Sources Sought Notice: Contract Support Costs – CDA Claims Analysis Services

MARKET RESEARCH PURPOSES ONLY NOT A REQUEST FOR QUOTE, PROPOSAL OR SOLICITATION The Indian Health Service (IHS) is conducting market research to support the Office of Direct Service and Contracting Tribes to obtain expert consultation services. This is a Sources Sought notice to determine the availability of small businesses (inclusive of VOSB, SDVOSB, HUBZone SB, SDB, WOSB, LB), and Indian Economic Enterprises (IEE) and Indian Small Business Economic Enterprises (ISBEE) capable of supplying the required solution and support services. This notice is for planning purposes only, and does not constitute an invitation for Bids, Request for Proposal or Request for Quotation or an indication the Government to award a contract, nor does the Government intend to pay for any information submitted as a result of this notice. Your responses to the information requested will assist the Government in determining the appropriate acquisition method, including whether a set-aside is possible. I. Background: The Indian Health Service (IHS) offers health care services to approximately 2.6 million American Indians and Alaska Natives through a network of over 632 hospitals, clinics, and health stations on or near Indian reservations. Facilities are predominantly located in rural primary care settings and are managed by IHS, Tribal, and Urban Indian health programs. The IHS provides a wide range of clinical, public health and community services primarily to members of 576 federally recognized Tribes. Through the Self Determination and Education Assistance Act (ISDEAA), Public Law 93-638, as amended, codified at 25 United States Code (U.S.C.) Section (§) 5301 et seq., Tribes and tribal organizations (T/TO) may choose to exercise their self-determination and take on full or partial funding, control, and accountability for those programs, services, functions, and activities (PSFAs), or portions thereof, that the T/TO chooses to assume. The ISDEAA provides that T/TO receive not less than the amount of funding that the Secretary would have otherwise provided for the direct operation of the program for the period covered by the contract or compact (otherwise known as the “Secretarial amount”). The 1988 amendments to the ISDEAA authorized Contract Support Costs (CSC) be paid in addition to the Secretarial amount. The IHS Indian Health Manual (IHM) Chapter 3, Part 6, provides instructional guidance on the 1) determination of amounts of pre-award, startup, direct, and indirect CSC funding; 2) payment of CSC funding to awardees; 3) reconciliation of CSC payments to awardees; and 4) reporting by IHS to all Tribes and to Congress. The Contract Disputes Act (CDA) at 41 U.S.C. §7101-7109 is applicable to ISDEAA contracts, 25 U.S.C. § 5331 (a) and (d), and a T/TO can submit a CDA claim to the Awarding Official of the Agency related to the contract for a decision. Since FY 2013, the IHS has been analyzing claims for shortfalls of CSC for litigation and settlement of CDA claims. II. Capabilities Sought: The Indian Health Service is seeking potential sources with the capabilities to provide the following: Expert consultation services on ISDEAA negotiations (including calculating and reconciling Contract Support Costs [CSC]), Contract Disputes Act [CDA] claims analysis, financial analysis and development of oversight mechanisms and tools in support of current and anticipated litigation arising from various CSC/CDA claims received from Tribes. Expert support to develop any needed modifications to Agency CSC calculation materials. The Agency currently receives an average of over 60 CDA claims per year to be analyzed for cost analysis submitted by a limited portion of T/TO who could potentially submit claims. The Agency may see an influx in claims and ISDEAA negotiations proposals/final offers in future years, subject to current litigation, and is need of contractor support to analyze this workload. Specific expertise with a thorough understanding of ISDEAA, CSC and CDA claims analysis include comprehensive expert knowledge of secretarial versus non-secretarial amount funding, pre-award costs, startup costs, direct and indirect CSC funding. Expert knowledge and detailed understanding of the ISDEAA, CSC, as defined in 25 U.S.C. § 5325(a)(2)-(3), CDA claims analysis, indirect cost rates allocation methodologies, and PSFAs are critical to support work that is required by the Agency. Anticipated Tasks Obtain Claims The contractor shall have the capability to obtain from the Government Project Officer all necessary claims (or proposals/final offers or claims subject to litigation) submitted to date, along with supporting documentation maintained by IHS. After a brief review of the claims information, the contractor shall meet with IHS representatives (PO/COR): To clarify further understandings of the population of claims submitted to date and