Page 2 of 6 Contract Opportunity Justification and Approval Notice CLASSIFICATION CODE * SUBJECT * CONTRACTING OFFICE'S * ZIP-CODE SOLICITATION NUMBER DELIVERY/TASK ORDER NUMBER (Required when using Statutory Authority FAR 6.302-1(c)) * BASE NOTICE TYPE ARCHIVE DAYS AFTER THE POSTING DATE RECOVERY ACT FUNDS NAICS CODE * CONTRACTING OFFICE ADDRESS DESCRIPTION See Attachment POINT OF CONTACT * (POC Information Automatically Filled from User Profile Unless Entered) STATUTORY AUTHORITY * AWARD NUMBER * (Not required when using Statutory Authority FAR 6.302-1(c)) MODIFICATION NUMBER AWARD AMOUNT * LINE ITEM NUMBER AWARD DATE (MM-DD-YYYY) * (Not required when using Statutory Authority FAR 6.302-1(c)) AWARDEE NAME * AWARDEE ADDRESS LINE 1 * AWARDEE ADDRESS LINE 2 * AWARDEE ADDRESS LINE 3 * AWARDEE ADDRESS LINE 4 * AWARDEE CITY AWARDEE STATE AWARDEE ZIP CODE AGENCY'S URL URL DESCRIPTION AGENCY CONTACT'S EMAIL ADDRESS EMAIL DESCRIPTION AWARD INFORMATION ADDITIONAL INFORMATION GENERAL INFORMATION * = Required Field Contract Opportunity Justification and Approval Notice 6530 ICU Beds - COVID-19 44131 36E77620C0041 60 N 339113 Department of Veterans Affairs Program Contracting Activity Central 6150 Oak Tree Blvd, Suite 300 Independence OH 44131 Nathan Pennington
[email protected] FAR2 36E77620C0041 $7,463,032 03-25-2020 ARJO, INC. 2349 W. Lake St ADDISON IL 60101
[email protected] [email protected] Page 3 of 6 Page 3 of 6 AWARD NOTICE The Veterans Healthcare Administration (VHA), Program Contracting Activity Central (PCAC) awarded an emergency sole source contract to Arjo, Inc, Addison, IL. This emergency requirement will provide ICU Beds in response to the COVID-19 (Coronavirus, SARS-CoV-2) virus. A determination by the Government not to compete this emergency requirement is solely within the discretion of the Government. The statutory authority permitting other than full and open competition is Unusual and Compelling Urgency, FAR 6.302-2, 10 U.S.C. 2304(c)(2), 41 U.S.C. 3304(a)(2). This notice serves as the public availability of the justification in accordance with FAR 6.305(b). THIS IS NOT A REQUEST FOR COMPETITIVE PROPOSALS and a solicitation will not be issued. Oral, telephonic, and/or electronic communications in response to this notice will not be accepted or acknowledged. See attached document: P03 - J_A - COVID-19 ICU beds Arjo, Inc - Redacted. VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT OFOC SOP Revision 08 Page 6 of 6 Original Date: 03/22/11 Revision 08 Date: 04/18/2018 Page 6 of 6 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Contract ID:__36E77620C0041__________________ Contracting Activity: The Contracting Activity for this requirement is the Department of Veterans Affairs, Program Contracting Activity Central (PCAC), 6150 Oak Tree Blvd., Suite 300, Independence, OH 44131 Nature and/or Description of the Action Being Processed: PCAC executed a firm-fixed price open market contract for ICU Beds in support of COVID-19 National Emergency. This contract will be in direct support of the COVID-19 response for VAMCs nationally. Description of Supplies/Services Required to Meet the Agency s Needs: This contract will procure ICU beds for VAMCs within VHA as they will be required to expand bed capacity, both ICU and Medical to support the VA s response to COVID-19 which supports Veterans and in some cases the community where needed. The requirement received was for 500 ICU beds immediately with options so we are ready as the situation develops, it had to be split between two vendors to meet the requirement. The contract value including options is $7,463,032 which is for XXX beds initially to be delivered in April and early May with an option for XXX additional beds as needed. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-2. ( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1; (X ) (2) Unusual and Compelling Urgency per FAR 6.302-2; ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3; ( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5; ( ) (6) National Security per FAR 6.302-6; ( ) (7) Public Interest per FAR 6.302-7; Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): This acquisition was in direct support of the COVID-19 National Emergency and the requirement came directly from the COVID-19 response team for VHA. The supplies described in paragraph 3 were an immediate need to deal with the COVID-19 pandemic which was declared a National Emergency. This requirement met the statutory definition of having unusual and compelling urgency as the impact of not having this contract in place immediately was as follows: While VHA s primary mission is providing coordinated healthcare to