-19050.pdf
PDF Posted
- Attached to
- Bulk Liquid Oxygen VA Boston Federal contract opportunity
- Solicitation number
- 36C24120Q0129
About this file
This document is a justification for a sole source award to Airgas USA LLC for bulk oxygen and tanks for three Department of Veterans Affairs medical campuses in Boston. The incumbent contractor owns the tanks currently installed at the facilities. Replacing the tanks would cost an estimated $40,000 per site just for removal, not including installation of new tanks, and would disrupt medical gas supply. The one-year base contract with four one-year options was posted for market research from October 16-21, 2019, but no other sources were found that could meet the need without additional construction funds. Pricing will be determined to be fair and reasonable by comparing to previous prices, market research, or an independent estimate. The Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 1 awarded a follow-on contract to Airgas USA LLC for an unknown amount on December 30, 2019.
36C24120P0285 P03 SSJ Bulk 02.pdf
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VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP
Attachment 2: Request for Sole Source Justification Format >SAT
DEPARTMENT OF VETERANS AFFAIRS
Justification and Approval (1&A)
For
Other Than Full and Open Competition (>SAT)
Acquisition Plan Action ID: 36C241-19-AP-3262
1. Contracting Activity: Department of Veterans Affairs, VISN 01, NCO 01.
2. Nature and/or Description of the Action Being Processed: The Department of Vetean Affairs requests to enter into a single source, firm-fixed contract with Airgas USA LLC located at 6055
Rockside Woods Blvd N. Ste 500, Independnce OH, 44131-2337. This acquisition is conducted under the authority o 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 6.303-1.
3. Description of Supplies/Services Required to Meet the Agency's Needs:
The resultant contract shall be for one (1) base year with the option to extend for four (4) additional option years and a six (6) month FAR 52.217-8 extension. The estimated value of the proposed action is $ $841,196.06.
The Boston Healthcare System is interested in obtaining a supplier for bulk oxygen and tanks for bulk oxygen for each of their three (3) compuses (Jamaica Plains, Brockton, and West Roxbury). The resultant contract will be a follow on procurement; the historical contract for Airgas USA LLC was an
Indfinitie Deliviery Indefinite Quanitiy Procurement; contract number VA241-14-D-0157 for supplies which currently are in place with Air Gas who owns the tanks currently in place at each facility.
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;
( ) (6) National Security per FAR 6.302-6;
( ) (7) Public Interest per FAR 6.302-7;
FAR13.5 Simplified Procedures for Certain Commercial Items
5. Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Airgas USA LLC presently has station liquid oxygen tanks located at all three (3) facilities within the Boston Healthcare System;
OFOC SOP Revision 08 Page 1 of 4
Original Date: 03/22/11
Revision 08 Date: 04/18/2018 they also have backup reservoirs at these facilities (3 in Brockton,l in West Roxbury, 1 at JP). The station tanks are vendor owned-and proprietary to their oxygen supply. Due to liability issues it is not permissible or legal for a contractor other than Airgas to fill tanks owned by Airgas. Airgas provides annual inspections and preventative maintenance on the station tanks at no additional cost to the governent and provides reports on operation and condition to each facility. If the new requirement were to be awarded to another company the existing station tanks would need to be removed from each VA Facility. The cost of removal alone is estimated by the imcumbent contractor as costing upwards of $40,000.00, this additional cost does not include installation of new tanks. The evolution of removal and replacement of station tanks would be cost prohibitive to the amount of funding allocated by the VA Boston Healthcare System for this service, would require numerous labor hours across multiple VA departments to coordinate, supervise, receive and test the replacement and would create a disruption in the provision of bulk oxygen to the facility. The lapse of medical gasses to the Boston Healthcare System would require the coordination of multiple medical departments within each facility to ensure patient care is not impacted.
_Changing out a new system would impinge clinical service as alternative delivery sources would have to be established for the period of change out. The tanks currently are meeting current demands and meet all the demands of the Boston VA healthcare needs. Concrete pads currently in place would have to be reconfigured and additional contracts would need to be in place with construction in order to have this done. The current plumbing situation would have to be replaced and reconfigured to meet specs of new tanks. This also would incur additional costs with a new service contract. The
Boston VA Healthcare system would have to supply alternative source of oxygen during all above and would necessitate great cost for supplies labor and other variable costs. The cost of supplying an alternative source if possible, a new contact for plumbing, and a new contract for construction are not something the VA has budgeted for. These funds would require NRM Capital Construction funding which is not currently available.
6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A notice of intent to sole source was posted on FBO on 10/16/2019. The notice was as follows:
The proposed contract action is for supplies (Bulk Oxygen for all three (3) of the Boston
Campuses West Roxbury, Jamaica Plain and Brockton) for which the Government intends to solicit and negotiate with only one source under the authority FAR 6.302-1 Only One Responsible Source.
The proposed contractor provides bulk oxygen to all the facilities in their tanks.
THIS NOTICE OF INTENT IS NOT A REQUEST FOR COMPETITIVE PROPOSALS. It is a market research tool being used to determine the availability of other qualified sources that can meet the requirements identified above and inherent with the referenced product. The Government is not obligated to and shall not pay for any information received from potential sources as a result of this notice of intent. All responses received within 5 days of the posting of this notice will be considered by the Government. A determination by the Government to require these specific services for VA
Boston Healthcare Systems, procurements based on this notice is solely within the discretion of the
Government. Information received will normally be considered solely for the purposes of determining whether other qualified providers are available.
OFOC SOP Revision 08 Page 2 of 4
Submit any responses within 10 days of the posting of the notice of intent via email to:
Scott.Remillard@va.gov
THIS NOTICE OF INTENT IS NOT A REQUEST FOR PROPOSALS OR QUOTATIONS. No solicitation package will be issued. A determination by the Government not to compete this proposed action based upon responses to this notice is solely within the discretion of the Government. Information received will be considered solely for the purpose of determining whether conducting a competitive procurement is in the best interest of the Government. All responses received by 15:00 EST on 21
October 2019 will be considered by the Government. This notice is not a request for competitive proposals/quotes. All information submitted should support the offeror's capability to provide the services required and shall be furnished at no cost or obligation to the Government. Responses must be in writing and must provide clear and concise documentation indicating an offeror's capability to provide these services. Verbal responses are not acceptable and will not be considered. Responses and questions shall be submitted via email to: Scott.Remillard@VA.gov
Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The contracting officers intends to utilize at least one of 3 techniques to determine fair and reasonable pricing for this requirement: The techniques are as followed:
FAR 13.106-3 (a) (2)(i) Market Research
FAR 13.106-3 (a) (2)(ii) Comparison of the proposed price with prices found reasonable on previous purchases.
FAR 13.106-3 (a) (2)(v) Comparison to an independent government estimate: or
8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:
VIP: A search was conducted on VIP under key words Bulk Oxygen and NAICS 325120. Four (4) contractors were found but none were capable of providing oxygen to the tanks installed for the large business Airgas.
NAC: A search was done on the NAC under key words Bulk Oxygen. Zero results were found.
FPDS: A search was done on FPDS under keywords bulk oxygen and NAICS 325120. The only contractor that was found was not capable to provide bulk oxygen.
GSA: A search was done on GSA with the keywords bulk oxygen. No results were found.
SBA: A search was done on the SBA with the keywords bulk oxygen and NAICS 325120 and no results were found.
FBO: A notice of intent to sole source was posted on FBO for 5 days. No responses or questions were asked of the CO.
9. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:
None were found that could meet the need without additional cost of construction funds that are not available.
OFOC SOP Revision 08 Page 3 of 4
10. 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:
None, having Air Gas Tanks on site saves the cost of installing tanks.
11. 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.
Name: Donna M Poyant Date
Title: Home Care Coordinator
Facility: Boston
12. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:
13. 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.
Name: William Prenzler Date
Title: Branch Chief
Facility: West Haven
a. One Level Above the Contracting Officer (Required over SAT but not exceeding $7000 1 ame: William Nalls Date
NCO/PCO XX Duty Title: Division Chief NC01
Facility: Togus
Name: Joesph Maletta Date
Executive Director
Regional Procurement Office — East (RPO-E
OFOC SOP Revision 08 Page 4 of 4
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