36C25918C0102-001.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >$150K

OFOC SOP Revision 06 Page 1 of 5 Original Date: 03/22/11 Revision 06 Date: 08/30/2017

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) for

Other Than Full and Open Competition (>$150K)

Acquisition Plan Action ID: VA259-18-AP-3450

1. Contracting Activity:

Agency:

Department of Veterans Affairs

Veterans Health Administration

Office of Community Care

3773 Cherry Creek North Drive

Denver CO 80209

Contracting Activity:

Department of Veterans Affairs

Network Contracting Office 19

Rocky Mountain Acquisition Center

6162 South Willow Drive, Suite 300

Greenwood Village, CO 80111

Requisition No: 741-18-2-352-0011

2. Nature and/or Description of the Action Being Processed: This acquisition is for an unrestricted

Firm Fixed Price (FFP) 6-month sole source bridge contract with Conduent Federal Solutions, LLC;

utilizing simplified acquisition procedures allowed by FAR Part 13.5. This acquisition will provide continued electronic web portal interconnected Home Health Pricing Services for the Office of

Community Care (OCC) to 09-30-2018, ensuring, there will not be a lapse of service from contract

VA741-13-C-0053. The loss of Home Health Pricing Services will impair Veteran care and HH providers ability to monthly premiums. A sole source bridge contract would also ensure continuity of services without loss of vital VA programs and HH provider recoupment funding until the new contract is in place. The VA is simultaneously working on a 3 year re-compete and anticipates an award by 09-30-

2018.

FAR13.5 -- Simplified Procedures for Certain Commercial Items: This acquisition is for Home

Health Pricing Services and is in accordance with FAR Part 13.5 -- Simplified Procedures for Certain

Commercial Items and specifically FAR 13.501 -- Special Documentation Acquisitions, where acquisitions conducted under Simplified Acquisition Procedures (SAP) are exempt from the acquisitions of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This acquisition was received by Contracting on 01-30-2018 with a need date of 04-01-2018. The Government proposes to award a 6-month sole source bridge to Conduent Federal Solutions, LLC, for $1.4M from 04-01-2018 to

09-30-2018 and is currently working on a 3 year re-compete; anticipating an award by 09-30-2018. This acquisition will provide continued electronic web portal interconnected Home Health Pricing Services for the Office of Community Care (OCC) until 09-30-2018; ensuring, there will not be a lapse of service

OFOC SOP Revision 06 Page 2 of 5

Revision 06 Date: 08/30/2017 from contract VA741-13-C-0053. Meanwhile, the VA is simultaneously working on a 3 year re-compete and anticipates an award by 09-30-2018.

The incumbent, Conduent Federal Solutions, LLC, already has the specialized software, necessary staff, equipment, and procedures to continue services. It would not be feasible to compete a short-term contract in time due to the magnitude and complexity of services required. Any lapse in service would be detrimental to the Government since these services ensure compliance with electronic secure web portal interconnections between the contractor and the Veterans Affairs (VA). Therefore, no other company can perform these services by the need date.

4. Statutory Authority Permitting Other than Full and Open Competition:

(x) 1. Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Acquisitions per FAR 6.302-1;

( ) 2. Unusual and Compelling Urgency per FAR 6.302-2;

( ) 3. Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) 4. International Agreement per FAR 6.302-4

( ) 5. Authorized or Required by Statute FAR 6.302-5;

( ) 6. National Security per FAR 6.302-6; or

( ) 7. Public Interest per FAR 6.302-7;

FAR13.5 -- Simplified Procedures for Certain Commercial Items: The statutory authority permitting other than full and open competition is 41 U.S.C. 1901. It has been determined that the utilization of this authority is appropriate pursuant to FAR Part 13.501(a)(1)(ii); Prepare sole source (including brand name) justifications using the format at 6.303-2, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C. 1901 or the authority of 41 U.S.C. 1903.

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority): It has been determined that a 6-month sole source contract is in the Governments interest due to insufficient funding that caused a delay in awarding a new contract. Any lack in continuity of services would cause the HH program to lose $8.7M in provider monthly funding if a contract is not awarded by 04-01-2018. This would be a significant impact to HH Veteran recipients and their providers who rely on these services.

These services provide continued electronic web portal interconnected Home Health Pricing Services for the OCC and are highly specialized in nature where few concerns have the ability to do the work outlined in the Performance Work Statement (PWS). The time it would take to solicit, award and transition to a new contract would cause unacceptable delays in fulfilling the agency’s mission needs. Any contract transition would require time and access to Medicare patient and provider data, compatible extract software, submission of a definitive Medicare pricing extraction plan, the ability to receive and electronically price home care claims, utilization of appropriate Medicare payment system methodology, and configuration of inbound EDI claim submission files and processing/adjudication logic including pending claims, adjustments and denial codes. Any loss of Home Health Pricing Services will impair the

VHA’s ability to recoup EDI claim submissions that fund vital VA programs. A sole source bridge contract would ensure continuity of services without loss of vital VA recoupment funding until the new contract is in place.

