36C26319C0178-001.pdf

VAAR Part 819.7007 Sole Source Award to a Verified Service Disabled Veteran Owned Small Business

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C263 19 AP 4292

1. Contracting Activity:

Department of Veterans Affairs Network Contracting Office 23 2501 W. 22nd Street Sioux Falls, South Dakota, 57105

Procurement Title:

Project Management Temporary Support Services – Minneapolis VA Health Care System

2237 Funding: 618 19 4 6023 1547

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

This is an individual sole source justification and approvals for the procurement of temporary engineering project management services to support the Minneapolis VA Health Care System. VA intends to award one, single award, fixed price, contract with one option period for the services.

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

The Minneapolis VA Health Care System requires contracted services to provide one project management engineer and one senior project management engineer services. Both engineers will provide project management services on site at the Minneapolis VA Health Care System. The independent government cost estimate (IGCE) for the procurement is $374,198.40 for the base period and $748,396.80 total if the option period is exercised. The base period of performance will be from 07/15/2019 to 01/08/2020, 120 workdays. The option period of performance will be from 01/09/2020 to 06/30/2020, 120 workdays, for a total of 240 workdays for extenuating circumstances in accordance with 5 CFR Part 300 as implemented by FAR Part 37.112.

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

41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302 5 (Authorized or Required by Statute). COs may use the non competitive (sole source) procedures authorized in VAAR

819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service disabled veteran owned small business; or ( ) 819.7008 Sole source awards to a verified veteran owned small business

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

In accordance with 38 U.S.C. 8127 (c) and (i)(1), as implemented by VAAR 819.7007, sole source awards to a verified service disabled veteran owned small business (SDVOSB), a contracting officer may award a contract to a verified SDVOSB concern using procedures other than competitive procedures.

The estimated award price of the total contract is $748,396.80 inclusive of the base period and one option period. This estimated award is less than the $5.0 million limitation threshold.

The justification will be posted to the government point of entry, known as the Federal Business Opportunities website at www.FBO.gov, per FAR subpart 5.301(d).

The VA Health Care System is proposing to contract with Higher Recruitment, LLC, a VetBiz verified SDVOSB (DUNS: 079506764), that is capable of offering the services at a fair and reasonable price.

Furthermore, Higher Recruitment, LLC is a local vendor in the Minneapolis area that has personnel who are readily available to perform the required project management services, are licensed in Minnesota, and are familiar with regulations. Higher Recruitment, LLC will be able to provide professional and experienced project managers who have skills and capabilities to manage the on going and up coming projects for the Minneapolis VA Health Care System.

Furthermore, in accordance with VAAR 819.7007, the contracting officer’s determination to make a sole source award is a business decision wholly within the discretion of the contracting officer. This authority is being used judiciously and in the best interest of the government. The Minneapolis VA Health Care System previously received these services through employees, but has recently lost several key employees in the Engineering Department, including the Projects Section Chief, Planner, two United States Army Corps of Engineers (USACE) contract employees, and the most senior Engineer/Engineering Technician in the Department.

The Minneapolis VA Health Care Center has attempted to fill the losses with engineers from the USACE, but has been unsuccessful due to deployments and the engineers not being able to work at the pace required. As of current, the Minneapolis VA Health Care System does not have the adequate supply of employees to oversee and manage the ongoing and upcoming construction projects at the facility. Without having the labor resources necessary, the facility may be required to terminate contracts and cease projects which would come at a large financial loss for the VA Health Care System.

Currently the VA Minneapolis Health Care System has 65 active and planned projects valued at $131 million. The current staff on hand has an average of less than one year of VA project experience. In the future, the VA Health Care System will consider hiring additional VA employees to cover the project management services. Similarly, VA may consider the use of a competitive contract for services long term. The purpose of the instant procurement is to provide a short term solution to ensure projects continue without interruption and without delay costs due to the government’s lack of resources.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart

5.2 and, if not, which exception under 5.202 applies:

The determination that only one SDVOSB can meet the requirement is not required, per VAAR

819.7007. It is recognized by VA, through completed market research, that there are other verified SDVOSB concerns in the marketplace that provide project management engineering services. Given the current amount of existing projects and the time that it will take to either hire the needed experienced engineers or contract for more permanent engineers, it was determined in the best interest of the Government to award a contract on a sole source basis for a short term solution.

The barriers to competition are anticipated to be overcome when a competitive solicitation is put forth by VA during the period of performance of the instant procurement. It is projected that a succession contract will be competed among responsible contractors that are capable of performing the engineering project management services for the Minneapolis VA Health Care System. Given the complexity of the procurement, the cumulative estimated dollar value, internal procedures for quality assurance, and competing priorities, it is estimated that a realistic timeframe to plan, solicit, award, and commence services of a long term competitive procurement will be one year.

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

The Contracting Officer anticipates that the pricing will be determined as fair and reasonable prior to contract award. Informal pricing from Higher Recruitment, LLC has shown their pricing to be comparable to the pricing in Network Contracting Office 23 Architecture and Engineering Indefinite Delivery Indefinite Quantity (IDIQ) Contract 36C26319D0021. The IDIQ was awarded specifically for A&E services and is therefore not being used for the instant procurement as the services under the IDIQ contract are not specifically for temporary support contractors. Nonetheless, the IDIQ contract includes A&E project managers and can be used to determine the pricing of the instant procurement to be fair and reasonable.

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

The required services are commercially available in the marketplace and it is typical for a business or agency to contract for engineer project management services. As such, there are a number of firms that could provide the services for the VA Health Care System. However, the determination that only one SDVOSB can meet the requirements is not required, per VAAR 819.7007. It is recognized by VA through completed market research, that there are other verified SDVOSB concerns in the marketplace that provide engineer project management services. Given the timeframe in which the services under a new contract needed to commence, it was determined to be in the best interest of the Government to award a contract on a sole source basis. It is anticipated that a succession contract will be completed.

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

All facts supporting the use of other than full and open competition have been provided.

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

Higher Recruitment, LLC (DUNS: 079506764), VetBiz verified SDVOSB

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:

The barriers to competition will be overcome when a new contract for services is competed among potential contractors. It is anticipated that a successive, long term acquisition for engineer project management services will be solicited and awarded during the period of performance of the sole source contract.

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.

Catherine Roering Date Assistant Capital Assets Manager Minneapolis VA Health Care System

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.

Kelly Nussbaum Date Contracting Officer Network 23 Contracting Office (NCO 23)

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Thomas Brick Date Division Chief – Division II Network 23 Contracting Office (NCO 23)

c. Director of Contracting Review: I have reviewed this justification and recommend approval.

Mr. Daryl A. Berg Date Director of Contracting Network 23 Contracting Office (NCO 23)

7/10/19Catherine C.

Roering 137321

Digitally signed by Catherine C. Roering 137321 Date: 2019.07.10 13:03:54 -05'00' 7/10/19

Kelly E. Nussbaum 246222

Digitally signed by Kelly E.

Nussbaum 246222 Date: 2019.07.10 13:16:48 -05'00' 7/10/19

7/11/2019

VHAMINBergD2 Typewritten Text 07/12/2019

d. VHA SAO 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 for other than full and open competition.

Mr. Randy L. Hays Date Acting Executive Director VHA Regional Procurement Office Central

Market Research Report for Project Manager Engineering Services

Date: 07/03/2019

Requisition Number: 618-19-4-6023-1547

Solicitation/ACQ Plan: 36C263-19-Q-0715 / 36C263-19-AP-4292

Description of requirement: Project Manager Engineering Services

Period of Performance: 07/15/2019 to 01/08/2020, plus one-120 day option for an estimated ultimate completion date of 06/30/2020

Estimated Value: Base 120 days (business): $374,198.40; Total: $748,396.80 for a base plus one-120 day option per the IGCE

PSC/FSC: R425 Engineering and Technical Services

NAICS Code: 541330 Engineering Services, $15.0 million size standard

1. OBJECTIVE: As required in FAR Part 10 and VAAR Part 810 for policies and procedures for conducting market research, the purpose of this market research report is to arrive at the most suitable approach to acquiring, distributing, and supporting services needs of the VA Health Care System. Market research results will be used to determine if sources capable of satisfying the agency’s requirements exist, determine if commercial items are available in the marketplace, and determine the socio-economic size and status of potential sources.

2. BACKGROUND: The Minneapolis VA Health Care System is requesting a contractor to provide project manager engineering services to support the VA’s mission. VA intends to award one (single award) fixed price contract for the services. The period of performance shall be 07/15/2019 to 01/08/2020. If the o ne-120 day option i s exercised, the ultimate completion date will be 06/30/2020. The independent government estimate for the contract is $374,198.40 for the base period of performance and a total of $748,396.80 for a base plus one-120 day option.

Project manager engineering services are commercial services and are available in the marketplace. The NAICS code of 541330 Engineering Services (size standard $15 million) shall be used for this procurement, along with PSC code R425 Engineering and Technical Services.

The contractor shall provide one Senior Project Manager Engineer and one Project Manager Engineer to oversee the VA Minneapolis Health Care System’s construction projects. The services will be provided from the following facility:

Minneapolis Health Care Facility One Veterans Drive Minneapolis, Minnesota, 55417

3. MARKET RESEARCH SOURCES FOR SERVICES:

a. Office of Small and Disadvantaged Business Utilization’s (OSDBU) Vendor Information Pages (VIP) database which is used by the Center for Verification and Evaluation (CVE) to verify Service- Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs). SDVOSBs and VOSBs who want to participate in the VA’s Veterans First Contracting Program must be verified by CVE in order to be eligible for VA contract set-asides.

b. GSA’s eLibrary

c. SBA Dynamic Business Search database

d. System for Award Management (SAM)

e. Request for Information (RFI) posted to www.FBO.gov

f. Past procurement history

4. MARKET RESEARCH FINDINGS IN PRIORITY ORDER FOR SERVICES:

a. Priority provided by law under 38 U.S. Code § 8127 (Public Law 109-461) - The Veterans Benefits, Health Care, and Information Technology Act. Section 8127(d)’s contracting procedures are mandatory and apply to all of VA’s contracting determinations including Federal Supply Schedule procurements. The Contracting Officer shall award contracts on the basis of competition restricted to small business concerns owned and controlled by veterans if the CO has a reasonable expectation that two or more small business concerns owned and controlled by veterans will submit offers and that the award can be made at a fair and reasonable price that offers best value to the government.

A search on OSDBU’s VIP database using NAICS code 541330 yielded 2130 results of small businesses that are veteran owned and verified. However, the procurement will be made using other than full and open competition in accordance with VAAR 819.7007 and 38 US Code 8127(c) as a sole source acquisition to a SDVOSB. The Justification and Approvals has been uploaded to the file.

VA intends to award the contract to Higher Recruitment Inc, (DUNS: 079506764), a VetBiz verified service disabled veteran owned small business (SDVOSB) using the non-competitive authority.

The determination that only one SDVOSB can meet the requirement is not required, per VAAR

819.7007. However, it is recognized by VA, through market research, that there are other verified SDVOSB concerns in the marketplace that provide project management engineering services. Given the circumstances surrounding the need for the instant procurement, the Contracting Officer has determined it to be in the best interest of VA to procure the services using a non-competitive, sole source award to a verified SDVOSB that readily has personnel available to provide the project management services at the Minneapolis VA Health Care System.

5. CUSTOMARY COMMERCIAL TERMS AND CONDITIONS: The Government’s needs can be met via services customarily available in the commercial marketplace. It is a typical commercial practice for institutions to receive project manager engineer services from a contractor.

The required services are commercially available in the marketplace. Therefore, FAR Part 12 for Commercial Items and FAR Part 13 for Simplified Acquisition Procedures as well as VAAR Part 819.7007 will be used to procure the services.

6. MARKET PRICE: The independent government cost estimate (IGCE) for the services is $374,198.40 for the base period of performance (120 business days) and a total of $748,396.80 for a base plus one-120 day (business) option. The IGCE is based on informal pricing and a similar IDIQ architecture and engineering contract 36C263-19-D-0021.

7. ACQUISITION HISTORY: These services were previously procured through direct hires and assistance from the United States Army Corps of Engineers. A long-term contract is currently being worked and this contract will be used to fulfill the requirement for the short-term until the long-term contract can be awarded. The Minneapolis VA Health Care System has an ongoing need for the services to support veterans and other beneficiaries.

8. OTHER PERTINENT INFORMATION: All information to support the market research efforts are provided herein or within the contract file.

9. RECOMMENDATION: Based on the market research findings, the Contracting Officer has determined to procure the services in accordance with FAR Parts 12 and 13 for a commercial service using simplified acquisition procedures as well as VAR 819.7007 for a sole source contract to a SDVOSB. The solicitation will be offered as a sole source contract and an intent to sole source will be posted via the government point of entry commonly referred to as FBO.

Date: 07/03/2019 Prepared by:

Approved by: Date:

Kelly E. Nussbaum 246222

Digitally signed by Kelly E.

Nussbaum 246222 Date: 2019.07.03 09:13:31 -05'00'

Item # Description/Part Number* Qty

[days] Price Extended Amount

1 Project Manager Base Period of Performance 1a Regular work days * 120 1,485.68$ 178,281.60$

2 Senior Project Manager Base 2a Regular work days 120 1,632.64$ 195,916.80$ 2b -$

Project Manager Option 1 Period of Performance -$

Regular work days * 120 1,485.68$ 178,281.60$

Senior Project Manager Option 1 -$ Regular work days * 120 1,632.64$ 195,916.80$

* Based on 8 hours work each day 748,396.80$ 748,396.80$

Other (Please Explain ):

Engineering Estimates

INDEPENDENT GOVERNMENT COST ESTIMATE (IGCE)

*Check block(s) below that describe the basis for the IGCE:

Past Contract Pricing GSA Federal Supply Schedule Published Prices Government Wide Acquisition Contract (GWAC) Published

TOTAL IGCE

Phone: 651-405-5632 Date: 06/10/2019

POC NAME: Catherine Roering Email: catherine.roering@va.gov

Informal Vendor Quotes Prior Bills of Material Prior Monthly Vouchers Catalog Pricing

Search Results

Organizations Found: 1 - 7/2/2019 9:40 AM

Higher Recruitment, Inc.

State:

Location: Savage Minnesota Last Verified: 2/27/2019 Expiration Date: 2/27/2022

DBA:

DUNS: 079506764

Phone: (952) 237-8867 Email: brit@higherrecruitment.com Web: http://www.higherrecruitment.com

7/2/2019https://www.vip.vetbiz.va.gov/Search/AdvancedSearchFormPrint