36C24219C0102-001.pdf

OFOC SOP Revision 05 Page 1 of 5 Original Date: 03/22/11 Revision 05 Date: 05/02/2016

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>$150K)

Acquisition Plan Action ID: VA242-17-AP-3076

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office VISN 02, Buffalo, NY VA Medical Center.

2. Nature and/or Description of the Action Being Processed:

The VA is proposing to award a sole source contract to Pathfinder Engineers & Architects LLP. This proposed action is for Architect/Engineering Services for the procurement of Part I AE Services for the redesign of the HVAC due to code changes (see SOW), Part II construction period services and Part III site visits. This is to support the Ward C renovation project at the Buffalo, NY VA Medical Center, project #528-12-101. The Funding document number is: 528-17-2-4192-0047.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The design for this requirement was contracted and awarded to Pathfinder Engineers & Architects LLP on June 15, 2012, Contract #VA528-12-C-0115. The design was completed, 100% design drawings and bid documents were submitted to the VA on August 31, 2013. This contract provided for Part IA & IB services as a base CLIN to be performed within 400 days after the Notice to Proceed, with option CLINS II and III for construction period services and site visits, respectively. According to the verbiage on page one of the contract, the option CLINS were required to be exercised no later than July 2013. These CLINS were not exercised as the construction contract was not solicited. In accordance with section SP-7 of the contract, the contract effectively terminated on August 31, 2014; one year after completion and submittal of the final contract drawings and specifications.

Since the original design, there have been code and equipment changes that will require some of the HVAC system to be re-designed in addition to Part II and III AE services. The Contracting Officer contacted Ms. Nancy Jendryaszek, Managing Partner at Pathfinders Engineers and Architects, LLP to determine if their company was interested in a new contract for the aforementioned services. Ms.

Jendryasek affirmed Pathfinder’s desire to complete the project.

6% Fee Limitation for Design

The Contracting Officer reviewed the original contract. Part 1B costs were as follows:

Pathfinders Engineers and Architects, LLP (Prime Contractor): $134,817 Watts Engineering and Architects $134,781

These prices did not factor out exclusions IAW 40 USC 254(b) and VAAR 836.606-73. The following were factored out, with overhead and profit factored as applicable:

Review Trips

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Revision 05 Date: 05/02/2016

Site Trips

Pre-Bid Conference

Answering and Issuing Amendments

Travel Costs

Reproduction Costs

Calculation for Pathfinders Engineers and Architects, LLP:

Applicable Design Costs: $ 40,070 Add: Overhead (154%) 61,707 Subtotal: $101,778 Add: Profit (10%) 10,177 Applicable to the 6% fee limitation: $111,955

Calculation for Watts Engineering and Architects:

Applicable Design Costs: $ 49,110 Add: Overhead (139%) 68,263 Subtotal: $117,373 Add: Profit (10%) 11,737 Applicable to the 6% fee limitation: $129,110 Total Applicable to the 6% fee limitation: $241,065 Fee Computation:

= Part 1B Applicable Costs/Estimated Cost of Construction = 241,065/4,500,000 =5.35%

These costs will be factored into the new contract along with additional design and construction costs and evaluated for compliance to the 6% fee limitation.

4. Statutory Authority Permitting Other than Full and Open Competition:

41 USC §3304(a)(1), as implemented by FAR 6.302-1:

(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;

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 key issue in pursuing a sole source contract for previously completed design is the issue of professional liability for the design. Any firm willing to accept a contract to complete this design

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Revision 05 Date: 05/02/2016 must accept professional liability for the design. The Contracting Officer posted a Sources Sought to FBO on May 3, 2017. This notice was posted until June 5, 2017. There were no responses. Even if such a firm did exist, procuring services from a firm other that Pathfinders Engineers and Architects, LLP would result in additional services or costs to:

Review and accept approximately 101 drawings and 1338 pages of specifications.

Cost to become familiar with all design aspects of the project in order to approve/disapprove submittals, answer requests for information and provide inspections to ensure construction compliance with the design.

Correct any design flaw discovered during the construction phase of the contract

Accordingly, Pathfinders Engineers and Architects, LLP is the only firm capable of providing the services described in Section III above without the Veteran’s Health Administration bearing unacceptable delays in fulfilling its requirements, 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:

The Contracting Officer posted a Sources Sought Notice on FBO on May 3, 2017. This notice stated the intent of the Government and invited any firm will to accept professional liability for the design to contact the Contracting Officer. This notice was published for 33 days. There were no responses.

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

The cost for Part II and III services will be compared to the costs in the original contract, factoring in wage inflation to account for 5 years of salary escalations since the award of the original contract.

The Bureau of Labor Statistics reports current wage rates for engineers of various types and skill levels for specific geographic areas (typically counties) and consumer price index at:

www.bls.gov/oes/current/oes.htm www.bls.gov/news.release/cpi/t02.htm

The Contracting Officer will rely on the IGCE from the COR and pricing for a similar redesign on the adjacent Ward 9D renovation project which is nearing completion.

The cost for the original design was $539,240; $92,496 for Part II Services, $30,787 for Part III Service. The IGCE for this procurement is $192,500.00, which includes redesign services for the HVAC system.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

N/A. See paragraph 6.

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

http://www.bls.gov/oes/current/oes.htm http://www.bls.gov/news.release/cpi/t02.htm

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The Contracting Officer has attempted to seek competition for AE services for previously completed designs several times in the past two years. It is apparent through market research that licensed AE firms are not willing to accept professional liability for the design of another professional AE firm.

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

None.

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:

There are no known actions the Government can take to overcome the issue of professional liability for the design.

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.

(This signature is the requestor’s supervisor, fund control point official, chief of service, someone with responsibility and accountability)

Name: Jeffrey Reberholt Date Title: Engineering Supervisor Facility: Buffalo, NY VA Medical Center

13. Approvals in accordance with the VHAPM, Volume 6, Chapter VI: 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.

Name: David M. Esmay Date Title: Contracting Officer

Upstate New York Healthcare Facility – Buffalo, NY http://vaww.pclo.infoshare.va.gov/PMWeb/Vol6Chapter6.aspx

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b. Director of Contracting /Designee (Required over$150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Irma Ferro Date NCO 2 Division Chief of Contracting

Upstate New York Healthcare Facility – Syracuse, NY