2020-0238 JOFOC 36C261-20-AP-0595_Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-20-AP-0595 Purchase Request/2237 Number: 662-20-3-9815-0008

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 21, VA San Francisco Health Care System (VASFHCS)

2. Nature and/or Description of the Action Being Processed: VISN 21’s VA San Francisco Health Care System, is in need of Community Nursing Home (CNH) services in Eureka, California at Crestwood Behavioral Health, Inc. There are two (2) Veterans requesting to be placed at this facility which is in close proximity to where the veteran and his/her family resides. Notably, in the VA’s community nursing home program, the veteran’s placement decision is made by VA, the veteran, and the veteran’s family.

In accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, an open market sole source award will be made to Crestwood Behavioral Health, Inc, DUNS: 043650675. The type of contract will be an Indefinite Delivery Indefinite Quantity (IDIQ) contract consisting of five one-year ordering periods.

FAR 13.5 Simplified Procedures for Certain Commercial Items: This procurement will be accomplished 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 proposed action is to award a Fixed-Price, Indefinite Delivery – Indefinite Quantity (IDIQ), with Economic Price Adjustment (EPA) where pricing is based on published Medicaid rates, with a nursing home facility capable of furnishing the total medical, nursing, and psychosocial needs of VA beneficiaries.

All nursing homes facility(s) must have current Center of Medicare and Medicaid Services

(CMS) certification (Medicare and/or Medicaid) and a State nursing home license.

The VA requires CNHs to have bed capacity to ensure their ability to take referrals when requested. The CNH also must be able to accept VA referrals in a timely fashion (ideally within 24 hours of request).

Provider visits must be provided at the rate of one (1) visit per month. Laboratory, x-ray, and other special services will be available to VA patients as needed. In addition, the care provided will include room, meals, nursing care, and other services or supplies commensurate with the VA-authorized level of care, without extra charge.

The per diem rate(s) established in this IDIQ will include the cost of primary medical care, one

(1) provider visit per month and needed consultation, drugs and routine supplies, laboratory, x-ray, and other special services authorized by VA, unless otherwise specifically excepted.

Full attention shall be given to motivating and educating patients to achieve and maintain independence in the activities of daily living. Every effort shall be made to keep patients ambulatory and to achieve an optimal level of self-care.

The total estimated value of the proposed action is not to exceed (NTE) $4,500,000.00 over the term of the IDIQ for five (5) one-year ordering periods and will allow for increased needs over the government’s estimate.

Total Estimated Annual Cost for facility:

Total Estimated 5-Year Cost for facility:

4. Statutory Authority Permitting Other than Full and Open Competition: FAR 13.5 Simplified Procedures for Certain Commercial Items; the authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 USC §1901 and is as implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

(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;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority):

As prescribed in VHA Handbook 1143.2, for more than 35 years the CNH Program has maintained two cornerstones: some level of patient choice in choosing a nursing home close to the veteran’s home and family, and a unique approach to local oversight of CNHs.

The quality of care for the veteran is accomplished through placement in a nursing home that is in close proximity to where the veteran and his/her family resides. Notably, in the VA’s community nursing home program, the veteran’s placement decision is made by VA, the veteran, and the veteran’s family.

The placement decision will be based on established VA contracts in the area. The geographic factor in these circumstances makes this requirement unique and, therefore, not subject to competition.

Crestwood Behavioral Health, Inc., Eureka currently is a Medi-Cal Institutional Mental Disease facility and meets the VA quality of care standards.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

a. A query of the VA’s Veteran Information Pages using California, Zip Code 95501 and NAICS

623110 revealed zero (0) Service Disabled Veteran Owned Small Businesses (SDVOSB) or Veteran Owned Small Businesses (VOSB). A query on nursing home compare, made by the contracting specialist, confirmed there are a total of four nursing homes within a 25-mile radius from the center of the 95501-zip code.

b. This action will be synopsized in accordance with FAR 5.207.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Fair and reasonable pricing will be determined in accordance with FAR 13.106-3(a)(2). Pricing will be evaluated to be fair and reasonable based on a comparison to the Independent Government Cost Estimate (IGCE), and established Medicaid rates. The Government estimate was prepared based on established Medicaid rates for various levels of care and established VA nursing home rates based on VA national guidelines for determining cost for VA nursing home contracts.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

The contract specialist conducted market research using Medicare’s website for nursing homes, reviewed available acquisition history, searched through the VA’s Veteran Information pages and the California Department of Health Care Services website. Another form of market research conducted by the VA, is the on-going, periodic outreach with local potential vendors conducted by the Contracting Officer Representative. The following is the resulting market research: The query on nursing home compare, made by the contracting specialist, confirmed there are a total of four nursing homes within a 25-mile radius from the center of the 95501-zip code. The search of the Veteran Information Pages using California, Zip Code 95501 and NAICS 623110 revealed zero (0) Service Disabled Veteran Owned Small Businesses (SDVOSB) or Veteran Owned Small Businesses (VOSB). A query of the Small Business Administration Dynamic Small Business Search tool using “California, Zip Code 95501 and NAICS 623110” revealed one (1) small business. A search of the California Department of Health Care Services website revealed Crestwood Behavioral Health, Eureka is the only facility in the immediate geographic area which participates in the Medi-Cal (Medicare) program as an Institution for Mental Diseases.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

VHA Handbook 1143.2 allows for a level of veteran choice in choosing a nursing home close to the veteran’s home and family. The geographic factor in these circumstances makes this requirement unique and, therefore, not subject to competition. There are two (2) Veterans requesting to be placed at Crestwood Behavioral Health, Inc. Eureka which is in close proximity to where the veteran and his/her family resides.

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

Crestwood Behavioral Health, Inc. Eureka is willing, capable and has capacity to provide services for the veterans.

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:

Based on the inherent nature of the service and in line with VA policy where the veteran and his/her family play a role in determining which nursing home facility will provide treatment for the veteran, the opportunity to increase competition is limited. Notwithstanding the foregoing limitations, the Government intends to post an open and continuous Request for Proposal (RFP) in fiscal year 2020 to increase the number of community nursing home providers, so that when new beneficiaries are brought into the program, they will have more available choices thereby increasing competition. This RFP will further publicize the VA’s need for nursing homes in certain geographic areas across the VISN.

Through these efforts NCO 21 anticipates it will increase the number of eligible nursing homes for its geographic regions.

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.

Stephanie Gaxiola Date Community Nursing Home Program Coordinator VA San Francisco Health Care System

13. Approvals in accordance with the VHAPM Part 806.3 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.

Stephanie San Juan Date Contracting Officer

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.

Brooke C. Robison Date Director of Contracting Network Contracting Officer (NCO) 21

c. 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 $13.5 million) or approve ($700K to 13.5 million) for other than full and open competition.

Curtis M. Jordan Date Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)

4/9/2020

10 APR 20

12 April 2020

4/9/2020