-17039.pdf

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 1 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-19-AP-2106 J&A Tracker # 2019-05-30T14:36:43

1. Contracting Activity: Department of Veterans Affairs, NCO 19, 6162S. Willow Dr., Suite 300, Greenwood Village, CO 80111. 2237#666-19-2-683-0091

Organizational Activity: Department of Veterans Affairs, VA Medical Center Sheridan, 1898 Fort

Road, Sheridan, WY 82801-8320

2. Nature and/or Description of the Action Being Processed: This is a request for other than full and open competition for the procurement of a new, Firm Fixed Price Contract for the temporary rental of a backup boiler for Sheridan VA Medical Center IAW FAR 6.302-1. This will be a base plus 2 options contract with Ivan Ware and Sons, dba Ware Inc. that serves as a follow-on contract to the current temporary rental contract 36C25918P1260 that was awarded via a sole source procurement method.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for the temporary rental of a backup boiler in accordance with FAR 13.5 Simplified Procedures for Certain

Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Contracting Office intends to award a firm fixed priced sole source contract with a base POP of 6/1/2019 to 9/30/2019 and two option periods of 10/1/2019 to 9/30/2020 and 10/1/2020 to 5/31/2021 for a total amount of $686,075.28. Rental of a standby backup boiler in the event the primary boiler fails during the repair or replacement of the two-main coal fired boilers and their associated systems. The backup boiler fills a VHA requirement to significantly reduce the likihood that the hospital will ever be without a boiler and be forced to shutdown. In addition to the rental of the boiler, the contract will also include the rental of a tank, monthly boiler inspection and maintenance, and annual permitting of the fuel tank to include fuel tank testing per EPA and STI standards.

4. 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;

OFOC SOP Revision 08 Page 2 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

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 Sheridan VA Medical Center currently has one permanent natural gas boiler capable of solely meeting the hospital’s requirements. The Sheridan VAMC also has two permanent coal fire boilers that together cannot meet the hospital’s total requirement. Per VHA Directive the hospital is required to maintain an N plus one boiler, meaning they must have however many boilers to meet their requirements (N) plus an additional back up boiler (plus one) capable of meeting the total requirement should the primary boiler(s) become inoperable. This is intended to prevent the hospital from falling into a situation where there is no operating boiler and the hospital is forced to cease operations.

The two coal fire boilers were previously functioning as the primary while the natural gas boiler was the backup. However, the two coal fire boilers are currently old, no longer capable of meeting the requirement, and in need of retrofitting or replacement. As a result, the natural gas boiler has become the primary and the Veteran’s Health Administration (VHA) was required to rent a temporary mobile boiler as an urgent and compelling procurement because of the inoperability of the two coal fire boilers.

For the past 18 months under sole source contract 36C25918P1260, VHA has been renting a 650 HP Super High Efficiency Mobile Boiler Room from Ivan Ware and Sons dba Ware, Inc., a small business.

The boiler has a steam capacity of 22,425 lbs/hour that is capable of solely meeting the entire hospital requirement. This boiler is completely enclosed in a 53’L x 8’W trailer and located immediately outside of and connected to the boiler building. The connection of the boiler took two days and involved pipping, bracing and obtaining air quality permits from the Department of Environmental Quality to ensure compliance with the Clean Air Act. The permit takes a minimum of 45 days to obtain. The current contract also includes the cost of delivery, installation, setup, and disassembly.

If through an open competitive solicitation process a new contractor is awarded this contract, VHA will be duplicating the cost of delivery, installation, startup, permitting, and disassembly at $230,275. Additionally, the new contractor will be required to begin a new permitting process that is extensive in nature. Accordingly, Ware, Inc. is the only firm capable of providing the supplies and services described in Section III above without the VHA experiencing substantial duplication of cost that could not be expected to be recovered through competition.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: During Market Research phase, a search of the open market found 3 possible vendors but received no responses from any. Contacted 23 veteran-owned businesses from the VIP search via email to obtain available sources but received no responses. Market Research also included an examination of the acquisition history of this service at this hospital. A review of the Market Research from the previous purchase was also reviewed in an attempt to find other possible sources.

OFOC SOP Revision 08 Page 3 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The price for the base and option year are consistent with historical prices paid by the government in the last year and a half. In comparison with historical pricing, the price is determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: During Market Research phase, a search of the open market found 3 possible vendors but received no responses from any. Contacted 23 veteran-owned businesses to obtain available source but received no responses. Market Research also included an examination of the acquisition history of this service at this hospital.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Award of this follow-on contract to a contractor other than the current contractor providing the rental equipment and services will result in a duplication of the following costs:

• Shipping costs of $10,000

• Installation and setup costs of $210,000

• Pickup fee $10,275 The costs are derived from historical prices from the past 18 months.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

The current vendor, Ivan Ware and Sons, dba Ware, Inc., a small business, expressed interest in continuing services.

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 conducted market research to acertain if changes in the marketplace enabled competition. A notice of an intent to sole source will be posted to FBO. A follow-on competitive acquisition is planned for the design and build of permanent boilers.

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.

Lenny Spaulding Date Supervisory General Engineer/COR Sheridan, WY VAHCS

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

OFOC SOP Revision 08 Page 4 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

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.

Maurice Walker Date Contracting Officer

NCO 19

b. 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.

Gary Arwood Date NCO 19 Chief, Division II