36C25720D0097_1.docx

Contract Opportunity Award Notice

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* = Required Field Contract Opportunity Award Notice Q201 Short-term New Braunfels CBOC 79936 36C25720R0089 N 621498 Department of Veterans Affairs VHA Regional Procurement Office West Contracting Office (36C257) 11495 Turner Road El Paso TX 79930-4221 Contracting Officer Frank Gamboa III frank.gamboa@va.gov 36C25720D0097 2,426,760.00 08-12-2020

CRASSOCIATES, INC.

009549002

8580 CINDERBED ROAD SUITE 2400

NEWINGTON

VA

22122 https://www.va.gov/ Department of Veterans Affairs frank.gamboa@va.gov Frank Gamboa III, Contracting Officer The requirement is for CBOC services, which will be provided to Veteran beneficiaries within the South Texas Veterans Health Care System. Authorization: FAR 6.302-1. See justification below.

DEPARTMENT OF VETERANS AFFAIRS

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

Acquisition Plan Action ID: 36C257-20-AP-1973

1. Contracting Activity: The Department of Veterans Affairs, Network Contracting Office (NCO 17) at 11495 Turner Road, El Paso, TX, intends to enter into a sole source contract based on this Justification for Other Than Full and Open Competition for the South Texas Veterans Health Care System (STVHCS), 7400 Merton Minter St, San Antonio, TX 78229.

2. Nature and/or Description of the Action Being Processed: STVHCS has an emergent need to provide Community Based Outpatient Clinic (CBOC) Services to veteran beneficiaries in the New Braunfels, TX, area. The incumbent, CRAssociates, Inc. is a large business currently providing these services under contract 36C25719C0120. The contract was awarded 27 February 2019 for a period of performance of 1 March 2019 through 29 February 2020. On 28 February 2020 the contract was extended for six months via FAR clause at 52.217-8, Option to Extend Services, and is due to expire on 31 August 2020. At the New Braunfels CBOC, CRAssociates, Inc. currently provides primary care services to approximately 5,400 Veteran beneficiaries. The best estimated procurement administrative lead time (PALT) to execute a competitive CBOC acquisition is 390 days. This PALT exceeds the amount of performance period time remaining on the existing contract. A new contractor would be required to locate new facilities or potentially expand their existing facilities, recruit staff to meet contract requirements, undergo VA background checks, and complete credentialing. Therefore, with the current contract due to expire on 31 August 2020, a follow-on contract is required. In an effort to provide uninterrupted services to the Veteran beneficiaries, a sole-source contract for a six-month base period and one six-month option period (FAR 52.217-9) with the period of performance starting on 1 September 2020 is required. This proposed action will allow time to place a long-term contract for CBOC services. The long-term package (36C257-20-AP-2817) was submitted this month to Contracting and they are processing it. A firm-fixed-price contract shall be awarded for this requirement.

This acquisition will not involve services that can be classified as inherently governmental as defined by FAR 7.503. Furthermore, there is no statutory authority available to permit personal services relative to this requirement. All work relative to this requirement shall be of a non-personal nature.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The requirement is for CBOC Services to be provided to Veteran beneficiaries. There is a continuing need to provide these services to Veteran beneficiaries of STVHCS. Therefore, a sole-source contract for a six-month base period and one six-month option period (FAR 52.217-9) with the period of performance starting on 1 September 2020 will be executed. The total estimated value of this procurement is $4,743,936.00.

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 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

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 services required by this procurement are essential for continued direct patient care to approximately 5,400 veterans in New Braunfels, TX. This is an emergent follow-on requirement not only to continue to provide clinical services to current veteran beneficiaries, but also to accommodate the increasing veteran population. CRAssociates, Inc, a large business, and is currently providing these services under contract 36C25719C0120, which will expire 31 August 2020.

CRAssociates, Inc. is the only source capable of providing continuity of services within the strict time frame before contact expiration of 31 August 2020. Any change in contractor support at this time is not feasible as the process would require the new contractor to locate a new facility, recruit and hire staffing, undergo VA background checks and complete credentialing, which is not realistic given the time frame. Due to the complexities involved in a transition to another contractor who could provide the same or similar services, care would undoubtably be disrupted. Any gap in the continuity of these services would have a detrimental impact on the veterans currently served. It is therefore necessary to provide continuous services from the incumbent contactor until a new, long-term contract is competitively awarded.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Due to the need to continue to provide Veteran beneficiaries with CBOC services this requirement is being procured in accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, as cited in paragraph 4 above. This requirement is being procured sole source from the current incumbent allowing for continuity of services pending procurement of a long-term contract. Due to the nature of the services required the long-term requirement will be competed. The intent to sole source this requirement will be synopsized in accordance with FAR Part 5.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost is considered fair and reasonable based upon historical pricing and the Independent Government Cost Estimate (IGCE) based on cost per member per month (PMPM).

CBOC Services are commercial item services performed in the healthcare field for both Government and non-Government agencies; therefore, certified cost and pricing data is not required. Technical evaluation factors will not be used in this procurement as it is a follow-on sole source procurement to provide continued uninterrupted service to Veteran beneficiaries. The Contracting Officer determined that the anticipated cost to the Government will be fair and reasonable because the cost is consistent with the recent CBOC awards.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: This requirement is being procured sole source from the incumbent to allow for continuity of services pending procurement of a long-term contract.

Therefore, it is determined to be in the Government’s best interest to award the contract to the incumbent contractor, CRAssociates, Inc., a large business. SAM registration and recent past performance is verified for the incumbent.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Due to the need for continuity of services to provide Veteran beneficiaries CBOC services to begin 1 September 2020, it is in the Government’s best interest to procure these services from the incumbent, CRAssociates, Inc. The competitive long-term contract for one base year with nine (9) one-year options is being worked on. The anticipated competitive solicitation release date is 15 October 2020.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other sources have expressed written interest in this acquisition.

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:

This requirement is in accordance with 38 USC 8153, a competitive solicitation for the long term contract will be posted via beta.sam.gov after all internal approvals have been received. NCO 17 will continue to monitor the market to ensure sole source requirements are avoided.

For the long-term requirement, in coordination with the Office of Small & Disadvantaged Business Utilization (OSDBU) and the Network Contracting Office (NCO) 17, a Sources Sought Notice (36U10120Q0045) was issued via beta.SAM.gov on 17 April 2020 with a response date of 01 May 2020 to all interested SDVOSBs and Veteran Owned Small Businesses (VOSBs). In preparation an Integrated Product Team (IPT) has been established. This is based upon the VA paying the vendor per patient per month (PPPM) capitated rate. It is expected that all currently enrolled veterans will be transferred to the new contract once a new contract is awarded.

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.

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

Authorization signatures are on the original document through the Executive Director, VHA Regional Procurement Office West, Head of Contracting Activity (HCA) Department of Veterans Affairs.

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