Contract Foundational Skills

As one of your first contract actions, you are assigned a requirements package to purchase fitness for duty medical assessments (also known as return to work examinations) for active duty service members at Robins Air Force Base in Warner Robins, GA. The requirements package contains the purchase request, performance work statement, market research results, and Independent Government Cost Estimate (IGCE). Read all documents provided in the requirements package; then, answer the following questions.

There are three Contracting Officers in your office. Jane Green has an unlimited warrant; Kevin Mitchell has a warrant of $1,000,000; and Molly Johnson has a warrant of $250,000. Which one(s) of the three could sign the proposed award? [HINT:See FAR 1.602-1(a)] (2 pts)

Problem 1. Explain how and why the estimated unit price of $2,125 for routine physical examinations was adjusted.

Problem 2. What was the first market research technique used, and what were the results?

Problem 3. What was the second market research technique used, and what were the results?

Problem 4. Does the market research report support full and open competition or a small business set-aside competition?

Problem 5. If the search for “fit for duty medical examinations South Georgia” had identified only large businesses, would that change the level of competition? If yes, how?

6. Now that the commerciality and level of competition has been determined for the acquisition, what is the next step in your acquisition process? [KK1] requirement for synopsizing this proposed contract action? [HINT: See FAR 5.201] Acquisition for Fitness for Duty
(Return to Work) Examinations
Requirements Package
PR2022-80-DAU386
LETTER TO Contract Specialist
The purpose of this procurement is to provide the necessary medical screening to
assure that Robins Air Force Base active duty service members are fit for duty or to
return to work after a medical absence.
Previously, the medical clinic at Robins has been providing this service. However, with
deployments and the need to provide acute and emergent care to our service members
stationed at Robins AFB, we have found that this service adversely affects the ability of
the clinic to accomplish its primary mission. While not an urgent requirement, these
services are of utmost importance. Placing these services on contract as soon as
possible is one of the top priorities of the Command.
Market research revealed that local and state government organizations (i.e., police and
fire) and several companies in the surrounding area also have a need to obtain
commercially available fit for duty or return to work physical exams for their employees
to assess their fitness to safely and effectively perform their duties. Further research
indicated that they were able to satisfy this need by using the services of commercial
stand-alone medical clinics that offer this as a core service to the business community.
There are at least 10 facilities within a 40-mile radius of Robins AFB that offer this
service and that have the capacity to handle the additional number of fit for duty
physicals we would need to meet our mission. Prices range from $1,200 to $1,900 for
the level of medical screening required by our regulations. (A copy of our Independent
Government Cost Estimate (IGCE) is attached for your review.)
The program office believes that a FFP arrangement is appropriate for this acquisition.
Based on the number of active duty personnel on board at Robins AFB (approximately 22,000),
we anticipate 1% of those individuals requiring this service (220 per year).
Thank you for your willingness to work on this important effort.
My staff and I will stand ready to provide you the documents you require. We will
be available to receive a briefing on your report when you are ready.
Dr. Susan Kelley
Medical Services Program Manager
PR2022-80-DAU386
1. Purchase Request (PR): PR2022-80-DAU386
2. Title: Fit for Duty Examinations
3. North American Industry Classification System (NAICS) code: 621111 – Offices of
Physicians (except Mental Health Specialists)
4. Estimated Contract Value: $425,000
5. In accordance with FAR part 10, market research has been conducted for this acquisition.
