JandA.pdf

Control No: 16-RHCO-P-355

SOURCE SELECTION INFORMATION

See FAR 2.101 and 3.104-4

Sole Source Justification and Approval

Under FAR 13.501

1. Contracting Activity: Regional Health Contracting Office – Pacific (RHCO-P), U. S. Army Medical

Command, Tripler Army Medical Center (TAMC), Hawaii.

2. Description of Action:

a. The Tripler Army Medical Center (TAMC), Honolulu, HI requires a bridge contract to Kapiolani

Medical Specialists for uninterrupted continuation of on-call Pediatric General Surgeon services. The base period of performance will be 1 August 2016 through 31 January 2017.

b. In accordance with the Health Care Acquisition Activity (HCAA) Policy Letter 09-01, “A Bridge

Contract mirrors the contract it is replacing.” Therefore, this bridge contract will be awarded as a purchase order to mirror contract W81K02-14-P-0088. FY16 Army Direct Health Provider (DHP) funds will be provided for the base period.

c. The contract will include FAR 52.217-8, Option to Extend Services. The estimated price of this purchase order is as follows:

Base Period (1 August 2016 – 31 January 2017)

FAR 52.217-8 (if exercised) (1 February 2017 – 31 July 2017)

3. Description of Supplies/Services: A short term non-personal services FFP contract for on-call

Pediatric General Surgeon services in support of TAMC.

4. Authority Cited: 41 U.S.C. 1901, sole source acquisition under the authority of Simplified

Procedures for Certain Commercial Items as implemented by FAR 13.501(a)(1)(ii).

5. Reason for Authority Cited: The requirement is for a bridge contract for on-call Pediatric General

Surgeon services to ensure continuation of services provided under contract W81K02-14-P-0088. Due to delay with the re-procurement, the new competitive contract will not be in place prior to expiration of the current contract. The delay was due to the late receipt of the Request for Services Contract Approval

Form (RSCA). These critical services to provide urgent or emergent medically necessary health care services to beneficiaries age sixteen (16) years and under must continue to meet the MTF’s mission.

These include, but are not limited to pediatric tumors, developmental anomalies, appendectormies, pancreatectomies, and other surgical procedures. Additionally, due to deployment of the only Pediatric

General Surgeon on staff at TAMC from May 2016 – September 2016, Kapiolani Medical Specialists is currently the sole provider of subject services at TAMC. If services cannot continue, it would present a significant negative impact in the treatment of pediatric patients as the inability to provide emergency treatment may be life threatening for those seeking medical attention. Also, TAMC will have to divert all pediatric patients to civilian health care facilities outside of the TRICARE network, which would incur an increase in costs for patient care. For example, the average cost per institutionalized patient in 2015 was and the Pediatric General Surgeon provided treatment to 159 patients. If half of the total 2015 patients were sent outside of the TRICARE network, the cost to TAMC would approximately

On-Call Pediatric General Surgeon Services, TAMC

6. Efforts to Obtain Competition: The re-procurement method is a single award purchase order. The bridge contract period of performance will be 1 August 2016 through 31 January 2017. The FAR 52.217-

8, Option to Extend Services, will allow for up to an additional six months, if needed. Due to the credentialing process taking 60 days or more, there is insufficient time to prevent a lapse in the Pediatric

General Surgeon services.

a. Effective competition. These critical services provided by Kapiolani Medical Specialists must continue to meet the MTF’s mission. As stated in paragraph 5 above, if services cannot continue, it would present a significant negative impact in the treatment of beneficiaries age sixteen (16) and under and ability to provide safe patient care.

b. Subcontracting competition. In accordance with FAR 19.702(a)(1), a Subcontracting Plan is not required for contract actions under $700,000.00. The estimated price of this prospective purchase order is

(6 month base + 6 month Option to Extend Services).

7. Actions to Increase Competition: A competitive acquisition is currently being established. RHCO-

P is in the process of soliciting/awarding a single, long-term competitive contracting for on-call Pediatric

General Surgeon services; however, due to a delay in the pre-procurement process, this contract will not be awarded prior to the expiration of the current contract awarded to Kapiolani Medical Specialists.

8. Market Research: Market Research was performed on the initial requirement under contract

W81K02-14-P-0088. This is a short term bridge contract to the current contractor, Kapiolani Medical

Specialists, to continue performance. Market research was conducted for the follow-on contract to the current contract, see paragraph 10.a.(4) below.

9. Interested Sources: Notice of intent required IAW FAR 5.201 to issue a Sole Source Contract was posted on FedBizOps on 15 June 2016. To date, no other sources have expressed an interest in this requirement. Any bids or proposals received will be considered.

10. Other Facts: This bridge contract will be a short-term contract for six months to avoid a lapse in healthcare services, and will include FAR 52.217-8, Option to Extend Services.

a. Procurement History.

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

W81K02-14-P-0088: 1 Aug 14 – 31 Jul 16 (6-month Base + One one-year Option + 6 months

Extension of Services)

W81K02-09-P-0060: 1 Jun 09 – 31 Jul 14 (8-month Base + Four one-year Options + 6 months Extension of Services)

W81K02-08-P-0164: 21 Aug 08 – 20 Jun 09 (6-month base + 4 months Extension of

Services)

(2) Competitive status of these actions. Contracts W81K02-08-P-0164 and W81K02-09-P-0060 were awarded based on full and open competition. Contract W81K02-14-P-0088 was sole-sourced to

Kapiolani Medical Specialists. See attached sole-source J&A for contract W81K02-14-P-0088.

On-Call Pediatric General Surgeon Services, TAMC

(3) Authority previously used for less than full and open competition. Contract W81K02-14-P-

0088 was solicited as sole-source under FAR 13.5, Test Program for Certain Commercial Items, the authority permitting other than full and open competition is 41 U.S.C. 1901. The definition of commercial items at FAR 2.101(6) was determined to be applicable for Pediatric General Surgeon services.

(4) On 1 October 2015, a sources sought synopsis was posted in FBO for the follow-on contract to W81K02-14-P-0088. Two vendors responded to the notice; one large business and one small business.

Based on this premise, the new long-term contract for subject services will be solicited as full and open and the prices will be fair and reasonable based on adequate competition.

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances. This bridge is being solicited under the authority 41 U.S.C. 1901, sole source acquisition under the authority of Simplified Procedures for Certain Commercial Items as implemented by FAR 13.501(a)(1)(ii). The replacement of Kapiolani Medical Specialists with a new contractor for six months would be neither cost effective nor efficient. Due to the credentialing process taking 60 days or more, there is insufficient time to prevent a lapse in these services. Any interruption of the contracted

Pediatric General Surgeon services will severely hinder the TAMC healthcare mission.

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys. N/A

(7) It is documented in the sole-source J&A for contract W81K02-14-P-0088 that a sources sought synopsis was posted in FBO. At that time there were no other sources besides Kapiolani Medical

Specialists that was interested or available to provide on-call Pediatric General Surgeon services. The market research also confirmed that Kapiolani Medical Specialists was the only vendor that can provide on-call Pediatric General Surgeon services. As mentioned paragraph 10.a(4) above, a current sources sought for the follow-on contract revealed there are now at least two vendors interested in performing the required services. Therefore, the follow-on contract will be solicited as full and open competition. This

Justification and Approval is only applicable to the bridge contract to allow sufficient time to award the follow-on contract.

b. Other facts. None, all facts were previously stated above.