A.02.04_Redacted_Sole_Source_Justification_and_Approval_16-RHCO-A-198.pdf

Control Number: 16-RHCO-A-198

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

(25 March 2016)

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: US Army Regional Health Contracting Office-Atlantic (Provisional), Gordon Health Contracting Cell ATTN: RHCO-A-GHCC, Building 39706, 40th Street, Fort Gordon, Georgia 30905-5670

2. Description of Action: Approval to award a one-year firm fixed price bridge contract for eight (8) full-time-equivalent Nursing and Ancillary Personal Services to the incumbent contractor Luke and Associates, Inc. The period of performance will be 1 April 2016 through 31 March 2017. The requirement will be funded with DHP funds in the amount of $297,273.60.

3. Description of Supplies/Services: Personal Services of eight (8) Full Time Equivalent (FTE) Nursing and Ancillary Services as follows: 1 FTE Medical Clerk, 1 FTE Medical Liaison, 1 FTE Medical Technician, 1 FTE X-Ray Technician, 1 FTE Nursing Assistant, and 3 FTE Licensed Practical Nurse (LPN) at Rodriguez Army Health Center (RAHC), Fort Buchanan, Puerto Rico. The independent government estimate valued this requirement at $413,798.40 using Fiscal Year (FY) 2017 prices and increased tasks/responsibility in position descriptions. as if it were a long-term contract.

Contractor’s offered price of $297,273.60 is based on responsibilities and tasks on the current FY 2016 contract with an economic price adjustment and no changes in the position descriptions.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source under the authority of the test program for certain commercial items.

5. Reason for Authority Cited: The incumbent is the only responsible source that can perform the services for this short time period with the contractor personnel already in place and to ensure no interruption in services. Luke and Associates, Inc. is uniquely qualified to provide services temporarily until a follow-on contract is in place. The competitive follow-on contract for these services will not be awarded in sufficient time to allow a transition period for timely credentialing. The Health Readiness Platform (HRP) has not successfully submitted a long-term requirements package. The award of a bridge contract ensures no lapse in service. Further actions to remedy HRP delays through Contracting Officer Representative (COR) assistance and training is ongoing.

Therefore, HRP request services for a period of one year with Luke and Associates, Inc.

for the period 1 April 2016 through 31 March 2017.

(8 Full Time Equivalent Nursing & Ancillary Services, Rodriguez Army Health Center, Fort Buchanan, PR)

6. Efforts to Obtain Competition: The Government will synopsize using a sole source notice of intent. In accordance with FAR 6.303, responses will be noted as a memorandum for record (MFR) attachment to this justification. Securing the services of the current contractor is the only solution to provide continuation of services at a low risk until the follow-on contract is finalized. Since the incumbent has been performing the requirement for the last three years, neither a transition period nor special considerations are needed; therefore, overall performance risk is estimated to be very low.

a. Effective competition. Responsive vendors will be further notified when solicitation is prepared for the pending long-term requirement.

b. Subcontracting competition. Not applicable.

7. Actions to Increase Competition: Assistance was provided with preparation of acquisition package to include providing market research resources, guidance on preparation of an independent government estimate, estimating compensation rates, and preparation of a performance work statement. These actions along with recommended one year bridge contract will improved the HRP’s understanding of the acquisition process, support timely full performance, and maximize competition for the long-term follow-on contract .

8. Market Research: A Dynamic Small Business Administration search was conducted on 25 March 2016 which resulted in two qualified sources. Market research of current annual salaries and annual wages for each required specialty using Salary.com, Simply Hired Website, and Jobstat.net Websites were used to confirm independent government estimate and incumbent contractor’s price are competitively priced.

9. Interested Sources: No sources have written to express an interest in this requirement. Notices required by FAR 5.201 will be published and any bids or proposals received shall be considered and further provided follow-up information about the pending long-term base plus four option years requirement for services.

10. Other Facts: Securing the services of the current contractor is the only solution to provide continuation of services at a low risk until the follow-on contract is finalized.

Since the incumbent has been performing the requirement for the last five years, neither a transition period nor special considerations are needed; therefore, over performance

(8 Full Time Equivalent Nursing & Ancillary Services, Rodriguez Army Health Center, Fort Buchanan, PR) risk is estimated to be very low. Previous acquisition was awarded from a competitive solicitation to the open market, current market research, and Luke and Associates, Inc.

has provided a competitively priced offer.

a. Procurement history.

(1) Services previously provided. by Contract Number W91YTV-11-C-0002 for 14 FTE Physician, Nursing and Ancillary Services (1 February 2011 – 31 March 2016). Further search for contract prior to W91YTV-11-C-0002 found Contract Number W91YTV-07-P- 0239 (expired 30 September 2010, then a four month contract was put in place to avoid a break in service) Physician, Nursing and Ancillary Services. Only minimal information referenced in the contract file regarding this prior contract.

(2) W91YTV-11-C-0002 was competitively solicited at the lowest price technically acceptable. , and response results were 9 acceptable offers and 4 unacceptable offers.

Found Contract Number W91YTV-07-P-0329 was awarded from an open market solicitation for services and evaluation of offers. (number of offers unknown).

(3) Previous long-term requirement was solicited for full and open competition, so no authority cited for other than full and open competition.

(4) Justification and approval not provided for prior acquisition package.

(5) Based on the correspondence in the contract file, HRP has historically been delayed in providing an acquisition package. A six-month extension of services was put in place just prior to expiration of Contract Number W91YTV-11-C-0002. A four month bridge contract was put in place just prior to expiration of Contract Number W91YTV-07- P-0329.

(6) The history of this acquisition has revealed a pattern of consecutive urgent buys to ensure there was continuity in services.

(7) Efforts to improve HRP’s timely submission of a complete acquisition package has been further supplemented by HRP teleconference on 11 March 2016, COR site visit to Contracting 22 March 2016 to 24 March 2016, and additional Contracting Officer Representative (COR) training in April 2016 to ensure success of future planning processes and contract management.