36C24220C0096-012.pdf

VHAPM Part 819.7007/7008 Sole Source Awards to a Verified Service-Disabled Veteran-owned Small Business/Veteran-owned Small Business

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT Acquisition Plan Action ID: 36C242-20-AP-1255

VHAPM Part 819.7007/7008 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020

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DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C242-20-AP-1255

1. Contracting Activity: Department of Veterans Affairs, VISN 02, Brooklyn VA Medical Center, 2237 number: 630-20-2-7826-0003, Contract- 36C24220C0096

2. Nature and/or Description of the Action Being Approved: Currently Brooklyn VA Medical Center’s

22-year-old main passenger elevators P1-P5 are experiencing major and severe mechanical problems. The five (5) main passenger elevator operation conditions are beyond economic repair due to obsolete mechanical, electronical equipment, and parts. These obsolete parts are no longer available to purchase for replacement. Further delay of the required elevator upgrades will put the medical center in great risk of losing the entire elevator bank. These elevators are at high potential for total failure and shutdown until upgraded. If and when elevators experience total failure, the entire Hospital will be in total malfunction as these 5 elevators are the main vertical transportation for all patients, staff, and visitors to access patient floors, ICU, GI, Chemo treatment, Dialysis, Pharmacy, Cardiology, Dermatology, Radiology, OR, Sleep lab, blood labs, and all other patient related services as well as support services. In addition, there will be no rapid response access for medical, police, or fire department teams to clinical, behavioral or fire emergencies.

Additionally, the Brooklyn VAMC was designated by VISN 2 and VA Central Office as the main receiving facility for Novel Coronavirus patients for VISN 2. Not having 100% operational and safe elevators will add more risk to the facility and everyone in it. It is time sensitive to award the project as an emergency due to the critical need as allowed by the FAR.

Therefore, to respond to this emergency need and in accordance with PL 109-461, Veterans First Contracting Act, an emergency SDVOSB sole source contract was awarded to Elevator Service, Inc.

Grand Rapids, MI on April 4, 2020 in the amount of $2,332,620.00.

The Contracting Officer determined that because of the present danger for these elevators to fail and compromise facility operation and the safety of our patients, visitors, and staff, it was necessary to make this emergency award and complete the formal sole source approval post-award. With a long lead time required to acquire necessary materials for this work, the Contracting Officer determined it necessary to make this award quickly. The utilization of the sole source authority to select a SDVOSB concern under the Veterans First Contracting Act supported this action.

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT Acquisition Plan Action ID: 36C242-20-AP-1255

VHAPM Part 819.7007/7008 Original Date: 08/30/2017

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3. Description of Supplies/Services Required to Meet the Agency’s Needs: The contractor is to provide labor and materials to replace the following: elevator controllers, landing unit, car stations, hall stations, hall lanterns, governor, cross cancellation, hoist cables, traveling cables, shaft wiring, shaft door equipment, car door operator, hoist way limits, rails, rope gripper, elevator pit, car and counterweight guide rollers, and buffer springs.

The contractor will provide full maintenance and operations service for the active elevator equipment during the elevator upgrade project period, including repairs of all operating parts that may wear out or fail. All routine maintenance service and scheduled repairs will be performed during normal business hours. The contractor will use their best efforts to conduct maintenance and repairs in a manner that minimizes disruption to medical center operations.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). Contracting Officers may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or

819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

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

Requires the Use of the Authority Cited Above (applicability of authority): Elevator Service, Inc., is a Service Disabled Veteran Owned Small Business (SDVOSB) specializing in elevator upgrades, repair, and maintenance. They have completed work at multiple VAMCs nationwide including VISN 2 facilities, where they have full understanding and knowledge of specific VA requirements, needs, and mission. Open competition would have seriously delayed this work, which may, if the elevators fail, lead to partial closure of the medical center and major impact on patient care that includes OR, ICU, acute patient wards, SPS, Pharmacy, Chemo, Radiology, Dialysis, and all support services. For this requirement, we are able to accomplish the award as allowed by the Veterans First Contracting Act which states: Authorized or Required by Statute (FAR 6.302-5) - PL 109-461, Veterans First Contracting Act, permits a Contracting Officer to sole source to a Service Disabled Veteran Owned Small Business up to $5M and in accordance with VAAR 819.7007(b), allows the Contracting Officer to determine whether to make a sole source award as a business decision wholly within the Contracting Officer’s discretion.

A determination that a sole source award to this particular SDVOSB concern to meet the subject requirement was made. The Contracting Officer determined that the award price is fair and reasonable and that the contractor is responsible. The Contracting Officer also has received the required payment and performance bonding from Elevator Service, Inc. This is documented in the contract briefcase.

