C01 - Redacted J_A - San Diego Pkg 405 Ceiling Lifts.pdf

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 7 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

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

In accordance with VAAR 819.7007, and as defined in 38 U.S.C. § 8127, the VA has the statutory authority to award sole source to a verified SDVOSB using procedures other than competitive procedures given the following:

38 U.S.C § 8127(c) implemented through VAAR 819.7007(a) 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 �

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 not exceed $5,000,000.

3) It is the anticipation of the Contracting Officer (CO) that award will be made provided that a fair and reasonable price that offers best value of the United States can be obtained.�

The implementing regulations at VAAR 819.7007 (b) & (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��

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 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.�

The proposed source for this acquisition is Interior Fusion, LLC (herein referred to as Interior Fusion) of 7225B Bryan Dairy Rd, Largo, FL 33773; a registered and verified SDVOSB by the VA Center for Verification and Evaluation (CVE) valid through July 20, 2024. Interior Fusion�s past performance indicates they are technically qualified and have previously provided the same ceiling lifts as well as similar equipment to the VA and other Government Agencies.

Additionally, Interior Fusion is the only authorized distributor of the Original Equipment Manufacturer (OEM), Guldmann, Inc. Past performance indicates Interior Fusion has the adequate resources to meet the Government�s requirement and possesses the knowledge and technical expertise required to deliver the equipment within the established activation schedule. Finally, Interior Fusion meets the requirements of a nonmanufacturer in accordance with 13 CFR §121.406. The vendor has less than 500 employees (10 employees according to D&B Finance Analytics), is primarily engaged in the retail sale of the type of item being supplied, the vendor will take ownership of the item in a manner consistent with industry practice, and is supplying the end item of a small business manufacturer.

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Considering the above, the Government�s activation team at the San Diego facility reviewed an informal quote and determined Interior Fusion is capable of meeting the Government�s requirement and is considered a responsible SDVOSB. There is an expectation that an award will be made at a fair and reasonable price as Interior Fusion has provided the same equipment for other activation projects and provided the lowest priced quote of all acceptable informal quotes received in response to our market research.

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

In accordance with VAAR 819.7007(b), Sole Source Awards to a Verified Service-Disabled Veteran-Owned Small Business, the Contracting Officer�s determination whether to make a sole source award is a business decision wholly within the discretion of the Contracting Officer. For the reasons stated herein, and specifically in response to Paragraph 5, the undersigned Contracting Officer, has determined that Interior Fusion, LLC. is a qualified SDVOSB.

A Notice of Intent to Sole Source was published to https://sam.gov/content/home (Contract Opportunities) on February 8, 2022 requesting responses by February 11, 2022 at 10:00 AM (Eastern). This notice informed the market the Government intends to issue a sole source award to the only SDVOSB authorized dealer (Interior Fusion LLC) of the small business manufacturer (Guldmann). Zero (0) responses were received.

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

The anticipated cost to the Government has been determined fair and reasonable through previously conducted market research by the end users and Initial Outfitting Transition and Activation Services (IOT&A) contractor Strategic Medical Equipment, Inc. (SME) that have participated in the acquisition of the same equipment. Further, an informal quote was received from Guldmann Inc. (of which Interior Fusion is the only authorized distributor) during market research. Additionally, historical pricing paid for the same items was reviewed to determine the informal quoted price was fair and reasonable. This includes review of purchase orders 36C25721P1030, 36C25621P0967, 36C25521P0701, and 36C25921P0727 wherein Interior Fusion, LLC was awarded orders for Guldmann patient lifts.

In accordance with FAR 13.106-3(a)(2), a price reasonableness determination will be made before award based on market research, the comparison of the proposed price with prices found reasonable on previous purchases, and/or comparison to the independent Government estimate.

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

Was Not Conducted:

Market research considered the acquisition history and experience under previous acquisitions for the same items.

Interior Fusion, an SDVOSB, was awarded the following contracts:

Project: North Texas Healthcare System (NCO 17) Contractor: Interior Fusion, LLC Size: SDVOSB Contract #: 36C25721P1030 Contract Value: $791,198.00 Awarded: August 21, 2021 Performance: Satisfactory

Project: Overton Brooks VA Medical Center (NCO 16) Contractor: Interior Fusion, LLC Size: SDVOSB Contract #: 36C25621P0967 Contract Value: $19,214.62

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Awarded: May 27, 2021 Performance: Satisfactory

Project: Leavenworth VA Medical Center (NCO 15) Contractor: Inferior Fusion, LLC Size: SDVOSB Contract #: 36C25521P0701 Contract Value: $254,789.00 Awarded: September 16, 2021 Performance: Satisfactory

Project: Rocky Mountain Regional Medical Center (NCO 19) Contractor: Interior Fusion, LLC Size: SDVOSB Contract #: 36C25921P0727 Contract Value: $76,106.36 Awarded: July 4, 2021 Performance: Satisfactory

Based on the contractor�s performance on the above contracts, the Contracting Officer anticipates Interior Fusion LLC is capable of meeting the Government�s needs and will be determined a responsible source prior to award.

