FSS Limited Source Justification MLMS 3.21.24.pdf

FEDERAL SUPPLY SCHEDULE LIMITED-SOURCE JUSTIFICATION

Acquisition Title: “Marketplace Learning Management System (MLMS)” for Federally - facilitated Exchange Agents & Brokers, Assisters, Center for Program Integrity (CPI) Users, and State-Based Exchange using the Federal Platform (SBE- FP) Assisters

Agency: Department of Health & Human Services (DHHS) Centers for Medicare and Medicaid Services (CMS) The Center for Consumer Information and Insurance Oversight (CCIIO) Consumer Support Group (CSG)

Acquisition Year: September 30, 2023 – June 29, 2024

Author: Jabaar Gray, Contracting Officer Representative (COR)

1. Description of Action:

Nature ☐ New Requirement ☐ Follow-On Order - ☒ Modification of Existing Purchase Order / Contract Number: GS-35F-110DA / 75FCMC19F0085 – Option Year (OY) 4

Contract Type ☒ Firm-Fixed Price ☒ Time and Materials ☐ Cost Plus Fixed Fee (CPFF)

☐ Term ☐ Completion

☐ Cost Plus Award Fee (CPAF) ☐ Other:

Total Projected Cost/Price – OY4: $2,190,215

Current Total Cost/Price – OY4: $3,627,687

New Projected Cost/Price – OY4: $5,817,902

Funding Source (s): Project #001933, Project #001956 and Project #002949

Name of Proposed Contractor(s):

International Business Machines Corporation (IBM) 6710 Rockledge Drive Bethesda, MD 20817

2. Description of Supplies or Services:

The Patient Protection and Affordable Care Act (PPACA) establishes Health Benefit Exchanges to provide individuals and small business employees access to health insurance coverage beginning January 1, 2014. An Exchange is an entity that both facilitates the purchase of qualified health plans (QHP) by qualified individuals and provides for the establishment of a Small Business Health Options Program (SHOP), consistent with PPACA Section 1311(b) and 45 CFR 155.100.

The PPACA and its implementing regulations provide states with flexibility in the design and operation of their Exchanges to ensure states are implementing sustainable Exchanges that best meet the needs of its population. States can choose to establish and operate a State-based Exchange (SBE) or a State-based Exchange on the Federal Platform (SBE-FP). States electing to operate as an SBE-FP rely on the Federal Healthcare.gov platform to carry out eligibility and enrollment functions, along with associated eligibility and enrollment support functions, such as call center operations for consumer eligibility support and casework support. For states that do not elect to operate either an SBE or SBE-FP, the Secretary of the U.S. Department of Health and Human Services (HHS) will establish and operate a Federally Facilitated Exchange (FFE) in those states.

Under 45 CFR 155.20, a state may permit Agents and Brokers (A/Bs) and Assisters to assist consumers to enroll in QHPs and the Exchange will clearly define the role of A/Bs and Assisters including, as applicable, evidence of licensure, training, and compliance with regulatory requirements. The Exchange will have an agreement in place with A/Bs and Assisters operating in the individual Exchange consistent with 45 CFR 155.220(d). The agreement will ensure A/Bs and Assisters compliance with regulatory requirements including, advanced registration with the Exchange, completed training on QHP options and insurance affordability program(s), and adherence to privacy and security standards pursuant to 45 CFR 155.260. CMS operates the A/B and Assister program, which includes providing support services (training, registration, outreach, help desk services, etc.), for A/Bs and assisters that assist consumers with enrollments in FFEs and SBE-FPs (subsequently referred to as FFEs or FFE enrollments). The Marketplace Learning Management System (MLMS) contractor operates and maintains the system through which agents/brokers and Assisters complete required training and registration each year.

The Marketplace Learning Management System (MLMS) enables online training, testing, and registration for agents, brokers, enrollment assisters, and Center for Program Integrity (CPI) user groups. The current CMS-sponsored contract for MLMS operations and support includes the following scope elements:

• technical support for the Learning Management System (LMS) service;

• ensuring the LMS service collects, maintains, exchanges, and secures data related to the training, testing, and registration;

• revising and maintaining training content;

• assisting in validating agents, brokers, and enrollment assisters;

• developing agent/broker registration page and manage the training vendor list;

• Operating an email and service desk with live chat/conversations, for LMS and incorporate the use of virtual assistance, including AI chats for service desk support;

• supporting collaborative/social learning and enhanced communications resources for training needs and updates; and

• supporting the delivery of multi-media training venues, including web-based training, virtually led instructor trainings, and webinars.

The planners contemplate an extension of this work with the existing contractor (IBM) for an additional six (6) months (end date 12/31/24) to support the health insurance exchanges required under the Patient Protection and Affordable Care Act (PPACA) as well as in support of Assister and A/B training needs across CMS centers.

The MLMS contract is in its final year; where the current period of performance is September 30, 2023 through June 29, 2024. There is an optional transition-out period, which runs from June 30, 2024 to September 29, 2024.

The MLMS contract is subject to recompete before the end of the current period of performance on June 29, 2024. The months of June through September (existing transition-out period) are the most critical times for the MLMS contract. This logical follow-on request will move the contract transition-out period to the beginning of the calendar year thus avoiding these critical months.

An additional six (6) months would allow IBM to continue the regulatory required work on the Marketplace Learning Management System (MLMS) so Assisters, Agent Brokers, Navigators and Certified Application Counselors can complete their training and be certified and to assist consumers in finding affordable health care on www.healthcare.gov website.

3. 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)(i)(B)); or

☒ 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

Logical Follow-on: The Request for Quote (RFQ) (FAR Part 8.4) was posted via E-Buy on May 2, 2019 as a competitive procurement under the GSA IT70 Schedule. Three (3) quotes were received timely on June 10, 2019.

http://www.healthcare.gov/ https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%208_4.html

The FFE Open Enrollment period generally runs from November 1st through January 15th.

Agents/brokers and Assisters are required to complete FFE training and registration for each Plan Year (PY) that they assist consumers with enrollments that plan year. Historically, CCIIO has made the required annual training available for agents/brokers and Assisters in August prior to Open Enrollment starting on November 1st each year. In Plan Year 2023, almost 80,000 A/Bs and 8,286 Assisters (Navigators, CACs, and EAPs) successfully completed the required training. We anticipate at least as many, if not more, A/Bs and Assisters will complete the PY2024 and PY2025 training. Thus, a significant number of crucial stakeholders are impacted by this contract.

The current contractor, IBM, is also responsible for formatting the Annual Certification training for Assister’s Web Based Training (“WBT”) and the annual training for Agent and Brokers (A/Bs), ensuring it is properly coded and loaded into the software platform (Cornerstone on Demand (CSOD)) by early August each year. The supplies and services provided to the Centers for Medicare & Medicaid Services (CMS) is an online Marketplace Learning Management System (MLMS) service to enable online training, testing, and registration for agents, brokers, enrollment assisters, and Center for Program Integrity (CPI) user groups.

CSG relies on another development contractor, General Dynamics Information Technology (GDIT), who collaborates with IBM for content development, updates, and clearance comment control for WBT each year, as well as the initial coding of the courseware prior to releasing the content to IBM. Similarly, another group within CCIIO, Plan Management (PM) who is a funding source for this contract, relies on a contractor named Duty First to develop and update A/B training each year and follows a similar process with IBM to ensure their training is prepared to go live timely.

All contractors working with CMS are required to transition from the Amazon Web Services 3 (AWS 3) to AWS 4 cloud platform by June 2024. IBM has indicated that it expects to complete this transition by early June 2024. IBM is required to not only migrate to AWS 4 by June 2024, but they also are required to continue performing the work they normally perform under the existing contract. IBM is working to meet the deadline and have indicated that they need additional resources to complete the migration. This date coincides with the end date of the contract. Therefore, the extension will also provide assurance that sufficient time is allocated for this effort. CCIIO’s Assister and Agent/Broker training operations would be severely impacted if the work is not completed, and this is an extremely high risk for CCIIO.

