Sole Source Justification.pdf

VHAPG Part 806.3 OFOC Page 1 of 4 Revision: 02 Effective Date: 11/15/23 Acquisition ID#: __________________

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:_36C261-24-AP-0534

1. Contracting Activity: Department of Veterans Affairs, Veterans Health Administration, Regional Procuremnt Office West, Network Contracting Office (NCO) 21 on behalf of VA Northern California Health Care System (VANCAHCS)

2237: 612-24-1-140-0009 JOFOC Tracker: FY24-NCO20-729

2. Nature and/or Description of the Action Being Processed: Approval is requested for a new sole source contrct with RAS Enterprises, LLC., to provide medical gas and cylinder rentals for the VANCAHCS. The anticipated contract will be a firm-fixed-priced contract with a one (1) 12 month option period. The base period of performance is 4/1/2024 – 3/31/2025, with one (1) 12-month option period.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The contractor shall provide medical gases for 12 locations in Northern California, VA Mather, McClellan, Fairfield, Mare Island, Redding, Chico, Stockton, Modesto, Sonora, Martinez, Yuba City and Auburn. The gases to be purchased include, but are not limited to Air-compressed size E, G, H, Carbon Dioxide Medicinal Grade A size E and H, Nitrogen Gaseous size H, Nitrous Oxide size E, G, Nitrous Oxide 8” OD size H, Oxygen Gaseous size E (Aluminum), Oxygen Gaseous size E(Walk-O2-Bout), Lung Diffusion 3% meth., 21% O2 Balance Nit size H, Argon High Purity size 35, Liquid Nitrogen. The cylinders for gaseous and liquid forms of gases shall comply with the Department of Transportation specifications and shall be maintained, filled, marked, labeled, and shipped to comply with current DOT regulations.

Total base cost: $259,438.51 Total base plus one (1) option year: $518,877.02

4. Statutory Authority Permitting Other than Full and Open Competition:

38 U.S.C. 8127(c) – Sole Source Contracts for Contracts Above Simplified Acquisition Threshold

For purposes of meeting the goals under subsection (a), and in accordance with this section, a contracting officer of the Department may award a contract to a small business concern owned and controlled by veterans or a small business concern owned and controlled by veterans with service-connected disabilities using procedures other than competitive procedures if—

VHAPG Part 806.3 OFOC Page 2 of 4

Acquisition ID#: __________________

(1) such concern is determined to be a responsible source with respect to performance of such contract opportunity;

(2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 134 of title 41) but will not exceed $5,000,000; and

(3)in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

The authority for this J&A is cited in 41 U.S.C. 3304(a)(5), as authorized by 38 U.S.C.

8127(c).

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 requirement was initially solicited as RFQ 36C26124Q0230 on SAM.gov as a SDVOSB set-aside on December 27, 2023. The offer due date was extended to January 19, 2024 in order to give the station an opportunity to answer vendor questions related to the solicitation.

Due to the station’s POC failure to provide responses to the vendor questions, this RFQ was cancelled, on January 18, 2024.

The current requirement expires on March 31, 2024 and a lapse in service would be a detriment to the care and services received by the Veterans within the VANCAHCS.

RAS Enterprises, LLC is an SDVOSB and is the incumbent contractor currently providing supplies and services and is the only vendor that can provide a necessary supplies and services without causing a lapse in service.

Per the authorities cited in number 4 above, the contracting officer may award a sole source contract per U.S.C. 8127(c) if SDVOSB has been identified that is capable of providing the products and/or services at a fair and reasonable price and in the best interest of the government.

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

Reviewed the Veterans Health Administration Western States Network Consortium for blanket purchase agreements associated with medical gas and cylinders. The search yielded two expired BPAs for medical gas cylinder contracts, one to RAS Enterprises, LLC., and the other to RCG of North Carolina, LLC. Both vendors are SDVOSBs.

An email was sent to RCG of North Carolina, LLC on November 21, 2024, regarding its interest in an upcoming requirement to supply medical gases and cylinder rentals for the VA Northern California Health Care System. The vendor responded favorably to the email expressing interest.

VHAPG Part 806.3 OFOC Page 3 of 4

Acquisition ID#: __________________

The requirement was initially solicited as RFQ 36C26124Q0230 on SAM.gov as a SDVOSB set-aside on December 27, 2023. The offer due date was extended to January 19, 2024 in order to give the station an opportunity to answer vendor questions related to the solicitation.

Due to the station’s POC failure to provide responses to the vendor questions, this RFQ was cancelled, on January 18, 2024.

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

Medical gas and cylinder rentals will be determined fair and reasonable in accordance with (IAW) FAR 13.106-3(a)(2)(ii), comparison of the proposed price with prices found reasonable on previous purchases. They will also be compared with similar items in related industry IAW FAR 13.106-3(a)(2)(iv), comparison with similar items in a related industry.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: See number 6 above. The contracting officer has verified SDVOSB status in the Small Business Administration’s Veteran Certification database.

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

Per the authorities cited in number 4 above, the contracting officer may award a sole source contract per U.S.C. 8127(c) if SDVOSB has been identified that is capable of providing the products and/or services at a fair and reasonable price and in the best interest of the government. RAS Enterprises, LLC is the incumbent and the only vendor that can perform without a lapse in service.

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

RAS Enterprises, LLC RCG of North Carolina, LLC

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:

Agency will seek clarity to questions raised during the solicitation phase in order to address and prevent issues woth subsequent procurements.

VHAPG Part 806.3 OFOC Page 4 of 4

Acquisition ID#: __________________

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.

Date

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Date

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.