-16239.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-18-AP-0384, Community Nursing Home, Denver

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO 19) in support of the Denver Medical Center.

2. Nature and/or Description of the Action Being Processed: This procurement action is for the establishment of a sole source Firm-fixed price Purchase Order (PO) for Community Nursing Home (CNH) Services to the Baptist Home Association of The Rocky Mountains, Inc. doing business as (DBA) Health Center at Franklin Park located in the city of Denver, Colorado. The period of performance for this acquisition will be a base period of 12 months with a one-year option period (12 months). The period of performance will begin on 01 March 2019 through 28 February 2021.

The estimated total dollar value of this requirement to include the one-year option period and to account for the inclusion of FAR 52.217-8, Option to Extend Services, is$3,939,300.00.

The current basic ordering agreement (BOA) expires on January 19, 2019. The PO will be written for a Base year and one-year Option period of performance.

FAR 13.5 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 sixteen (16) Veterans being housed/treated at this Community Nursing Home under an existing BOA, VA259-14-A-0036. 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 Base Performance Period for this PO will be 12 months with a one-year option period of 12 months.

We anticipate awarding the PO prior to January 20, 2018. The estimated performance period will be from January 20, 2019 through January 2021. The estimated total dollar limitation for the POis $3,939,300.00.

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 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): Currently, there are sixteen (16) Veterans being treated and housed at the Health Center at Franklin Park under an existing BOA.

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 2014.

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 Health Center at Franklin Park.

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 (SBA) website and the VA’s Vendor Information Pages (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. The VA Geriatrics and Extended Care Office publish the maximum add-on percentages will be agreed upon between the Government and CNH for each Medicaid category or Resource Utilization Group (RUG). The PO 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. Pricing is based from the state Medicaid rates, the published maximum add-on percentages from VA Geriatrics & Extended Care Office, and the Resource Utilization Group classification per- diems for levels of care. The Contracting Officer determines that the anticipated prices based from the Medicaid rates and agreed upon add-on percentage will be fair and reasonable to the Government. The add-on percentages do not change through the life of the contract. A list of 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. The Small Business Administration website and the VA’s Vendor Information Pages (Vet Biz) 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 found at https://www.medicare.gov/nursinghomecompare/search.html resulted in 91 Community Nursing Homes within a 25-mile radius of 80218. Specifically, narrowing the search down to five miles of zip code 80218 yielded 13 potential sources.

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

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are currently 16 Veteran patients in the Health Center at Franklin Park community nursing home which cannot be relocated or moved because of 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 an interest in this Acquisition. However, the incumbent CNH, Franklin Care Health 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 (1) facility capable of providing the specialty care and medical needs of the existing Veteran patients. The incumbent CNH has expressed an interest in a new contract with the VA. The contracting office and the CNH program office will continue to canvas the market for new CNH entrants capable of meeting program requirements. The consideration for inclusion into the VA’s CNH Program depends on the needs of the patient and proximity to home and family. So, there is no competition among selection of a CNH into the VA’ program. The CNH must be able to pass several state and federal program inspections to be considered.

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.

Digitally signed by ELIZABETH K.

TESKA 262227

Name: TESKA 262227 Date: 2018.12.20 10:37:44 -07'00'

Title:

VA Eastern Colorado Healthcare System

13. Approvals in accordance with the VHAPM Part 806.3 OFOCSOP:

Date

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.

12/20/2018

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 opencompetition.

For Digitally signed by ALBERT WILLIAMS 967361

Date: 2018.12.20 15:31:45 -07'00' 20 Dec 2018 Danny O. Freeman Date NCO-19 Acting Director of Contracting

David J. Medina 748952

Digitally signed by David J.

Medina 748952 Date: 2018.12.20 11:01:22 -07'00'

ALBERT WILLIAMS 967361

http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

Digitally signed by CURTIS M JORDAN

CURTIS M JORDAN 597130 597130

Date: 2018.12.21 14:35:12 -07'00'

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) approve for other than full and open competition.

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