Veterans, VHA is also a critical component of the national federal response framework. The VA s fourth mission is to absorb non-Veteran civilian or military patients in the event that hospitals overflow in an emergency, such as a pandemic. Since starting in China in late 2019, COVID-19 is now present on every continent except Antarctica, and as of the time this justification was written, there were more than 245,000 cases wordwide and over 10,000 deaths. On March 1, 2020, there were approximately 100 confirmed cases in the United States (US), that number is now 123,750 cases, including 2,227 deaths, with an upward trajectory that is now on track to peak at catastrophic levels in the next 45 days. COVID-19 has over-whelmed the medical systems of every country unable to flatten the curve of infections. This resulted in global competition for countries seeking resources (e.g., clinical personnel, medical equipment, and personal protective equipment PPE). As of today, 24 of the beds purchased on 3/25/20 are already on their way VAMCs who are already having to expand ICU bed capacity showing the real-time urgent need for this equipment. VHA requires a deployment ready capability to support life-and-death decision-making today. The immediate impact of VHA not having the beds now and in the immediate future would be catastrophic failure of our ability to perform our mission which is unacceptable. Arjo, Inc as well as the three (3) other OEM for ICU and Med/Surg beds were contacted by the Contracting Officer following receipt of the requirement. Only two (2) of the four (4) OEMs had any stock to send us within 3-5 week window, the other two (2) were sold out to other hospital systems, Federal agencies, and states seeking the same thing. Based upon the above, and pursuant to the statute, Arjo, Inc., 2349 W Lake St, Suite 250, Addison, Il 60101 was awarded a contract. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The Contracting Officer was made aware of this requirement on 3/23/20. The need date was immediately due to the emergency nature of the VA COVID-19 response. As stated paragraph 5, in a matter of less that a day I had solicited the four (4) OEMs for ICU beds in the US to try and meet the requirement. Only two (2) of the four (4) OEMs had any stock to send us within 3-5 week window, the other two (2) were sold out to other hospital systems, Federal agencies, and states seeking the same thing. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer given the short amount of time and emergency nature of the procurement was only able to do a minimal amount of price analysis. The prices provided were the best available especially since we were ordering such a large quantity and were the same as being given to other Federal agencies including HHS, DOD, and FEMA. The quote was in-line with IGCE provided by VHA leadership as a ROM. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: No formal market research was conducted by the Contracting Officer as there was no time, see paragraph 6 for farther details. Discussions with the OEMs and VHA made it clear that the large volume, the market conditions at the time, and need of direct distribution and shipment of the beds by the contractor would not have made it possible to go to anyone other than the OEMs. Any Other Facts Supporting the Use of Other than Full and Open Competition: None Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Arjo, Inc and Hill-Rom, Inc expressed interest in the acquisition. The other two OEMs, Stryker and Sizewise, could not meet our requirement and declined to respond via email following conversations between the CO and them. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: The emergent nature of this requirement given its for a specific National Emergency does not lend itself to farther action to remove future barriers as their will most likely not be future such requirements. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Date Deputy Director VHA Non-Expendable Program Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: Contracting Officer or Designee s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Date Contracting Officer Program Contracting Activity Central One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition. _____________________________ ________________________ Date Director Program Contracting Activity Central VHA RPO 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 (if over $68 million) or approve ($700K to $68 million) for other than full and open competition. _____________________________ ________________________ Date Executive Director Regional Procurement Office Central Veterans Health Administration