See attached Market Research Report.
6. Based on the results of the market research, we believe this requirement can be met with
commercial services that are readily available in the marketplace.
7. Pricing factors: In the immediate area, our market research indicated the availability of
multiple facilities currently offering this service for sale within a 40-mile radius.
8. Standard industry terms and conditions (e.g., discounts, acceptance/rejection) under which
commercial sales of the required supplies/services are made: Personnel providing these
services must be licensed and board certified in the state and locality where they practice
medicine.
9. Laws or regulations unique to the required supplies/services: State medical board
certifications and insurance requirements.
10. Availability through existing supply channels: Market research has shown that existing
medical service channels on base can no longer handle this requirement.
11.
Mandatory sources. There is no mandatory source for this requirement.
12. Evaluation Criteria: Since adequate competition is available, recommend award be made
using Best Value: Lowest Price Technically Acceptable.
13.
Market research is adequate to proceed.
14.
Accepted:
Signed:_______________________
Date: _________
Contracting Officer
Signed:
Dr. Susan Kelley
Program Manager
Date:
12/17/2021
(1) NO.
(2) INSTALLATION
PR2022-80-DAU386
REQUEST FOR PURCHASE
(3) DATE
Robins Air Force Base
20211217
(4) TO:
(5) CLASS
(6) THROUGH:
(8) CONTRACT, PURCHASE ORDER
OR DELIVERY ORDER NO.
Kevin Mitchell, Contracting Officer
(7) FROM: (Insert RC/CC, If applicable)
IT IS REQUESTED THAT THE SUPPLIES AND SERVICES ENUMERATED BELOW AND IN THE ATTACHED LIST BE
(9) PURCHASED FOR
RAFB Medical Group
(12) ITEM
1
(10) FOR DELIVERY TO
(13) DESCRIPTION OF MATERIAL OR SERVICES TO BE PURCHASED
(11) NOT LATER THAN
20230201
(14)
QUANTITY
(15) UNIT
220
EA
Fitness for Duty (FD) Examination
(Active Duty Service Members)
(16) ESTIMATED
(17) ESTIMATED
TOTAL COST
UNIT PRICE
$1,931 $424,820.00
Period of Performance:
1 Feb 2023 through 31 Jan 2024
(18) TOTAL
$424,820.00
(20) PURPOSE
Provide Fit for Duty examinations for Robins AFB Active Duty Service Members
DATE
TY PED NAME AND GRADE OF REQUESTING OFFICIAL
SIGNATURE
Dr. Susan Kelley, Medical Services PM
TELEPHONE
DATE
TY PED NAME AND GRADE OF APPROVING OFFICIAL
SIGNATURE
20211220
Mr. Official, Commander, Warner
Robins Air Logistics Complex,
Robins AFB, Georgia
20211217
(478) 987-6543
TELEPHONE
(478) 123-4567
I certify that the supplies and services listed above and in the attached list are properly chargeable to the following allotments, the available balances
of which are sufficient to cover the cost thereof, and the funds have been committed.
(23) ACCOUNTING CLASSIFICATION
(25) DATE
(26) TY PED NAME AND GRADE OF CERTIFYING OFFICIAL
AF FORM 9, MAR 77 (EF)
(24) AMOUNT
SIGNATURE
$ 424,820.00
Performance Work Statement
FITNESS FOR DUTY Examinations (Excerpt)
1.0
GENERAL DESCRIPTION
Robins Air Force Base has a need to acquire fitness for duty
examinations by board-certified physicians in accordance with the
criteria as set forth in this section.
2.0
SCOPE
Provide a fit-for-duty examination to determine if the employee is
physically and/or psychologically able to safely perform their current
role. This includes but is not limited to strenuous physical exertion,
world-wide deployment, and any defects which would restrict or
prohibit participation in defensive tactics and dangerous assignments
which might entail the practical use of firearms or potential exposures
to hazardous substances.
3.0
TASKS TO BE PERFORMED BY PHYSICIANS
3.1
Physical Requirements:
3.1.1 Vital signs – temperature, pulse – resting, blood
pressure – sitting
3.1.2 Height and Weight
3.1.3 Visual Fields (If reason for examination is vision or
neurological)
3.1.5 Resting Electrocardiogram (12-lead) with
interpretation
3.1.6 Screening audiometric testing following
Occupational Safety and Health Administration
(OSHA) 5CFR1910.95. Physician shall provide
information regarding hearing conservation
program to the examinee at the time of the
physical examination. Hearing booths and other
testing equipment need to adhere to ANSI and
