36C25618D0056-001.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

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

Acquisition Plan Action ID: VA256-18-AP-4098

1. Contracting Activity: Department of Veterans Affairs, NCO 16

2. Nature and/or Description of the Action Being Processed: In February 2017, the Contrating officer, in conjunction with the VISN 16 Prostethics Reporesentative, determined it to be in the best interest of the Government to not exercise the final two years of the home oxygen contract with Rotech and to compete a new contract. An IPT was formed in February 2017 and met through September 2017 to create a new package. The solicitation was posted on September 25, 2017 and was protested on October 18, 2017. The GAO dismissed the protest on December 12, 2017 and proposals were due December 29, 2017. Source selection is still ongoing, and therefore, it is apparent that a contract will not be awarded in time for a contractor to start performance on March 1, 2018.

The Contracting Officer has already exhausted the options available under FAR 52.217-8. An interim contract to continue home oxygen services for the Veterans serviced by all the stations in VISN 16 except Alexandria and Shreveport is therefore necessary. The estimated cost for a two month extension is $1,780,914.96 based on the estimated quantities needed and the current contract pricing. It is anticipated that pricing for this extension may increase a small amount due to the decreased length of the contract. The Contracting Officer will enter into discussions if necessary to achieve a fair and reasonable price.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This contract will encompass the rental of home oxygen equipment, to include but not limited to, compressors, portable oxygen machines, tanks, racks, and liquid oxygen systems. This contract will also include the delivery, set-up, and resupply of oxygen as necessary to meet the medical needs and presriptions for our veterans. The services include delivery, repair, and pick-up of equipment, resupply of expendable supplies (nasal cannulas, hoses, etc.) and medical grade oxygen, and quarterly checks from a Certified Respiratory Therapist or a Registered Respiratory Therapist.

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (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;

( ) (4) International Agreement per FAR 6.302-4 ( ) (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): The incumbent is the only company that can reasonably act in sufficient time and with reasonable cost to continue this service for the estimated two months that are needed for this contract. The typical transition period for the approximately 5,000 patients covered under this contract is 90 days. The needed coverage here is only 60 days, which will not allow for a full transition to occur anyway.

Any company, other than the incumbernt, would be exposed to a large initial cost for equipment and would only have two months over which to recoup the investment and a reasonable profit. This would cause all companies, other than the incumbent, to have to charge a significantly higher price than the incumbent. This would not be in the best interest of the Government or the American tax-payers.

The incumbent already has equipment and personnel in place to provide this service for the additional time. Therefore, no additional resources are necessary for the incumbent to continue performance. This puts the incumbent in a unique position to be able to provide this service in a manner that no other competitor could.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Under these circumstances, an offer will only be sought from the incumbent.

However, the new contract for Home Oxygen services across VISN 16 was competed as an SDVOSB set-aside after appropriate market research.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The current pricing being paid to the contractor has already been verified to be fair and reasonable by a warranted Contracting Officer. The Contracting Officer for this action will review the pricing offered and will use the pricing from the current contract and pricing received in conjunction with the ongoing solicitation to verify those prices offered to be fair and reasonable. Should discussions be necessary, the Contracting Officer will conduct those with the information gained from that review.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: For this action, no market research was conducted. For the reasons stated above, it is not likely that any other offeror would be able to reasonably act in that two month window at a reasonable price. The incumbent is the only source that would be able to offer the services at a fair and reasonable price due to its unique position of already having the equipment and staffing in place.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: In addition to the budgetary arguments above, and the inability of any contractor to successfully complete a transition of services in time, there is one other consideration. It would be inconvenient and possibly dangerous to conduct two transfers of this service in a few months. To transfer this service, the new contractor must place equipment in the Veteran’s home and the old equipment must be picked up by the outgoing contractor. There is no guarantee that the equipment used will be the same as the prior contractor and therefore the Veteran or his or her caregiver must learn the new equipment and its use. If more than one transition should occur in short span, it could increase the possibility of accidental misuse of the equipment resulting in injury or death. While the risk of occurrence is low, the consequences if it occurs could be catastrophic. Therefore, the overall risk in transitioning services more than once in a few months must be rated no less than moderate and possibly high.

Therefore, for this reason as well, it is in the best interest of the Veterans, and therefore the Government, to continue with the incumbent.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The Incumbent has indicated that they are willing to continue service until the new contract is awarded and an orderly transition (if needed) has occurred. No other sources are in a position to take on this service for this period of time.

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: The Agency continues to press for a more timely initiation of replacement actions to ensure these “interim” type contracts are not needed. NCO 16 is looking at a proposed plan now to combat the number of “interim” contracts and uses of FAR 52.217-8 currently experienced. In this case, the process for the replacement contract has moved well, but was unavoidably delayed by the protest of the solicitation which could not have been foreseen.

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.

Melanie Wood Date Acting VISN Prosthetics Representative

13. 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.

AJ Raiber Date Division Chief, NCO 16 Contracting Officer

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.

Aaron Villalpando Date

Director of Contracting

NCO 16

c. VHA SAO 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 recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.

Randy Hays Date SAO Central Head of Contracting Activity (HCA) Acting Director of SAO Central

________________________ 2/12/18

ANDREW J RAIBER 292563

Digitally signed by ANDREW J RAIBER 292563 Date: 2018.02.13 11:56:10 -06'00'

AARON

VILLALPANDO 178014

Digitally signed by AARON

VILLALPANDO 178014

Date: 2018.02.14 08:53:27 -06'00'

Randy L. Hays 534204

Digitally signed by Randy L. Hays 534204 Date: 2018.02.14 13:44:50 -08'00'