HEALTH AFFAIRS

1. TRICARE Management Activity HEALTH AFFAIRS Competition in Contracting

2. Agenda • Competition Statutes • Federal Acquisition Regulations • Competitive Procedures • TMA Approach to Competition • Exceptions to Competition • Summary Points

3. Competition in Contracting The Competition in Contracting Act of 1984 (CICA) (Public Law 98-169, § 2701)(10 USC §2304, 41 USC § 471 et seq. and 41 USC §251 et seq.) • Competition shall be used if the goods/services required can be provided by the private sector • Seven exceptions to the requirement for competition with specific approval levels for authorizing those exceptions • Socio-economic considerations must be part of the acquisition planning process • Procurements must be publicized for specific timeframes to ensure prospective offerors have time to respond • Role of Agency Competition Advocate was established to oversee the implementation of CICA in each agency

4. Other Competition Statutes • Federal Acquisition Streamlining Act (FASA) of 1994 • Emphasized purchase of commercial items • Streamlined procedures under Simplified Acquisition Procedures • Implemented Government-wide electronic commerce system • Established uniformity in Federal procurement systems • Improved protest and oversight procedures • Authorized specific pilot programs • Federal Acquisition Reform Act (FARA) of 1995 renamed the Clinger-Cohen Act of 1996 • Changed minimum dollar values for posting procurement announcements • Changed competition approval levels • Implemented Competitive Range determinations • Established preaward debriefing procedures • Established Design Build selection procedures

5. Federal Acquisition Regulation (FAR) FAR Part 8 Unique Requirements for GSA Orders FAR Parts 12, 14, & 15 Unique Requirements for Commercial Items, Sealed Bids and Negotiated Procurements FAR Part 6 Competition Requirements FAR Part 13 Unique Requirements for Simplified Acquisitions (Under $100K) FAR Part 16 Unique Requirements for Task/Delivery Orders on Multiple Award Vehicles The FAR sets forth the policy and process requirements of CICA, FASA, and FARA

6. Fair Opportunity FAR Part 16 (Part 8 for GSA Procurements) All contractors who hold ordering contracts under a multiple award vehicle are given equal opportunity to compete for task/delivery order requirements Fair Opportunities can also be limited for socio-economic reasons Full & Open FAR Part 6 All interested, eligible parties are given equal opportunity to compete Full & Open After the Exclusion of Sources Set-Asides for Socio-economic conditions Establish/Maintain Alternative Sources Set-Asides for Local Firms During Emergencies Two Types of Competition We will take a closer look at these two types of competition

7. Full & Open Competition • “Exclusion of Sources” - Sources may be excluded from a competition in order to establish or maintain alternative sources, provide for socio-economic opportunities, or set-aside actions for local firms during a major disaster or emergency. • Exclusions require a formal Determination and Findings (D&F)

8. Fair Opportunity • Contracting Officer has broad authority to develop procedures for implementing fair opportunity • TMA has collaborated with the US Army Medical Research Acquisition Activity (USAMRAA) to maximize the use of this streamlined competitive approach • In the past, awards under Fair Opportunity could not be protested • The Accountability in Contracting Act of 2008 allows for protests for any Fair Opportunity order over $10M

9. DoD & Fair Opportunity There are specific DoD regulations for Fair Opportunity competitions: • The DoD Federal Acquisition Regulation Supplement (DFARS) directs procedures for conducting “Fair Opportunity” (DFARS 216.505-70) • Whenever DoD funds are used • Regardless of what contracting agency is used • All Orders shall be placed on a competitive basis unless the Contracting Officer waives this requirement on the basis of a written determination • The Contracting Officer must provide fair notice of the intent to make a fair opportunity purchase to all contractors under the multiple award • For a DoD Order placed against General Services Administration (GSA) Federal Supply Schedule (FSS) contracts the Contracting Officer may: • Provide fair notice to as many sources as practicable to reasonably expect at least three sources will submit proposals • Contracting Officers use the GSA E-buy portal to identify sources

10. TMA Approach to Competition The majority of TMA requirements will be competed under Fair Opportunity procedures because TMA and USAMRAA have collaborated to establish the following enterprise-level Multiple Award Contracts: • OCI Category 1: TRICARE Acquisition, Automation and Resource Management Support (T/AARMS) • OCI Category 2: TRICARE Evaluation, Analysis, and Management Support (TEAMS) • OCI Category 3: DoD/Systems Integration, Design, Development, Operations and Maintenance Services (D/SIDDOMS 3)

11. TMA Approach to Competition • TMA seeks to maximize competition to the greatest extent possible through the use of Full and Open competition and Fair Opportunity procedures as appropriate for the requirement • The use of Multiple Award Contracts both streamlines the acquisition process and maximizes competition through Fair Opportunity procedures • Exceptions to Fair Opportunity procedures may be implemented on a case by case basis • Proposed exceptions to Full and Open competition and Fair Opportunity must be coordinated with your AM&S COD-FC Acquisition Manager TMA seeks to maximize competition to the greatest extent possible

12. Exceptions to Fair Opportunity Authorized by FAR 16.505 (b)(2): • Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. (i.e. software) • The order must be issued on a sole-source basis in the interest of economy and efficiency as 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. • It is necessary to place an order to satisfy a minimum guarantee. • The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays; Most Common to TMA Requirements There are also exceptions to Full & Open Competition

13. Exceptions to Full & Open Competition “Other Than Full & Open Competition” – An exception may be authorized if one of the following apply: • Only one responsible source and no other supplies or services will satisfy agency requirements • Unusual and compelling urgency • Industrial mobilization; engineering, developmental, or research capability; or expert services • Ex. Keep a vaccine production facility operational • International agreement • Ex. NATO Cooperative Projects • Authorized or required by statute • Ex. Congressional earmark • National security • Public interest

14. Documenting Exceptions • Exceptions to both Full & Open Competition and Fair Opportunity must be documented and approved • Preferred format is a “Justification and Approval” or J&A • Prepared by Requiring Activity • Coordinated with Acquisition Manager • Approved by Contracting Officer Chain of Command • Authority varies based on the value of the acquisition • All J&As require legal review • Army Contracting Activity Approval Authority Thresholds: Value ≤ $550,000  Contracting Officer $11.5M ≥ Value > $550,000  Special Competition Advocate (SCA) $78.5M ≥ Value > $11.5M  Head of the Contracting Activity (HCA) Value > $78.5M  Senior Procurement Executive (SPE) - ASA(ALT) J&A Template

15. Summary Points • Promoting and providing for competition in Federal Contracts is required by U.S. Law • Two Types of Competition • Full and Open Competition • Fair Opportunity • A majority of TMA requirements will be acquired via Fair Opportunity under one of the TMA/USAMRAA Multiple Award Contracts • All Exceptions to Competition (Full and Open or Fair Opportunity) must be fully justified and documented

16. Summary Points • Contact your AM&S COD-FC Acquisition Manager or Contracting Officer regarding competitive procedures early in the acquisition planning process • The Contracting Officer is responsible for determining the final competitive strategy for a procurement • Competition in contracting benefits the Government through • Cost Savings • Higher Quality • Better Service • Enhanced Solutions

17. Questions?