FBODaily.com | FedBizOpps: FILE | Q | Justification and Approval for Sole Source Contract Award Due to Unusual and Compelling Urgency FY16 Sole Source Bridge Contract | Medical Disability Exams (MDE) under P.L. 104-275 | QTC Medical Services, Inc. - Justification and Approval (J&A)

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Q -- Justification and Approval for Sole Source Contract Award Due to Unusual and Compelling Urgency FY16 Sole Source Bridge Contract | Medical Disability Exams (MDE) under P.L. 104-275 | QTC Medical Services, Inc. - Justification and Approval (J&A)

Notice Date: 7/7/2016
Notice Type: Justification and Approval (J&A)
NAICS: 621111 — Offices of Physicians (except Mental Health Specialists)
Contracting Office: Strategic Acquisition Center - Frederick;Department of Veterans Affairs;321 Ballenger Center Drive, Suite 125;Frederick MD 21703
ZIP Code: 21703
Solicitation Number: VA119A16R0180
Archive Date: 7/29/2016
Point of Contact: Stephen Nickles, Contract Specialist
E-Mail Address: ynder,
Small Business Set-Aside: N/A
Award Number: VA119A-16-D-0059
Award Date: 6/29/2016
Description: JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION 1.Identification of the agency and the contracting activity. This justification and approval is executed by the Strategic Acquisition Center located in Frederick, Maryland, on behalf of US Department of Veterans Affairs (VA), Veterans Benefits Administration (VBA), which administers the Compensation Services Program. 2.Nature and/or description of the action being approved. The proposed action is for a single award Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract with firm-fixed priced task orders to QTC Medical Services (QTC) Inc., to provide the Veterans Benefits Administration (VBA) with three-months of Medical Disability Examination (MDE) services for the Eastern, Central and National Regions. 3.Description of the supplies or services required to meet the agency's needs (including the estimated value). The VA through the VBA administers the Compensation & Pension (C&P) Program for benefits to Veterans, their dependents, and their survivors. Entitlement determinations for disability compensation and pension claims are made by VBA Rating Veterans Service Representatives (RVSRs) and Decision Review Officers (DROs) working in VA Regional Offices (VAROs) across the country. The VA has an urgent requirement for MDE services, which includes examinations to determine the extent of permanent impairment a Veteran may have received in service. Public Law 104-275 was enacted authorizing VA to contract for medical examinations. An MDE is a critical piece of evidence that determines the percent of disability that defines the dollar benefit a Veteran is awarded. VA requires medical examinations for thousands of Veterans. The examination report must be of high quality, providing essential information which supports each claimed disability. It is not enough to simply state a diagnosis; the examination report must also provide detailed findings sufficient for RVSRs and DROs to arrive at a determination that supports VA's decision and can withstand the scrutiny of appellate review. On March 28, 2016, 12 new contracts were awarded for critical MDE services for multiple regions throughout the United States. The new contracts are intended to provide for continued MDE services following the expiration of previous contracts on June 30, 2016. Immediately following award, protests were filed with the Government Accountability Office (GAO). A stop-work order was issued and, thus, services cannot be provided by the awarded contractors until GAO has rendered a decision. A bridge contract with the incumbent contractor is the most appropriate way to acquire uninterrupted MDE services at each of the VAROs. VA and Veterans will suffer severe harm if there is a lapse in service. Award of this urgent and compelling contract will provide continued disability exams within VBA's Eastern, Central and National regions. The current contract expires on June 30, 2016 and VA will experience a break in service if this proposed action is not approved. The break in service will significantly delay VA's ability to substantiate potentially thousands of Veterans' claimed disabilities and, thus, will significantly delay delivery of disability benefits to these Veterans and/or their dependents/survivors. The proposed contract action is for a single-award IDIQ contract with a total period of performance of three months, beginning July 1, 2016 through September 30, 2016, with no option periods. This will allow time for resolution of the outstanding GAO protest, as well as the contractually authorized 90-day ramp-up period once the new contracts begin performance. Following is the estimated value of the proposed contract action: VA Regional OfficeAverage Exam PriceEst Monthly Exam VolumeBase POP (July 1 -- Sept 30) Est Volume/Cost Philadelphia, PA$752.118992,697$2,028,440.67 Colombia, SC$923.551,0003,000$2,770,650.00 St. Petersburg, FL$987.327002,100$2,073,372.00 Jackson, MS$739.115001,500$1,108,665.00 Roanoke, VA$760.631,8005,400$4,107,402.00 Atlanta, GA$809.132,9008,700$7,039,431.00 Houston, TX$782.173,1009,300$7,274,181.00 Seattle, WA$752.011,7005,100$3,835,251.00 Salt Lake City, UT$783.78101303$237,485.34 Winston Salem, NC$919.782,0006,000$5,518,680.00 Providence, RI$450.111030$13,503.30 Muskogee, OK$889.692,5007,500$6,672,675.00 TOTAL 51,630$42,679,736.31 4.Identification of the statutory authority permitting other than full and open competition. The statutory authority permitting other than full and open competition is found under FAR 6.302-2, Unusual and Compelling Urgency. The agency's need for the services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals. 5.Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited. The Government recently awarded several contracts intended to provide for continued disability exams following the expiration of contract # VA798-11-D-0003; however, those contracts are currently under stop-work orders due to post-award protests filed with GAO. As previously discussed within this document, the primary impetus for this proposed, short-term contract is the delay in services caused by the award protests, coupled with the expiration of the existing contracts. The newly awarded contracts are unable to assume performance of the required services while they are under protest. The Government performed extensive market research in preparation of the recently awarded contracts (which were competed under VA solicitation number VA119A-15-R-0150) and is aware of numerous sources that could potentially service this short-term requirement. In fact, thirteen vendors submitted proposals under the aforementioned solicitation. However, insufficient time is available for the Government to hold a competition among the available vendors prior to the expiration of the existing contract on June 30, 2016. The Government considered using a more expedited process, including use of a short-fused, lowest price, technically acceptable (LPTA) method of competing for these services; however, there is still insufficient time to complete such a competition prior to the June 30th expiration of the existing contract. That is because of the complex nature of testing and establishing the necessary IT interconnectivity with various VA systems, as well as the need to locate, subcontract, and train sufficient numbers of examination providers, some of which are highly specialized physicians. While certain competitors may have the ability to stand-up the needed services for the required combination of VA Regional Offices within a matter of several weeks, the risk inherent with entrusting a non-incumbent contractor to be at 100% capacity on July 1, 2016, is too great to pursue. Failure of the awardee means failure of VA to provide on a core mission of providing disability benefits to Veterans. As a result, the Government plans to award a sole-source contract to the incumbent contractor, QTC Medical Services, Inc. (QTC), because this contractor is the only vendor in a position to service the required locations immediately on July 1, 2016, with no additional risk. QTC has been performing the same required services for VBA for the past five years under contract VA798-11-D-0003 that expires on June 30, 2016. The services performed by QTC were awarded via competitive procedures that afforded numerous companies the opportunity to submit proposals. The contract was originally set to expire on December 30, 2015; however, the period of performance was extended for an additional six months, through June 30, 2016, under the authority of FAR 52.217-8, Option to Extend Services. This extension allowed for continued services while the Government completed a recompete for similar services under solicitation number VA119A-15-R-0150. There are no remaining options under the existing contract. Based on historical performance under the current and past VA contracts, the start up period is between 60-90 days for subcontracting with the appropriate network of exam providers of approximately 90-days. Furthermore, this same amount of time, if not more, would be required to complete the necessary IT interface connections with all the VA IT systems, for a contractor that does not already have these connections. Awarding a new competitive contract to a new vendor would not allow sufficient time for a vendor to meet the 90-day start-up period prior to expiration of the current contract, which will result in a lapse in critical services for Veterans. The CO recommends a three-month bridge contract be awarded to QTC in order to establish stop-gap measures to provide the required services to meet the continued MDE requirements. QTC currently has the personnel in place in the twelve required VA locations, and is in a position to meet the potential three-month requirement without any start-up period, much less a 90-day start-up period. QTC has the existing IT interfaces with the appropriate VA Regional Offices, including the required security approvals that are necessary to successfully complete this requirement. No other contractors would be able to recruit, obtain credentialing (applicable to Medical Examiners), coordinate the IT and information security requirements with the twelve required VAROs, or have their network of trained examination providers in place by the July 1, 2016, performance start date. Award to any other vendor is likely to result in a lapse in service that potentially will cause thousands of Veterans to incur significant delay in obtaining the medical disability examinations to support their benefit claims. 6.Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies. Full and open, unrestricted competition was recently completed under VA solicitation number VA119A-15-R-0150 with award of twelve new contracts to replace the existing contracts that expire on June 30, 2016. The requirement supported by this justification is merely a short-term contract to ensure continued service while the protests are resolved under the newly awarded contracts, and the Government does not intend to solicit offers from any other vendor than the incumbent contractor, QTC. There are no other sources that can provide the required services without significant risk of start-up delays. There is insufficient time to compete this requirement among other offerors without suffering a break in service. The incumbent contractor is the only contractor that can successfully meet the requirements at the specified VA Regional Office locations by the required start date of July 1, 2016. The proposed action will not be synopsized in accordance with the exception in FAR Part 5.202(a)(2). However, a notice of "Intent to Procure via Sole Source" shall be published on the Federal Business Opportunities website at www.fedbizopps.gov. 7.A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. The contracting officer does not expect escalation of the hourly exam provider rates because the term of this contract is for a period of only three months. However, the contracting officer shall determine that all prices for the proposed bridge contract are fair and reasonable by comparing the QTC's proposed prices with historical pricing under previous contracts for the same services. 