36C25224P0008_1.docx

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

GENERAL INFORMATION

BASE NOTICE TYPE

GLAC (69D)

115 South 84th Street, Suite 101

Milwaukee WI 53214-1476

POINT OF CONTACT*

Dustin Biermann Contract Specialist Dustin.Biermann@va.gov 414-844-4800

AWARD INFORMATION

LINE ITEM NUMBER

AWARDEE ADDRESS LINE 1*

AWARDEE ADDRESS LINE 2*

AWARDEE ADDRESS LINE 4*

ADDITIONAL INFORMATION

AGENCY’S URL

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AGENCY CONTACT’S EMAIL ADDRESS

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DESCRIPTION

The Department of Veteran Affairs, VISN 12, awarded a firm-fixed price contract to JTM Enterprise LLC, for the Janitorial Services Contract at the Jesse Brown VA Medical Center located in Chicago, IL. This contract was awarded for the period of October 1, 2023, through March 31, 2024, and is a short term contract executed in accordance with Public Law 109 Sec. 502 and VAAR 819.7008.

Award Notice Award Notice

*= Required Field Award Notice Award Notice

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C252-23-AP-4538

1. Contracting Activity:

Department of Veterans Affairs, VISN 12, Jesse Brown VA Medical Center (2237 Number 537-24-1-6075-0002)

2. Nature and/or Description of the Action Being Approved:

This action if for janitorial services at the Jesse Brown VA Medical Center located in Chicago, IL. This procurement is a sole source bridge contract that is required to ensure janitorial services remain uninterrupted at the facility until a long-term contract can be put in place. This six-month bridge contract will be a firm-fixed price procurement with a period of performance of October 1, 2023, to March 31, 2024.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The services for this requirement will be acquired via a sole source procurement to the incumbent of the previous contract (36C25223P0279), JTM Enterprise LLC, and the total value of this requirement will be $XXX,XXX.XX. This price is structured into individual months with services costing $XXX,XXX.XX per month. The duration of this contract will be for six months with no option periods included in the contract.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR 819.7009 (DEVIATION) up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business; or ( ) 819.7009 Sole source awards to a certified veteran-owned small business

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

Award of the proposed contract is being made on a sole source basis pursuant to VAAR 819.7008 as stated above. VAAR 819.7008 states that “A contracting officer may award a contract to a verified SDVOSB using procedures other than competitive procedure provided-

(1) The anticipated award price of the contract (including options) will not exceed $5 million;

(2) The requirement is synopsized and the required justification pursuant to FAR 6.302-5(c)(2)(ii) is posted in accordance with FAR part 5;

(3) The SDVOSB has been determined to be a responsible contractor with respect to performance; and

(4) In the estimation of the contracting officer contract award can be made at a fair and reasonable price that offers best value to the Government.

In the case of this procurement, the anticipated total price for this contract is $XXX,XXX.XX which is below the threshold of $5 Million. This sole source justification is being prepared in accordance with FAR 6.302-5(c)(2)(ii) and will be posted as required per FAR subpart 5.301(d). The incumbent SDVOSB contractor, JTM Enterprise LLC, has provided excellent services to the Jesse Brown VA Medical Center during the term of their contract, is a certified SDVOSB per recent market research, and has no exclusions in SAM.gov. Lastly, the monthly pricing for this procurement is approximately X% lower than the monthly pricing of the previous contract, as the contractor has provided a discount to the Government for the same services for a six-month period.

Based on the factors stated above, it is in the Government’s best interest to utilize this SDVOSB vendor in order to procure these services for this six-month period until a new long-term contract can be solicited and put in place.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies:

The original contract which acquired the janitorial services for the Jesse Brown VA Medical Center was competitively solicited as a 100% SDVOSB set aside and JTM Enterprise LLC was deemed to be the contractor that was in the best interest of the Government. As this six-month bridge contract is being procured in order to ensure that no interruption in services occur at the facility, no solicitation is being issued.

An intent to sole source notification will be publicized on Contract Opportunities in compliance with FAR Subpart 5.2.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

A review of the previous contract for these services with the same contractor (36C25223P0279) revealed that the monthly pricing for the services was $XXX,XXX.XX per month. This contract was found fair and reasonable at the time and provided the Government best value.

A new quote was obtained from JTM Enterprise LLC with a monthly price for services of $XXX,XXX.XX. This is an approximate X% discount being provided to the government and will continue to ensure that the Government receives best value during the life of this short procurement until a new contract can be solicited and awarded. See attachment “S10 – JTM Enterprise Quote” for further information.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Market research was conducted for both the originally solicited contract (36C25223Q0141) and the previous bridge contract (36C25223P0279) that this procurement will be replacing (see attachments labeled “P02 - Market Research Report - 36C25223P0279” and “P02 - Market Research Report 36C25223Q0141”). Both market research reports revealed that the SDVOSB market for janitorial services is robust and that there are many qualified and certified SDVOSBs that have the ability to provide these services.

Follow up market research was conducted on August 30, 2023, which verified the findings in the previous market research documents and showed that the SDVOSB market is abundant. As this is a sole source short term bridge contract, the long-term follow-on contract for janitorial services is anticipated to be a 100% set aside for SDVOSB concerns pursuant to VAAR 819.7007.

This procurement will be awarded to the incumbent contractor, JTM Enterprise LLC, which is certified in VetCert as an SDVOSB and this acquisition is below the $5 million threshold.

On September 7, 2023, an Intent to Sole Source was posted to Contract Opportunities which was open until 09:00 AM (Central Time) on September 11, 2023. One response was received from an additional SDVOSB vendor which protested the fact that this award was being made on a sole source basis to the incumbent. This protest was investigated and ultimately dismissed and no other responses were received.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

None, this contract is being awarded pursuant to the authority of 38 USC 8127(c) which states that a contracting officer may award a contract to an SDVOSB company that is a responsible source, the contract does not exceed the $5 million threshold, and the contracting officer believes that the award can be made at a fair and reasonable price that offers best value to the Government.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

JTM Enterprise LLC Modesto Management LLC

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:

A subsequent acquisition will be procured for the same Janitorial Services at the Jesse Brown VA Medical Center upon the expiration of this short-term bridge contract. Based on previous, as well as current market research, there appear to be no barriers to obtaining a successful contract that is 100% set aside as an SDVOSB concern, as the providers for these services are abundant.

12. 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.

XXXXXXXXX

XXXXXXXXXX

NCO 12

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

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NCO 12

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 6 of 6 Revision: 02 Effective Date: 04/15/2023