P03- J_A_Danville HCA SIgned PCAC.pdf

Mental Health Building Code Compliance Update- Minor- Danville, IL - 36C776-24-AP-0220

Attachment 7: Request for Sole Source Justification Format >SAT

VHAPM Part 819.7007/7008 Page 1 of 6 Original Date: 04/25/2023

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (<SAT)

Acquisition Plan Action ID: 36C776-24-AP-0220

1. Contracting Activity:

The contracting activity for this requirement is the Department of Veterans Affairs, Veterans

Health Administration (VHA) Program Contracting Activity Central (PCAC).

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

This justification is in support of a new, single award, Firm-Fixed-Price (FFP) contract to a

SDVOSB firm to provide final code compliance finishes within the newly constructed mental health building at the Danville VAMC in Danville, Illinois.

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

This project will allow the new mental health building at the Danville VAMC to open. This is a new requirement that will complete the safety requirements to the original construction project and fully satisfy all safety requirements for the mental health patients who will be served by this new facility. The building has been vacant in anticipation for these final finishes, and it is imperative to have it online and serving the veterans of Danville as soon as possible. Final finishes include upgraded security and safety measures to be in full compliance with the latest edition VA Design Standards, Mental Health Environment of Care

Checklist (MHEOCC).

The intent of this project is for the SDVOSB firm to provide all Construction services to complete project No. 550-317, as a complete and usable end product at the Danville VA

Medical Center (VAMC), 1900 E Main St, Danville, IL 61832-5100.

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

For this action, 38 U.S.C. 8127(c), known as the Veterans First Contracting Program, provides the authority to directly contract with an SDVOSB or a VOSB. Check the specific

VAAR clause used below:

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

( ) 819.7009 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):

38 U.S.C. 8127(c) states, in part, “…a contracting officer at the Department may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if -

VHAPM Part 819.7007/7008 Page 2 of 6

(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 4 of the Office of Federal

Procurement Policy Act (41 U.S.C. 403)) 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 implementing regulations at VAAR 819.7008 (b) and (c) state in part:

(b) “The contracting officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer...”

(c) “A determination that only one SDVOSB can meet the requirement is not required…”

The proposed source for this acquisition is Richard Group, LLC, located at 566 W Lake

Street, Suite 100, Chicago, Illinois, 60661; a certified SDVOSB by SBA VetCert. Richard

Group, LLC, is determined technically capability for this project based on successful past performance with federal agencies, specifically Veteran’s Affairs. Richard Group, LLC has performed projects of related size, scope, and magnitude within the NAICS code 236220. A random selection of four (4) projects were verified and confirmed to have earned at minimum

“Satisfactory” ratings, with several ratings at “Very Good” or “Exceptional” utilizing the

Contractor Performance Assessment Reporting System (CPARS) federal repository. CPARS and SAM.gov have also been verified to contain no exclusions or debarments for the selected offeror.

The VA’s technical experts have determined that Richard Group, LLC, is qualified to perform the required services for this project. A discussion between the Government and

Richard Group, LLC, confirmed the vendor’s interest in receiving an RFP based on acceptable capability, capacity, and commitment to providing fair and reasonable pricing. An award will be made provided that a fair and reasonable price that offers best value to the

Government can be obtained.

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

In accordance with the VAAR 819.7008, Sole Source Awards to Service-Disabled Veteran-

Owned Small Business Concerns, the Contracting Officer’s determination whether to make a sole source award is a business decision. For the reasons stated herein, and specifically, in response to Paragraph 5, the undersigned Contracting Officer, has determined Richard

Group, LLC, is a qualified, responsible SDVOSB.

As stated above, the determination whether to make award to an SDVOSB on a competitive basis, rather than on a sole source basis, where the same objective (i.e., award to an

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SDVOSB) will be met is a business decision wholly within the discretion of the Contracting

Officer and a determination that only one SDVOSB can meet the requirement is not required as decided in the Government Accountability Office (GAO) Protest B-419691, dated June

24, 2021.

“Here, the VA awarded the short-term, sole-source contracts to RAS pursuant to the agency’s authority under the Veterans Benefits Act. As emphasized above, the VA is required to set aside certain procurements “[e]xcept as provided . . . in subsections (b) and (c) . . . .” 38

U.S.C. § 8127(d). Subsections (b) and (c) of the statute set forth the VA’s authority under the

Veterans First Contracting Program to award sole-source contracts to SDVOSBs. See 38

U.S.C. §§ 8127(b) and (c). Because the VA complied with the requirements of the statute and section 819.7007(a) of the VAAR, we find unobjectionable the VA’s action in awarding the sole-source contracts to RAS--an eligible SDVOSB firm. Accordingly, the protester’s assertion that the VA should have competed the procurements is without merit, because the requirement to set aside certain procurements only applies when the VA does not use its sole-source authority--as it did here--under the Veterans First Contracting Program. Crosstown

Courier Serv., Inc., supra at 3-4.”

A special notice announcing the proposed contract action will be posted to SAM.gov |

Contract Opportunities, the government’s point of entry (GPE). The Justification and

Approval (J&A) document will be posted within 14 days after award in accordance with

FAR Subpart 6.305. The award synopsis will be posted to GPE in accordance with FAR

Subpart 5.301(a)(1).

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

Reasonable:

Based on the authorities cited in this justification, a sole source award under the Veterans

Benefits, Health Care, and Information Technology Act of 2006 (Sec 502) to Richard Group, LLC, is proposed pending negotiation of a fair and reasonable price for the work to be performed. It is expected negotiations will result in a price which compares favorably to the

Independent Government Estimate and previous projects performed by Richard Group, LLC.

