36C24220D0090-002.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C242-20-AP-0809

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-0105) for Community Based Outpatient Clinic (CBOC) services in Jamestown, New York 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 six-month fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) contract to the incumbent contractor (Sterling Medical Associates, Inc.) with a six-month option period. The contract will also include FAR clause 52.217-8 – Option to Extend Services to provide for an up to six-month extension of services in the event the full six-month option period is not needed. The interim contract will be from May 1, 2020 through April 30, 2021 if the option period is exercised.

FAR 13.5 Simplified Procedures for Certain Commercial Items: This procurement is for Community Based Outpatient Clinic (CBOC) services in Jamestown, 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 VA Western New York Healthcare System (VAWNYHS) has a continuing need for Community Based Outpatient Clinic (CBOC) services in Jamestown, NY within Chautauqua County. The clinic provides 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 1,541 Veterans. The CBOC functions as an extension of the VA Western New York Healthcare System for Veterans who are unable to travel to the VAMC or another CBOC. The interim contract is needed to maintain services for up to twelve (12) months (May 1, 2020 through April 30, 2021) due to a Government Accountability Office (GAO) protest that was received regarding the award of the long-term contract. The estimated cost for this period of performance is $1,473,997.92. 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 protest process for the long-term contract and the 120-day transition/start-up period. The long-term contract was initially awarded in December 2019, with an anticipated start date of May 1, 2020. Without this interim contract, approximately 1,541 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 this clinic. It is therefore necessary to provide continuous services from the incumbent contactor until the protest process is complete for the long-term contract.

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 a GAO protest against the long-term contract award is processed. 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. The competitive long-term contract for one base year with nine (9) one-year options was awarded in December 2019.

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 long-term contract was competitively awarded against solicitation 36C24219R0013 in December 2019, however, the award was protested to GAO. NCO 2 will continue to monitor the market to ensure sole source requirements are avoided.

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

Text8: 2/10/2020