Additional market research included searches of VetBiz and the posting of a Sources Sought Notice/Request for Information and a Notice of Intent to Sole Source. These postings did not yield any SDVOSB or VOSB authorized dealers besides Interior Fusion that are capable of fulfilling the requirement as a non-manufacturer offering the products of a Small Business manufacturer whose products are manufactured in the United States and does not require an approved individual Non-Manufacturing Rule (NMR) waiver from the SBA.

In accordance with the President�s Management Agenda, OMB M-19-13, category management solutions were considered for this requirement. The Solutions Finder Tool through the Acquisition Gateway was used in an attempt to identify a potential category management solution for this requirement. This tool offered a total of 360 results. To narrow down the results to the appropriate category, the medical category was selected. This resulted in twenty-five

(25) results. The sub-category Medical Equipment & Accessories & Supplies was selected. This resulted in fifteen (15) results, none being for ceiling lift equipment. Therefore, the available contract solution is not appropriate for this requirement.

An additional search of the Category Management (CM) Quick Decisions Dashboard was conducted using the product search tool for both �ceiling lift� and �patient lift� There were zero �0� results for ceiling lift. And one (1) result for patient lift. However, the patient lift is for a Hoyer lift weight, not a ceiling lift. As such, there are no available category management solutions for the required equipment.

In accordance with the Contract Selection Diagram PPM 1605, this requirement cannot be satisfied through a Best-in- Class (BIC) vehicle, a multi-agency vehicle, or an agency vehicle. However, this requirement will be sole sourced to an SDVOSB using the authority provided by VA Acquisition Regulation (VAAR) 806.302-570 and, as such, falls under Tier

1SB: SDVOSB/VOSB.

Based upon the above market research and VA Acquisition Regulation (vAAR) 819.7007, the Contracting Officer has determined it is in the best interest of the Government to sole source this procurement to Interior Fusion, LLC as the sole SDVOSB authorized dealer of the Small Business manufacturer, Guldmann. CO�s may use the non-competitive (sole source) procedures authorized by VAAR 819.7007 for actions not to exceed $5,000,000.00. The estimated value of this requirement is $ Interior Fusion LLC is a verified SDVOSB authorized dealer of the manufacturer and can comply with th

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

Based on the authorities cited in this justification, it is recommended that a sole source award be made to Interior Fusion LLC under the Veterans Benefit Act of 2003. Interior Fusion LLC is a VetBiz verified SDVOSB sole authorized dealer of the Small Business manufacturer that has provided the same or similar equipment to other VA healthcare facilities (including the above referenced projects) and other Government Agencies and has a positive performance history on these awards. A sole source award to Interior Fusion LLC. is in the Government�s best interest to mitigate the schedule risks for this activation project.

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

2B Accessibility LLC.

Alliant Enterprises LLC.

Arjo, Inc.

Guldmann Inc.

Handicare USA, Inc.

Interior Fusion LLC.

VanDahl Engineering & Sales Ltd.

Vortex LLC.

The proposed source for this acquisition is Interior Fusion LLC. of 7225 Bryan Dairy Road, Suite B, Largo, Florida 33773;

a registered and verified SDVOSB by VA Center for Verification and Evaluation (CVE) valid through July 20, 2024.

Interior Fusions past performance indicates they are technically qualified and have previously provided the same ceiling lifts as well as similar equipment to the VA and other Government Agencies. Additionally, Interior Fusion is an authorized distributor of the Original Equipment Manufacturer (OEM), Guldmann Inc. Past performance indicates Interior Fusion has the adequate resources to meet the Government�s requirement and possesses the knowledge and technical expertise required to deliver the equipment within the established activation schedule.

Based on the authority at VAAR 819.7007 and as defined in 38 U.S.C. § 8127, it is recommended that a sole source award be made to Interior Fusion under the Veterans Benefit Act of 2003. Interior Fusion is an SDVOSB that has provided the same or similar equipment to other VA healthcare facilities (including the above referenced projects) and has a positive performance history on these awards. To mitigate the technical and schedule risks for this activation project, a sole source award to Interior Fusion is in the best interest of the Government.

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 remove or overcome any barriers to competition before future acquisitions for the same supplies and services are conducted, at the system�s end of life, the VA will ensure extensive market research is performed in a timely manner to evaluate vendor capabilities with the intent of opening competition to all brands of ceiling lifts that can potentially meet the Government�s requirements. Further, the Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

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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

Program Analyst San Diego VAMC

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.

Michelle Rhodes Date Contracting Officer Program Contracting Activity Central (PCAC)

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.

Supervisory Contract Specialist Program Contracting Activity Central (PCAC)

c. Director of Contracting: I certify the justification meets requirements for other than full and open competition.

Director of Contracting Program Contracting Activity Central (PCAC)

d. 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 ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Executive Director R P O Central (VHA)