A.02.04_MODS_Bridge_8_JA_-_1_Mar_18_(Final)_Redacted.pdf

Control No: 18-HRCO-210

Medical Operation Data Systems, Army, Navy, and Air Force

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

(25 February 2016)

Justification Review Document for Other Than Full and Open Competition

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 request approval to negotiate a new non-personal services interim sole-source contract as follow-on with a 6-month base period and FAR Clause 52.217-8, Option to Extend Services, for up to six-months, with the incumbent provider, ASMR to provide sustainment and modernization of the Medical Operational Data Systems (MODS). A firm fixed price (FFP) contract with indefinite delivery indefinite quantity (IDIQ) fixed price and cost reimbursement contract line item is anticipated. The type of funds to be used is FY18 Operations and Maintenance (O&M) and Research Development Test and Evaluation (RDT&E) funds for the six-month base period.

3. Description of Supplies/Services:

a. These interim services are necessary to provide continuous uninterrupted operations and maintenance support for the MODS. The contractor shall provide non-personal services to perform the following: System operations and sustainment (Information Assurance, System Administration, Research Development Testing & Evaluation); Software Modifications, Technical Refresh, and Significant Enhancements; System Support (Help Desk); Interface Management; Project Management Support Services (Client Services, MODS Service Request Status, On Process Review; Attendance/reporting; Risk Management; Configuration Management; Scheduling, Costs, and System Metrics Analysis; and User Training and Conference Support; and Documentation (System Code, Institute of Electrical and Electronics Engineers).

b. The estimated dollar value of this proposed action is for a six-month base period of performance from 1 Apr 18 through 30 Sep 18. The clause at 52.217-8, Option to Extend Services, will be included in the contract to allow for up to an additional six-month extension, thereby potentially increasing the overall estimated dollar value to

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 United States Code 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302- 1(a)(2)(iii)(B), Only one responsible source and no other supplies or services will satisfy agency requirements, for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

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

5. Reason for Authority Cited:

a. There is a current contract in place for these services through contract number W81K04- 17-D-0010, which will expire on 31 Mar 18. The Government is in the process of re- procuring the required services. This bridge contract is required to enable remediation of Government Accountability Office (GAO) protest issues and Contracting Officer corrective actions resulting from contract W81K04-17-D-0016, awarded to Arrowpoint Corporation on 18 Aug 17. After careful consideration of the issues raised by subject protest, and after having reassessed the acquisition strategy and reviewing the MODS requirement, it was determined that in the best interest of the Government to cancel the current solicitation and reissue a new solicitation based on the following: 1) The requirement has changed during the past seven years of litigation with some of the evolutionary work already accomplished by the current contractor. Additionally, the performance work statement has not been revised to reflect the change in the requirement over the years; 2) The pool of contractors in the market capable of providing the required services has likely changed therefore new market research needs to be accomplished to encourage full and open competition; 3) The current solicitation is a non-commercial acquisition under FAR part 15.

The new solicitation will be a commercial acquisition under FAR part 12, because these types of services can be found in the commercial market place; and 4) The current solicitation transition period is 45 days. Because of critical tasks to be performed during the transition period, the transition period for the new solicitation will be 90 days.

b. There is not sufficient time for HRCO to negotiate and award the follow-on contract.

In addition, there is a 90-day transition period for a new contractor to complete the recruitment and placement process and to start performance on a new contract. This bridge contract will allow adequate time to award a follow-on contract by 29 Jun 18 with a transition period of 1 Jul 18 – 30 Sep 18 and full performance beginning 1 Oct 2018.

c. It is not feasible to solicit a bridge contract with any source other than the incumbent contractor, ASM Research (ASMR) LLC. ASMR possesses the unique qualifications to instantly perform the continuation of these services given that they already have the required clearances, certifications, resources, trained work force, and have completed all in-processing requirements for their employees, thus requiring no transition efforts to continue performing these services.

