36C260-25-AP-1927 Shaw Mountain of Cascaia JOFOC 3.24.25.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

Page 1 of 4 Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C260-25-AP-1927

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C260-25-AP-1927 JOFOC Tracker: FY25-NCO20-1068

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, Boise 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. Shaw Mountain of Cascadia 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.

The estimated one (1) year cost of this contracts is $500,000.00, based on the Contracting Officer Representative (COR) Independent Government Cost Estimate (IGCE). The IDIQ maximum Limit is $750,000.00. This ceiling will allow for current residents and any additional Veteran placement. The guaranteed minimum for the contract is one (1) room for one (1) Veteran for one (1) day.

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

Page 2 of 4 Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C260-25-AP-1927

( ) 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 Shaw Mountain of Cascadia nursing home facility is currently providing a much-needed service to Veterans within the immediate geographical location. Currently there are numerous Veterans residing in this facility and 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. This would cause undue hardship on the Veteran and the family.

Retaining the current facility will lessen the burden and concerns of the Veterans, the Veteran’s family, 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. In addition, during this one-year period the COR will seek out additional facilities to add to our contract inventory to provide additional beds to serve the increasing number of Veterans needing placement.

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. There are currently 15 CNH facilities with IDIQ contracts or a Veteran Care Agreement in the Boise Idaho catchment area serving Veterans for various levels of care.

No other facilities will be solicited as VA Central Office (VACO) is preparing a revision to Veterans Health Administration (VHA) Procurement Guide (PG) which will change the method of payment utilized throughout the VA. The current IDIQ contracts are based on Resource Utilization Group (RUG) rates established by the Centers for Medicare& Medicaid Services and adjusted for the VA Base rate to reflect the rates we are currently paying under these contracts. The PG revision is changing the basis of our contracts to the Patient Driven Payment Model (PDPM) fee schedule. This short-term contract, using RUG rates, will allow time for the PDPM solicitation to be issued, and an award made under that solicitation.

IAW FAR 13.501(a)(1)(iii), this action will be synopsized at award on SAM.gov and the justification will be made publicly 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. 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:

Page 3 of 4 Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C260-25-AP-1927

A search in SAM.Gov yielded 56 results in the state of Idaho using NAICS code 623110.

Out of the 56, one, HBOT CRYO, LLC is self-certified as a Small Disadvantaged/Woman- Owned Small Business. Review of this vendor reveals that they are a not a CNH facility, but a holistic health center and cannot provided the required services of a CNH. A search of Veterans Small Administration Dynamic Small Business Service resulted in 20 SB vendors, none of these vendors are SDVOSB/VOSB, or any other socioeconomic category. In addition, the vendors listed are either not a CNH facility, or are outside the area needed for the veterans that are in the current facility.

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

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.

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

We currently have15 active contracts/agreements with CNH facilities in the Boise Idaho catchment area. The COR routinely follows up with other local CNH facilities to determine if they can provide the support needed for our Veterans. As a need for additional placements are identified, additional facilities are added.

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:

At this time, additional market research is being conducted to support a solicitation for long-term contracts in the Boise Idaho catchment area. Once the solicitation is issued, this short-term contract will be competed and a long-term contract awarded to interested/approved vendors.

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.

Kimberly Barker Clinical Administrative Specialist, CNH/NIC Programs Boise VA Medical Center

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

REVISION: 01

Acquisition ID#: 36C260-25-AP-1927

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: This part if filled out by Contracting Staff as part of the Justification

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.

Wendy Duval Contracting 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.

Peggy Corcoran Division Chief Network Contracting Office 20 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx