Comprehensive Medical Services USP Atwater

Justification for Other than Full and Open Competition (JOFOC)

USP Atwater

Pursuant to the Federal Acquisition Regulations (FAR) Subpart DEVIATION 6.103-1(b), the

Federal Bureau of Prisons (BOP) has determined the procurement of Comprehensive Medical

Services (CMS) for the United States Penitentiary (USP), (hereinafter referred to as

“institution”), located in Atwater, California, meets the criteria for other than full and open

competition. The agency has further determined that only one responsible source is capable of

providing these services, and that awarding the contract to this source is necessary to prevent

serious injury, financial loss, or other significant harm to the Government. This limitation on

competition is justified as follows:

1. FAR DEVIATION 6.104-1(a)(1): Identification of the agency and the contracting

activity, and specific identification of the document as a "Justification for other than

full and open competition.”

Agency: Department of Justice

Contracting Activity: Federal Bureau of Prisons

USP Atwater

1 Federal Way

Atwater, CA 95301

This document is a Justification for Other Than Full and Open Competition (JOFOC).

2. FAR DEVIATION 6.104-1(a)(2): Nature and/or description of the action being

approved.

This action seeks approval for the continuation of community and institution based

comprehensive medical services with Seven Corners. As the incumbent contractor, Seven

Corners has agreed to continue providing CMS at its prior Medicare benchmark rates

through monthly firm-fixed-unit-price purchase orders until a new CMS contract can be

competitively awarded. This interim acquisition is essential to maintain uninterrupted

medical services for the inmate population pending award of a new CMS contract.

The Field Acquisition Office (FAO) is currently evaluating proposals in pursuit of

awarding of a CMS contract. An indefinite delivery/requirements contract incorporating

Firm Fixed Unit Pricing is anticipated to be awarded. Upon award of the competitive

contract, further justification for other than full and open competition will no longer be

necessary.

3. FAR DEVIATION 6.104-1(a)(3): A description of the supplies or services required

to meet the agency’s needs (including the estimated value).

The institution’s mission includes providing comprehensive medical services to the

inmate population. In meeting the healthcare needs of the inmate population, The BOP

delivers essential medical, dental, and mental health care to Federal inmates. When a

medical need arises that cannot be provided by the institution medical staff, referrals are

made to community-based medical providers. Required services include inpatient and

outpatient facility and physician services, as well as outpatient institution services in

specialties such as ENT Specialist, General Surgeon, Neurologist, Ophthalmologist,

Orthopedic Surgeon, Psychiatrist, Urologist, Optometrist and Oral Surgeon.

Due to the urgent nature of healthcare delivery, any delay in contract award would disrupt

access to timely medical care and is incompatible with agency needs.

The proposed period of performance is December 1, 2025, through February 28, 2026,

with an estimated total cost of $611,897.82.

4. FAR DEVIATION 6.104-1(a)(4): An identification of the statutory authority

permitting other than full and open competition.

The authority for this action is granted under 41 U.S.C. § 3304(a)(1), as implemented by

FAR DEVIATION 6.103-1, allowing for award to “Only One Responsible Source” when

no other supplies or services meet the agency’s requirements. Specifically,

FAR DEVIATION 6.103-1(b) provides for the applicability of this authority in situations

“when the supplies or services required by the agency are available from only one

responsible source.”

5. FAR DEVIATION 6.104-1(a)(5): A demonstration that the proposed contractor’s

unique qualifications or the nature of the acquisition requires use of the authority

cited.

While the FAO is progressing towards the award of a CMS contract, uninterrupted

medical service delivery is critical. The immediate availability of community-based

healthcare services is crucial to prevent any disruption in delivery of necessary medical

services and to ensure the orderly operation of the institution. Transitioning to a new

third-party administrator typically requires a minimum 30-day service commencement

period for the provision of community-based services. Additionally, prior to

performance, a complete security clearance investigation package for each institutionbased

provider is required to be submitted within 30 calendar days from the effective date

of award of the contract and typically takes an additional 30 days to be processed.

Although market research has shown that comprehensive medical services are commonly

available in the commercial marketplace and has identified several vendors capable of

meeting the Government's needs, Seven Corners, as the incumbent, is the only provider

uniquely qualified to ensure seamless service delivery without any lapse in performance.