anticipated. To understand any background CDA claims analysis work that has been done to date with submitted claims, and understanding as to what has been communicated to the Tribes. To understand the location and accessibility of supporting documentation maintained by IHS. To ask any clarifying questions regarding current claims submitted and status of any litigation activities. Claims Review B.1 Based on a review of available claims previously submitted to IHS, the contractor shall have the capability to identify the type, claim methodology used, and any documentation provided or needed to support the claim. The contractor shall have the capability to obtain claims and review each claim in detail to specifically analyze: Whether claims were accurately prepared by the T/TO or if additional information is needed to complete the claims analysis. Whether claims recognize actual costs incurred based on Agency policy. Whether Tribes are using Negotiated Indirect Cost Rate Agreements (NICRAs) as support for claims on indirect costs for non-secretarial program income amounts, including the appropriate NICRA. B.2 Shall have the capability to organize claims by established methodology used to prepare claim amounts. Additionally, identify those claims that include additional claim elements, such as expectancy damages and to note whether documentation exists, and if claims appear to be using a consistent methodology. B.3 Shall have the capability to recommends on methodologies to be applied for the evaluation each claim. Based on the review of claims submitted to IHS and the available supporting documentation, recommend and develop a methodology to evaluate each claim group/type/cost element. The methodology shall include gathering the applicable documentation already maintained by the government, including an understanding of work performed by Department of Interior (DOI) National Business Center (NBC) in obtaining and evaluating Tribes OMB Circular A-133 Single Audit reports, indirect cost rate proposals, and any negotiated indirect cost rate agreements. Ultimately, the objective will be to identify those additional documents needed from each tribe to support its claim(s). These documents will vary by tribe. B.4 Shall have the capability to provide methodology and high-risk area documentation to IHS. From the Contractor's review of CDA claims, they shall have the capability to identify high-risk areas that pose the most challenges identified in those claims through reviewing the following elements: Documentation of actual costs incurred from the T/TO submitting claims. Reconciling costs incurred by Tribes to their audited financial statements, OMB A-133 Single Audit reports, incurred cost submissions and indirect cost rate proposals and any other pertinent information. Ensuring that proposed, budgeted and actual CSC (both Direct CSC (DCSC) and Indirect CSC) were not duplicative of the base Secretarial amount. Ensuring that DCSC have been treated appropriately in the development and application of the T/TO’s negotiated indirect cost rate. Ensuring that CSC calculations are consistent with the ISDEAA’s requirements, directives in case law, or any other applicable law as determined in discussion with the Agency. Support the agency in potential litigation settlement negotiations by preparing data analysis, reviewing proposals, and assisting the Agency in preparing and responding to offers. Process Document and Develop Evaluation Tools The contractor shall have the capability to apply lessons learned from on-going and prior CSC, CDA claims analysis, litigation, and negotiations to assess and document the end-to-end CSC and CDA claims business process. The end-to-end business process shall include, at a minimum, negotiations, payments, reconciliations, and closeout as well as resolving under and overpayments of CSC. A clearly defined and documented process is critical in identifying internal controls and control gaps needed for improving and enhancing the overall CSC business process to ensure consistency and compliance with laws and regulations. The contractor shall work with the PO/COR to develop process flows, document and streamline processes and develop evaluation tools to conduct ongoing monitoring and provide agency oversight to evaluate activities in compliance with agency policy. Tools shall be developed to: Assess Headquarter and Area Office business processes for quality improvement opportunities. Provide a CSC/CDA claims dashboard and activity tracker of claims analysis based on claims received, claims under review, claims rejected, claims in litigation or settlement and claims that have been closed. Develop a CSC/CDA claims analysis procedures document for use within the Agency. Document process control gaps. Develop corrective action plans for internal control weaknesses. Assist with Agency CSC improvement strategies that improves on the current CSC policy to enhance and