36C25920D0030-001.pdf

OFOC SOP Revision 08 Page 1 of 4 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: 36C259-20-AP-0435 Tracking ID: 2020-0045 Community Hospital of Anaconda DBA Community Nursing Home of Anaconda, Montana VA Health Care System (MTVAHCS), Fort Harrison, MT.

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO 19)

6162 Willow Drive, Greenwood Village, CO 80111, in support of the MTVAHCS, Fort Harrison, Montana.

2. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole source Firm-Fixed Price Indefinite Delivery Contract (IDC) for Community Nursing Home (CNH) Services for Community Hospital of Anaconda DBA Community Nursing Home of Anaconda located in the city of Anaconda, MT. The current contract 36C25919P1033 expires 12/31/2019. The IDC will be written for five years.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for a Community Nursing Home in Anaconda, MT 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 sole source contract for a Community Nursing Home in Anaconda, Montana. The CNH must meet the program requirements stated in VA Handbook 1143.2. All potential CNH’s must pass an initial clinical and life safety inspection conducted by the VA Medical Center and comply with the requirements of the VA Handbook 1143.2. Additionally, the CNH must be certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Montana. We anticipate awarding the IDC prior to 31 December 2019. The IDC will be written for five years. The estimated performance period will be from 1 January 2020 to 31 December 2025. The estimated value for this IDC is $1,125,000.00.

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;

OFOC SOP Revision 08 Page 2 of 4 Original Date: 03/22/11 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 by 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 three (3) Veterans being housed/treated at the Community Hospital of Anaconda DBA Community Nursing Home of Anaconda under an existing 4-month purchase order. 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 1986. 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. In accordance with far 6.302-1, this requirement for Community Nursing Home Services will be sole sourced to the Community Hospital of Anaconda DBA Community Nursing Home of Anaconda. They are currently meeting the needs of the VA Medical Center and Veterans in the area. Accordingly, the Community Hospital of Anaconda DBA Community Nursing Home of Anaconda is the only firm capable of providing the services described in Section III above without the Veterans Health Administration experiencing unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The CNH program coordinator has not identified any new CNHs to be considered for the Anaconda, Montana area. A search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in one (1) community nursing home within the zip code of Anaconda which is the Community Hospital of Anaconda DBA Community Nursing Home of Anaconda. The Small Business Administration and the VA’s Vendor Information Page (VetBiz) websites were used to determine if potential future offerors existed to determine additional competition. VetBiz failed to produce any results for the Anaconda, Montana area. The J&A will be posted on FBO.

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 that can be proposed for each Resource Utilization Group (RUG) category. The IDC Contract Line Item Number (CLIN) structure will reflect each RUGS IV levels of care. The maximum add-on percentages can be found in the Veterans Health Administration Procurement Manual Community Nursing Home SOP (Attachment 17). The agreed upon add-on percentages do not change through the life of the contract. Since pricing will be based entirely on State-established Medicaid rates, and the agreed upon add-on percentages against the RUG levels which together establish the per-diems for levels of care, the Contracting Officer determines that the anticipated cost to the Government will be fair and reasonable.

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 (VetBiz) were used to determine if competition exists. However, SBA provided no additional source for future consideration pending required VA inspections and need. A search of the Medicare Nursing Home Compare website (https://www.medicare.gov/nursinghomecompare/search.html) resulted in one (1) CNH within the zip code 59711, which is the incumbent Community Hospital of Anaconda DBA