-20822.pdf

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Pursuant to FAR Subpart 6.302-2

Source Selection Information – See FAR 2.101 and 3.104

1. Contracting Activity: Department of Veterans Affairs (VA) Contracting Activities

2. Description of the Action:

The proposed action is a class justification and approval based on unusual and compelling urgency for the execution of contract actions required in response to immediate VA requirements for Personal Protective Equipment (PPE) in support of national defense and the national emergency COVID-19.

This class justification expires on 15 July 2020, or until the current pandemic is over and the state of emergency is lifted, whichever occurs first.

The period of performance for contracts issued under the authority of this class justification shall not exceed three (3) months.

3. Description of Supplies or Services:

This class justification is for Personal Protective Equipment (PPE) in support of the VA in meeting the PPE needs of 1,255 VA healthcare facilities; which includes 170 medical centers and 1,074 outpatient sites within all 18 Veterans Integrated Services Networks (VISN) throughout the US and its territories.

The attached list of the types of PPE that is required in support of this national emergency is provided.

All contracts issued under the authority of this justification shall be awarded on a firm fixed-price basis.

No contract action issued under the authority of this class justification may exceed $100 million. While FAR subpart 6.303-2(b)(3) requires the estimated value of the supplies required to meet the agency’s needs, such an estimate is not available due to the nature of the COVID-19 pandemic and the class justification.

4. Statutory Authority:

The statutory authority permitting other than full and open competition is 41 U.S.C.

§ 3304(a)(2) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-2 entitled, “Unusual and Compelling Urgency.”

5. Rationale Supporting Use of Authority Cited Above:

On March 13, 2020, the President declared the COVID-19 pandemic a national emergency. As a result of the COVID-19 pandemic and the declared national emergency, the supply chain has been overburdened to the point that there are now significant PPE shortages, and with increasing supply allocations being implemented, it has greatly reduced the availability of PPE items. As this major disaster is a world-wide pandemic, all available PPE supplies are in high demand and the market for these supplies is highly volatile. As a result, contracts must be issued with unusual and compelling urgency because of the current market conditions; while there are several vendors that stock the items that have now become critical and scarce most vendors are out of stock, which is driving limited competition and urgent procurements.

VA’s rationale is that under the current declared national emergency and marketplace conditions, an unusual and compelling urgency exists which justifies precluding full and open competition for the execution of contracts for PPE. Failure to execute this action could result in serious jeopardy to VA major mission of Veterans healthcare and safety along with backup for the private healthcare systems around the Country; and therefore, the Federal Government would be seriously injured unless VA limits competition in accordance with this justification.

Approval of this class justification enables the VA to avoid delays in providing vital PPE and the catastrophic negative impact to the Department’s ability to provide world-class patient care to our nation’s Veterans. This justification will allow the VA to be more agile in its acquisition of critical medical and surgical PPE items in the currently everchanging and quickly evolving marketplace.

6. Efforts to Obtain Competition:

Due to the unprecedented and unforeseen circumstances that have arisen from the COVID-19 pandemic, it is not practical to seek full and open competition for PPE items at this time, as increased global demand on the worldwide supply chain has resulted in acute global shortages. Instead, the government is receiving numerous unsolicited offers for PPE from the commercial marketplace. As these offers are received, the government is exercising due diligence in validating the source of supply; obtaining medical-field subject matter expertise to determine if the offered PPE will meet the needs of the government; validating the need for the offered PPE; ensuring the price is reasonable; and, is making appropriate contractor responsibility determinations prior to issuing a contract award.

The government continues to solicit and seek sources from as many sources as possible for this vital PPE using GSA Schedules, VetBiz, conducting Internet searches, and making and receiving phone calls to / from vendors.

A notice (synopsis) will not be publicized as required by FAR Subpart 5.2 under the allowed exception specified in FAR Subpart 5.202(a)(2). In accordance with FAR Subpart 5.202(a)(2), the CO will include a determination that “The proposed contract action is made under the conditions described in 6.302-2 and that the Government would be seriously injured if the agency complied with the time period specified in 5.203.”

