protest and corrective actions on the follow-on acquisition. Award of this bridge contract will allow sufficient time to award the follow-on contract and a 90-day phase-in period.

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes. The previous J&A was used to award a sole source contract to Humana to allow for the implementation of MHS GENESIS (including working out kinks in the system) and allow the requiring activity to finalize requirement for include RMS and CLRS. However, because of protests and corrective actions on the follow-on acquisition, an additional bridge contract has to be awarded to ensure sufficient time for awarding the follow-on contract and allow for a 90-day phase-in period.

b. Acquisition data availability. The Performance Work Statement (PWS) for this bridge contract is essentially the same as the PWS for the current bridge contract and only includes administrative updates such as date changes, changes to points of contacts, and those clauses required by law or regulation.