CLASS Actuarial Analysis and Technical Expert Panel Meeting

Added: Jun 23, 2011 11:18 am

Justification for an Exception to Fair Opportunity

In accordance with FAR 16.505(b)(2), the Office of the Assistant Secretary for Planning and Evaluation (ASPE) requested that the Program Support Center (PSC) negotiate a task order with Avalere Health LLC to perform the statement of work entitled CLASS Actuarial Analysis and Technical Expert Panel Meeting.  The reasons for not providing fair opportunity to compete are that (1) only Avalere Health is capable of providing the services at the level of quality required because the services are unqiue and highly specialized and (2) ASPE's need for the services is so urgent that providing a fair oppoortunity to comepte would have resulted in unacceptable delays.

The purpose of the task order contract is to continue actuarial modeling fo the Community Living Assistance Services and Supports (CLASS) program, a voluntary insurance progtram estalibshed by the Patient Protection and Affordable Care Act (ACA), by using Avalere Health's revised Long-Term Care Policy Simulator, and convene a meeting of technical experts to review the methodology, assumptions, and output from actuarial models of CLASS.  Both activities will support developemnet of the new federall administered CLASS program.  Specifically, the revised LTC-PS will be sued to estimte aprticiaption in CLASS and age-rated premiums based on various program parameteres and provide critical information to support the Department's develeopment of a Notice for Proposed rulemaking (NPRM) required under the ACA in 2011/2012.

No contarctur under the Indefinite Devliery/Indefeinite Quantity Task Order Contracts for Disability, Aging and Long-Term Care Policy and Data Analysis other than Avalere Health has a current, population-based premium calculator that can model CLASS.  Furthermore, only Avalere Health can produce the information required for the NPRM over the 12 month period of performance.  THe estimated value is $275,000.00.  The anticiapted cost will be fair and reasonable due to pre-determined fair and reasonable pricing in the IDIQ contract and an evaluation by the Project Officer with respect to the labor mix and level of effort.  Future, similar requirements will be re-assessed to determine if the basis for an exception to a fair opportunity exists or if other holders of these IDIQ contracts are able to meet the Government's requirements.  The contracting officer certified this to be true and accurate to the best of their knoweldge and belief.