An award notice for each contract action awarded utilizing this authority will be publicized within 15 days after award.

7. Contracting Officer determination that the anticipated cost to the Government will be Fair and Reasonable:

No award shall be made under the authority of this justification until the Contracting Officer determines the cost to the Government to be fair and reasonable. This determination will be based on a comparison of current contract pricing, past proposal submissions (if available), and other information made available utilizing price analysis for PPE and trends.

8. Description of Market Research Conducted:

Market research was conducted to determine the suitability of commercial items and it has been determined that the Government’s needs may be met by a type of item customarily available in the commercial marketplace that would meet the definition of a commercial item(s) in accordance with FAR Subparts 2.101 and 10.002.

Further market research is ongoing daily as requirements for PPE steadily increase.

This market research includes searching GSA Schedules, utilizing VetBiz, conducting Internet searches, and making and receiving phone calls to / from vendors.

9. Other Facts:

VA supports the Federal Emergency Management Agency (FEMA) and US Department of Health & Human Services with the delivery of medical supplies and coordination of support missions in response-to and recovery-from nationally declared emergencies and to support national defense. Given that VA Medical Centers and other select federal facilities are designated FEMA facilities with significant contingency and emergency response roles, the failure to rapidly acquire PPE would not only negatively impact healthcare delivery to our nation’s Veterans and their dependents, but also potentially have a direct negative impact on the greater public.

10. A listing of the sources, if any, that expressed an interest in the acquisition:

None. Although the VA is currently being contacted by commercial providers, each provider is being thoroughly vetted at this time.

11. Statement of Actions the Agency may take to overcome barriers to competition in the future:

The current market conditions are themselves a barrier to competition, while there are many vendors that sell the items on the VA critical PPE list, most are out of stock. VA will continue to monitor the current market conditions to determine the best method to overcome barriers to competition in the future. At the present time we are following leads and awarding contracts when we find acceptable stock that is available for a quick delivery making these awards based on urgency. The VA will continue to request offers from as many potential sources as is practicable under the circumstances and as the market conditions change and become more stable VA will comply with full and open competition.

12. Technical / Requirements and Procuring Contracting Officer Certification:

Each procurement executed under the authority of this justification shall be accompanied by a memorandum and certification signed by both the Contracting Officer and the Technical and Requirements representative and made part of the contract file, certifying the following:

a. The requirements being procured are in support of the national emergency (COVID-19 pandemic) and are for medical or surgical PPE items as specified within this justification and the attached PPE list.

b. The contract is a firm-fixed-price contract.

c. The price is a fair and reasonable price (and how price reasonableness was determined).

d. The contract period of performance (including options) does not exceed three-months.

e. The total contract value (including options) does not exceed $100M.

f. The proposed contract action is made under the conditions described in

6.302-2 and that the Government would be seriously injured if the agency complied with the time period specified in 5.203.

g. The data supporting the memorandum and certification is complete and accurate.

13. Legal Review:

I have reviewed this justification and find it meets the content requirements of FAR subpart 6.303-2.

Name: ____________________ Date: ________________

Title: ______________________ Signature: ____________

Robert R. Fleck April 16, 2020

Chief Counsel Procurement Law

Approval

In my role as Head of the Contracting Activity, based on the forgoing justification, I hereby approve the Class Justification and Approval, on an other-than full and open competition basis pursuant to the statutory authority cited in paragraph 4 above, subject to availability of funds, and provided that the items herein described have otherwise been authorized for acquisition.

Phillip W. Christy Date Head of Contracting Activity

Approval

In my role as Senior Procurement Executive, based on the forgoing justification, I hereby approve the Class Justification and Approval, on an other-than full and open competition basis pursuant to the statutory authority cited in paragraph 4 above, subject to availability of funds, and provided that the items herein described have otherwise been authorized for acquisition.

Dr. Angela Billups Date Senior Procurement Executive Office of Acquisition and Logistics (OAL)

4/16/2020