Forest Grove REDACTED.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 11/15/24 Page 1 of 5

REVISION: 01

Acquisition ID#:

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:

1. Contracting Activity: Department of Veterans Affairs, Veterans Health

Administration, Regional Procurement Office (RPO) West, Network Contracting Office 20 (NCO 20) on behalf of, Veterans Integrated Service Network (VISN) 20, Portland VA Health Care System.

2. Nature and/or Description of the Action Being Processed: This procurement is for a short-term contract for Community Nursing Home (CNH) Services 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.

The awarded contract will be a new Firm Fixed Price (FFP), Indefinite Delivery/Indefinite Quantity (ID/IQ) with Economic Price Adjustment (EPA) consisting of a one-year (1) base ordering period with no option years.

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

38 U.S.C. § 1720 creates the expectation that qualified Veterans will receive CNH services in their community. Marquis Companies I Inc. DBA Marquis at Forest Grove (The Facility) provides care to Veterans whose primary residence is a nursing home.

The VA CNH Program is designed to assist Veterans and their families in making the transition from an episode of hospital care, nursing home care, or domiciliary care to the community. The primary goal of the CNH program is to maintain or restore the Veteran to the highest level of health and well-being attainable. VA has a need for specialty care services in the CNH program. Laboratory, x-ray, and other special services will be available to VA patients as needed. In addition, the care provided will include room, meals, nursing care, and other services or supplies commensurate with the VA-authorized level of care.

The estimated one (1) year cost of this short-term contract is $2,000,000.00, based on the Contracting Officer’s Representative (COR) Independent Government Cost Estimate (IGCE). The IDIQ maximum Limit is $2,400,000.00 to allow for possible increases due to increased Veteran placement and EPA adjustment. The guaranteed minimum for the contract is one (1) room for one (1) Veteran for one (1) day.

Effective Date: 11/15/24 Page 2 of 5

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

Marquis Forest Grove nursing home facility is currently providing a much-needed service to Veterans within the immediate geographical location. There are seven current IDIQ holders that perform similar services, however each facility is different in nature and all facilities are at maximum capacity and no longer accepting Veterans. Forest Grove is unique to the Portland Oregon catchment area, as it provides long term care which is very difficult to find for Veterans. Currently there are seven Veterans residing in the facility. If this short-term contract is not authorized, the current Veterans would have to be relocated to other facilities which are not in close proximity to the Veterans families or residences. Furthermore, according to the Office of Community Care, there are currently 45 already-existing requests for bed placements in the immediate vicinity. Failing to award this contract would make it extremely difficult to place Marquis Forest Grove's seven Veterans in other facilities.

Even with Marquis, there is already insufficient CNH space to meet Veteran needs in the area.

Retaining the current facility will lessen the burden and concerns of the Veterans, the Veteran’s families, and the VA clinician(s)/provider(s), by continuing a much-needed service, in a particular locale. Moving a Veteran to a different facility may disrupt treatment plans and become a burden to family members of the Veteran. To avoid disruption of Veteran care, the VA must award a new short-term contract to Marquis Forest Grove. During this new contract, the COR will search for additional CNH facilities to meet the large already-existing placement needs.

Effective Date: 11/15/24 Page 3 of 5

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

Potential sources are dependent on the needs of the patient. The Social Worker and the CNH Review Team identify which CNHs can fulfill the patients’ needs. IAW FAR 13.501(a)(1)(iii), this acquisition will be posted on SAM.gov and the justification will be made publicly available. There are seven CNH facilities in the Portland, Oregon catchment area serving Veterans for various levels of care and are at capacity. This creates a significant decrease in the number of nursing home beds available.

7. Determination by the CO that the Anticipated Cost to the Government will be

Fair and Reasonable:

Medicare rates are adjusted annually by the Centers for Medicare and Medicaid Services. The rate is established by the current FY25 Medicare Benchmark rates for Medicare approved nursing home care. Rates established after the effective date of this contract will constitute a modification to the contract.

The rate(s) will apply throughout the term of this contract, including extension period(s). The rate(s) may be adjusted only to reflect a change in a Medicare rate as authorized by Centers for Medicare and Medicaid.

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

Statement of the Reasons Market Research Was Not Conducted:

A search in SAM.Gov yielded 71 results in the state of Oregon using NAICS code 623110. Out of the 71 results, No SDVOSBs were found. A search of the Dynamic Small Business database (SBA) was conducted nationwide utilizing NAICS 623110.

This search yielded 155 contractors that matched the criteria necessary to support the requirement. Out of the 155 contractors, one fell within the local Portland Oregon catchment area. This one result is a contractor who specializes in construction and does not provide the patient care required for this requirement. Two Women-Owned Small Businesses were found however, they are not SBA certified. There were no HubZone results. There were no 8(a) results. There were no SDB results. One minority Owned Small Business was found however; it is not SBA certified. A sources sought notice was posted on 12/03/2024 and closed on 12/18/2024, utilizing solicitation number 36C26025R0037. We received one response to the sources sought, however, they failed to provide the information required and were found non-responsive.

After a review of the results, it was determined the listed Service-Disabled Veteran Owned Small Businesses (SDVOSB) and Veteran Owned Small Businesses (VOSB ) were not skilled nursing facilities or located in the Portland catchment area. It would not be feasible to include the SDVOSB/VOSBs in a competitive action and Marquis

Effective Date: 11/15/24 Page 4 of 5

Acquisition ID#:

Forest Grove community nursing home is the only feasible selection for this requirement.

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

Marquis Forest Grove has been providing consistent care to Veterans in this geographical area for several years. The facility currently has a five star overall rating from the Medicare.gov web site which is based on a nursing home's performance in 3 factors: health inspections, staffing, and quality measures.

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

Based on the inherent nature of the service and in line with VA policy where the Veteran and their family play a role in determining which nursing home facility will provide treatment for the Veteran, the opportunity to increase competition is limited.

The Contractor is currently providing CNH services and is willing to continue providing services.

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:

During the period of performance of this short-term IDIQ contract, the COR will seek additional CNH facilities to add to our pool of available facilities in this catchment area. There is also an open and continuous solicitation for Oregon currently in the works which may add additional nursing home services in the Oregon catchment area.

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.

Community Nursing Home Coordinator/COR Portland VA Health Care System

Effective Date: 11/15/24 Page 5 of 5

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.

Contracting Officer Network Contracting Office 20 (NCO 20)

JOFOC Log: FY25-NCO20-575

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.

Director of Contracting Network Contracting Office 20 (NCO 20)

c. VHA RPO 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 approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx