R--Veteran Education Claims Processing

JUSTIFICATION AND APPROVALTO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION 1. Identification of Agency and Contracting Activity. This Justification and Approval (J&A) for Other Than Full and Open Competition is executed by the CAI Frederick, Frederick, MD, on behalf of the Department of Veterans Affairs (VA), Veterans Benefits Administration (VBA). 2. Nature/Description of Action. This activity proposes to negotiate a limited source firm fixed price award based on the Unusual and Compelling Urgency for the procurement of temporary services to assist in the processing of Veteran Educational claims for Montgomery GI Bill benefits for the next 90 days. 3. Description of Supplies/Services. On June 30, 2008, Congress passed a law to create the Post-9/11 GI Bill, a new VA education benefit program for individuals who have served on active duty after September 10, 2001. This complex new benefit program differs greatly from existing education benefits VA currently pays. The Post-9/11 GI Bill consists of up to five different payments per beneficiary. Each of these payments may vary between individuals, and are pro-rated based upon the individual's length of service. Also, payments are made to both the student's school and the student. This is a drastic contrast from current benefits, which primarily pay a set rate based upon length of service, and pay directly to the beneficiary. Existing VA systems are unable to accommodate the multiple payments to multiple entities required under the Post-9/11 GI Bill. As a result, VA was required to develop a solution for processing and paying benefits under this new program. VA internal resources were combined to develop a computer-assisted manual solution that could process and pay benefits by the Congressionally-mandated date of August 1, 2009. Simultaneously, VA began work with the Space and Naval Warfare Command to develop a highly-automated claims processing system to be deployed in December 2010. Until deployment of the long term solution, VA is relying upon the computer-assisted manual process. VA began to accept applications for the Post-9/11 GI Bill on May 1, 2009. In response to this, VA's workload grew substantially. Claims processing using the computer-assisted manual solution require considerable time and a significant amount of training, and as a result VA's efficiency in claims processing has decreased. Additionally, VA had anticipated a decrease in usage of the other programs following Post-9/11 GI Bill implementation. However, use of other benefit programs has remained similar to past years, despite the increase in beneficiaries under the Post-9/11 GI Bill. VA began to accept enrollment certifications from schools on July 6, 2009, and paid the first benefit checks under the Post-9/11 GI Bill on August 3, 2009. Due to the tremendous response to the program, consistent use of other benefits, and slow manual processing procedures, VA's pending claims workload has continued to grow to over 100,000 claims, and many beneficiaries currently attending school are still awaiting payment. In order to resolve this situation, VA seeks contractor support to evaluate and make recommendations on pending supplemental claims for the Montgomery GI Bill. The Montgomery GI Bill claims are not as complex and will allow for a rapid response with Government supported training. The contractor will need to provide the facilities and all necessary supplies and equipment needed to process the claims. The VA will provide trainers to assist with the processing of the claims and will retain the final approval authority for any claim processed by the contractor. The nature of this requirement requires that the contractor have a secure facility or facilities and maintain an IT security infrastructure that meets the Governments standard. The estimated total value of this 3 month requirement is $532,847.60 4. Identification of Statutory Authority. The statutory exception permitting other than full and open competition for this acquisition is 41 U.S.C. 253(c)(2) Unusual and Compelling Urgency as implemented by FAR 6.302-2. 5. Demonstration of Contractor's Unique Qualifications. A Request for Proposal will be provided to four contractors that currently provide data call center services to the State Department and Department of Transportation. The fact that these contractors currently have secure facilities and personnel with background clearance investigations will allow for claim processing services to begin within 5 days after award. 6. Description of efforts made to ensure offers are solicited from as many potential sources as practicable. This acquisition will not be synopsized in the Federal Business Opportunity System pursuant to the exception granted at FAR 5.202(2). Market research was conducted and a Request for Proposal will be issued to several vendors with similar experience in government data claim processing to provide for a competitive award. Future requirements will be considered for competitive awards. 7. Determination of Fair and Reasonable Prices. No award shall be made until the Contracting Officer determines the costs to the Government to be fair and reasonable. This determination will be based on a comparison of the Independent Government Cost Estimate and proposals received from solicited vendors. 8. Description of Market Survey. Market research was conducted and several government contractors have been identified that have secure data processing centers and qualified personnel in place. These vendors are the only sources available that can meet the immediate needs of the VA due to the sensitivity of the privacy information that is involved, the volume of claims to be processed, and the short amount of time available to complete performance before undo harm occurs. 9. Other facts supporting the use of other than full and open competition. The Department of Veteran Affairs is currently delinquent in processing Veteran Educational Benefits. These defaults are causing economic hardship for the Veteran community and could result in the cancellation of their enrollment and potential removal from these learning institutions. Montgomery GI Bill Educational Benefits are guaranteed by Statue and are the equivalent of a default by the United States Government. Over 100,000 educational claims of various types are currently in delinquent status. The Educational benefits were promised to our Activity Duty Military Personnel and Veterans for service provided to protect and serve our country. Untimely processing of these claims would result in financial harm to government personnel, veterans, and the higher learning institutions. 10. Listing of Interested Sources. Citibank N.A. 388 Greenwich Street New York, NY 10013 ACS Federal Solutions, LLC, 1800 M ST NW Suite 700S Washington, DC 20036-5807 Vangent Inc, 4250 N. Fairfax Drive Suite 1200 Arlington, VA 22203 Lockheed Martin 9221 Corporate BLVD Rockville, MD 20850-3245 11. Actions Taken to Remove Barriers to Competition. A long term technology contract has been awarded and a new automated process is expected to be delivered by December 2010. Additionally, long-term claim processing assistance will be evaluated and determined to be in compliance with Section 43 of the Office of Federal Procurement Policy Act before an acquisition solution would be executed.