36C24220D0083-002.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

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

Acquisition Plan Action ID: 36C242-19-AP-3973

1. Contracting Activity: Department of Veterans Affairs, NCO 2, Canandaigua VA Medical Center, 400 Fort Hill Avenue, Building 34A, Canandaigua, NY 14424

2. Nature and/or Description of the Action Being Processed: The VA Western New York Healthcare

System (VAWNYHS), a part of the New York/New Jersey VA Health Care System (VISN 2) currently has a contract with Sterling Medical Associates, Inc. (VA528-14-D-0115) for Community

Based Outpatient Clinic (CBOC) services in Lackawanna, New York (main CBOC) and Springville, New York (satellite outreach clinic) that expires on April 30, 2020. All allowable contract extensions under 38 USC 8153 have been exhausted. To avoid a break in critical patient care services, NCO 2 on behalf of the VAWNYHS is requesting a sole source interim contract for the continuation of services pursuant FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements. NCO 2 intends to award a four (4) month, fixed price, Indefinite Delivery

Indefinite Quantity (IDIQ) contract to the incumbent contractor (Sterling Medical Associates, Inc.)

and include FAR clause 52.217-8 – Option to Extend Services to provide for an up to six-month extension. The interim contract will be from May 1, 2020 through August 31, 2020.

FAR 13.5 Simplified Procedures for Certain Commercial Items: This procurement is for

Community Based Outpatient Clinic (CBOC) services in Lackawanna, NY and Springville, NY in accordance with 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 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The VAWNYHS has a continuing need for Community Based Outpatient Clinic (CBOC) services in Lackawanna, NY (main

CBOC) and Springville, NY (satellite outreach clinic). The clinics provide primary care services (to include the facility, equipment, furniture, supplies, staff (providers, nurses, phlebotomists, and clerks), telehealth, and space for VA mental health staff to treat approximately 1,856 veterans at the main CBOC and 849 veterans at the satellite outreach clinic. The clinics function as an extension of the VAWNYHS for veterans who are unable to travel to the VAMC or another CBOC. The interim contract is needed to maintain services for four (4) months (May 1, 2020 through August 31, 2020) until the long-term contract can be awarded. The estimated cost for this period of performance is

$885,786.40. The NAICS code for this procurement is 621498 – All Other Outpatient Care Centers.

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: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

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 current contract with Sterling Medical Associates, Inc. has provided community based outpatient clinic services on behalf of the VAWNYHS at these locations for the last five years. The contractor has been performing in accordance with the contract in a satisfactory manner with no breaks in service. In accordance with FAR 6.302-1, there is only one responsible source that can fulfill this requirement at this time. The follow-on/interim contract would allow for continued services during the long-term contract procurement process and required 120-day transition/start up time. The solicitation (36C24219R0014) was posted on beta.sam.gov on November 29, 2019. Without this interim contract, approximately 2,705 veterans would not have access to critical primary and mental health care in the specified geographic areas. Moreover, due to the complexities involved in a transition to another contractor who could provide the same or similar services, care would undoubtably be disrupted. Any sort of gap in the continuity of said services would have a detrimental impact on the veterans currently served by these two clinics. It is therefore necessary to provide continuous services from the incumbent contactor until a new, long-term contract is competitively awarded.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Due to the nature of the services required to be performed by the incumbent, and based on the reasons outlined above, offers are unable to be solicited from any other source other than the incumbent contractor.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The cost of the interim, short term contract will be similar to other CBOC contracts recently awarded in VISN 2. The Contracting Officer determined that the anticipated cost to the Government will be fair and reasonable because the cost is consistent with the recent CBOC awards whereby price was deemed fair and reasonable from full and open competition and price analysis.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Due to only one source being able to perform this requirement, market research was limited in scope. In order to determine the incumbent’s technical capability, the following market research tasks were conducted:

1. SAM Registration was verified

2. Recent and relevant past performance was discussed with the COR to ensure there are no ongoing performance issues

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This interim, short term contract is required to provide uninterrupted services while pursuing a long-term contract.

It would be impossible to compete a short-term contract and would not be practical for a new contractor to start these complex services in such a short amount of time. A competitive one base year with nine (9) one-year options is expected to be awarded by April 30, 2020.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other sources have expressed written interest in this acquisition.

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: In accordance with 38 USC 8153, a competitive solicitation (36C24219R0014) for a long-term contract was posted on beta.sam.gov on November 29, 2019. NCO 2 will continue to monitor the market to ensure sole source requirements are avoided.

(J&A) 36C242-19-AP-3973

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.

Bradford P. Mersereau, MD Date Chief, Primary Care VA Western New York Healthcare System

13. Approvals in accordance with the VHAPM Part 806.3 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.

Lauren M. Helming Date Contracting Officer, NCO 2

b. One Level Above the Contracting Officer (Required over $150K but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.

Allan M. Preston Date Supervisory Contract Specialist Branch Chief, Medical Sharing, NCO 2

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

Joseph P. Maletta Date Executive Director VHA Regional Procurement Office East

Bradford P.

Mersereau 272629

Digitally signed by Bradford P. Mersereau 272629 Date: 2020.02.28 13:40:33 -05'00' 02/28/2020

LAUREN M.

HELMING 438698

Digitally signed by LAUREN

M. HELMING 438698

Date: 2020.02.28 13:44:15 -05'00' 02/28/2020

ALLAN M.

PRESTON 503790

Digitally signed by ALLAN

M. PRESTON 503790

Date: 2020.02.28 16:26:35 -05'00'

02/28/2020

(J&A) 36C242-19-AP-3973