36C26318C0040-P00004001.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) for Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C263‐19‐AP‐2418

1. Contracting Activity: Department of Veterans Affairs, VISN 23 Saint Paul, Minnesota for the Omaha (NWI)

Medical Center.

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

A modification for Contract Number: 36C26318C0040 P00004 for Long‐Term Acute Care (LTAC) services has been awarded for an increase in days per FAR 52.212‐4 (c), Changes, with SELECT SPECIALTY HOSPITAL‐OMAHA, INC.

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

There has been an urgent need for Long‐Term Acute Care (LTAC) patients to be cared for outside of the VA Omaha (NWI) medical center when the medical centers Intensive Care Unit (ICU) beds are at full capacity. This modification is and has been an urgent and compelling need due to the drastically increasing number of LTAC patients at NWI and because of the hospital’s shortage of space. As such, we are in desperate need to increase the days on the contract which still has an available period of performance remaining. A long‐term IDIQ contract package is being determined now and should be better suited for this type of requirement. And, possibly, a short‐term contract may need to follow in the interim to bridge this contract with the long‐term requirement since this current contract expires on 6/12/2019. The modification cost: $221,000.00; aggregate to date:

$654,000.00; original period of performance: 12/13/2018 – 6/12/2019.

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

(X) Urgent and Compelling per FAR Part 6.302‐2

While the modification was pursuant to the changes clause FAR 52.212‐4 (c), it was an urgent and compelling modification which requires the urgent and compelling J&A.

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the

Authority Cited Above (applicability of authority):

There are three (3) 100% service disabled Veterans in the LTAC facility being provided care pursuant to this contract. Under the contract, care would need to stop on 2/24/2019. However, the Veterans still need care beyond that day. Thoughtful consideration to cancel and/or resolicit the additional requirement was warranted and determined to not be in the best interest of the Government and hospital mission. In this situation, re‐ competing this portion of the contract is not an option, as there is no time to issue and compete a solicitation and keep the service on‐going. The client (NWI) advocates the modification to ensure continuity of health care for the veterans using the LTAC’s resources. NWI and Contracting are working diligently on a possible multiple award with the four (4) possible local vendors for long‐term contracts.

As mentioned above, today there are three 100% service disabled Veterans in the LTAC facility. The service line cannot turn away 100% service connected LTAC patients which is a problematic issue for NWI, because this hospital has space issues. This is an original contract for which there is no history to use as precedence. The dollars have rose slightly over the year; however, in the last couple of months its costs have drastically climbed.

This contract price was originally $250,000.00, but additional patients were added for an aggregate amount of $654,000.00. This amount may climb in view of hospital space issues. The contract expires June 12, 2019 and we cannot predict whether there will be sixty patients in need of this contract or zero. There is an increasing need for LTAC services until the protests have been resolved for Region 2 Community Care Network (CCN). Because there was no precedence on how to draft a contract for this requirement, we have had to write these awkward modifications to accomplish the mission.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Thoughtful consideration to cancel and/or resolicit the additional requirement was warranted and determined to not be in the best interest of the Government and hospital mission. In this situation, re‐competing this portion of the contract is not an option, as there is no time to issue and compete a solicitation and keep the service on‐going. The client (NWI) advocates the modification to ensure continuity of health care for the veterans using the LTAC’s resources. NWI and Contracting are working diligently on a possible multiple award with the four (4) possible local vendors for long‐term contracts.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: After reviewing this modification (and other modifications to this contract), it is believed that this modification is appropriate for reasons of patient care, and because the price is also being determined as fair and reasonable as the price was negotiated at the time of initial award and under these circumstances services are not changing from the Performance Work Statement. Pursuant to FAR 15‐403‐1(c)(3), certified cost and pricing data is not required for commercial items.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Pursuant to FAR Part 10, market research conducted shows there are possibly four (4) viable LTAC facilities within the 60‐mile radius of NWI Medical Center which is the geographic locale the medical center requires. NWI and Contracting are working diligently with the four (4) vendors to procure a possible multiple award contract.

Market research, in accordance with FAR Part 10, was conducted by advising industry of the pending acquisitions in this particular locale.

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

NWI and Contracting are working diligently on a possible multiple award with the four (4) local vendors for a long‐term contract. Upon review, this modification and the other contract modifications for this contract have been appropriate for reasons of patient care for veterans.

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

Select Specialty Hospital ‐ Lincoln 2300 S 16th St # 7, Lincoln, NE 68502

Select Specialty Hospital – Omaha 1870 S. 75th Street, Omaha, NE 68124

Madonna Rehabilitation Hospital ‐ Lincoln 5401 South St, Lincoln, NE 68506

Madonna Rehabilitation Hospital – Omaha 17500 Burke St, Omaha, NE 68118

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:

To overcome the barriers to this procurement, NWI and Contracting are working diligently on a possible multiple award contract. The contract will be a one – year base period plus a one – year option period with an effective date of as soon as possible.

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.

Arlene Jorgensen Hillestad Date Branch Chief, Medical Sharing Team 2 Network 23 Contracting Office (NCO 23)

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.

Based on the above information, this modification is justified under applicable statutes and regulations and is determined to be fair and reasonable and in the best interest of the U.S. Government.

Chara Collins Date Contracting Officer Network 23 Contracting Office (NCO 23)

02 MAY 2019

02 MAY 2019