36C25918D0218-001.pdf

OFOC SOP Revision 06 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: VA259-18-AP-2328, Community Nursing Home in Denver Colorado

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO19) in support of the VA Eastern Colorado Healthcare Center (DENVER).

2. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole source Firm-fixed price Indefinite-quantity contract (IDC) for Community Nursing Home (CNH) Services to Rowan Inc. (DBA: Rowan Community) located in the city of Denver Colorado. The current basic ordering agreement (BOA) expires on March 31, 2018. The IDC will be written for five (5) years with a base and four option years.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for a CNH in Denver, Colorado in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Currently, there are 5

Veterans being housed/treated at this Community Nursing Home under an existing BOA. The CNH must meet the program requirements stated in VA Handbook 1143.2. All potential CNH’s must pass an initial inspection conducted by the Medical Center and comply with the requirements of VA Handbook 1143.2. Additionally, the CNH must be certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Colorado. The Performance Period for this IDC will be 5 years from date of award. We anticipate awarding the IDC prior to April 1, 2018. The estimated performance period will be from April 1, 2018 to March 31, 2023. The estimated total dollar limitation for the IDC is $2,119,050.00.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-1 (a)(2).

(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;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by restricting competition on this procurement via FAR 13.106-1(b)(2).

Revision 06 Date: 08/30/2017

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Rowan Inc. currently has 5 Veterans being treated at this nursing home facility under an existing BPA. The community nursing home facility meets VA exclusion review quality of care standards to provide treatment to Veterans.

The community nursing home has had a contract with the VA since 2013. They have consistently provided quality care to our Veterans. The VA patients at this facility cannot be moved without causing undue medical hardship. An attempt to move the patients would cause a disruption in continuity of care and stress on the patients and family members if relocated to a different facility as well as possible non-compliance with VHA Handbook 1143.2. In accordance with FAR 6.302-1 this requirement for Community Nursing Homes Services will be sole sourced to Rowan Inc. In addition, as stated in paragraph 6 below, no responses were received in a sources sought notice for this procurement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A sources sought was posted on Federal Business Opportunities (FBO) on November 21, 2017 and closed on November 27, 2017, and January 24, 2018 and closed on February 5, 2018. No potential offerors responded to the sources sought. The Small Business Administration website and the VA’s Vendor Information Pages (VetBiz) were used to determine if potential offerors exists to determine additional competition. However, both sites failed to produce any results for Denver Colorado.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing for CNH contracts. The Medicaid rates are established by each state. The VA Geriatrics and Extended Care Office publish the maximum add-on percentages that can be negotiated for each Medicaid category or Resource Utilization Group (RUG). The IDC CLIN structure will reflect the RUGS IV levels of care (VA Base Rate) plus an add-on percentage that makes up the per-diem rate for each level of care. The Contracting Officer will determine that prices are fair and reasonable for each level of care, when it negotiates both the VA Base rate and an add-on percentage for each level of care. Prices are determined to be fair and reasonable based on a negotiated mark-up percentage that does not exceed the maximum allowable percentage established by VA. The add-on percentages do not change through the life of the contract. These maximum add-on percentages can be found in the Veterans Health Administration Procurement Manual Community Nursing SOP (Attachment 17).

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

Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Sources sought was posted on Federal Business Opportunities (FBO) on November 21, 2017 and closed on November 27, 2017, and January 24, 2018 and closed on February 5, 2018. No potential offerors responded to the sources sought. The Small Business Administration website and the VA’s Vendor Information Pages (VetBiz) were used to determine if competition exists. However, both sites failed to produce any results for Denver Colorado. A search of the Medicare Nursing Home Compare website (https://www.medicare.gov/nursinghomecompare/search.html) resulted in 12 CNH within the city of Denver Colorado.

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

5 Veteran patients in the Rowan Inc. home which cannot be relocated or moved because of http://www.medicare.gov/nursinghomecompare/search.html)

Revision 06 Date: 08/30/2017

ELIZABETH K. Digitally signed by ELIZABETH K.

TESKA 262227 Date: 2018.02.07 10:23:48 -07'00'

TESKA 262227

-07'00' continuity of care, and medical complexity. Also, this CNH facilitates a location near the families of these Veterans.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No Community Nursing Homes have expressed 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: There is currently only one (1) facility capable of providing the specialty care and medical needs of the existing patients. The contracting office will continue to canvas the market for new CNH entrants capable of meeting program requirements.

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.

2/7/18

Name: Elizabeth K. Teska, LCSW Date Title: Coordinator, Contract Nursing Home Program VA Eastern Colorado Healthcare System

13. 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.

2/7/18

David J. Medina Date Contracting Officer, Specialized Branch Chief Network Contracting Office 19

b. Director of Contracting/Designee (Required over $150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

CURTIS M

Digitally signed by CURTIS

M JORDAN 597130

JORDAN 597130 Date: 2018.02.07 14:41:57

Curtis M. Jordan Date NCO-19 Director of Contracting

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.

Digitally signed by Delia A. Adams 1487955

1487955 Date: 2018.02.14 10:56:43 -08'00' 2/14/18

Delia A. Adams, MBA, CPCM Date Executive Director, Services Area Office West Head of Contracting Activity (HCA)

David J. Medina 748952

Digitally signed by David J.

Medina 748952 Date: 2018.02.07 12:05:53 -07'00'

Delia A. Adams