-16202.pdf

OFOC SOP Revision 08 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-18-AP-0097, Community Nursing Home Denver, CO

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 Purchase Order (PO) for Community Nursing Home (CNH) Services for Holly Heights Nursing Home Inc. (DBA: Holly Heights Nursing Care Center) located in the city of Denver, Colorado. The current contract VA259- 14-A-0142 expires on December 31, 2018. The PO will be written for a base period of 12-months and a one-year option period.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for a CNH in Denver, CO 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: This procurement is for a Community Nursing Home in Denver, Colorado. 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. We anticipate awarding the PO prior to December 31, 2018. The PO will be written for a base period of 12-months and a one-year option period. The estimate period will be from January 1, 2019 to December 31, 2020. The estimated total dollar limitation for the PO is $1,801,350.00.

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 for restricting competition on this procurement via FAR 13.106- 1(b)(2).

Revision 08 Date: 04/18/2018

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

Currently there are four Veterans being housed/treated at the Holly Heights Nursing Care Center under an existing five-year BOA. The community nursing home facility meets VA Exclusionary Review quality of care standards to provide tereatment to Veterans. The community nursing home has had a contract with the VA since 2013. They have consistently provided 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 treatment plans and stress on the patient and family members if relocated to a different facility. In accordance with FAR 6.302-1, this requirement for Community Nursing Home Services will be sole sourced to Holly Heights Nursing Home, Inc (DBA: Holly Heights Nursing Care Center). They are currently meeting the needs of the VA Medical Center and Veterans in the area.

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 September 5, 2018 and closed on September 26, 2018. No potential offerors responded to the sources sought. The Small Business Administration website and the VA’s Vendor Information Page (VetBiz) were used to determine if potential offerors exist to determine additional competition. However, both sites failed to produce any results for Denver, Colorado.

7. Determination by the CO 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 based on national average.

The VA Geriatrics and Extended Care Office thru the VHA PM and VA pulse publish an annual RUGIV case mix rates. These rates are added to the Medicaid cost for each RUGIV level of care that will make-up the per diem rate. The line item structure will illustrate the different RUGIV levels of care and the agreed upon add-on percentage and the total per diem rate for each level of care. Based on the agreement between the CNH and the Contracting Officer, prices for per-diem rates are determined to be fair and reasonable when the add-on percentage agreed upon by both parties is at or under the maximum allowable percentage established by VA. The add-on percentages do not change through the life of the contract. A list ot these maximum add-on percentages can be found in the Veterans Health Administration Procurement Manual Community Nursing Home 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 September 5, 2018 and closed on September 26, 2108. 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 88 CNH within the city of Denver.

http://www.medicare.gov/nursinghomecompare/search.html)

Revision 08 Date: 04/18/2018

-07'00'

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are currently four Veterans placed in Holly Heights Nursing Care Center that cannot be relocated due to 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 other

CNH has expressed interest in this acquisition. However , the incumbent CNH, Holly Heights Nursing Care center has expressed an interest to renew their current contract with the VA.

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 facility capable of providing the specialty care and medical needs of the existing Veteran patients and that is the incumbent Holly Heights Nursing Home, Inc DBA: Holly Heights Nursing Care Center.

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.

ELIZABETH K.

TESKA 262227

Digitally signed by ELIZABETH K.

TESKA 262227

Date: 2018.11.29 09:57:43 -07'00'

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

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.

David J.

Digitally signed by David J.

Medina 748952

Medina 748952 Date: 2018.11.29 10:57:05 11/29/2018

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

b. One Level Above the Contracting Officer (Required over SAT but not exceeding

$700K): I certify the justification meets requirements for other than full and open competition.

_11/29/2018

Danny O. Freeman Date NCO-19 Acting Director of Contracting Network Contracting Office 19

DANNY O. FREEMAN Digitally signed by DANNY O.

170000

FREEMAN 170000

Date: 2018.11.29 13:55:03 -07'00' http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

Revision 08 Date: 04/18/2018

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.

CURTIS M

Digitally signed by CURTIS M

JORDAN 597130

JORDAN 597130 Date: 2018.12.12 12:18:34 -07'0_0'

Curtis M. Jordan Date Acting Executive Director, SAO West Head of Contracting Activity (HCA)