36C24823P0031_1.docx

Justification and Approval Notice Justification and Approval Notice

GENERAL INFORMATION

BASE NOTICE TYPE

Network Contracting Office 8 (NCO 8) VA Caribbean Healthcare System (VACHS) #10 Calle Casia Suite #4M440 San Juan PR 00921-3201

POINT OF CONTACT*

Contract Specialist Wilfredo Perez wilfredo.perez3@va.gov 939-759-6783

AWARD INFORMATION

MODIFICATION NUMBER

AWARDEE NAME*

CONTRACTOR’S UEI

WATER TREATMENT SPECALISTS INC

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AWARDEE ADDRESS LINE 1*

AWARDEE ADDRESS LINE 2*

AWARDEE ADDRESS LINE 4*

ADDITIONAL INFORMATION

DESCRIPTION

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C248-22-AP-5394

1. Contracting Activity: Department of Veterans Affairs, VISN 08, Veteran Affairs Caribbean Healthcare System (VACHS). Contracting agency responsible for the proposed contracting action is Network Contracting Office (NCO) 8, under Regional Procurement Office (RPO) East. 2237 No. 672-23-1-562-0006.

1. Nature and/or Description of the Action Being Processed: The proposed procurement is for a Firm Fixed Price (FFP) contract for a vendor to provide preventive maintenance and repairs of the Culligan Reverse Osmosis Water Treatment Systems (WTS) at the VA Caribbean Healthcare System (VACHS) at Puerto Rico, in accordance to the original equipment manufacturer (Culligan) specifications. The detailed estimated amount per period of performance is as follows:

1. Base Period (12/01/2022 – 09/30/2023): $678,447.78

1. First Option Period (10/01/2023 – 09/30/2024): $787,902.29

1. Second Option Period (10/01/2024 – 09/30/2025): $810,850.90

1. Third Option Period (10/01/2025 – 09/30/2026): $833,799.51

1. Fourth Option Period (10/01/2026 – 09/30/2027): $856,748.12

1. Total Amount: $3,967,749.00

1. Description of Supplies/Services Required to Meet the Agency’s Needs: The contractor shall provide all labor, equipment, transportation, tools and materials necessary to perform the maintenance of the Reverse Osmosis WTS’s at various locations of the VACHS main facility in San Juan, Puerto Rico, as well as its satellite clinics. The resulting contract action will be for a 10-month base period estimated to begin on 12/01/2022, and four 12-month option periods. There are seven (7) Line Item Numbers (LINs) per each period of the proposed contract; for six (6) Reverse Osmosis Water Treatment Systems, one (1) Deionization Water Loop, and one (1) Water Softener that will be serviced. The quantities for each LIN vary, depending on the amount of preventive maintenance services needed for each respective system, per year. LINs for the base period can be seen below:

1. Statutory Authority Permitting Restricted Competition:

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

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements ( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

1. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Water Treatment Specialist, Inc. is the only vendor authorized by the original equipment manufacturer, Culligan, that can provide these types of services on Culligan WTS this region. Culligan parts must be used to replace any defective components if needed at the time of the preventive maintenance in order to ensure the WTS are operating as designed. The OEM for these WTS, Culligan, confirmed that Water Treatment Specialist, Inc. is the only authorized vendor in this region by providing a letter of exclusivity to the Government. Comment by Milone, Nicholas A.: Recommend OEM identified by name here from prior RPO East comments Also remove full name OEM and leave OEM to be consistent as it is already spelled out on the first page Comment by Perez, Wilfredo: OEM removed from the SSJ memo.

1. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Queries were conducted in the Veterans Information Pages (VIP), as well as the Small Business Administration (SBA) Dynamic Search Tool. But, as confirmed by Culligan, Water Treatment Specialist, Inc. is the only authorized representative vendor that can provide preventive maintenance and repair services to Culligan WTS in the region of Puerto Rico. Furthermore, if this equipment is repaired or maintained by any other vendor, any warranties that are currently in place will be immediately void.

1. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated estimated price of this long-term procurement is $3,967,749.00 for one 10-month Base Period, plus four 12-month option periods. This includes the preventive maintenance and repair services of six (6) Reverse Osmosis Water Treatment Systems, one (1) Deionization Water Loop, and one (1) Water Softener. The previous contract was awarded to Water Treatment Specialist, Inc. as a Sole-Source Contract on 10/1/2017, in the total amount of $816,321.04 (Contract No. 36C24818P0309). Price fair and reasonableness analysis will be conducted after the receipt of the vendor’s quote, and prior to contract award. There is a notable difference between the total amount of the previous contract ($816,321.04), in comparison with the estimated amount of the new contract ($3,967,749.00). This difference is due to an increase in Water Treatment Systems to be maintained at the VACHS. The WTS in the Mayaguez Out-Patient Clinic (MOPC) increased from one (1) to five (5), the WTS in the Ponce Out-Patient Clinic (POPC) increased from one (1) to four (4), and WTS disinfection services were added to the Pathology Laboratory and Food and Nutrition Service. Comment by Milone, Nicholas A.: This prior contract amount is not in line with the new contractor I would revise to a more comparable or amount in line as not reasonable Comment by Perez, Wilfredo: The total amount was adjusted to reflect the actual amount of the previous contract. Also, an explanation for the difference between the previous and current estimate amounts was provided.

1. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by conducting VIP/SBA queries using the NAICS Code and PSC of this procurement. After conducting the VIP query using the NAICS Code and PSC of this procurement, there were five (5) SDVOSBs found. However, none of these have authorization from the Culligan to provide services and repairs of Culligan WTS in the region of PR. Additionally, there were no results found from the query done using the SBA Quick Search Tool, under the same parameters than the VIP query. The contracts database from the SAC did not include the services being procured at VACHS. Additionally, a query was conducted in the System for Award Management (SAM) using the keyword “Culligan”, and the service contracts found there were for the respective facility where the equipment was located (contract no. 19CF2022C0001, 19GB5019C0007). Finally, a call was made to the contractor who was awarded the previous contract for WTS PM and repairs at VACHS, Water Treatment Specialists, Inc., and they confirmed that they were still the only authorized distributor for sales and service for Culligan WTS in PR. The letter from the Culligan stating that Water Treatment Specialist, Inc. is the only authorized vendor in this region by providing a letter of exclusivity to the Government..

1. Any Other Facts Supporting the Use of Other than Full and Open Competition: The vendor that provides the preventive maintenance services for Culligan WTS must be certified by Culligan, to ensure systems will operate in accordance with the original manufacturer’s specifications, and to avoid voiding any warranties. Comment by Milone, Nicholas A.: Recommend discuss the qualification of the certification type of there employees ini detail here to meet RPO East prior comments Comment by Perez, Wilfredo: The certification type is “Certified Culligan Technician”.

1. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None.

1. 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: N/A

1. 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.

Wilfredo Perez Contract Specialist

1. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

0. 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.

Rafael Rodriguez Contracting Officer

0. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Maribel Santa De La Paz

NCO-8

Branch Chief, San Juan Services

0. 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 ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Joseph P. Maletta

VHA

Executive Director, RPO East

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