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This document contains questions asked by potential offerors and answers provided by the agency regarding a solicitation for medical gases.

The solicitation is for the Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 2 to provide medical gases for three VA medical center facilities and their respective clinics and off-site locations located in the Finger Lakes region of New York. Services include delivery of oxygen, nitrogen and other medical gases in cylinders and bulk containers. The agency has clarified licensing requirements, insurance needs, evaluation criteria, pricing terms and inventory processes. Offerors must price rental, fill and emergency delivery CLINs. The set-aside is for verified service-disabled veteran-owned small businesses. The response date is not provided.

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1. Is the VA going to provide Attachments D.1 (Schedule of Items) & D.2 (Facility Locations)?

Answer: These Attachments are not part of this and have been removed from the RFQ. The location of the facilities is given in section 10.3 in the SOW.

1. Is the VAMC Bath, NY not included in this RFQ which is part of the Finger Lakes VA HCS? PG 5 of 104, Paragraph 1.1. (SCOPE) states “The VHA, VISN 2, VA Finger Lakes Healthcare Systems requires a contractor to provide medical gases for each of the three (3) VA medical center facilities, their respective clinics, and off-site locations located in their region” however the only (3) facilities mentioned are Canandaigua VAMC, Rochester OPC, & Clinton Crossing. NOTE: There are (6) total CBOCs within the HCS. Do these CBOCs receive cylinders via internal via distribution/transport or do they require direct delivery of cylinders (possibly under another contract)?

Tiered Evaluation - Please confirm if this is Tiered Evaluation or is the language in Block 20 of the SF 1449 incorrect, stating ? Phrase “tiered evaluation” does not appear anywhere else in the RFQ. Succinctly – the RFQ is an SDVOB set aside – is it the GOV’s intent to conduct a “tiered evaluation IAW FAR 15.101-3-Tiered evaluation of small business offers.

Answer : Yes we are conducting tiered evaluations. No, we are not conducting in accordance with FAR 15.101-3 we are conducting in accordance with VAAR 815.101.370 https://www.acquisition.gov/far/15.101-3 ?

1. Are any of the facilities currently set on a delivery schedule of specific weekdays (e.g., MON/THUR or TUE/FRI)?

Answer: Usage is and has always been as needed. Current deliveries for the Canandigua is two to three times weekly. The Calkins road facility gets approximately 1 delivery a week, but again, its on an as needed basis, when gasses are required, we contact the dispatch, they make the delivery within 24 hours of notification.

1. Licensing: PG 7 of 104, Para 2.3, “Throughout the term of this contract, Contractor shall maintain all federal, state, and local licenses applicable to the Contractor, as well as any required FDA certifications.”

3. The State of New York Boad of Pharmacy requires the Prime Contractor (SDVOB) to be licensed/registered as Wholesaler of Drugs and/or Devices in the State (Medical Grade Oxygen is a prescription drug), as the SDVOB is the Contract holder and, the accountable entity to the GOV. How is the GOV ensuring compliance with this? Please confirm that the Prime Contractor must be licensed to distribute Medical Gases for Human Consumption by state of NY? This is a hard requirement by the State of NY and cannot be delegated to a SUB CONTRACTOR – regardless of an NMR. The awardee is the accountable entity to the GOV, not the sub, hence, if for instance there was any contamination of Gas, it is the Prime SDVOB contractor is the accountable entity to the GOV and the State of NY. Please Note: Medical Gases are classified by the FDA as a Prescription Drug (Pharmaceutical), and given the RFQ, the only unlicensed entity in the Pharmaceutical Chain of Custody, could be the Awardee/Contract holder? Additionally, the Licensing requirement is directly connected to the VAAR 852.219-76 LIMITATIONS ON CONTRACTING requiring Offerors to certify in writing that they take ownership or possession of the item (on PGs 67-69 of 104 in the RFQ). Being Evaluation is LPTA, if an SDVOB Offeror is not licensed in the state of NY then they are not Technically Acceptable.

3. See State of NY Link for Application & screenshot from the application instructions:

3. https://www.op.nysed.gov/professions/pharmacy-establishments/information/application-requirements-forms-manufacturer 2.

3. See State of NY Business Link regarding Drugs or Devices Wholesaler Registration & Screenshot:

3. https://nyc-business.nyc.gov/nycbusiness/description/drugs-or-devices-wholesaler-registration

Answer: Compliance with contract requirements is insured through contract administration.

In accordance with SOW paragraph 2.3 it is up to the contractor to determine its licensing requirements

1. How is the GOV going to discern that the offeror is properly insured for NAICS 325120 – the actual requirement for this work to comply with the RFQ and not just by a dollar threshold as listed on PG 7 of 104? Specifically – does this mean insured for NAICS 325120 and how do offerors validate they have the correct type of Liability Insurance to the GOV? Does this have to be affirmed to the GOV at the time of bid submission (if not, an awarded firm could be turned down, or not be able to afford this coverage in the amounts the GOV requires respective to NAICS 325120 -- which is the NAICS this RFQ is being solicited for)? This is important because there are very few underwriters that will insure small businesses for compressed gases – hence the GOV’s can assure the offeror is be adequately covered if the Insurance Certificate lists the applicable NAICS. Often Small Business carry General Liability Insurance but if those firms are not insured specific to 325120 then there is a great level of risk of hiring a firm that is not adequately covered if something occurs during the life of the contract. FAR 52.288-5 Insurance on a GOV installation is applicable to this bid (page 60 in the index) – please note, this is particularly important because delivery of compressed cryogenic gases is a high-risk work description (as per underwriters), and it is hard to fathom this would not be part of the RFQ?

Answer: Please reference section 3.1 of SOW and section C.12 of the contract that describes the insurance requirements.

1. CLIN Unit of Measure: What is the purpose of utilizing a Unit of Measure of “EA” for Cylinder Gas Fills? The industry standard Unit for filling cylinder gas is “CY.”

Answer: Has been replaced with CY

1. How will the VA account for costs associated with an Emergency Delivery? The RFQ mentions Emergency Delivery procedures but offers no CLIN to account for this. Will the VA please add a CLIN for Emergency Deliveries (typically same day, off schedule, weekends, or holidays)?

Answer: A CLIN has been added for Emergency Deliveries

1. What is the GOV’s rationale for evaluating Solely on Lowest Priced Technically Acceptable for the critical function of Medical Grade Oxygen (a prescription drug) for a Veterans Medical Healthcare System? Recommend Evaluating via “Best Value” to ensure the VA receives the best possible offer/service and not just to the offeror with the lowest price who meets the minimum technical requirement.

Answer: The VA has determined that this will be an appropriate evaluation for this procurement.

1. What is the significance of “CCF” in the CLIN descriptions? CCF is a Unit of Measure in Bulk Oxygen (stands for per 100/Compressed Cubic Feet) and has nothing to do with cylinder gas.

CCF has been removed and changed to Cubic Feet

1. How many GFE Cylinders does the VA have on its property books by CLIN? GFE Cylinders are mentioned multiple times in the RFQ however there are no specified fill CLINs or Cylinder Gases in the SOW that are GFE. Will the VA please add separate fill CLINs for each unique GFE Cylinder that it owns once identified? This will be a much more efficient monitoring system to track cylinder counts through the month.

Answer: CLIN 0002,1002,2002,3002 and 4002 are GFE. The VA has 18 of these containers

1. How are offerors to account for Cylinder Rentals as there are no CLINs for Monthly Cylinder Rental? RECOMMEND pricing the Monthly Cylinder Rental by Size, Type, and Functionality as illustrated below:

0. Monthly Rental - Gas Cylinders: Sizes A,B,C,D, & E

0. Monthly Rental - Gas Cylinders: Sizes Other than A,B,C,D, & E

0. Monthly Rental - Liquid Containers (Portable) less than 160 Liter Capacity

0. Monthly Rental - Liquid Containers (Portable) 160 Liter and Greater Capacity

0. Monthly Rental - Oxygen, Medical Size E Cylinder with Integrated Regulator USPEAWB

0. Monthly Rental - High Pressure (6,000 PSI) Cylinders Answer: CLINS have been added for rental

1. Please confirm the # of delivery points at the VAMC and if all Cylinders are delivered to a centralized point (e.g., loading dock or cylinder storage room)? The CLINs mention BLDG & Room #’s which could potentially infer “point of use” deliveries internal to the hospital, which is highly nonstandard, particularly the degree of liability of having a driver enter into the facility and potentially interact with patients.

Answer: The current contract delivers where needed. As the campus is in a constant state of construction, delivery locations (and gas requirements) will change. At the moment, the only “point of use” delivery is liquid nitrogen at the Calkins campus, but this could change.

1. Hydrostatic Testing - There is no CLIN for Hydrostatic Testing even though it’s mentioned on PGs 9-10 of 104 in the RFQ. Will the VA please add a CLIN for this?

Answer: A CLIN has been added for this

1. PG 11 of 104, Para 7.5.5: “The quantity and type of cylinders that are LOU shall be removed from the beginning balance for the next monthly rental period once the cylinder type and count are agreed upon.” Respectfully this is nonstandard and contrary to industry practice. Lost Cylinders are removed from the Balance only after the VA has provided a Purchase order and paid for the lost cylinders as this is the universal process that subcontractors/gas suppliers practice. RECOMMEND revising this language that Lost Cylinders shall be removed once the outstanding cost balance has been paid by the VA to more accurately reflect industry standards and practices.

Answer: This section will not be changed

1. PG 11 of 104, Para 7.5.5: “The VA and the Contractor shall perform an annual, on-site inventory, of all contractor-provided cylinders to verify the accuracy of the end-of-month balance of rental cylinders on the most recent invoice.” There are costs incurred with performing an on-site inventory each contract year. If on-site inventories are required of the Contractor annually, as a minimum, will the GOV please add a CLIN to ensure that vendors are able to account for costs required to conduct an annual joint inventory with the GOV?

Answer: No, the VA will not add a CLIN it is the responsibility of the contractors to insure a proper count

1. What is the transitional period between previous contract and new contract award? It is standard for there to be a transitional period (30-45 days) between vendors as transition is event based and not time-based. For example, if an award is given to an SDVOB who is re-hiring the current provider, there has to be an inventory conducted between the outgoing supplier and incoming to establish the beginning cylinder balances of the new contract. Completing the closeout audit tends to be the most challenging as it is a function of VA availability for the adequate POCs who know all areas cylinders are stored/used within each facility on contract. On the contrary, if the awardee is not hiring the incumbent, there still has to be a transitional period between the two contracts to ensure no interruption in service. If the countersigned award is not completed until close to the end of OCT, it is difficult for the awardee to accomplish all of the tasks required (e.g., training & post award conf call) to be ready to begin delivering 11/1/2023. Not to mention that the VA has (20) days to provide the Contractor with the Ordering Officers. Additionally, if the VA requires the offeror to be set up for the VA to order via EDI as mentioned on PG 12-13 of 104, this adds even more time for transition.

Answer: Transition period will be 3 weeks

1. EDI: Please confirm that the VA HCS will be utilizing EDI Ordering for this contract?

Answer: No

1. What role does recent & relevant Past Performance participate in the Evaluation (we did not see any reference to predictive analysis?) – please note PL 106-183 addresses “Anti Pass Through Legislation.”

Answer: Past Performance will be evaluated during the responsibility determination.

1. How will the GOV pay for Lost Contractor Cylinders as a result of a joint audit (annual audit required in the RFQ on PG 11 of 104, Para 7.5.5)? Will this be a separate Purchase Order, or will the VA add CLINs for Loss of Use that can be funded once the # of lost cylinders has been identified each contract year? PG 9 of 104 references LOU pricing in Attachment D.1 only in regards to lost GFEs however there is no Attachment D.1 provided. Additionally, what is the purpose of having offerors price GFE cylinder replacement up front during the bid phase? Please note: RPOC just awarded VISN 9 & 10 with effective LOU verbiage (provided upon request).

Answer: CLIN has been added for lost containers image2.png image1.jpeg

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