36C259-26-AP-1132-FY26-1779 JOFOC NCO19 Home Oxygen Bridge OKC_Redacted.pdf

RFO Part 12.201-1 Restricting Competition Page 1 of 5 Acquisition ID#: 36C259-26-AP-1132

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Sole Source Awards IAW RFO 12.201-1

Acquisition Plan Action ID: 36C259-26-AP-1132 RPOW JOFOC Tracker Number: FY26- NCO 19- 722

1. Contracting Activity: Department of Veterans Affairs (VA), Network Contracting Office

(NCO) 19, 6162 S. Willow Drive, Suite 300, Greenwood Village, CO 80111, in support of the Oklahoma City VA Medical Center located at 921 Northeast 13th Street, Oklahoma City, OK 73104. This requirement is funded by 1358 in lieu of a 2237.

2. Nature and/or Description of the Action Being Approved: This requirement will be an interim bridge sole source, Firm-Fixed-Price, Indefinite-Delivery Indefinite-Quantity (IDIQ) contract for Home Oxygen Services in Oklahoma City, Oklahoma, to SS Medical, Inc. This interim bridge requirement is to provide Veterans Integrated Service Network (VISN) 19 Veteran beneficiaries with home oxygen services while allowing time to award a new long-term contract, resolve any protest received, and allow time for a transition period if necessary.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This acquisition will provide home oxygen services to include provision, delivery, setup, maintenance, and servicing of home oxygen therapy equipment and supplies for eligible Veterans residing within the VA Oklahoma City Health Care System’s catchment area. This includes, but is not limited to, Oxygen concentrators (stationary and portable), liquid oxygen systems, Compressed gas cylinders, related accessories (e.g., tubing, cannulas, humidifiers), 24/7 emergency support and maintenance; and patient education and safety checks. This interim bridge contract will be for one-year with an estimated period of performance from April 1, 2026, to March 31, 2027. The total estimated value is The resulting contract will include RFO clause at 52.217-8 - Option to Extend Services. If exercised for up to 6 months, the 52.217-8 option will be exercised at the same rates as those in effect under the contract at the time the contract is extended.

4. Statutory Authority Permitting Other than Full and Open Competition: RFO 12.201, Simplified Procedures. The statutory authority for applying the Simplified Procedures for Commercial Items of RFO 12.201 is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) for restricting competition on this procurement. Competition is restricted on this procurement for the reason selected 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

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( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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 nature of home oxygen therapy is such that any delay or disruption in service could pose a serious risk to patient health and safety. The incumbent contractor, SS Medical, Inc., is currently set-up and capable of continuing essential services without causing a disruption in care for Veterans or a substantial duplication of costs to the Government. Transitioning to a new provider at this time would result in unacceptable delays in service delivery due to the time required for patient reassessment, equipment retrieval and replacement, and re-education. It would also incur substantial duplication of costs to onboard a new contractor, including logistics, patient transitions, and potential equipment write-offs. With an estimated phase in period of 90-180 days it could cost three to six months of contract cost to transition a new short-term contractor. On average the monthly cost for this requirement is per month. With the estimated phase in period the total duplication of cost just for the transition period would be between and Many Veterans rely on oxygen therapy for daily survival, and even a short lapse in service could result in emergency room visits, hospitalizations, or worse. Such an outcome directly contradicts the VA's mission of providing comprehensive, timely and high-quality care to our nation's Veterans.

Historical transitions of these services on previous requirements have taken up to six months for new contractors to be fully operational without relying on the prior contractor's support.

Invoicing for current services takes up to two weeks for review for possible errors and submission and is often delayed due to the number of invoices received. Onboarding a new vendor would unduly delay and create an administrative effort of the program office to have to review incumbent invoices and train a new short-term provider. The administrative effort required to learn this process is extensive and it would not be efficient or streamlined to consider a new vendor during the current procurement process for long-term services.

Ensuring uninterrupted and efficient delivery of home oxygen therapy is critical to maintaining the health and well-being of Veterans who depend on these life-sustaining services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible: Notice of Intent to Sole Source 36C25926Q0195 was posted on January 16, 2026, and closed January 23, 2026. The notice advised of the Government’s intent to award the acquisition without competition, identified the source, and stated why competition is lacking, as required by RFO 5.101(c)(4)(vii). Potential Vendors were notified to respond if they believe they can provide the required services. The results of the notice and other market research are noted in Section 8 below.

This Justification and Approval (J&A) will be posted to Contract Opportunities as required by RFO 6.301. No other actions will be taken or planned to facilitate competition for this acquisition.

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7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer will determine the offered pricing for the interim bridge contract as fair and reasonable based on a comparison to historical pricing data for these same services in VISN 19. The unit prices in the interim bridge contract will remain the same as the unit prices included in the current contract. The existing prices under the current contract were determined to be fair and reasonable before award after competitive solicitation. Additionally, the pricing was established before recent increases in inflation and cost of living, resulting in a discount to the VA compared to current contract pricing on similarly awarded contracts.

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

Reasons Market Research Was Not Conducted: Notice of Intent to Sole Source 36C25926Q0195 was posted on January 16, 2026, and closed January 23, 2026. The notice advised of the Government’s intent to award the acquisition without competition, identified the source, and stated why competition is lacking, as required by RFO 5.101(c)(4)(vii).

Potential Vendors were notified to respond if they believe they can provide the required services. Two responses were received. It was determined that the first respondent, , is an information technology consulting firm and would not be able to meet the requirement without undue reliance on two subcontractors. Reliance on subcontractors for a majority of the work would make this company ineligible for a contract award.

Additionally, the respondent stated that it has limited experience with oxygen contracts. No performance records were identified in the Contractor Performance Evaluation Rating System (CPARS). Furthermore, no records were identified in the Federal Procurement Data System (FPDS) or the System for Award Management (SAM), aside from SAM registration, to indicate that this contractor has performed any Government contracts. Based on the above, the CO does not have confidence that this contractor is capable of meeting the timeline nor prevent a substantial duplication of costs.

The second respondent, was also determined incapable of successfully fulfilling the requirement. The company was contacted by the Contract Specialist and advised that it does not currently have facilities, equipment, or employees to provide home oxygen services, but is interested in expanding its capabilities. No records were identified in FPDS or SAM, aside from SAM registration, to indicate that this contractor has performed any Government contracts. Based on the above, the CO does not have confidence that this contractor is capable of meeting the timeline nor prevent a substantial duplication of costs. Therefore, it is determined that this contractor is not currently capable of providing the required services.

A Search on Dynamic Small Business Search (DSBS) utilizing NAICS 621610 was conducted on January 16, 2026. The search resulted in two WOSBs, one SDVOSB, and seven Small Businesses (SBs). None of these businesses will be utilized or considered to provide services on this sole source requirement as they cannot meet the timeline nor prevent a substantial duplication of costs.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The continuity of care for Veterans receiving home oxygen therapy is a critical healthcare priority

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b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

c. 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 recommend approval (if over $90 million) or approve ($900K to $90 million) for other than full and open competition.