HTC711-23-D-C025 36C26326F0054_1.docx

Justification and Approval Notice Justification and Approval Notice

GENERAL INFORMATION

SOLICITATION NUMBER*

BASE NOTICE TYPE

NETWORK CONTRACTING OFFICE 23

2501 W. 22ND STREET

SIOUX FALLS SD 57105

POINT OF CONTACT*

Contract Specialist Scott Morrison scott.morrison2@va.gov scott.morrison2@va.gov

AWARD INFORMATION

MODIFICATION NUMBER

AWARDEE NAME*

CONTRACTOR’S UEI

UNITED PARCEL SERVICE CO.

YF8QFWJLNBV8

AWARDEE ADDRESS LINE 1*

AWARDEE ADDRESS LINE 2*

AWARDEE ADDRESS LINE 4*

ADDITIONAL INFORMATION

AGENCY’S URL

URL DESCRIPTION

AGENCY CONTACT’S EMAIL ADDRESS

EMAIL DESCRIPTION

DESCRIPTION

Notice of Intent to Sole Source

This is a Notice of Intent to Sole Source the following requirement. Reference FY26 UPS Task Order TITLE OF PROJECT: Next Generation Delivery Services to support VISN 23: VA Midwest Health Care Network

This is not a request for proposals. This notice does not represent a commitment by the government to pay for costs incurred from the preparation and/or submission of data in response to this notice. Written responses to this Notice shall contain sufficient documentation to establish a bona fide capability to fulfill this requirement. Information received in response to this Notice will be considered solely for the purposes of market research and determining whether to conduct a competitive requirement. Any contractor offering this service via NAICS 492110, if desired, may respond to Scott Morrison, scott.morrison2@va.gov no later than 30 April, 2026.

BACKGROUND, PURPOSE AND SCOPE OF WORK:

United Parcel Service (UPS) shall provide all supervision, labor, and material required to provide small package pickup and delivery services from US Transportation Command Contract HTC711-23-D-C025 for domestic delivery services for the following VISN 23 VA locations;

VA Black Hills Health Care System, Fort Meade Campus, 113 Comanche Road, Fort Meade, SD 57741 VA Black Hills Health Care System, Hot Spring Campus, 500 North 5th Street, Hot Springs, SD 57747 Central Iowa VA Health Care System, 3600 30th Street, Des Moines, IA 50310 Fargo VA Health Care System, 2101 Elm Street N., Fargo, ND 58102 Iowa City VA Health Care System, 601 Highway 6 West, Iowa City IA 52246 Minneapolis VA Health Care System, One Veterans Drive, Minneapolis, MN 55417 Nebraska-Western Iowa VA Health Care System, 4101 Woolworth Avenue, Omaha, NE 68105 Sioux Falls VA Health Care System, 2501 W 22nd Street, Sioux Falls, SD 57105 St. Cloud VA Health Care System, 4801 Veterans Drive, St. Cloud, MN 56303 VISN 23: VA Midwest Health Care Network, 2805 Dodd Road, Suite 250, Eagan, MN 55121

Procurement mode: Justification and Approval (J&A) For Other Than Full and Open Competition with criteria from the J&A cited below;

The proposed sole source task order against GWAC contract number HTC711-23-D-C025 for a period of one calendar year for NGDS Couriers and Express Delivery Services with United Parcel Services Co. (UPS) 1400 N. Hurstbourne Parkway, Louisville, KY 40223-4015.

The proposed action provides express small package delivery services for international and domestic express and ground small package delivery services for all locations within VISN 23. Services required include time-definite, door-to-door pickup, delivery, transportation as well as timely and accurate in-transit visibility. Service must be compatible with existing automation; UPS WorldShip software as well as pharmacy package processing procedures. The total estimated value of the proposed action is $1,422,000.00.

Statutory Authority Permitting Other than Full and Open Competition:

(x) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by RFO 6.103-1;

United Parcel Service Co. (UPS), has been awarded a fixed price GWAC Indefinite Delivery/Indefinite Quantity contract for Next Generation Delivery Service-2 (NGDS-2) via contract number HTC711-23-D-C025 (hosted and maintained by the US Transportation Command). The task order for this service shall be compatible with existing automation that utilizes proprietary UPS WorldShip software on all package processing machines. Additionally, each pharmacy shipment may be processed utilizing proprietary pharmacy and healthcare packaging, package processing and labeling technology such as temperature-controlled packaging, tamper-evident technology and custom kitting that supports reconfiguration of products for final distribution. Additionally, UPS is a mandatory source for package delivery services as cited within the Office of Management and Budget (OMB) memo M-17-29 dated July 27, 2017, subject Best-in-Class Mandatory Solution – Package Delivery Services.

US Transportation Command hosts the GWAC for UPS, FedEx and Polar Air Cargo. Each awardee has their own GWAC number. Polar Air Cargo ships overseas packages to include freight items of all types. FedEx and UPS specialize in domestic shipments.

Although this procurement is not directly competed among the GWAC vendors, both UPS and FedEx will be issued a task order to facilitate rate shopping at the time which the shipment is processed.

Pricing utilized by UPS, FedEx and USPS are compared against each other via the following equipment item, “Pitney Bowes Send PRO 360” that presents the most current pricing offered by the USPS, UPS and FedEx. The Send PRO 360 utilizes pricing featured in the GWAC for each awardee. USPS pricing is obtained from their Domestic Mail Manual (DMM), Polar Air Cargo is not utilized for the VA’s small package shipments. The Send PRO 360 allows a price comparison to quickly take place whereby the lowest price is then selected for each shipment based on the type of shipment to include size, weight, destination and special instructions (hazardous materials, temperature requirements, special handling instructions). VA Directive 6340 Para.3 Responsibilities, requires the VA to determine which contractor offers the lowest price for each specific shipment. The determination of which shipper to use for a specific shipment is completed via the Send PRO 360. Therefore, a procurement with UPS and a procurement with FedEx are required so the shipper located at a given VISN 23 VA location can select the lowest pricing. See the attached VA Directive 6340.

Exception cited in RFO Part 5, 5.102(b)(2): Using other than full and open competition (see 6.103), except for the authorities at 6.103-1 (only one responsible source) and 6.103-6 (national security); or A pre-solicitation notice was not utilized in favor of the Office of Management and Budget (OMB) M-17-29 July 27, 2017, dated memo citing “all agencies, except as provided in this policy, shall leverage the Best-in-Class mandatory contract sourcing solution for package delivery services”. Reference the attached OMB Memorandum M-17-29. The memo cites a mandatory source for Package Delivery Parcel Service via GWAC HTC711-23-D-C025, awarded to the United Parcel Service. IAW government-wide, mandatory use, small package delivery services acquisition known as Next Generation Delivery Services (NGDS).

Justification and Approval Notice