36C25218D0120-001.pdf

VHAPM Part 819.7007/7008 Sole Source Awards to a Verified Service-Disabled Veteran-owned Small Business/Veteran-owned Small Business

Attachment #1: Request for Sole Source Justification Format >$150K

OFOC SOP Revision 06 Page 1 of 4 Original Date: 03/22/11 Revision 06 Date: 08/30/2017

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

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

Acquisition Plan Action ID: Purchase request 2237 #: 585-18-1-6997-0002

1. Contracting Activity: Department of Veterans Affairs, VISN 12, Great Lakes Acquistion Center 115 South 84th Street, Suite 101, Milwaukee Wisconsin 53214. This acquisition is for a Construction IDIQ Base Contract on behalf of the Oscar G Johnson VA Medical Center, 325 East H Street, Iron Mountain, MI 49801.

2. Nature and/or Description of the Action Being Processed: Oscar G. Johnson VAMC, Iron Mountain, Michigan, has a need for a new Indefinite Delivery-Indefinite Quantity (IDIQ) contract to award NRM and station level general construction projects. Task Orders awarded under the IDIQ will be awarded as firm-fixed price actions. The period of performance will be one year and the contract will have a Not-to-Exceed amount of $500,000.00. Task Orders will be issued between $2,500.00 and $500,000.00. For this new requirement, NCO 12 proposes to establish a firm fixed price contract with Industrial Maintenance Services (IMS), Duns: 117297366 confirmed by CVE-VIP database (www.vip.vetbiz.gov) verified, Service Disabled Veteran Owned Small Business (SDVOSB) general construction contractor as a sole-source procurement under the Statutory Authority granted to VA in 38 U.S.C. 8127 (better known as Public Law 109-461 or the Veterans Benefits, Health Care and Information Technology Act of 2006.)

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Oscar G Johnson VA Medical Center has a requirement for NRM and station level projects for various general construction work including but not limited to, carpentry, roofing, interior renovation, mechanical, electrical, plumbing, demolition, masonry, fire protection, telecommunications, and HVAC.

Required Delivery Date: ASAP - The facility currently numerous urgent construction projects that are related to patient care and life safety concerns. Additionally, Iron Mountain is presently at work on a construction MATOC estimated between $30mil - $50mil, with a target award before end of FY’18 or beginning of FY’19. Iron Mountain VAMC lacks a construction IDIQ contract vehicle necessary for urgent/emergent projects, as well as the 7ea. small non-complex construction projects planned for FY’18. Positioning a sole source IDIQ for the station offers a vehicle to award necessary emergent station-level projects in addition to the 7 projects already on the FY 2018 spend plan until a MATOC is awarded.

4. Statutory Authority Permitting Other than Full and Open Competition: In accordance with 38 USC §8127 (better known as Public Law 109-461 or the Veterans Benefits, Health Care and Information Technology Act of 2006).

( ) (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;

OFOC SOP Revision 06 Page 2 of 4

Revision 06 Date: 08/30/2017

( ) (4) International Agreement per FAR 6.302-4

(x) (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;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

a. Statutory authority is prescribed under 38 U.S.C 8127, & 41 U.S.C. 3304(a)(5). Governing regulations are VAR 6.302-5 & VAAR 819.7007 (per Class Deviation 07/25/2016).

b. Additionally, the Oscar G. Johnson VA Medical center operates in such a remote area of the country (Iron Mountain, MI), there is NOT a reasonable expectation that 2 or more SDVOSB general contstruction firms would provide proposals at a fair and reasonable price to the Govenment. It has been determined that it is in the Government’s best interest to sole source to a responsible, SDVOSB general construction contractor already mobilized at the facility to establish a IDIQ contract to meet the urgent patient safety project and the station’s NRM award goals.

c. Industrial Maintenance Services is registered as a responsible CVE, VIP verified SDVOSB in VetBiz. They have performed satisfactory on several recent IDIQ contracts and stand-alone projects over the last 2 years at the Iron Mountain VAMC, as well as meeting the 15% self-performance requirement in the following trades, including; concrete, demolition, carpentry, windows, doors, and hardware. Industrial Maintenance Services has a proven record of reputable subcontractors familiar with healthcare facilities, and has extensive knowledge of IM VAMC’s infrastructure, and has an extensive network of subcontractors and suppliers in order to quickly meet the needs of the facility.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: No other vendors have been considered, as it is in the best interest of the Government to award this project as a sole source award. Furthermore, is it impractical to solicit given the need for the station to address the current and future patient safety and fiscal goals in a timely manner.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: There are two components of pricing to consider in this case; direct costs, and overhead/profit. Regarding the direct costs, this solicitation and subsequent award will be developed based upon relevant guidance contained in VA Information Letter (IL) 049-04-3, dated January 7, 2004, with the subject Indefinite-Delivery Indefinite Quantity (IDIQ) Contract for Construction. The IL specifies the use of a Unit Price Book such as the commercially available RS Means publications & software to price the direct costs for each task order under the IDIQ contract. The unit price book provides a firm fixed price, as required by FAR 16.501-2, for the indefinite delivery/indefinite quantity contract orders. The unit price book will be kept current during the entire pre-award phase.

RS Means pricing is generally accepted as being fair & reasonable, as general contractors, architects, and owners around the United States use it to estimate their construction costs.

Regarding the profit/overhead, this will be a negotiated contract & Industrial Maintenance Services, Inc. will provide a co-efficient to be evaluated for the IDIQ. This co-efficient will include the

OFOC SOP Revision 06 Page 3 of 4

Revision 06 Date: 08/30/2017 contractor’s profit & overhead pricing to be included on all subsequent task orders. The Contracting Officer will evaluate the pricing IAW FAR 15.404-1(b) (ii). The proposed co-efficient will be compared with the profit and overhead pricing received on other projects performed at the Oscar G Johnson VA Medical Center, where the work is to be performed. This comparison will allow the Contracting Officer to determine whether the pricing is fair and reasonable.

For each Task Order, a detailed proposal including cost breakdowns will be required from the contractor. The Government team will prepare an Independent Government Estimate (IGE) using historical data and resources available to develop a negotiation position. A technical analysis of the contractor’s proposal by the Government team will be performed based on the relevant information provided. Negotiations between the contractor and Government will be carried out as needed on elements of the proposed cost impacting the overall price. An agreement will be reached balancing cost and price, issues of risk and uncertainty to the contractor and the Government, as well as profit or fee that is fair and reasonable to both the Government and contractor.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A search utilizing NAICS code 236220 was conducted to determine if other qualified CVE SDVOSB contractors would be able to meet the needs of this project. The VET Biz Registry - https://www.vip.vetbiz.gov/ website was utilized. The search resulted in the identification of 91ea, CVE- SDVOSB companies located in Michigan, Wisconsin, and Illinois. However, due to the regional limitations & review of historical data, there is not a reasonable expectation that 2 or more SDVOSB general construction firmed would submit offers. In order to meet the station’s fiscal goals, it is the contracting officer’s determination that it is in the best interest of the Government to procure the construction services as a sole-source procurement to Industrial Maintenance Services, who is currently on-site at the Iron Mountain VAMC completing Project 585- 12-124; 3-East Construction, which is targeted for completion 2/18/2018. As such, they are already mobilized and are expected to save the government the time and cost of mobilizing a new contractor.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Industrial Maintenance Services is already mobilized on site wrapping up other projects. Industrial Maintenance Services has completed other projects at the facility and provided satisfactory and above work on all projects at IM VAMC.

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

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: None

Attachment #1: Request for Sole Source Justification Format >$150K

OFOC SOP Revision 06 Page 4 of 4 Original Date: 03/22/11 Revision 06 Date: 08/30/2017

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.

Justus Klink Date Contract Specialist Construction, NCO-12

Approvals in accordance with the VHAPM, Volume 6, Chapter VI: 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.

Date

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.

Date mark a graveline 525746

Digitally signed by mark a graveline 525746 Date: 2018.01.08 14:40:37 -06'00'

Justus J Klink 1082176

Digitally signed by Justus J Klink 1082176 Date: 2018.01.08 15:01:36 -06'00'

Ricky Bond 321819 Digitally signed by Ricky Bond 321819 Date: 2018.02.07 06:30:41 -06'00'