The Department of Veterans Affairs (VA), Office of Acquisition & Logistics, Center for Acquisition Innovation (Austin, TX) intends to modify Contract V797(049A3G)P-096 awarded to Plexis Healthcare Systems, Inc., located at 385 Williamson Way, Ashland, OR 97520 to acquire an additional 12-month license, maintenance and professional services associated with Plexis healthcare claims processing software. Specifically, the proposed modification, to be acquired on a non-competitive basis, will satisfy the need of the VA Financial Service Center (VA-FSC), located at 1615 Woodward Street, Austin, TX for licenses, maintenance, and manufacturer updates for the Plexis Claims Manager software currently in use for the period of November 1, 2008 to October 31, 2009. The North American Industry Classification System (NAICS) code for the requirement is 541511. VAs existing contract with Plexis is firm fixed price. Pursuant to Federal Acquisition Regulation (FAR) 6.302-1, Plexis Healthcare Systems, Inc. is the only known source that can satisfy the requirement described herein. Included with this announcement in accordance with FAR 11.5 is the Justification and Approval document supporting the non-competitive contract action. This notice of intent is not a request for proposal. Interested parties that believe they can meet the requirements described herein must furnish information about their capabilities to the Contracting Officer, along with supporting evidence to the Contract Specialist no later than 12:00PM (Central Time), August 29, 2008. All information shall be furnished at no cost or obligation to the Government. A determination by the Government not to compete this proposed contract based upon responses to this notice is solely within the discretion of the Government. Telephone or faxed inquired will not be accepted. Point of Contact: Richard J. Furlong, Contract Specialist E-mail:
[email protected] Contracting Office Address: Department of Veterans Affairs; Center for Acquisition Innovation, 1701 Directors Blvd, Suite #810, Austin, TX 78744-1019 Federal Acquisition Regulation (FAR) 8.405-6 Limited Source Justification for Software Maintenance and Professional Services Associated with Health Care Claims Processing Name Brand Justification (i) Identification of the Agency and the Contracting Activity: This procurement is in support of the Department of Veterans Affairs, Financial Service Center (VA-FSC), located at 1615 Woodward Street, Austin TX 78772. The Contracting Activity processing the requirement is the Office of Acquisition & Logistics, Center for Acquisition Innovation (Austin), located at 1701 Directors Blvd. Suite 810, Austin TX 78744. (ii) Nature and/or Description of the Action Being Approved: This is a Name Brand Justification for VA to pursue an award for information technology (IT) software maintenance in support of the VA-FSC. Specifically, the purpose of this acquisition is to extend Contract V797(049A3G)P-096 for twelve months to provide software maintenance to facilitate medical claims adjudications and payments. Award of a Firm, Fixed-Price (FFP) contract is anticipated to one vendor. This software is required to successfully support critical FSC IT operations and initiatives, specifically health care claims processing for other VA offices and Other Government Agencies (OGAs). The sole-source vendor authorized to sell the required Plexis software is Plexis Healthcare Systems, Inc., located at 385 Williamson Way, Ashland, OR 97520. (iii) Description of the Supplies or Services Required to Meet the Agencys Needs (Including the Estimated Value): Over the past year, VA-FSC has increased its OGA customer base for medical claims processing services. Currently, the primary customer for the FSCs Health Care Claims Processing team is Division of Immigrant Health Services (DIHS). DIHS has an agreement with VA-FSC to accurately process and submit medical claims for detained illegal immigrants. As Department of Homeland Security, Immigration and Customs Enforcement agents and Customs and Border Protection inspectors have increased apprehension of illegal immigrants, the number of medical claims has increased to an unanticipated volume. In the upcoming fiscal year, the FSC will be providing support to Veterans Health Administration for Project Hero and Millennium Bill projects. On-going software maintenance is necessary to provide any manufacturer updates and problem resolution for the licenses. The Plexis Claims Manager software utilized by the VA-FSC is issued by the vendor on a term basis. Without annual maintenance and support by the vendor, VA-FSC is not authorized to continue usage of the software. The requested extension of the current contract for the period November 2008 October 2009 is $34,716. (iv) Identification of the Statutory Authority Permitting Other Than Full and Open Competition: 10 U.S.C. 2304(c)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. (v) Demonstration that the Proposed Contractors Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited: The VA-FSC currently utilizes Plexis Claims Manager software to support existing