8.A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason market research was not conducted. The Government performed extensive market research in preparation of the recently awarded contracts (which were competed under VA solicitation number VA119A-15-R-0150) and is aware of numerous sources that could potentially service this short-term requirement. In fact, thirteen vendors submitted proposals under the aforementioned solicitation. However, insufficient time is available for the Government to hold a competition among the available vendors prior to the expiration of the existing contract on June 30, 2016. Furthermore, it is highly probable that none of the potential vendors would be able to begin performance at the required combination of VA Regional Offices without significant start-up delays. As a result, no additional market research was conducted beyond what was recently prepared under solicitation number VA119A-15-R-0150. 9.Any other facts supporting the use of other than full and open competition: In accordance with FAR 6.303-2(b)(9)(iii), the following information is provided regarding the extent and nature of the harm to the Government. A significant reason Congress authorized contracted exam providers to perform MDEs on behalf of VA, under Public Law 104-275, was to streamline VA's ability to address Veterans' need for disability exams. A lapse in service would significantly hinder VA's ability to satisfy this Congressional intent for a significant period of time. As previously mentioned, the services under this proposed contract must begin on July 1, 2016, presenting an unusual and compelling need. VA does not have the capacity to handle the unexpected volume of disability exams on such short notice, and VA would incur significant additional costs to its medical centers and physicians if it were to consider handling the required MDEs through VA resources, alone. The costs associated with VA, itself, handling the exams include the expense of the physicians, nurses, and administrators, as well as the expense of maintaining the facilities and equipment to perform the exams. Furthermore, the significant improvement in VBA's response to Veteran benefit claims made over the past two years will be adversely affected because a lapse in service will likely delay the ability for VA to complete the exams. Should the proposed sole-source contract not be awarded, a lapse in service will occur, and the extent and nature of the harm to the Government would be inexcusable, taking into account the cost to the thousands of Veterans, dependents, and survivors who depend on the VA disability benefits. 10.A listing of the sources, if any, that expressed, in writing, an interest in the acquisition. Due to the unusual and compelling urgency caused by the award protests and the expiration of the existing contract, the Government did not seek the interest of other sources beyond the incumbent contractor, QTC. As explained in Sections 5, 6, and 8 of this document, other known sources could potentially service some of the locations required; however, it is highly unlikely that any of the other vendors would be able to begin performance at required combination of VA Regional Offices on July 1, 2016. 11.A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. The same, critical MDE services to be procured under the proposed three-month bridge contract were recently competed using full and open, unrestricted competition under VA solicitation number VA119A-15-R-0150. Twelve offerors submitted proposals under that solicitation and contracts were awarded to the best value offerors under that competition. Once GAO renders a decision on the award protests related to the recently awarded contracts, VA will either proceed with performance under those contracts, or undertake corrective actions. 12.Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief. _____________________________________________ Contracting Officer's RepresentativeDate 13.Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief. _____________________________________________ Contracting OfficerDate 14.Legal Sufficiency Certification: I have reviewed this justification and find it legally sufficient as to formalities and compliance with the requirement set forth in FAR 6.302-2. _____________________________________________ Legal CounselDate ? Concurrence Based on the foregoing justification, I concur with the acquisition of Medical Disability Examinations in the estimated amount of $42,679,736.31, on an other than full and open competition basis, pursuant to FAR 6.302-2, subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition. _____________________________________________ Acting Head of Contracting ActivityDate Office of Acquisition Operations
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(https://www.fbo.gov/spg/VA/AFMLOVASS/VASSMD/VA119A16R0180/listing.html)
Document(s): Justification and Approval (J&A); File Name: VA119A-16-D-0059 VA119A-16-D-0059_1.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2856422&FileName=VA119A-16-D-0059-000.docx); Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2856422&FileName=VA119A-16-D-0059-000.docx; Note: If links are broken, refer to Point of Contact above or contact the FBO Help Desk at 877-472-3779.
Record: SN04174928-W 20160709/160707235827-c594fa6643fc30166c704e46e68235bf (fbodaily.com)
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Q -- Justification and Approval for Sole Source Contract Award Due to Unusual and Compelling Urgency FY16 Sole Source Bridge Contract | Medical Disability Exams (MDE) under P.L. 104-275 | QTC Medical Services, Inc. - Justification and Approval (J&A)