W--Home Oxygen Services for the VA Butler Healthcare in Butler, Pennsylvania for six months

OFOC SOP Revision 08 Original Date: 03/22/11 Revision 08 Date: 04/18/2018 Page 1 of 3 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: 36C244-19-AP-2874 Contracting Activity: Department of Veterans Affairs, VISN 4, VA Butler Healthcare in Butler, Pennsylvania. The 2237 associated with this procurement is 529-19-3-045-0039. Nature and/or Description of the Action Being Processed: The proposed creation of a Fixed Price Indefinite Quantity, Indefinite Delivery (IDIQ) for a six month interim contract for Home Oxygen delivery and related services will be awarded to CBJ Development Co. as sole source procurement. There is currently a contract in place (36C24418D0122) with this vendor for the procurement of these services which expires 5/31/2019. NCO4 facilities on the West are preparing documents to create a long term solicitation, of which Butler will be included. Until a new contract for the VISN is solicited and awarded, it is imperative these services do not switch vendors multiple times before a final award is made next year. The total estimated value of this request for six (6) months is approximately $524,496.00. This price estimate is based on 2016-2017 expenses. The only increase or addition to the contract was to add thermal fuses which were to be provided and installed on each home oxygen delivery system for primary and portable oxygen therapy equipment. This was an Alert from VA Directive AL 18-01 (PRO-12830) effective March 2018. This contract will contain FAR 52.217-8 Option to Extend Services (Nov 1999). Description of Supplies/Services Required to Meet the Agency s Needs: Contractor shall deliver and set up new and reissued oxygen equipment and accessories within the patient s residence and provide all the required documentation to the patients at the VA Butler Healthcare. The contractor will also provide patient education on the use of the oxygen equipment, emergency information, and provide written proof of education. This is outlined in the Performance Work Statement provided by the Contracting Officer. The period of performance shall be from June 1, 2019 through January 31, 2019. Statutory Authority Permitting Other than Full and Open Competition: (X) (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 ( ) (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): The VA Butler Healthcare is currently procuring home oxygen under a contract with CBJ Development Co. (SDVOSB). Monthly purchase orders are for approximately 400 existing home oxygen patients and 250 CPAP/BIPAP patients. It would not be conducive to interrupt services and switch to another vendor prior to a VISN West home oxygen contract being awarded. Due to the size and complexity of the new competitive procurement, it is anticipated it will take approximately six months for the procurement process to be conducted (this includes the transition period once contract(s) are awarded). Home oxygen and related oxygen therapy interventions are lifesaving medical treatments that provide increased physical function and quality of life to the Veterans that rely on it. Disrupting this service several times before the long term contract is awarded would be devastating for veterans. CBJ Development Co. has a proven track record of successfully providing these services to the VA Butler Healthcare. CBJ Development Co. has an intimate knowledge of the VA Butler Healthcare s patients, the company s equipment and facilities, and current experience with the VA Butler Healthcare, give them the unique ability to continue functioning in this capacity while a solicitation is being completed. In addition, the contractor has satisfactorily been providing these services since October 1, 2012. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: In accordance with FAR 5.301 a solicitation allowing competition for this service will be synopsized on the Federal Business Opportunities (FBO) page and will be publicly available in approximately two weeks. Creating a Fixed Priced Indefinite Quantity, Indefinite Delivery (IDIQ) six (6) month contract will allow completion of the competitive process for a long term VISN contract which includes Altoona, Pittsburgh, Erie and Butler VAMC s. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Pricing from CBJ Development Co. services was determined to be fair and reasonable when the contract was awarded October 1, 2012 and the vendor has not raised the rates. The estimate in paragraph #2 is based on 2016-2017 rates (except for thermal fuses added in 2018). Furthermore, the vendor was contacted by the Contracting Officer and was informed the rates will continue to be the same as the last contract. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A market survey was not conducted for this sole source request. The basis for a sole source contract to the existing supplier in this situation is to continue for a six (6) month contract until the VISN Home Oxygen contract can be solicited and awarded this year. To switch to another vendor now is not realistic because of the startup costs involved, transition period needed and most importantly, disruption of these services to the veterans. This contract will be awarded to a SDVOSB and complies with FAR Part 10, the Class Deviation Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision (Class Deviation Veterans First Contracting Program (VFCP 2016), VHAPM Part 810.001, and PPM 2016-05. The NAICS Code for this procurement is 532283 with a size standard of $32.5 milion. 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: None 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 long term solicitation for VISN 4 VAMC facilities will be posted on FedBizOpps in the next two weeks. 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. Serakowski, April A Digitally signed by Serakowski, April A Date: 2019.04.22 08:31:17 APRIL SERAKOWSKI -04'00' Date Home Oxygen Coordinator /COR/RRT VA Butler Healthcare 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. MAUREEN Digitally signed by MAUREEN JORDAN 385898 -04'00' JORDAN 385898 Date: 2019.04.23 08:02:14 4/23/2019 Maureen Jordan Date Contracting Officer NCO 4/Medical 2 (Medical Support Services) 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. NANCY L. PORTER 128170 Digitally signed by NANCY L. PORTER 128170 Date: 2019.04.23 09:59:44 -04'00' NANCY L. PORTER Date Branch Chief, Medical 2 (Medical Support Services)