OSHA standards in regards to preventive
maintenance and calibration. (If reason for examination is
hearing or neurological)
Feb 2022
3.2
Periodic Laboratory Test Requirements
3.2.1 Urinalysis – dipstick – clean catch is sufficient.
Components of dipstick (10 SG multistix) include:
glucose, bilirubin, ketone, specific gravity, blood, pH,
protein, urobilinogen, nitrite, and leukocytes. IF THE
URINALYSIS TEST RESULTS ARE ABNORMAL, a
microscopic examination shall be performed.
3.2.2 Complete blood count – WBC, RBC, hemoglobin,
hematocrit, indices, differential white blood count
and platelet count.
3.2.3 Blood chemistry – Comprehensive Metabolic Panel
(minimum of glucose, blood urea nitrogen, creatinine, uric acid,
total bilirubin, alkaline phosphatase, SGOT, and SGPT).
3.2.4 Lipid Panel – Total Cholesterol, Triglycerides, HDL,
LDL and Chol/HDL ratio
Feb 2022
Market Research Report
For
Fitness for Duty Examinations
PART 1:
Author(s): William Smith, Technical Requirements Specialist
Report Date: 20211129
Organization: RAFB Medical Group
Report Title: Market Research Report – Fitness for Duty Examinations
PSC and NAICS Code: Q509 Medical – Internal Medicine/621111 – Offices of Physicians
(except Mental Health Specialists)
Portfolio: Medical Services
Estimated Value: $425,000
Market Research Objectives:
The purpose of this market research is to determine the availability and estimated pricing
for Fitness for Duty (FD) medical examinations. Historically, these examinations have
been conducted by the staff at the Robins medical clinic. However, with deployments
and the need to provide acute and emergent care to our service members stationed at
Robins AFB, the clinic no longer has the ability to meet the demand for FD examinations.
Additional focus will be placed on availability of small businesses who can provide these
services, as well as commerciality.
Service Description:
Perform FD medical examinations to determine if an employee is physically and/or
psychologically able to safely perform their current role. This includes, but is not limited to,
strenuous physical exertion, world-wide deployment, and any defects which would restrict or
prohibit participation in defensive tactics and dangerous assignments which might entail the
practical use of firearms or potential exposures to hazardous substances.
The period of performance is 1 Feb 2023 through 31 Jan 2024. The estimated quantity of FD
examinations is 220. The services are to be performed within 15 miles of Robins AFB.
1
Feb 2022
There are no mandatory sources for these services. Local and state government
organizations (i.e., police, fire) and several companies in the surrounding area also require
these services and were able to obtain commercially available fit for duty or return to work
physical exams for their employees to assess their fitness to safely and effectively perform
their duties.
Background:
Previously, the medical clinic at Robins has been providing this service. However, with
deployments and the need to provide acute and emergent care to our service members
stationed at Robins AFB, we have found that this service adversely affects the ability of the
clinic to accomplish its primary mission.
There are local and state governments who routinely purchase similar services that are
commercially available at stand-alone medical clinics. There are approximately 10 such
clinics within a 40 mile radius of Robins AFB.
Potential Supplier Information:
Vendor Name
Medical First, Inc.
Location
Macon,
GA
Point of Contact
Name: Elijah Donaldson
Phone: (478)555-1212
Email: EDon@MFI.com
Capability Assessment
Staffed with 3 physicians,
seven days/week; Estimate
$1900/FD exam
Small Business
RapidHealth
Perry,
GA
Name: Paul Hicks
Phone: (478)988-1354
Email Sales@RH.com
Rotating staff of 2 physicians;
one on duty 24/7; Estimate
$1875/FD exam
Small Business
Healthy Georgia
Medical Clinic
Various
Name: Scott Jackson
Phone: (800) 654-6767
Email: Service@HGMC.com
10 physicians on staff, rotate
among clinic locations; 2
physicians on duty 8-5 M-F; 1
physician on call after hours;
$2200/FD exam
Large Business
Market Research Techniques Used:
The following techniques were used to collect the market research data.
2
Feb 2022
