Provide extension to contract for Durable Medical Equipment (DME) Contract for Jurisdiction A

This justification is to obtain approval for CMS to extend the contract period of performance, adding two six month extension periods (the 2nd of which should be established as an option period), for the Durable Medical Equipment Medicare Administrative Contract (DME MAC) in Jurisdiction A (JA) only for sufficient time as to conclude re-procurement efforts that are currently in progress. It is anticipated that a new contract award will be made in January 2011; therefore, the proposed 2nd six-month option period may or may not be exercised. Each six month period is estimated at approximately $9.2m.

This justification for other than full and open competition is predicated on the understanding that CMS is currently engaged in a full and open competition in accordance with Section 1874A of the Social Security Act and with Federal Acquisition Requirements for the work performed by the DME MAC in Jurisdiction A (see FedBizOps solicitation RFP-CMS-2010-0004, J-01 SOW). The solicitation for this contract was issued a full 12 months before contract end. However, the procurement award decision has been delayed and is not expected before the end of the NHIC's current contract. Therefore, based on the compelling urgency that Medicare claims administration work cannot be disrupted, CMS must take action to continue the work with NHIC.