2021-0256 Redacted JOFOC 36C261-20-AP-1852 - Maunalani CNH HCA APPROVED_Redacted.pdf

ACQ Plan #: 36C261-20-AP- Page 3 of 5

a. A query of the Veterans Information Pages (VIP) was generated using PSC “Q402,” NAICS “623110” Key Words “Skilled Nursing Facility” “Nursing Home”, and States Searched-Strict “Hawaii” which produced zero (0) Service-Disabled Veteran Owned Small Businesses (SDVOSBs) or Veteran Owned Small Businesses (VOSBs). A query on Medicare.gov | Nursing Home Compare confirmed there are a total of 26 licensed nursing homes on the Island of Oahu;

resulting in the following CNH star ratings: five (5) stars-much above average: 13, four (4) stars-above average: seven (7); three (3) stars-average: zero (0); two (2) stars-below average: four (4);

one (1) star-much below average: zero (0); Overall rating not available: two (2).

b. There are 30 fragile, elderly, Veterans currently residing within the CNH. Relocating the Veterans to another facility already under contract would have a negative impact on the patient care and necessitates sole sourcing this procurement.

c. IAW FAR 13.501(a)(1)(iii), this action will be synopsized at award on Contracting Opportunities and the justification will be made publicly available.

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

Fair and reasonable pricing will be determined IAW 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 Medicare Resource Utilization Group (RUG IV) rates and or the state issued Medicaid rate. In addition, upon receipt of the Contractor’s quote, the Contracting Officer (CO) will request/negotiate a discount of the original rates/percentages received; ensuring the rates are fair and reasonable. The Government estimate was prepared based on established Medicaid RUG IV 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; to include, expenditures for FY20 Q2, Q3, Q4 and FY21 Q1 expenditures for CNH services provided at Maunalani Nursing & Rehabilitation Center.

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

CNH services are considered to be a commercial service, therefore market research was conducted using the following platforms: Medicare.gov | Nursing Home Compare, Veteran Information Pages (VIP), VA website for Veteran population data, SAMBeta.gov website (Contract Opportunities only), SBA’s Dynamic Small Business Search Tool, North American Industry Classification System (NAICS), and GSA’s Schedules Library. The last method of market research conducted for this unique service, is the on-going periodic outreach with local potential Contractors, conducted by the CNH Coordinator and Contracting Officer’s Representative (COR). The search using Medicare.gov | Nursing Home Compare, conducted by the CS, confirmed there are a total of 26 licensed nursing homes on the Island of Oahu; resulting in the following CNH star ratings: five (5) stars-much above average:

13, four (4) stars-above average: seven (7); three (3) stars-average: zero (0); two (2) stars-below average: four (4); one (1) star-much below average: zero (0); Overall rating not available: two (2), including Maunalani Nursing & Rehabilitation Center. A query of the Veterans Information Pages (VIP) was generated using PSC “Q402,” NAICS “623110” Key Words “Skilled Nursing Facility” “Nursing Home”, and States Searched-Strict “Hawaii” which produced zero (0) Service-Disabled Veteran Owned Small Businesses (SDVOSBs) or Veteran Owned Small Businesses (VOSBs).

The VA website for Veteran population data provided the following FY 2017 Veteran Population:

112,304; Male Veterans 100,398: Female Veterans: 11,906; Number of Military Retires: 17,935;

Veterans 65 or older: 50,134. A search on SAMBeta.gov website (Contract Opportunities only) was conducted using the following: Key Words: “Skilled Nursing Facility; Status: Active; Agency: VA resulting in (0) opportunities. SBA’s Dynamic Small Business Search Tool was used with the following search criteria: NAICS “623110” Key Words “Skilled Nursing Facility”, and States Searched-Strict “Hawaii” “SDVOSB” and “VOSB” which produced zero (0) SDVOSB or VOSB. A query on NAICS