-16219.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: 36C259-19-AP-0211 Parkmoore Village Healthcare (Community Nursing Home), Colorado Springs, CO

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO 19) 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 Integrated Health Services At Colorado Springs, Inc. (DBA: Parkmoore Village Healthcare) located in the city of Colorado Springs, Colorado. The current contract VA259-14-A-0072 expires on February 28,2019. The PO will be written for a base period of 12-months and a one-year option period (12 months). The period of performance will be from 01 March 2019 through 29 February 2020. The total estimated dollar value of this requirement, to include a one-year option period and the inclusion of FAR 52.217-8, Option to Extend Services, is $2,267,730.00.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for a CNH in Colorado Springs, 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: Currently there are ten

Veterans being housed/treated at Integrated Health Services At Colorado Springs, Inc. DBA:

Parkmoore Village Healthcare under an existing BOA, VA259-14-A-0072. 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 Purchase Order prior to February 28, 2019.

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;

Revision 08 Date: 04/18/2018

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

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 ten Veterans being housed/treated at the Integrated Health Services At Colorado Springs, Inc., DBA: Parkmoore Village Healthcare under an existing five-year BOA. The community nursing home facility meets VA Exclusionary 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 care to our Veterans. The VA patients at this facility cannot be moved without causing undue medical hardship. An attempt to move or relocate the patients would cause a disruption in treatment plans and stress on the patient and family members. In accordance with FAR 6.302-1, this requirement for Community Nursing Home Services will be sole sourced to Integrated Health Services At Colorado Springs, Inc. (DBA: Parkmoore Village Healthcare). They are currently meeting the needs of the VA Medical Center and Veterans in the area without any complaints or deficiencies.

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 December 4, 2018 and closed on December 17, 2018 under posting number 36C25919Q0070. The posting included the area of Colorado Springs, CO and the most current Performance Work Statement for the Community Nursing Home program. No potential offerors responded to the sources sought. The Small Business Administration website and the VA’s Vendor Information Page (VetBiz) were utilized to determine if potential offerors existed to determine additional competition.

However, both sites failed to produce any results for Colorado Springs, Colorado in zip code 80917.

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 RUG IV case mix rates. These rates are added to the Medicaid cost for each RUG IV level of care that will make-up the per diem rate. The line item structure will illustrate the different RUG IV 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 can be found in the Veterans Health Administration Procurement Manual Community Nusing 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 Paragraph 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. A sources sought was posted on Federal Business Opportunities (FBO) on December 4, 2018 and closed on December 17, 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

Revision 08 Date: 04/18/2018

Michelle J. Digitally signed by Michelle J. Scoggin 343006

Scoggin 343006 Date: 2019.01.30 12:18:17 -07'00'

(https://www.Medicare.gov/nursinghomecompare/search.html) resulted in 25 community nursing homes within the zip code of 80917, where the current CNH is located. Refining the search down to five miles within the zip code resulted in four community nursing homes, one of which is the current Parkmoore Village Healthcare facility under contract with the VA.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are currently ten Veterans placed in Integrated Health Services At Colorado Springs, Inc., DBA: Parkmoore Village Healthcare that cannot be reloated due to continuity of care and medical complexity. Also, this CNH facilitates a location near the families of these Veterans. Surrounding area nursing homes have not expressed explicit interest in a contract nor been vetted through the inspection process required by the VHA CNH Handbook to provide services to the VA

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other community nursing homes have expressed interest in this acquisition. However, the incumbent, Integrated Health Services At Colorado Springs, Inc., DBA: Parkmoore Village Healthcare, has expressed an interest to renew their current contract with the VA to continue to provide care and services to the Veterans currently placed there.

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 Integrated Health Services At Colorado Springs, Inc., DBA: Parkmoore Village Healthcare. The contracting office will continue to canvas the market for new CNH entrants capable of meeting program requirements. There are several factors to consider when determining if a CNH is included into the VA’s CNH program. The factors include, can the CNH meet the needs of the patient and the proximity to the home and family. There is no competition among selection of a CNH into the VA’s program. The CNH must meet state requirements as well as Federal requirements to be considered. The VA’s CNH team must conduct a life-safety inspection, visit the facility and conduct a clinical inspection to determine if a CNH will 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.

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 theforegoing justification is accurate and complete to the best of my knowledge and belief.

https://www.medicare.gov/nursinghomecompare/search.html http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

Revision 08 Date: 04/18/2018

CURTIS M

JORDAN 597130

Digitally signed by CURTIS M

JORDAN 597130

Date: 2019.02.17 09:27:07 -07'00'

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.

Curtis M. Jordan Date Director of Contracting Network Contracting Office 19

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 andopen competition.

Christopher Williams 590049

Digitally signed by Christopher Williams 590049 Date: 2019.02.22 06:28:03 -08'00'

Christopher S. Williams Date Acting Executive Director, SAO West VHA Head of Contracting Activity (HCA)

David J.

Digitally signed by David J. Medina 748952

Medina 748952 Date: 2019.01.30 12:53:50 -07'00'