Justification to Include Options.pdf

Revision: 03 Effective Date: 04/15/24

Justification to Include Options

Solicitation Number: N/A Lebanon VAMC Bulk Liquid Oxygen

VA Medical Centers: VISN 4 Lebanon VA Medical Center

FAR Subpart 17.2 prescribes procedures for the use of options in sealed bidding and negotiated contracts. Also, FAR 13.106-1(e) allows the use of options for simplified acquisition procedures.

Purpose: The inclusion of options is for the proposed contract action for the Veterans Health Administration (VHA), Veteran Integrated System Network (VISN) 4, to supply Bulk Liquid Oxygen to the Lebanon VA Medical Center. The Government facility does not own its own bulk oxygen tanks; as such, the Contractor shall provide Contractor-owned tanks with an appropriate back-up system approved by the End Users at the Lebanon VA Medical Center (i.e., reserve tank or cylinder bank). The Contractor shall provide all needed components to support a Food and Drug Administration (FDA) approved bulk liquid oxygen tanks in compliance with the National Fire Protection Agency (NFPA) 99: Healthcare Facilities Code. Additinoally, the Contractor must utilize an off-site, automatic monitoring system (telemetry system) that independently monitors the system and notifies the Contractor when refills are required. Period of Performance: 27 March, 2025 26 March, 2030 (base year plus four 1-year ordering periods). The Government intends to provide notification on an intent to exercise an option period no later than (NLT) 60 days before the contract expires.

FINDINGS

1. Rationale for Inclusion of Option: The work required will be the same for the life of the proposed contract. The option years will be priced up-front through competition on a firm-fixed price procurement action. Each option will be a separately priced line item(s) for the period to be exercised. The Government will have the option to extend the effective period of performance under this contract for four 1-year ordering periods.

2. Evaluation of Options: Offers will be evaluated in accordance with the ADDENDUM to FAR 52.212-1(H), for Commercial item contracts and 52.217-5 for non-commercial contracts for any option quantities or periods contained in the solicitation when it has been determined prior to soliciting offers that the Government is likely to exercise the options.

3. Market Survey:

market survey to determine if the market situation has changed.

(a) If the market conditions changed drastically, the Contracting Officer (CO) has the option to re-compete the requirement in lieu of exercising the option.

(b) If market conditions have not changed, and exercise of the option is in the best interest of the Government, the CO sends a written notice to the contractor of the G to exercise the upcoming Option. The written notice will be sent within the time specified in the contract or a minimum of sixty (60) calendar days prior to the date for exercise of the option.

Revision: 03 Effective Date: 04/15/24

DETERMINATION

Based upon the information above, I hereby determine it to be in the best interest of the Government to include option period(s).

Name: Joanne Skaff Contract Specialist

Name: Keri Hester Contracting Officer