J& A6302-2.pdf

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

OPERATIONS CENTER

6432 GENERAL GREEN WAY

ALEXANDRIA, VIRGINA 22312-2413

OFFICE OF

ADMINISTRATIVE SERVICES

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I hereby approve the issuance of the contractual action discussed below using other than full and open competition, pursuant to the authority cited herein.

1. Contracting Activity.

U.S. Securities and Exchange Commission Office of Acquisitions 6432 General Green Way Alexandria, VA 22312-2413

2. Nature and Description of Action Being Approved:

The U.S. Securities and Exchange Commission intends to modify contract #SECHQ1-10-C-0005 with Hewitt Associates, Inc. to extend services through December 31, 2010. This award is a sole source contract for the administration of the SEC’s Supplemental Health Benefits Program (SHBP) in support of the SEC’s Office of Human Resources. This contract provides employee dental and vision benefit plans.

3. Description of the supplies or services required to meet the needs of the SEC and the estimated value:

The U.S. Securities and Exchange Commission (SEC) has a requirement for a contractor to continue to provide a supplemental health benefits program (SHBP) consistent with the requirements of Title 26 of the Internal Revenue Code, Subtitle A, Chapter 1, Subchapter B, Part III, Section 125. The SHBP includes 1) a dental plan and a vision plan that the SEC provides to all employees and their eligible dependents nationwide.

The estimated value of the modification is $1,330,162.23. Funds are available under requisition #62000-10-0060 and 62000-10-0056, which will utilize fiscal year 2010 funding. The total contract value, with options, will not exceed $2,585,556.23.

4. Statutory Authority for Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is 41 U.S.C.253(c)(1) FAR 6.302-2 Unusual and Compelling Urgency.

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

The current supplemental health benefits bridge contract with Hewitt Associates expires June 30, 2010. The follow-on contract was recently awarded to Benalytics Consulting Group, LLC. However, the award was protested by the unsuccessful offeror, which warranted a stay of performance. Since Hewitt Associates, Inc. currently provides the services, it is only reasonable to continue services with the incumbent until the transition to Benalytics is complete.

The SEC Collective Bargaining Agreement with the National Treasury Union requires the SEC to maintain the SHBP services for its employees. Not continuing the vision and dental programs will severely impact the SEC’s employees. Continuous coverage though this contract is necessary to enable employees to keep their vision and dental providers and not be required to enter new agreements or look for new providers.

6. Efforts to ensure that offers are solicited from as many potential sources as possible.

Offers will not be solicited from other sources because this action is being awarded in response to the protest to the follow-on contract.

7. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Before awarding a contract, the Contracting Officer will perform a proposal analysis in accordance with FAR 15.404-1 to determine whether the price is fair and reasonable.

8. Description of market research conducted and results or statement of the reasons market research was not conducted:

Market research specifically for this requirement was not conducted, due to the urgency caused by the protest to the follow-on contract.

9. Other Supporting Facts:

N/A

10. A listing of the sources, if any that expressed, in writing an interest in the acquisition:

N/A

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:

N/A