strengthen CSC negotiations between the T/TO and Agency; In order to document the end-to-end business process, the contractor shall, at a minimum have the capability to: C.1 Conduct a walkthrough and evaluation of the CSC business processes by reviewing current policies and procedures and conducting interviews with relevant CSC subject matter experts to identify, assess and document the internal controls and control gaps. C.2 Develop a CSC business process matrix and narrative document that outlines the end–to-end CSC business process, including flow charts of the CSC business processes and sub-processes, internal controls, and identify potential risk areas for compliance with laws and regulations. C.3 Provide recommendations and tools for CSC staff to periodically assess internal controls within the CSC business process to ensure compliance and consistency with laws and regulations. C.4 Assist in the development of CSC training tools to ensure that Agency Lead Negotiators and CSC analysts are familiar with any methodology tools and resources to calculate CSC. C.5 Assist the CSC staff in recommended revisions to current CSC templates and instructions for negotiations, reconciliations and close out based using lessons learned from CSC claims analysis and walkthrough/evaluation work described above. C.6 5 Work with CSC staff to develop a quality assurance and improvement process that ensures CSC negotiations, reconciliations, and closeout activities are consistent with IHS CSC Policy. IV. Capability Statements: Responses to this sources sought shall unequivocally demonstrate the respondent's capabilities to provide the services above. At a minimum, responses shall include the following: 1. Cover Page: Business name and bio, UEI number, business address, business website, business size status (i.e., SB, VOSB, SDVOSB, HUBZone SB, SDB, WOSB, LB IEE, or ISBEE), point of contact name, mailing address (if different from business address), phone number and email address. Provide this same information again if responding to provide a service offered by another firm. 2. Relevant Past Performance information inclusive of date of services, description, dollar value, client name, client address, client contact name, client point of contact mailing address (if different from that provided for client), client point of contact phone number, client point of contact email address, and name of company (to include UEI number and size status) if not the respondent. 3. Descriptive literature, brochures, marketing material, etc. detailing the capabilities of the firm and their relevance to those sought so that the Government may make a determination that the firm is potentially capable if a future solicitation is released. This response should verify that the respondent contractor does not have a current or potential conflict of interest related to the anticipated work to be performed. 4. Staffing and Management Capabilities shall detail the respondent's ability to have all necessary staff available to perform the function and support roles requested above and should highlight the firm’s ability to work with Government staff during projects and internal controls available. Of particular importance under this notice, to be considered as potentially capable, respondents shall demonstrate they have the staffing capabilities with prior expert level experience and understanding of ISDEAA, CSC, and CDA claims analysis. V. Response Instructions: Interested parties shall respond with capability statements; no larger than 10 pages (not inclusive of the cover letter) via e-mail in PDF or Word format before 4:00 PM Eastern Time on April 4th, 2024 to [email protected]. In your response, please use "IHS-24-SS-1492384”- followed by your organizations name as the subject line. Disclaimer and Important Notes: This notice does not obligate the Government to award a contract or otherwise pay for the information provided in response. The Government reserves the right to use information provided by respondents for any purpose deemed necessary and legally appropriate. Any organization responding to this notice should ensure that its response is complete and sufficiently detailed to allow the Government to determine the organization's qualifications to perform the work. Respondents are advised that the Government is under no obligation to acknowledge receipt of the information received or provide feedback to respondents with respect to any information submitted. After a review of the responses received, a pre‐solicitation synopsis and solicitation may be published in Federal Business Opportunities. However, responses to this notice will not be considered adequate responses to a solicitation. Confidentiality: No proprietary, classified, confidential, or sensitive information should be included in your response. The Government reserves the right to use any non‐proprietary technical information in any resultant solicitation(s).