Updated JOFOC APP No. 240976.pdf

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JUSTIFICATION AND FOR OTHER THAN FULL AND OPEN COMPETITION

Acquisition Title: Prescription Drug Spending Estimates / APP# 240976 Agency: Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), Office of the Actuary (OACT) Acquisition Year: 2024 Author: Lekha Whittle, COR - The National Health Statistics Group (NHSG)

1. Description of Action:

Nature

_X_ New Requirement ____ Follow-On Order ____ Modification of Existing Contract Number

Contract Type _X_ Firm-Fixed Price ____ Time and Materials ____ Cost Plus Fixed Fee (CPFF)

• ____ Term

• ____ Completion

____ Cost Plus Award Fee (CPAF) ____ Other: ___________

Projected Cost / Price of contract (Base & All Options): $749,124 _______

The total estimated value of the proposed sole source action (for modifications only):__N/A___

Funding Source (s):____009297_____

____: Basis for Approval _x__: Individual Basis (FAR 13.501(a)) ____: Class Basis

Name of Proposed Contractor(s):

IQVIA Government Solutions, Inc.

UEI: T13YR5E14QY7

3110 Fairview Park Drive, Suite 400 Fairfax, VA 22042

2. Description of Services or Supplies:

CMS through OACT, seeks to enter into a 12 month severable contract with two 12-month option periods and one 8-month option, with IQVIA Government Solutions, Inc., for prescription drug data, as discussed below, to assist OACT in the estimating detailed expenditures for non-durable medical products in the National Health Expenditure Accounts.

Data from IQVIA’s National Prescription Audit (NPA), Retail Method of Payment Report, and The Drug Distribution Database (DDD) Class of Trade Report have been used to construct the prescription drug estimates in the National Health Accounts since 1994. The use of a consistent and comprehensive data set is important for the development of these spending estimates which

Pg. 2 chronicle the year-to-year changes in national drug spending.

The total estimated cost, inclusive of the base and all option periods, is $749,124 and is broken out as follows:

Base Year: $190,764 Option Period 1 (12 Months): $200,302 Option Period 2 (12 months): $210,837 Option Period 3 (8 Months) : $147,221

3. Authority and Rationale:

FAR 13.500(a) provides for the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7 million ($13 million for acquisitions as described in 13.500(c)), including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial items.

Per FAR 13.501(a)(1), acquisitions conducted under simplified acquisition procedures are exempt from the requirements in Part 6. FAR 13.501(a)(2) further provides that “justifications and approvals are required under this subpart only for sole source (including brand-name) acquisitions or portions of an acquisition requiring a brand-name.” This sole source commercial buy under the SAT (not exceeding $7 million) is not for a brand-name product/service.

The data being purchased in proprietary data that only IQVIA can provide. No other data set is consistent with methodologies that have been developed and used in the National Health Expenditure Accounts over the past two decades.

For purposes of this procurement, the procedures in FAR subpart 13.5 will be used.

In accordance with FAR 13.501(a)(1)(iii) this justification will be made publicly available within 14 days after contract award.

4. Bridge Contracts: N/A

5. Actions to Increase Competition:

This procurement is for data that is considered proprietary and owned by one source, therefore actions to increase competition are not feasible. CMS has posted notices regarding this award on SAM and no other party has expressed any interest in this procurement now or previously.

6. Market Research:

As part of the market research project, OACT uses various methods, from interviews with experts, research reports on the prescription drug industry, and trade organizations and determined that IQVIA is the best and only source that meets the needs of OACT. Moreover, this form of market research by OACT is conducted annually to ensure that no other competing databases are on the market that fits OACT’s needs.

7. Procurement History:

Purchase order or contract number: 75FCMC19C0017.

Was Action Competed? _____Yes __X__ No

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The aforementioned contract, which expires April 8, 2024, was a sole source award to IQVIA Government Solutions, for the same services subject to this new procurement.

8. Additional Information to support the justification This required data set is proprietary to IQVIA Government Solutions, Inc., and this data set is the only known data set that allows CMS to develop the U.S. expenditure estimates for Hospital Expenditures in the National Health Expenditure Accounts (NHEA). There is no other data set that can fulfill OACTS needs. Other than collecting this data or contracting with someone to collect the exact same data as IQVIA, OACT would not be able to develop the U.S. expenditure estimates for

NHEA.

10. Listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

As stated before, no other party has expressed interested in this acquisition in the past or present.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required As previously stated, this procurement is for proprietary data which is owned and controlled by one vendor, IQVIA Government Solutions, Inc. Therefore there is no other actions the agency can take to remove or overcome barriers to competition for any subsequent acquisitions.

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 justification for other than full and open competition.

Contracting Officer Representative (COR) / Date

Program/Project Manager (P/PM) / Date

2. OAGM Approvals

I hereby confirm the circumstances described above apply and approve the justification for other than full and open competition.

Per GAP Manual, JOFOC less ≤$750,000, the JOFOC/LSJ approval level of approval is as follows:

Concurrence by OAGM:

1) Contracting Officer;

Contracting Officer / Date