P03 LSJ 36C260-23-AP-5045.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification >SAT-$7.5M under FAR13.5

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C260-23-AP-5045 JOFOC Log Number: FY24 – NCO 20 - 518

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 20 (NCO 20), 1601 E. Fourth Plain Blvd., Suite B428, Vancouver, WA 98661 Funding ID 2237: 648-24-2-066-0013

2. Nature and/or Description of the Action Being Processed:

This is a request for approval for Other Than Full and Open Competition to procure testing services (to include interpretation) with the Oregon Health and Science University (OHSU) in support of the Department of Veterans Affairs Portland Health Care System (VAPHCS) Oncology program, coagulation needs other critical referral testing needs. A previous Justification & Approval for this requirement that was issued on January 18, 2024, is rescinded, and this one replaces it.

This award will allow services to continue as a follow-on award to VA260-17D-0027. VAPHCS is proposing a three-month bridge, to include a six-month option to extend services. The long-term goal, while the bridge is in place, is to secure a base plus 4-year, long term BPA for these testing services through competition. This bridge contract is required to maintain access to critical patient services while the long-term acquisition is being conducted.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The estimated value of the proposed action is $470,704.50

This requirement is to procure Reference Laboratory Services on an as-needed basis for the Laboratory Department at the VA Hospital in Portland Oregon. Services are required for referral laboratory services within the realm of cancer diagnosis and treatment, surgical pathology consultations, and back up testing to in-house critical life and limb testing. There is a need for STAT lab testing which must process the test and provide results within one hour of collection to avoid the risk to patient safety.

The Joint Commission, responsible for accreditation of HealthCare Organizations requires that referral laboratories are certified to perform the testing they offer. The proposed action is a 3-month bridge, with an option to extend, to ensure continuation of services with OHSU and avoid any delays in veterans receiving critical/urgent medical diagnosis. VAPHCS either does not have the ability to perform testing or the test is considered backup to our ability to provide critical testing that is needed to operate a 24/7 healthcare facility.

The proposed POP for the three-month bridge will be 1/1/2023 – 3/31/24.

4. Statutory Authority Permitting Restricted Competition:

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

(X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

The market research findings indicate this requirement can only be met by the incumbent provider, OHSU, due to their geographic location with respect to the VAPHCS, the logistics of specimen transportation, and the immediate need for this service. Reference Laboratory Testing services are currently being provided by OHSU, for VAPHCS. Therefore, for this short-term 3-month contract, they are in the best position to provide the immediate need for services as they have already met all requirements with no need to ensure their referral laboratory meets the licensing requirements or set up a new process regarding logistics for specimen transport. If a new vendor is selected, it may take up to six months to change over. Finally, given the short time frame that the STAT specimens must be processed and provide results within one hour of collection. It is inconceivable that any other contractor could meet the requirement other than OSHU without incurring a risk to patient safety.

OHSU is connected to VAPHCS through a sky bridge and there is interconnection with a pneumatic tube system. This puts OHSU in the unique position to receive specimens quickly without facing logistical concerns with traffic and other courier pick-up issues. Part of the requirement is for STAT specimens to begin being processed within one hour of sample collection and results provided to VAPHCS within one hour to ensure patient safety. Samples are not collected at the same time each day and it is dependent on patient need. Given the special proximity to VAPHCS and OHSU, they are in position to effectively meet this requirement at any given time with their unique ability to receive laboratory specimens for testing in a quick and efficient manner. It is critical to patient safety that this STAT requirement be met.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A Request for Information (RFI) on solicitation #36C26024Q0080 was posted on 11/8/23, through System for Award Management (SAM), with responses due on 11/22/23. The RFI included the Scope of Work and the requirements for the solicitation. The intent of this Sources Sought was to determine if there were any SDVOSB / VOSB’s capable of providing the services needed. Responses were reviewed from potential vendors as part of the market research.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

The anticipated cost for this acquisition is $470,704.50. Pricing for this bridge contract will be the same as the current contract, VA260-17-D-0027, which has been determined to be fair and reasonable. This anticipated cost has been determined fair and reasonable.

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

Market Research Was Not Conducted:

Market research was completed in accordance with FAR Part 10. As noted in Section 6 above, it included posting a Request for Information (RFI) on SAM.GOV which advised industry of the pending acquisition and solicited inquiries from interested parties. The RFI provided the statement of work and proposed evaluation criteria.

Three (3) responses were received from SDVOB vendors, identified under paragraph 10. Capability statements were received from these vendors. Each vendors capability statement was reviewed in its entirety. As each of these vendors testing facility is not located in Oregon, and logistical issues would limit the ability to transport specimens across state lines within the required time to ensure specimen processing is started within 1 hour of collection. An – initial determination was that none of the interested SDVOB could meet the VAPHCS requirements.

Market research was also performed to review other lab testing centers within five miles of VAPHCS. The only feasible way that processing of STAT samples could always or almost always begin processing within an hour of tissue collection given the odd times of tissue collection, is if the referral laboratory is in the immediate are of the VAPHCS. There were no other referral laboratories within 1 mile of VAPHCS. It’s noted that Labcorp, a large referral laboratory, is approximately four miles away. With traffic this could take over 30 minutes to get to which could cause delays and includes a risk in getting specimens safely delivered and processed within one hour of collection as well as providing the results to VAPHCS. Therefore, there is a large risk to patient safety with any other vendor, large or small, completing this requirement other than OHSU.

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

N/A

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Central Tox/Semper Fi Labs NEO Services MCI Diagnostic Center

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:

Future acquisitions including shall require more extensive engagement with vendors to ensure they have a complete understanding of the requirements of the supplies or services they are submitting offers for. The VA will continue to review this requirement as necessary to see if anything has changed, making it feasible for it to be competed.

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.

SIGNATURE Date Dean Fong, DO Chief, Path and Lab Med Svc Portland VA Medical Center For Kelsey Kiaha Laboratory Manager Portland VA Medical Center

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.

Jose Ronstadt Contract Officer Network Contracting Office 20

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Wendy Duval Contracting Officer

Branch Chief – APC Network Contracting Office 20 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx