99--Assistive Listening Devices Justification for other than full and open competition

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION ASSISTIVE LISTENING DEVICES (ALD) Identification Number: Short term contracts with Incumbent Contractors ALD Identification of the agency, contracting activity, and specific identification of the document as a justification for other than full and open competition. The Department of Veterans Affairs (VA), Office of Acquisition and Logistics, National Acquisition Center, Denver Acquisition and Logistics Center (DALC) proposes to enter into contracts with previous contract holders on a basis of other than full and open competition for the Department of Veterans Affairs (VA), Veterans Health Administration (VHA), Office of Audiology and Speech Pathology (ASPS). The contracts will serve as short-term bridge contracts until new awards can be made under competitive procedures. The contracts will make sure essential prosthetic devices will be available for eligible veterans throughout the country. Veterans with hearing impairment rely on these devices to improve their quality of life and ensure their safety in their home environment. The nature and/or description of the action being approved. The Assistive Listening Device program, administered by the DALC, functions as a nationally standardized, strategically sourced solution for the VHA s Audiology and Speech Pathology Service (ASPS) office and eligible veterans. The prosthetics items allow veterans with hearing impairment to function safely in their home environment. Ordering of the devices has been simplified through the use of the DALC s Remote Order Entry System (ROES) and standardization allows the VA to realize below market prices due to increased economies of scale. When the new contract awards were reviewed by the Contract Review Board, it was determined that the evaluation of offers was flawed. Therefore, to preserve the integrity of the procurement process the Head of the Contracting Activity determined that corrective action should be taken. Consequently, t.I think someone reading this would question why VA terminated contracts for convenience when clearly the VA has requirements for the items. I suggest a brief explanation: When the new contract awards were reviewed by the Contract Review Board, it was determined that the evaluation of offers was flawed. Therefore, to preserve the integrity of the procurement process the Head of the Contracting Activity determined that corrective action should be taken. Currently, all ALD contracts have either been terminated or have expired. In order to maintain the required inventory of ALD products before new contracts can be awarded, it is in the best interest of the government to award short term contracts with previousincumbent contract holdersors. You may want to emphasize, also, how a lapse in putting these contracts in place would impact hearing-impaired veterans and their quality of life. Perhaps an argument can also be made that it could affect safety since devices such as smoke alarms are being provided to vets under these contracts. The proposed actions are contracts for three-months I suggest a 3-month contract with the option to extend another 3 months. This would emphasize VA s commitment to keep these contracts short term and pursue new awards on a competitive basis. with a three-month option to the following three contractors: ADCO Medical Suppliers, LLC, a verified SDVOSB contractor dDba ADCO Hearing Products 4242 South Broadway Englewood, CO 80113 Harris Communications, Inc., a small business contractor 15155 Technology Dr. Eden Prairie, MN 55344 Hitec Group International, Inc., a small business contractor 1743 Quincy Ave., Suite 143 Naperville, IL 60540 A description of the supplies or services required to meet the agency s needs (including the estimated value): TV Amplification Devices (Stethoscope and Neck Loop): 2,500 - 5,000 units Moderate Gain (Minimum 26 to Maximum 45 dB SPL incoming sound amplification) Amplified Corded Telephones: 250 - 500 units Power Gain (Minimum at least 45 dB incoming sound amplification) Amplified Corded Telephones: 250 - 500 units Mild to Moderate Gain (Minimum 26 dB to a Maximum of 40 dB incoming sound amplification) Amplified Cordless Telephones : 60 - 120 Units Power Gain (>40 dB incoming sound amplification)) Amplified Cordless Telephones: 600 1,200 units Personal Amplifiers: 3,750 - 7,500 units Smoke Detectors: 150 - 300 units Signaling/Alerting System (kit):50 - 100 units Alarm Clocks:250 - 500 units Teletype/Teletext Devices:12 - 25 Units Table-top Sound Generators for Tinnitus:3,00 - 6,000 units If short term contracts are not awarded, approximately 3,454 veterans per month will not be able to be issued these very important prosthetic items. The statutory authority permitting other than full and open competition. The statutory authorities permitting other than full and open competition is FAR 6.302-2, Unusual and compelling urgency. 5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority. FAR 6.302-2 states the authority for unusual and compelling urgency is when the urgency is such that the Government would be seriously injured unless the Govt. is permitted to limit the number of sources. Explain how these short-term contracts can be put into place quickly, and how the delay of awarding contracts under a competitive process would result in serious injury to the Government. ADCO, Harris Communications, and Hitec Group were contractor holders on the previous ALD contract cycle. Harris and Hitech are small businesses and ADCO is a Service Disabled Veteran Owned Business (SDVOSB). Each contractor has the Recommend adding language regarding how contractors performed on recently expired contracts. ability to provide the required items and fully understand how to effectively work with the DALC. Each of the vendors performed successfully under the terms and conditions of the contracts. Short term contracts can be awarded quickly to the three vendors because of theiris history/experience with the DALC and they have current distributor agreements with the manufacturers of the devices. If short term contracts are not awarded, approximately 3,454 veterans per month will not be able to be issued these very important prosthetic items. 6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable. Include whether or not a FedBizOps (FBO) announcement was made and what response, if any, was received, or include the exception under FAR 5.202 if not synopsizing.The narrative below doesn t directly address whether an FBO announcement was or will be made. Cite the exception at 5.202(a)(2). Please ensure this justification is posted in accordance with 6.305. Describe whether any additional or similar requirements are anticipated in the future. For the short term contracts no other sources have been consideredExplain why no other sources were considered. The statement that three month s worth of inventory was ordered may undermine your argument that this procurement is urgent and compelling. How long does it take for delivery of these items, and how quickly would you need to place the order(s)? Since these products were previously on contract does this mean they are already loaded into ROES and are already known to meet minimum requirements? Stating this may assist in providing support for the decision to .limit consideration to these three contractors. Recommend including market research and FBO results from contracts terminated 9/1/16, to address Item 6, and aligning left margin of this paragraph. because of the exception at FAR 5.202(a)(A)(2). Only these sources have the ability to ramp up quickly and order products that have already been determined to be technically acceptable and are already loaded into the DALC s ROES. The contracts will ensure that the strategically sourced prosthetic items will be available to eligible veterans until new contracts can be awarded. Currently, no contracts exist for the ALD s, but the DALC does have limited stock from the previous contracts to fill orders for a short period of time. . Orders normally take 14 days to be filled/delivered to the DALC and be ready for distribution to veterans. Consequently, awards of the short term contracts need to be accomplished as soon as possible to ensure the DALC can maintain adequate stock level to fill orders from VA Audiologists. As previously stated, contracts that had been awarded in August 2016 were required to be terminated for the convenience of the government. The contractors (including the three vendors cited above) were not at fault in any way for the termination. That solicitation was accomplished via an IPT, and was full and open competition in accordance with all applicable FAR sections, clauses, and provisions to include FAR Part 25 and the Trade Agreements Act. The VA still requires the devices and plans to re-solicit. The new solicitation will be accomplished in the same way but will be streamlined to reduce timeframes. All the market research is still relevant and can be re-used as part of the procurement planning process. 7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. The estimated value of orders will be approximately $938,500 for each 3 month period ($1,877,000 total) between the three contracts. ADCO: $272,500/each period ($545,000 total) Harris: $490,500/each period ($981,000 total) Hitec: $175,500/each period ($351,000 total) The Contracting Officer has all the historical pricing data including prices of the recently terminated contracts. Through competition and price analysis, those prices were determined to be fair and reasonable. We expect the vendors to continue to offer similar or identical pricing. Before award, the prices will be determined to be fair and reasonable.. 8. A description of the market research conducted and the results. Market research was not required for the short term contracts. However, the re-solicitation has a complete current market research report available that will be updated as necessary in accordance to new guidance based on the Kingdomware Supreme Court Decision. 9. Any other facts supporting the use of other than full and open competition. n/a 10. A listing of any sources that expressed a written interest in the acquisition. On the previous solicitation and subsequently terminated awards, the following vendors ( in addition to the contractors cited in this document) submitted offers: in addition to the incumbent contractors cited in this document: Silent Call Communications 5095 Williams Lake Rd. Waterford, MI 48329 COMTEK 357 West 2700 South Salt Lake City, UT 84115 Serene Innovations 14615 Carmenita Rd. Norwalk, CA 90650 Oaktree Products, Inc. 610 Spirit Valley East Chesterfield, MO 63005 Boundless Assistive Technology 7490 Bridgeport Rd. Portland, OR 97224 Hear Central 1870 Victoria Circle Victoria, MN 55386 Each vendor will have the opportunity to submit offers in accordance with the re-solicitation. 11. A statement of any actions the agency may take to remove or overcome any barriers to competition, if subsequent acquisitions are anticipated. As mentioned previously, the re-solicitation for this requirement will start as soon as possible. Consequently, barriers to competition have already been removed for subsequent acquisitions. 12. Requirements Certification. I certify that the information contained in this justification for other than full and open competition is accurate and complete to the best of my knowledge and belief. 13. Approvals in accordance with FAR 6.304 and VAAR 806.304-1. Contracting Officer s Certification: I certify that the foregoing justification is accurate and complete tot the best of my knowledge and belief. ___SIgned________________ 09/12/2016_______________ Kip Sheppard Date Contracting Officer Denver Acquisition and Logistics Center (DALC) I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. Signed 09/13/2016 _____________________ _______________ Sandra Murbach Date DirectorChief, Business ResourceAcquisition ServiceDivision National Acquisition Center (NAC)Denver Acquisition and Logistics Center (DALC) NAC HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval for other than full and open competition. Signed 09/13/2016 ______________________ _______________ Craig Robinson Identify Mr. Robinson as the Contracting Activity Competition Advocate since that is the position identified in the VAAR as the approving authority. Date Associate Deputy Assistant Secretary for National Healthcare Acquisition, Competition Advocate