The Government has determined that it is in its best interest to continue utilizing the

services of Seven Corners, which is capable of providing the required medical services

without delay. Seven Corners’s established medical network ensures that the institution’s

healthcare needs are effectively met. Seven Corners has provided services to the

institution for over five years through an established network of local medical facilities

and physicians. Furthermore, Seven Corners continues to provide various onsite

outpatient services to address the Government's needs. All provider credentialing and

background clearances have already been completed.

To maintain continuity of medical care for the diverse inmate population, continuing

services with Seven Corners and its network of medical service providers is essential in

preventing delays and disruptions in the overall mission of providing both basic and

emergent medical care. Any interruption in services would result in significant harm to

the Government, adversely affecting patient care and causing operational disruptions for

the inmate population.

6. FAR DEVIATION 6.104-1(a)(6): A description of efforts made to ensure that offers

are solicited from as many potential sources as possible, including whether a notice

was or will be publicized as required by part 5 and, if not, which exception under

part 5 applies.

A notice will be publicized as required by part 5.

7. FAR DEVIATION 6.104-1(a)(7): A determination by the contracting officer that

the anticipated cost to the Government will be fair and reasonable.

Seven Corners has agreed to continue providing services at rates consistent with option

year four of contract 15B61819D00000001, which were established under competitive

conditions and deemed fair and reasonable per FAR 15.404-1(b)(1). The Contracting

Officer (CO) has analyzed the current market trend by comparing the option year four

rates against historical prices paid for the same services in accordance with FAR

DEVIATION 15.404-1(b)(2). Both the option year four rates and the historical prices

paid for the same services have been determined to be fair and reasonable. Continuing

services with Seven Corners during this interim period is in the Government’s best

interest.

8. FAR DEVIATION 6.104-1(a)(8): The market research conducted (see part 10) and

the results or a statement of the reason market research was not conducted.

Market research for the provision of CMS is ongoing and includes sources such as a

sources sought notice, SAM Small Business Search, Small Business Administration

Dynamic Small Business Search, and the Governmentwide Interagency Contract

Directory. This research confirms that vendors typically require a minimum of 60 days to

submit proposals, 30 days to begin community services, and 30-60 days for submission

and completion of security clearance investigations to provide onsite services. As stated

above, the immediate availability of community-based healthcare services is crucial to

prevent any disruption in accessing necessary medical services and to ensure the orderly

operation of the institution.

While market research has indicated that comprehensive medical services are commonly

available in the commercial marketplace and has identified several vendors capable of

meeting the Government's needs, Seven Corners, as the incumbent, is the only provider

able to ensure seamless service delivery without any lapse in performance.

9. FAR DEVIATION 6.104-1(a)(9): Any other facts supporting using other than full

and open competition.

No additional supporting facts are identified.

10. FAR DEVIATION 6.104-1(a)(10): A listing of the sources, if any, that expressed an

interest in the acquisition in writing.

No other sources with the ability to provide services immediately, with no lapse in

service, have expressed written interest in this acquisition.

11. FAR DEVIATION 6.104-1(a)(11): A 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.

This interim acquisition is necessary pending competitive award of a CMS contract. The

Field Acquisition Office is conducting the competition, anticipating award of an

indefinite delivery/requirements contract with Firm Fixed Unit Pricing.

The subsequent requirement has been publicly advertised via the Governmentwide point

of entry. Experience indicates that a single source provider is currently most beneficial to

the agency and inmate population. Once the new contract is competitively awarded,

justification for other than full and open competition will no longer be required.

To reduce future acquisition lead times and minimize the need for such justifications, the

FAO has implemented updated milestones and is providing ongoing training to the

program office.

12. FAR DEVIATION 6.104-1(a)(12): Contracting officer certification that the

justification is accurate and complete to the best of the contracting officer’s

knowledge and belief.

In accordance with FAR DEVIATION 6.104-1(a)(12, I hereby certify that this

justification is accurate and complete to the best of my knowledge and belief. I further

certify that this request is not the result of a lack of acquisition planning, or a desire to

expend funds while those funds are still available.