The Contracting Officer may need to conduct additional analysis before making a fair and reasonable price determination.

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted:

Market research techniques used to identify potential sources for this requirement include contacting knowledgeable individuals in Government regarding market capabilities to meet requirements, querying the following resources: the Vendor Information Pages, SBA

VetCert, and SBA Dynamic Small Business Search, and interviewing potential offeror.

Through the aforementioned queries, several firms were identified that were potentially able to perform the required services. Multiple SDVOSB vendors possessing NAICS 236220 are

VHAPM Part 819.7007/7008 Page 4 of 6 in the marketplace. However, it is not in the Government’s best interest to elect a set-aside due to time involved with posting requirements of a competitive solicitation versus the streamlined process of issuing an RFP in a sole source environment. Urgency of this procurement is critical to serve the Veteran. Currently, the facility is offline until safety requirements are met via this requirement.

The technical experts suggested a SDVOSB firm that has previously performed successfully on site. On 12/21/2023 the Government met with the potential offeror to discuss the requirement and the offeror’s capability, capacity, and the Government’s pricing expectations. After the completion of the call, the Government discussed approval of the offeror as a sole source selection to move forward with a request for proposal.

For these reasons, a sole source acquisition has been selected. Richard Group, LLC, is a verified SDVOSB and is considered fully capable of performing this project.

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

This project will allow the new mental health building at the Danville VAMC to open. This is a new requirement that will complete the safety requirements to the original construction project and fully satisfy all safety requirements for the mental health patient who will be served by this new facility. The building has been vacant in anticipation for these final finishes, and it is imperative to have it online and serving the veterans of Danville as soon as possible. Final finishes include upgraded security and safety measures to be in full compliance with the latest edition of VA Design Standards, Mental Health Environment of

Care Checklist (MHEOCC).

The intent of this project is for the selected SDVOSB firm to provide all construction services to complete the final portion of project No. 550-317 at the VA Medical Center

Danville at 1900 E Main St, Danville, IL 61832-5100.

Program Contracting Activity Central (PCAC), Independence, OH, awarded a firm-fixed price construction contract (36E77619C0021) for the U.S. Department of Veterans Affairs

(VA), Veterans Health Administration (VHA), VA Illiana Health Care System (VISN 12) for the construction of “Construct New Inpatient Mental Building” at the Marion VA Iliana

Health Care System, 1900 East Main St., Danville, IL 61932 on April 2, 2019, to Northview

Enterprises, Inc., (Northview) in the amount of $9,648,500.00.

Northview fulfilled the original contract requirements and provided additional in-scope work as negotiated in contract modifications 001-010. At the conclusion of the additional time and work, site inspections were conducted on April 28, 2023, May 10, 2023, and June 5, 2023, to identify ligature risks in accordance with the Mental Health Environment of Care Checklist

(MHEOCC). The identified risks via the MHEOCC must be mitigated before patients may occupy the new building. These risks and mitigations were not part of the original

VHAPM Part 819.7007/7008 Page 5 of 6 construction document set but are requirements of making the project a complete and usable product, and therefore determined to be an in-scope change. Northview informed the

Government their business is steering away from construction and into other services and that they are uninterested in performing any additional work for this project or future projects. The contracting officer concluded Northview fulfilled their obligation of the original contract and exceeded expectations with additional time and in-scope changes. It was not in the Government’s best interest to force a unilateral change order in terms of performance or cost on a company that has expressed a shifting workforce and business model. Instead, the contracting activity would procure the requirement as expeditiously as possible with a qualified and capable SDVOSB vendor in a sole source environment in accordance with authorities in the Veterans First Contracting Program.

The government entered a negotiated modification with the Designer of Record as detailed in

Attachment 9 – AE Modification 07 Memo to produce a CD set of the changes. The modification was executed September 28, 2023, and the CDs were delivered to the COR

November 3, 2023.

Analysis of the alternatives finds the original contractor to have been the most desired source. However, the lack of interest and changing business strategy for the vendor makes the most expeditious route a sole source acquisition to another SDVOSB vendor familiar with the site that can readily mobilize. Although a SDVOSB set-aside is possible to fulfilling the requirement, it requires a lead-time in posting, making it less expeditious. The

Government seeks to fulfill Veterans First Contracting Program requirements with a certified

SDVOSB business utilizing sole source authority (VAAR 819.7008).

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

The following firm expressed interested in this project:

a. Richard Group, LLC / UEI: QST7A5N63TL4

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 requirement for Mental Health Building Code Compliance Update - Minor- Danville, IL

- 36C776-24-AP-0220 is a single requirement not to be required again.

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.

J. RYAN SMITH

General Engineer, Danville VAMC

JOHN SMITH Digitally signed by JOHN SMITH Date: 2024.01.26 08:52:18 -06'00'

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

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

JENNIFER K. BRAATEN

Contracting Officer, Program Contracting Activity Central

b. One Level Above the Contracting Officer: I certify the justification meets requirements for other than full and open competition.

MEGAN A. DOHM

Division Chief, Program Contracting Activity Central

c. Director of Contracting: 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.

RICHARD DAHMEN

Director of Contracting, Program Contracting Activity Central

c. VHA RPO 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.

GERALD F. JACOBS

Acting Executive Director, Regional Procurement Office Central

JENNIFER BRAATEN Digitally signed by JENNIFER BRAATEN Date: 2024.01.26 07:25:37 -07'00'

MEGAN DOHM Digitally signed by MEGAN DOHM Date: 2024.01.26 10:19:50 -05'00'

RICHARD

DAHMEN

Digitally signed by RICHARD

DAHMEN

Date: 2024.01.26 13:04:03 -05'00'

Head of Contracting Activity (Central)