Description
DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K) VISN 17 Home Oxygen and Ventilator Services Acquisition Plan Action ID: VA257-16-AP-3807 1. Contracting Activity: The Department of Veterans Affairs, Network Contracting Office (NCO) 17, in support of Veterans Integrated Service Network (VISN) 17 located at 1901 S. 1st Street, Temple, TX 76504 intends to enter into a sole source contract based on this Justification for Other Than Full and Open Competition for VISN 17. 2. Nature and/or Description of the Action Being Processed: This requirement is for the provision of home oxygen and ventilator services to the veteran patients of VISN 17. The Prosthetic Sensory Aid Program (PSAS) is required to provide Home Respiratory Care as part of the "Home Respiratory Care Program" for eligible veterans. Mid-Cities Home Medical Equipment is a Service Disabled Veteran Owned Small Business (SDVOSB) whom provided services under contract # VA257-15-D-0112 which expired on April 10, 2016. Mid-Cities' provided home oxygen services to an estimated 3,419 veteran beneficiaries. The amount of administrative lead time required to execute a competitive acquisition exceeded the amount of performance period that was remaining on the contract when the requirement was reassigned to the Services team. In order to provide uninterrupted services to the veteran beneficiaries, a sole-source firm-fixed price contract for a term of two (2) months is requested with a period of performance of April 11, 2016 through June 10, 2016. This two month period of performance will allow the Services team to work the long term competitive effort. There is currently a verbal authorization in place for these services while the award documents are completed and approved. Verbal authorization began on April 11, 2016 for one week. This authorization will be re-evaluated weekly while the Contractor and the Contacting Officer negotiate pricing and terms and conditions. Pricing will be consistent with the previous contract while the new pricing schedule is negotiated. This acquisition will not involve services that can be classified as inherently governmental as defined by FAR 7.503. Furthermore, there is no statutory authority available to permit personal services relative to this requirement. All work relative to this requirement shall be of a non-personal nature. 3. Description of Supplies/Services Required to Meet the Agency's Needs: The requirement is for home oxygen and ventilator services for the Veteran beneficiaries of VISN 17. The total estimated value for this acquisition is $625,000.00 for a two month period of performance estimated at $312,500.00 per month. 4. Statutory Authority Permitting Other than Full and Open Competition: ( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1; ( ) (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 (X) (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; 5. Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The services required by this procurement are essential to continued direct patient care. The previous contract expired on April 10, 2016. The home oxygen service contract is critical to VA and services cannot stop, therefore the current Contractor must continue to provide services while the new contract is competed. Pursuant to P.L. 109-462, this requirement can and must be met by Mid-Cities, a Service Disabled Veteran Owned Small Business, because they are currently providing these services for VISN 17. It is not feasible with the current time frame to award to any other vendor. Accordingly, Mid-Cities is the only firm capable of providing the supplies and services described in Section III above without the Veteran's Health Administration experiencing unacceptable delays in fulfilling its requirements. 6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Due to the need to continue to provide Veteran beneficiaries with home oxygen services, this requirement is being procured in accordance with FAR 6.302-5, Authorized by Statute, as cited in paragraph 4 above. This requirement is being procured sole source from the incumbent allowing for continuity of services pending procurement of a long term contract. Due to the nature of the services required, the long term requirement will be an SDVOSB set aside procurement. The intent to sole source this requirement will be synopsized in accordance with FAR Part 5. 7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: In accordance with FAR 15.404-1(b)(ii) a comparison of the proposed price to historical prices paid for the same or similar type of service will be made. Furthermore in accordance with FAR 15.404-1(b) the Contracting Officer shall determine pricing fair and reasonable based on a comparison of the proposed price with the independent government estimate (IGE). The IGE for this procurement is estimated at $625,000.00 (two month period of performance).The anticipated cost is considered to be fair and reasonable based on historical pricing and the independent Government cost estimate. Home oxygen services are commercial item services performed in the healthcare field both Government and non-Government; therefore, certified cost and pricing data is not required. Technical evaluation factors will not be used in this procurement as it is a follow-on sole source procurement to provide continued uninterrupted service to Veteran beneficiaries. 8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: This emergency requirement is required to ensure there is no gap in services while a new long term contract is competed. Market research has determined that this requirement is commercially available from many service disabled veteran owned small businesses (SDVOSB) based on the responses received from the Sources Sought notice posted to FBO on November 19, 2015. The follow on contract will be competed as an SDVOSB set aside. Mid-Cities Home Delivery Service, LLC is the current vendor for VISN 17. They are currently in the process of transitioning all eligible veterans from monthly visits to new technology requiring quarterly visits. This two (2) month contract will allow the Contractor to completely transition all appropriate patients to the new technology. There is currently not enough time to compete a contract for the VISN 17 Home Oxygen services. The Program Office is working to redefine the needs of VISN 17 for the long term contract based on the new technology. 9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Due to the need for the continuity of services to provide Veterans beneficiaries home oxygen services beginning on April 11, 2016, it is in the Government's best interest to readily procure these services from the incumbent, Mid-Cities Home Delivery Service, LLC. 10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other vendors have been contacted due to the urgency of this requirement and the fact the current vendor is already transitioning patients monthly to the new technology. 11. 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 Government will continue to monitor the marketplace for changes in the home oxygen delivery services market. Market research has determined that this requirement is commercially available from many service disabled veteran owned small businesses (SDVOSB) based on the responses received from the Sources Sought notice posted to FBO on November 19, 2015. A long term base plus four requirement is being finalized and will be posted to the GPE upon completion, estimated date of posting this requirement is on or before May 31, 2016. ? 12. 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 VISN 17 Prosthetic Program Analyst Veterans Integrated Service Network (VISN) 17 13. Approvals in accordance with the VHAPM, Volume 6, Chapter VI: OFOC SOP a. 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 Network Contracting Office (NCO) 17 b. Director of Contracting /Designee (Required over$150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition. _____________________________ ________________________ Date Director of Contracting Network Contracting Office (NCO) 17