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Extending Option Periods for healthcare services on behalf of USH Okinawa, Japan

General Information

Document Type:PRESOL
Posted Date:Aug 23, 2017
Category: Medical Services
Set Aside:N/A

Contracting Office Address

Department of the Navy, Bureau of Medicine and Surgery, Naval Medical Logistics Command, 693 Neiman Street, FT Detrick, Maryland, 21702-9203, United States


JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY 1. Identify the agency and contracting activity. This justification is executed by the Naval Medical Logistics Command, Fort Detrick, Maryland on behalf of United States Hospital Okinawa, Japan hereafter referred to as the medical treatment facility (MTF). 2. Nature/description of the action/contract type. The government intends to negotiate a logical follow-on task order with Vesa Health & Technology, Inc. for the existing Medical Administrative Support services currently being provided under the authority of the Small Business Administrations 8(a) program, and the Ability One Program, indefinite delivery contract N62645-16-D-5017, task order 0001. The current task order has a period of performance ending 31 August 2017. 3. Description of supplies/services. The follow-on task order will mirror the Medical Administrative Support services that Vesa Health & Technology, Inc. is currently providing. The follow-on task order will have a performance period of 01 September 2017 - 31 August 2018. The estimated value of this requirement is $1,946,563.00. 4. Identification of the exception to fair opportunity. Due to the nature of the acquisition for services currently being performed by Vesa Health & Technology, Inc. under the indefinite delivery contract, it is in the best interest of the Government to negotiate a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order in accordance with FAR 16.505(b)(2)(iii). Recompeting the services currently being filled would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Such costs include the time of technical and contracting personnel to review and evaluate the requirement, proposal, and task order; as well as the costs associated with the recruitment and hiring of personnel if a new contractor is chosen. The current services will be followed on with Vesa Health & Technology, Inc. based on there being no change in scope to the current requirement. 5. Determination by the ordering activity Contracting Officer that the anticipated cost to the Government will be fair and reasonable. The price under the current task order was determined to be fair and reasonable based on competition. In order to determine whether the contractors proposed price for the LFO is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed price against current market research information available. If the contractors proposed price appears to be questionable for reasonableness, justification for the proposed price from the contractor will be required. The Contracting Officer will determine the price to be fair and reasonable before awarding a new task order. 6. Any other facts supporting the justification. A comparison may be made between the Employment Cost Index from the Bureau of Labor Statistics and the price increase proposed for the LFO. A price increase not exceeding the current Employment Cost Index rate may indicate that the proposed price is fair and reasonable. Other current market conditions may be considered in the reasonableness determination. 7. Statement of actions to remove or overcome barriers that led to the exception to fair opportunity. At this time there are no actions being taken to remove or overcome barriers leading to the exception to fair opportunity stated in Paragraph 4. It is possible that option periods may be added to future competitive Task order requests for quotes (TORFQs) to allow contractors under the authority of the Small Business Administrations 8(a) program, and the Ability One Program to propose pricing and competitively be awarded a task order that would include services for the current and subsequent years of service. The use of Options for TOPRs would eliminate the need to issue logical follow-on task orders which require the use of the exception to fair opportunity.

Original Point of Contact

POC Yun P. Hong, Phone: 3016194162CNT N6264517F0475DTD 082217

Place of Performance

Link: FBO.gov Permalink
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