Furthermore, without a fully awarded MODS bridge contract, there will be a catastrophic disruption in service for the 1,400,000 users across the Army, Navy, and Air Force in the following mission essential areas: Army medical readiness, Army Medical Department (AMEDD) human resources, AMEDD health professional special pay and continuing medical education, AMEDD logistics, and AMEDD command management (CM) capabilities. Further, the United States Air Force CME services would be discontinued as well as CM services to Assistant Secretary of Defense for Health Affairs Strategic Planning and United States Navy

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

Bureau of Medicine until successful award of the MODS follow-on contract. Only ASMR can satisfy these mission critical services without causing unacceptable delays or disruption of services.

d. The period of performance on the current contract can no longer be extended. The FAR

Clause 52.217-8, Option to Extend Services, has already been utilized and this option period will expire on 31 Mar 18. Until the competitive re-procurement can be completed, the proposed six-month base interim contract will need to be awarded by 31 Mar 18 in order to continue the current level of services. As such, the incumbent contractor, ASMR is the only responsible contractor with the required and qualified personnel ready to start performance on 1 Apr 18.

6. Efforts to Obtain Competition: A Request for Information (RFI) was issued on 1 Feb 18.

a. Effective competition. No other efforts are being made to obtain competition for the interim requirement, as only one responsible source, ASMR is capable of meeting the minimum requirements prior to the expiration of the current contract.

b. Subcontracting competition. No other efforts have been made by the Government to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition: It is not possible to compete the proposed interim acquisition. However, the HRCO will obtain competition for the follow-on contract. A synopsis was posted in accordance with FAR 5.201 to further increase competition.

8. Market Research: As described in paragraph 6 above, market research, in accordance with FAR Part 10, was conducted for the follow-on requirement by synopsizing the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties. No further market research has been done at this time to identify additional sources of these services since the Government does not have the opportunity to solicit additional offerors in time for service to commence on 1 Apr 18.

9. Interested Sources:

a. To date, 24 sources have written to express an interest in the RFI. Responses include:

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

b. Of the sources responding to the RFI, it was determine that it is not feasible to solicit a bridge contract with any source other than the incumbent contractor. ASMR possesses the unique qualifications to instantly perform the continuation of these services given that they already have the required clearances and certifications, resources and trained work force, and have completed all in-processing requirements for their employees, thus requiring no transition efforts to continue performing these services.

c. The notices required by FAR 5.201 of our intent to award a sole-source contract for this requirement will be published in FedBizOpps and any quotes, proposals, or capability statements received will be considered.

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 last several awards.

(a) Contract, W81K04-17-D-0010, was awarded to ASM Research (ASMR), LLC, a large business concern by Health Readiness Contracting Office, Joint Service Branch (HRCO/ JSB). That requirement was posted as sole-source procurement (bridge #7) to ASMR. That requirement consisted of

For Official Use Only (See FAR 2.101 and 3.104-4) a six-month base period. The base period provided support for MODS from 1 Apr 17 through 30 Sep 17.

Additionally, the extension of services option was exercised for the period: 1 Oct 17 through 31 Mar 18.

(b) Contract, W81K04-16-D-0029, was awarded to ASMR, a large business concern by

HRCO/ JSB. That requirement was posted as sole-source procurement (bridge #6) to ASMR. That requirement consisted of a six-month base period. The base period provided support for MODS from 1 Apr 16 through 30 Sep 16. Additionally, the extension of services option was exercised for the period: 1 Oct 16 through 31 Mar 17.

(c) Contract, W81K04-15-D-0010, was awarded to ASMR, a large business concern by

Center for Health Care Contracting, Medical Information Technology Contracting Branch (CHCC/MITCB). That requirement was posted as sole-source procurement (bridge #5) to ASMR. That requirement consisted of a six-month base period. The base period provided support for MODS from 1 Apr 15 through 30 Sep 15. Additionally, the extension of services option was exercised in for the period:

1 Oct 15 through 31 Mar 16.

(d) Contract, W81K04-14-D-0004, was awarded to ASMR, a large business concern by CHCC/MITCB. That requirement was posted as sole-source procurement (bridge #4) to ASMR.

That requirement consisted of a six-month base period. The base period provided support for MODS from 1 Apr 14 through 30 Sep 14. Additionally, the extension of services option was exercised for the period: 1 Oct 14 through 31 Mar 15.

(e) ) Contract, W81K04-13-D-0030, was awarded to ASMR, a large business concern by CHCC/MITCB. That requirement was posted as sole-source procurement (bridge #3) to ASMR. That requirement consisted of a three-month base period plus a three-month option period.

The base period of this contract has provided support for MODS from 1 Apr 13 through 30 Jun 13.

Additionally, the government exercised the option period of this contract which continued support for MODS from 1 Jul 13 through 30 Sep 13. Finally, the extension of services option was exercised in two 3-month consecutive periods: 1 Oct 13 through 31 Dec 13 and 1 Jan 14 through 31 Mar 14.