During our research, we discovered the potential major risks of recompeting by June 29, 2024, and transitioning out from June 30, 2024 to September 29, 2024:

• Annual certification of assisters is required under 42 C.F.R. Section 155.215(b)(1)(i)-(v). All returning assisters need to be re-certified by October 31st. November 1st is the beginning of Open Enrollment. A delayed launch of certification training will impact the number of assisters and A/Bs certified and able to assist with Marketplace enrollment.

• There is a possibility that IBM may lose crucial staff due to attrition, heightening the risk that the training will not be adequately tested and prepared for go live by early August.

• It is also not clear whether a new learning platform would be needed upon award to a new contractor (there is no guarantee that the new contractor will utilize CSOD). Adapting the training to a new learning platform could take additional time.

• The timing of current period of performance end date creates a significant risk that a new contractor will have to code, load, and test training for both A/Bs and Assisters immediately upon contract award.

☐ 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).

4. Market Research:

Market Research will be conducted for a future competitive procurement utilizing the GSA Multiple Award Schedule. The acquisition team will conduct one-on-one due diligence market research meetings with businesses to exchange information relative to agency’s needs and industry’s capabilities to meet that need. The information discussed will be taken into consideration when finalizing the requirements and creating evaluation factors.

5. Actions to Increase Competition:

The acquisition team will concurrently start acquisition planning and market research for a competitive procurement utilizing Fair Opportunity ordering procedures on the GSA Multiple Award Schedule. The competitive acquisition contemplated herein is tentatively planned for an award date of December 30, 2024 to allow adequate time for a potential supplier transition.

6. Any other facts supporting the justification:

The agent/brokers training must be translated into Spanish before it is delivered to the MLMS contractor. The MLMS contractor must load, write program code, and test the final training modules in the system. There is a testing period for contractor(s) and a group of agents/brokers and assisters need to test the system and training (referred to as “soft launch”) to ensure there are no issues before CMS announces that the training is available to all agents and brokers and assisters. Due to the timelines associated with these critical activities, and the need for the availability and the stability of the system, it is not possible to move up the schedule so that the training can be released much earlier than August, which is why we are requesting this logical follow-on. If IBM is unable to complete and release the Assister/AB training at the end of August 2024, it would be detrimental to the government’s mission of providing training to Assisters and Agent/Brokers who provide assistance to consumers applying for affordable health insurance plans through www.healthcare.gov.

http://www.healthcare.gov/

Approvals:

1. Program Office Certification: This is to certify that portions of this justification have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale, which form the basis for this Limited Source Justification.

Contracting Officer Representative (COR) / Date

Program/Project Manager (P/PM) / Date

2. Contracting Officer Certification and Best Value Determination:

This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief, the information and/or data provided to support the rationale and recommendation for approval, is accurate and complete.

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:

This extension is for additional level of effort. Services offered on the schedule are priced at hourly rates for performance of a specific task. GSA has already determined the prices of rates for services offered at hourly rates, under schedule contracts to be fair and reasonable.

Therefore, a separate determination of fair and reasonable pricing is not necessary by the ordering agency. By placing an order against a schedule contract using the procedures in 8.405, the ordering activity has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs. We are also seeking additional discounts before placing the modification.

Contracting Officer / Date

3. CMS Competition Advocate Approval I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

Name / Date https://www.acquisition.gov/far/8.405#FAR_8_405 https://www.acquisition.gov/far/2.101#FAR_2_101

4. Head of Contracting Activity (HCA) Approval I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

N/A___________________________________________________ Name / Date

5. Office of Small and Disadvantaged Business Utilization N/A______________________________________________

Name / Date

6. OGC Legal Review N/A_________________________________________________ Name / Date

7. HHS Competition Advocate Approval N/A_______________________________________________ Name / Date

8. Senior Procurement Executive (SPE) Approval

Based on the foregoing justification, I hereby confirm the circumstances described above apply and approve the Limited Source Justification.

N/A_________________________________________________ Name / Date