healthcare claims processing customers. Plexis Healthcare Systems, Inc. is the only provider authorized to sell and maintain these licenses. The VA-FSC will pursue acquiring a new medical claims processing and adjudication software in FY09, as Plexis Claims Manager software cannot process the significant increases in medical claims anticipated with the continued roll-out of VHA Project Hero and Mill Bill. At this time however, it would not be cost-effective at this time to fully migrate to a new product. The VA-FSC has invested approximately $378,000 to date on Plexis software and services. In order to maintain the required medical services required by DIHS and VHA, the government must ensure health care providers are paid in a timely manner. The software and services associated with Plexis are a critical element of the overall healthcare process. Specifically, a break in DIHS ability to provide healthcare to detainees for any reason, including administrative, could have disastrous consequences to the individuals in custody and could lead to a public relations catastrophe for the Government. (vi) 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: This Named Brand Justification & Approval Document will be published in the Federal Business Opportunities system in accordance with FAR 11.105 (a)(3). (vii) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: A fair and reasonable price to the Government will be established by the comparison of prices to the current contract, which was established in response to solicitation 797-04-07. Software and maintenance pricing has increased less than 5% annually, since the original software purchase in 2003. Professional services rates have remained stagnant over the 5 year period of performance. (viii) A Description of the Market Research Conducted (See Part 10) and the Results or a Statement of the Reason Market Research was not Conducted: To maintain consistency with existing applications and users, the most cost-effective method of medical claims adjudication and processing is to continue to use Plexis Claims Manager software. The FSC provides full lifecycle services from the time a claim reaches the FSC throughout the generation of the payment to the provider of medical services. Due to scalability issues identified with Plexis Claims Manager software, the FSC is pursuing a separate procurement to potentially replace Plexis during FY09. However, as we transition to a new product, we have a continuing need to support our current customers. No vendor other than the manufacturer, Plexis Healthcare Systems is authorized to sell this software. (ix) Any Other Facts Supporting the Use of Other than Full and Open Competition: The cost associated with implementing new software would exceed $4 million. This expenditure is not in the best interest of the VA-FSC or its customers at this time. Over the past five fiscal years, the VA-FSC has purchased approximately $328,000 in Plexis licenses, maintenance and support services. Transition to a new claims management software package is anticipated in FY09. Continued use of the current solution, Plexis Claims Manager, is required during the acquisition and transition to a more robust solution. (x) Listing of the Sources, if any, that Expressed, in Writing, an Interest in the Acquisition: None. (xi) 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: In accordance with FAR 11.105(a)(3), this Justification & Approval document will be published in the Federal Business Opportunities system. The FSC will solicit competitive proposals for a replacement medical claims management software package through the NASA Solutions for Enterprise Wide Procurement (SEWP) IV contract vehicle for Information Technology products and services. SEWP is the preferred procurement vehicle for VA IT purchases. During the procurement and transition to a replacement software package, the FSC requires a one-year extension of software maintenance through Plexis. Without the additional services and maintenance extension, the FSC would be at risk of software failure and inability to continue to process the medical claims submitted for payment. In that the software is on a term-license basis, the FSC would not be authorized to continue using Plexis Claims Manager without the maintenance extension. (xii) Contracting Officer Certification that the Justification is Accurate and Complete to the Best of the Contracting Officers Knowledge and Belief: I certify this justification is accurate and complete to the best of my knowledge and belief. (xiii) Evidence that any Supporting Data that is the Responsibility of Technical or Requirements Personnel (e.g., Verifying the Government's Minimum Needs or Requirements or Other Rationale for Limited Sources) and which Form a Basis for the Justification have been Certified as Complete and Accurate by the Technical or Requirements Personnel: The representative from the Requiring Office has certified that the supporting information under his/her cognizance, which is included in this Limited Source Justification, is accurate and complete to the best of his/her knowledge and belief.