(f) Contract, W81K04-12-D-0016, was awarded to ASMR, a large business concern was awarded by CHCC/MITCB. That requirement was posted as sole-source procurement (bridge #2) to ASMR. That requirement consisted of a six-month base period plus an option period of six months. This contract provided support to MODS from 1 Apr 12 through 31 Mar 13.

(e) Contract, W81K04-11-D-0012, was awarded by MITCB as a sole-source procurement (bridge #1) to ASMR, 3025 Hamaker Court, Suite 300, Fairfax, VA 22031, as the only responsible source. This contract provided support to MODS from 1 Jun 11through 31 Mar 12.

(h) Contract, W81XWH-05-D-0008, was awarded by United States Army Medical

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

Research Acquisition Activity (USAMRAA) under a full and open competitive solicitation. The award was made to ASMR, 3025 Hamaker Court, Suite 300, Fairfax, VA 22031; the period of performance was from 15 Sep 05 through 14 Feb 11. Because of delays with the follow- on contract effort, USAMRAA modified the contract and extended it an additional 3.5 months to 31 May 11.

(g) Prior to the USAMRAA contract, MODS was awarded through the General

Services Administration in 2002; through the Defense Supply Services Washington in 1992; and in 1991 MODS was an Office of Personnel Management contract. Throughout the contract life of MODS, only one vendor has been the contract awardee: ASMR.

(2) Competitive Status of These Actions. Contract W81XWH-05-D-0008 was solicited as unrestricted and a single award contract was awarded to ASMR, a large business, on a competitive basis. Subsequent awards have been sole-source interim awards as a result of continuing protests to Government Accounting Office and Court Of Federal Claims, and the corrective actions taken to resolve the protest issues.

(3) Authority previously used for less than full and open competition. The statutory authority permitting other than full and open competition was 10 U.S.C. 2304(c) (1) as implemented by FAR 6.302-1-- Only One Responsible Source and No Other supplies or Services Will Satisfy Agency Requirement.

(4) Justification prepared to support the procurement made before this one with a summary of the contents of paragraph 7, Actions to Increase Competition, of the justification for that procurement and an explanation of the results. The previous J&A was used to award an interim sole-source contract to ASMR as a result of ongoing protest issues and corrective actions taken. As a result of ongoing protest and the Army taking corrective action, there are no actions to increase competition. The follow-on contract will be awarded on a competitive basis.

(5) If prior award accomplished by full and open competition, a detailed explanation of the changed circumstances. The previous award, prior to protests (GAO and COFC), was accomplished using full and open competition. The HRCO’s (formerly known as CHCC) initial follow-on requirement was cited as a small business set-aside using full and open competition after exclusion of sources. The award was protested and ultimately terminated with the solicitation being reopened.

Subsequent awards have been protested with the Government taking corrective action and ultimately terminating the awards. The solicitation was reopened in order to take corrective action once again.

Subsequently interim sole-source awards have been made to the incumbent contractor, ASMR, pending resolution of protests and corrective actions.

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

(6) Explanation of unusual patterns revealed by history, e.g., several consecutive, urgent buys. Continuous protests have resulted in award terminations and corrective actions delaying the award and performance of services that were competitively solicited.

(7) If J&A was previously used for this requirement, describe circumstances for justification

& any significant changes. The previous J&A was used to award a sole-source contract to ASMR pending resolution of ongoing protest and corrective action. There are significant changes in this requirement.

b. Other Facts. The performance work statement (PWS) for this interim contract is essentially the same as the PWS for the current contract and only includes administrative updates such as date changes, changes to points of contact, and those clauses required by law or regulation.

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

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Program Manager Date

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Program Manager Date

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based on price analysis and/or cost analysis IAW FAR 15.404-1, and comparison with the IGE. Services are considered commercial and therefore, certified cost and pricing data will not be required for this non-competitive procurement in accordance with the exception at FAR part 15.403-1(b)(3).

Contracting Officer Date

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

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

Approval

Based on the foregoing justification, I hereby approve the procurement of a bridge contract for non-personal services to provide sustainment and modernization of the Medical Operational Data Systems (MODS), not to exceed $13,500,000.00. on an other than full and open competition basis pursuant to the authority of 10 USC 2304(c), as implemented under FAR 6.302-1(a)(2)(iii)(B), subject to availability of funds and provided that the services herein described have otherwise been authorized for acquisition.

USAHCA Special Advocate for Competition Date