(1) Internet Research: I executed an internet search using Google. I first searched on the string
“medical examinations South Georgia.” This returned hundreds of potential sources. I
narrowed the search string to “fit for duty medical examinations South Georgia,” which returned
47 hits. At random, I selected three of the sources and made telephone contacts to ascertain
the level of services provided, with estimated pricing (provided above).
(2) Local Government: I contacted the Macon County Fire Department and asked how they
accomplished their return to work examinations. This is similar in scope to the FD
examinations Robins AFB requires. Lt. Jack Asher stated they had a contract in place with
Medical First, Inc. in Macon to provide the examinations at a cost of $2,000 per examination.
He stated that on average, they had a requirement for five return to work examinations per
year.
(3) Other Government Agencies: I also contacted the Federal Bureau of Investigations (FBI) in
Atlanta, Georgia. They have a contract for both new recruit physical examinations and fit for
duty examinations. They estimated approximately 80-100 new recruit exams are conducted
annually at a cost of $2,200 each and approximately 10-20 fit for duty examinations are
conducted annually at a cost of $2,000 each.
PART 2:
Small Business Opportunities: FAR 19.201(a) states the Government’s policy to provide
maximum practicable opportunities for small business concerns to participate in Government
acquisitions. One way we do this is through small business set-asides. A small business
set-aside is when an acquisition is limited exclusively for participation by small business
concerns. FAR 19.502-2(b) states, “The contracting officer shall set aside any acquisition
over the simplified acquisition threshold for small business participation when there is
a reasonable expectation that (1) Offers will be obtained from at least two responsible
small business concerns; and (2) Award will be made at fair market prices.”
AbilityOne Program, Federal Prison Industries, etc.: These services are not available
under the AbilityOne Program or through Federal Prison Industries.
Performance Requirements: See attached excerpt from the Performance Work
Statement.
Market Intelligence/Industry Analysis: Fit for duty or return to work medical examinations
are common in the commercial marketplace. There are numerous commercial industries, as
well as Federal, local and state agencies, who require this type of medical examination. The
medical clinic market is well established in the area, and the services required are not new
3
Feb 2022
to the field. An internet search showed in excess of 40 companies in the South Georgia
area who provide the required services. The Government share of the market is
approximately 10 percent; therefore, the Government has virtually no leverage in the
marketplace. Prices for the FD examinations range from $1875 to $2200 based on this
market research.
PART 3:
Conclusions and Recommendations:
4
Feb 2022
PR2022-80-DAU386
10 Dec 2021
Independent Government Cost Estimate (IGCE):
The most recent historical data (within the current fiscal year) available on the military
purchase of medical physical examinations from a stand-alone clinic revealed an
average unit price $2,125 for routine physical examinations. However, this unit price
included many tasks that will not be required for Fitness for Duty (FD) examinations. It
is anticipated that roughly 25% of the average historical unit price is for associated
tasks that will not be required for the FD examination acquisition. Therefore, the
estimated unit price of $2,125 is adjusted downward by 25% to $1,594. In addition, we
were able to review recent purchase data for a similar procurement for the FBI in
Atlanta, GA.
Based on this summary level information, our IGCE is as follows.
DOD
Description
Quantity
Commercial Routine Physical Exams
220
Unit Price
$
Award Price
1,594
$
350,680
2,200
$
176,000
FBI
New Applicant Medical Physical
Exams
80
$
FFD Medical Physical Exams (Current)
10
$
2,000
$
20,000
Estimate
220
$
1,931*
$
424,820
This Independent Government Cost Estimate is accurate + 20%.
David White
Price Estimator
–
*$1,931 is an average of $1,594, $2,200, and $2,000.
Feb 2022