Financial Operations Directorate- Planning, Programming, Budgeting, and Execution with Accounting Transition Support

Title:Financial Operations Directorate- Planning, Programming, Budgeting, and Execution with Accounting Transition SupportJ&A Number:JA-23-01251. Identification of the agency and contracting activity:Professional Services Contracting DivisionThe Defense Health Agency Contracting Activity (DHACA) plans to award a single contract to Intrepid L.L.C. of Huntsville, Alabama for the Financial Operations Directorate (J8), Financial OperationsDivision (FOD), Direct Care Financial Management (DCFM) and activities, and Defense Health Program (DHP) Financial Reporting and Compliance (FR&C) Division.2. Nature and/or Description of Action being Approved:new contractIndividualThis Individual Justification is submitted to establish a new Firm-Fixed Price contract to Intrepid L.L.C., 990 Explorer BLVD. NW, Huntsville, AL 35806, CAGE code 1VDA4 for its professional HeathAffairs (HA) Governance Optimization, Business Transformation, and Financial Modernization support on behalf of the DHA FOD and all

subordinate activities which make up the Military HealthSystem (MHS) Enterprise, and Assistant Secretary of Defense (ASD) HA. The MHS is undergoing a major transformation, mandated under Section 702 of the Fiscal Year 2017 National DefenseAuthorization Act (NDAA). These changes require the MHS to undergo an organizational restructuring, whereby the DHA will assume administrative responsibilities for all Military TreatmentFacilities (MTFs) to include: all budgetary matters, information technology, health administration/ management, administrative policy/ procedure, military medical construction, and other mattersthe Secretary of Defense (SECDEF) deems appropriate. However, DHA's internal staffing posture is strained against an increased mission responsibility due to the congressional requirements,mandates, and the constant state of re-organization the Agency has endured over the past 10 years.Given the scale and scope of the transformation, support is required to develop, streamline, and enhance policies and governance models to achieve standardized results across the enterprise. Torealize these responsibilities, HA and FOD must leverage the capabilities of both Government personnel and Contractor support, in collaboration with MHS stakeholders and service partners, actingin support of the DHA enterprise to analyze, develop and/or update policy and guidance that impacts the overall execution of DHA business processes and system standardization requirements.3. Description of Supplies/ Services:Description of Supplies/Services required to meet the agency's needs:The Contractor shall provide all personnel and non-personal services necessary to enhance the governance reforms and modernization efforts of the MHS transformation.The Contractor will continue to leverage industry best practices and technology to support the on-going transformation of the MHS.The Contractor will aid the leadership of DHA FOD and HA by improving operational and financial efficiencies across the enterprise.The Contractor will enhance data reporting capabilities and key performance metrics to institutionalize efficient and effective execution of resources, which will lead to standardized andstreamlined lower costs and improved patient outcomes.The Contractor will strengthen the leadership and workforce of the MHS by enhancing training programs.The Contractor will improve HA oversight, program engagement, medical readiness and deployment, budget spend and optimization through employment of strategic communicationstrategies.The projected contract periods, amounts and funding profile are as follows:Contract PeriodPeriod of PerformanceAmountFundingContract TypeBase Year (12 months)15 April 2023 – 14 April 2024FY 23 O&MFirm Fixed Price52.217-8 Extension (6 months)15 April 2024-14 October 2024FY 24 O&MFirm Fixed PriceGrand TotalTOTAL Contract ValuePOP: From4/15/2023to4/14/2024Estimated ValueBASEPOP: From4/15/2023to4/14/2024Estimated ValueType of Contract (Primary):FAR 16.202 Firm-Fixed-PriceOptions:NoNumber of Options:POP (All options): FromtoEstimated Value (all options):Funding Type:Operations & Maintenance (O&M)Extension of Services:YesClause: 52.217-8 Estimated Value:Number of Months:64. Statutory and Regulatory Authority Permitting Other Than Full and Open Competition (see FAR 6.302), or the Specification of the Statutory and Regulatory Provision ProvidingException to 8(a) Program Competitive Requirements (see FAR 19.805-1):10 U.S.C. 2304(c)(1) 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency RequirementsIntrepid is the only responsible source that can continue to execute the required work on this effort without a break in service, loss of efficiency, and without duplication of effort or increased cost to the Government. The complexity of this effort and short period of performance anticipated do not warrant the time and expense required to mobilize a new Contractor to continue these services to another vendor. Consequently, a break in service or inadequate time for a new Contractor to fully transition, will result in serious disruption to mission-critical services for Technical Support to the General Fund Enterprise Business System (GFEBS) which would be detrimental to DHA's Air Force migration mission. Additionally, allowing Team Intrepid to continue the services above will allow sufficient time for the FOD to re-scope its requirements to financial operational support and research potential sources with the full intent of utilizing competition to the maximum extent possible.5. Rationale Justifying Use of the Statutory Authority Cited:6. Efforts to Obtain Competition:The overall period of performance of this contemplated contract of twelve months will be sufficient for the DHA FOD to re-scope its requirements down to financial operational support services andwill perform Market Research to find other potential sources. With this new de-scoped requirement, the chance for more potential sources expands and competition will be sought to the maximumextent practicable.7. Determination that Anticipated Cost to the Government will be Fair and Reasonable:Rates proposed under this award will be reviewed and negotiated using historical data as well as conducting research on websites such as Glassdoor.com, Indeed.com, and Salary.com to determineoverall price fairness and reasonableness. Additionally, the Contract Specialist will review the Contractor's indirect cost accounting pools and receive additional supporting information if theproposed rates are discrepant from the Market Research results.8. Market Research:Market Research Conducted?YesWhen was it conducted?3/20/2023to3/29/2023Description:Market Research was conducted in March 2023. The findings from this process were that the current requirement is built upon previous work performed by Intrepid and would be too complex andunique for any new Contractor to take on. The current strategic initiatives that Intrepid has been working over the past 6 years need to be executed during the performance of this final contract. Concurrently with the performance of this contract, the DHA FOD will de-scope its requirements to straight financial operational support which will grow the potential for more available sourcesand ultimately maximize competition.9. Other Facts:This award is required to perform immediate and continuing needs in support of the Innovation support and the E-governance implementation efforts in support of The MHS Consolidation andTransition, The NDAA 2017 Section 703 and the civilian workforce ramp-up. Additionally, it will ensure DHA's mission is not put at risk due to a gap in service, support, and expertise. It will alsoensure that DHA remains compliant with initiatives such as the agency financial audit.10. Interested Sources:Not Applicable.11. Actions to overcome barriers:During the performance of this contemplated contract, the requirements will be de-scoped down to financial operational support, which would greatly enhance the likelihood for other potentialsource.Market Research will be conducted to verify other sources exist and maximum competition