Conduent Federal Solutions, LLC is the incumbent and only contractor capable of providing these services described in section 3 by the need date because they already have the accreditation, necessary http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P234_32585

OFOC SOP Revision 06 Page 3 of 5

Revision 06 Date: 08/30/2017 staff, software program, equipment and procedures in place to continue service. It would not be beneficial to the Government to pursue a short-term contract due the magnitude and complexity of work required it would take to transition to a new contractor because there is not adequate time.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This acquisition will not be synopsized IAW 5.202(a)(2) due to the magnitude and complexity of service required by the need date. The proposed contract action is made under the conditions described in 6.302-2 and time periods specified in 5.203. The funding delay promoted the need for a sole source bridge so the Government would have adequate time to synopsize a new contract.

Any lapse in service would impede the VHA’s ability to recoup EDI claim submissions that fund vital

VA programs. Therefore, a sole source bridge has been contemplated. Meanwhile, the VA is simultaneously working on a 3 year re-compete and anticipates an award by 09-30-2018.

Conduent Federal Solutions, LLC was awarded a 3-year (base plus 2 option year) contract by PCO-East from 09-30-2013 to 09-29-2017 for over $13,665,186. A 6-month extension was cut from 09-30-2017 to

03-31-2018 for $1,500,000 by NCO 19. The prior re-compete yielded 2 large business (LB) concern proposals where the incumbent was rated higher during the source selection board (SSB). No other small business concerns submitted proposals and no protests were filed by any concern during any part of the re-compete phase.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: Pursuant to FAR Part 6.303-2(b)(7), the anticipated $1.4M cost of the sole source bridge is in line with current contract pricing. Historical acquisition data and survey of the market place has deemed the price fair and reasonable. Conduent Federal Solutions, LLC is the only contractor that has necessary staff, software program, equipment, and procedures in place to receive and process electronic home care claims to ensure there is no lapse in services. Therefore, no other company can perform these services by the need date or provide a fair or reasonable price.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: Market research was conducted IAW FAR Part 10. Market research conducted on VIP, GSA e-Buy, SBA, and FBO did not find 2 or more SDVOSB /VOSB’s or any

SB concerns that were able to meet the urgency and complexity of this requirement. The complexity and time required for a new contractor of any concern to provide electronic claims processing that would comply with Medicare regulations and negotiated fee schedules is limited and precludes any

SDVOS/VOSB to meeting the rule of 2.

Various contractors were registered under NAICS 524291. However, the complexity and magnitude increased the PALT to a point where it would take upwards of 204 calendar days to solicit, award, and transition a follow-on contract to any concern. Furthermore, a tiered evaluation scheme would not provide a different outcome due to the time it would take to solicit, award, and transition a contract or contractor in place by the need date. Therefore, it would not be beneficial to the Government to compete a short-term contract due the magnitude and complexity of work required or the time it would take to transition to a new contractor. However, the VA is simultaneously working a 3 year re-compete and anticipates an award by 09-30-2018.

Any contract transition would require access to Medicare patient and provider data, compatible extract software, submission of a definitive Medicare pricing extraction plan, the ability to receive and electronically price home care claims, utilization of appropriate Medicare payment system methodology, and configuration of inbound EDI claim submission files and processing/adjudication logic including pending claims, adjustments and denial codes.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P117_17257 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P87_14915

OFOC SOP Revision 06 Page 4 of 5

Revision 06 Date: 08/30/2017

Conduent Federal Solutions, LLC is the only contractor that has necessary staff, software program, equipment, and procedures in place to receive and process electronic price home care claims to ensure there is no lapse in services. The time it would take to procure this type of service would cause unacceptable delays in fulfilling the agency’s acquisition. The loss of Home Health Pricing Services will impair the VHA’s ability to recoup EDI claim submissions that fund vital VA programs. A sole source bridge contract would ensure continuity of services without loss of vital VA recoupment funding until the new contract is in place.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: A lapse of medical claims adjudication would be detrimental to the VHA since these services comply with Medicare claims processing and negotiated fee schedules. If services lapse, the VHA would have to process these claims. Currently the VHA does not have the resources or expertise to properly adjudicate these claims which would cause a loss of third party recoupments.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Conduent Federal

Solutions LLC, 12410 Milestone Center Drive FL 5, Germantown, MD 20876 is the only source that has expressed interest in this acquisition.

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: The

VHA is committed to the acquisition of competitive acquisitions. It is the VHA’s policy to seek full and open competition to meet mission acquisitions. An unrestricted follow-on contract is contemplated that will be synopsized on FBO with an anticipated award date of 09-30-2018.

12. Acquisitions Certification: I certify that the acquisition outlined in this justification is a Bona Fide

Need of the Department of Veterans Affairs and 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.

Barry Brooks Date

Program Officer

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Erica A Blake Date

Contracting Officer

3/8/2018

03-08-2018 http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

OFOC SOP Revision 06 Page 5 of 5

Revision 06 Date: 08/30/2017

b. One Level Above the Contracting Officer (Required over$150K but not exceeding $700K):

I certify the justification meets acquisitions for other than full and open competition.

Curtis Jordan Date

NCO 19 Director of Contracting

c. VHA SAO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.

Delia A. Adams, MBA, CPCM Date

Executive Director, Services Area Office West

Head of Contracting Activity (HCA)

VHAV19FreemD Typewritten Text 03/08/2018