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT Acquisition Plan Action ID: 36C242-20-AP-1255

VHAPM Part 819.7007/7008 Original Date: 08/30/2017

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6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart

5.2 and, if not, which exception under 5.202 applies: Independent market research was conducted by both the Chief Engineer at the Brooklyn VAMC and the Contracting Officer. It was discovered that no SDVOSB other than Elevator Service, Inc., readily possesses this specialty elevator repair capability and experience. The SDVOSBs that are performing work in the New York Harbor area are general contractors and do not have the elevator replacement capability offered by Elevator Service, Inc. Additionally, the information received from large businesses either showed much higher pricing than the IGE or required a mandatory service component for proprietary Brand Name Only equipment. The Brooklyn VAMC is requesting replacement parts and service that can be later procured through multiple vendors on a competitive basis.

Exception under 5.202: The contracting officer need not submit the notice required by 5.201 when-

(a) The contracting officer determines that-

(2) The proposed contract action is made under the conditions described in 6.302-2(or, for purchases conducted using simplified acquisition procedures, if unusual and compelling urgency precludes competition to the maximum extent practicable) and the Government would be seriously injured if the agency complies with the time periods specified in 5.203.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer determined that the price provided by the Elevator Service, Inc., is fair and reasonable, and that they are a responsible contractor. Elevator Service, Inc., provided a cost proposal that was in alignment with the IGE, with an acceptable work plan and period of performance to address the emergent work. Bonding requirements are met.

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

Market Research Was Not Conducted: Similar projects were performed in the past by Elevator Service, Inc. Independent market research was conducted by the Chief Engineer at Brooklyn in January before repeated system failures began accelerating. It was discovered that no SDVOSB other than Elevator Service, Inc., had this specialty elevator repair capability and experience. The Brooklyn VAMC also wants non-proprietary replacement parts to be used so that the option exists for future competition through multiple vendors. A sources sought notice was not posted, as this requirement was deemed emergent due to the increase in elevator breakdowns and entrapments.

The Contracting Officer determined that the Veterans First Contracting Act would be utilized to sole source this procurement to Elevator Service, Inc., as they possess specialized knowledge and experience.

https://www.acquisition.gov/content/part-5-publicizing-contract-actions https://www.acquisition.gov/content/part-5-publicizing-contract-actions https://www.acquisition.gov/content/part-5-publicizing-contract-actions https://www.acquisition.gov/content/part-5-publicizing-contract-actions

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT Acquisition Plan Action ID: 36C242-20-AP-1255

VHAPM Part 819.7007/7008 Original Date: 08/30/2017

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9. Any Other Facts Supporting the Use of Other than Full and Open Competition: NONE-Authority under 38 USC 8127(c).

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other SDVOSB sources expressed an interest in this acquisition. Based on the market research collected, the Contracting Officer determined that a sole source SDVOSB procurement as allowed by the Veterans First Contracting Act was the best procurement strategy.

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: The facility failed to give NCO2 Contracting adequate lead time in order to procure these five elevator replacements through a competitive SDVOSB procurement. The Brooklyn VAMC had awareness that these elevators were far beyond the end of their lifecycles, but due to budgetary limitations, engineering staffing issues, and decisions to proceed with other projects, the facility failed to address this need timely. Ongoing service maintenance was continued far longer than it should have been continued before replacing this important infrastructure. This failure to address the need resulted in the current critical infrastructure and safety concerns.

The plan to procure these five elevator replacements from Elevator Service, Inc., with non-proprietary parts and maintenance will allow for future competitive acquisitions for service and replacement parts. A separate design contract for Brooklyn’s freight elevators is near award and will result in a competitive SDVOSB procurement once that design is completed in a year or so.

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.

Digitally signed by

SAM FARES 544394

544394 Date: 2020.04.17 16:03:52 -04'00'

Sam S. Fares Date Chief Engineer, Brooklyn VAMC

13. Approvals in accordance with the

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.

Emily I Lindsey 585190

Digitally signed by Emily I Lindsey 585190 Date: 2020.04.18 08:21:54 -04'00'

Emily I. Lindsey Date Contracting Officer Facility: Brooklyn VAMC

SAM FARES

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT Acquisition Plan Action ID: 36C242-20-AP-1255

VHAPM Part 819.7007/7008 Original Date: 08/30/2017

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b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Digitally signed by Edward J Edward J Kostolansky Kostolansky 1078683 1078683 Date: 2020.04.19 10:44:23

-04'00'

Edward Kostolansky Date Contracting Officer, NCO2 Branch Chief, Construction Team 2

c. VHA SAO 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 $68 million) or approve ($700K to $68 million) for other than full and open competition.

Joseph P. Maletta Date Executive Director, Regional Procurement Office (RPO) East Head of Contracting Activity (HCA)