C03. Single Source Justification.pdf

Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Page 1 of 6 Revision: 03 Effective Date: 04/15/24 Acquisition ID#:

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

1. Contracting Activity: Department of Veterans Affairs, Veterans Health Administration, Network Contracting Office 16, in support of Department of Veterans Affairs, VISN 16, Veterans Healthcare System of the Ozarks, Engineering Service, 1100 North College Avenue Fayetteville, AR 72703-1944.

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

The Department of Veterans Affairs (VA), Veterans Health Care System of the Ozarks (VHSO), intends to award a sole source Service-Disabled Veteran-Owned Small Business (SDVOSB) contract for the rental, delivery, installation, commissioning, and ongoing maintenance of a temporary 250 HP firetube boiler. The unit will be operated by VA boiler plant staff and will provide essential steam capacity while a separate construction project replaces the degraded underground steam condensate return system.

Steam is mission-critical for medical center clinical operations and supporting infrastructure.The temporary boiler will ensure uninterrupted steam production during the system replacement period, thereby preventing disruption of patient care and life-safety services.

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

This acquisition is considered urgent and operationally critical. The medical center currently lacks N+1 boiler redundancy following the failure of the steam condensate system. The loss of N+1 capacity is a direct risk to patient care and life-safety operations.

Without a temporary boiler, the facility will be forced into load-shedding procedures during winter months, resulting in interruptions to essential services—including:

Nutrition and Food Services (patient meal preparation) Sterile Processing Service (SPS) and instrument sterilization Operating Rooms (OR) Logistics and material processing Heating systems for inpatient rooms Humidification for clean storage and laboratory operations

The temporary boiler is required to stabilize steam production until the new condensate system is installed.

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Request for Sole Source Justification Format >SAT

Period of Performance:

Base: 12 months –

Total IGCE:

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

( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( X ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

The VA is required to prioritize contract awards to SDVOSBs under the “Veterans First Contracting Program,” authorized by 38 U.S.C. § 8127. This statutory authority permits the VA to make sole-source awards to eligible SDVOSBs when certain conditions are met, all of which apply to this procurement.

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

VHSO requires an immediate rental, delivery, installation, commissioning, and maintenance of a 250 HP firetube boiler to stabilize steam operations for the medical center. Steam is required for:

• Heating inpatient areas (life safety)

• SPS sterile instrument reprocessing

• Operating Room readiness

• Clean storage humidity control

• Food service meal preparation

• Laboratory operations

Due to severe degradation of the underground condensate return system, resulting in leaking, ground water infiltration, contamination of condensate, and complete loss of thermal efficiency, the boiler plant is unable to maintain reliable steam production.

Approaching winter temperatures exacerbate the urgency, posing an imminent risk of steam loss and associated interruption to critical patient services.

Reason for Sole Source

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Urgent Clinical and Operational Need The steam condensate system failure has forced the facility to dump condensate to sewer across multiple buildings. As a result, all boilers are operating on 100% cold city makeup water, leading to:

• Rapid thermal swings

• Excessive fuel and chemical use

• Accelerated boiler wear

• High risk of boiler plant outage

A loss of steam would directly interrupt:

• Sterile processing

• Operating rooms

• Patient room heating

• Laboratory operations

• Meal preparation

This constitutes a direct threat to patient safety, accreditation compliance, and continuity of care.

Unique Vendor Qualifications Required Not all regional boiler rental companies possess the specialized technical expertise, licensing, certifications, and healthcare experience required to install and tie-in a 250 HP temporary boiler at a medical center.

Required capabilities include:

1. State boiler installation and repair licensing

2. Electrical licensing for integration with control and safety systems

3. High-pressure steam pipefitting and plumbing licensing

4. ASME and National Board (NBIC) qualified engineering

5. Demonstrated experience supporting hospital steam plants and Joint Commission requirements

6. Ability to deliver and install a 250 HP firetube boiler rapidly

The SDVOSB vendor selected meets all these critical requirements.

Impracticability of Full and Open Competition Conducting a competitive procurement would introduce delays incompatible with patient safety and operational continuity. Boiler plant failure during competition lead-time would:

Interrupt patient care Halt sterile processing Reduce or eliminate heating Create Joint Commission and life-safety violations

Thus, competing the requirement would unacceptably endanger VA patients and facility operations.

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Determination Given the statutory authority for Veterans First SDVOSB sole-source awards, combined with the critical need to stabilize steam production and avoid disruption of patient care, the use of FAR 6.302-5 and 38 U.S.C. § 8127(c) is appropriate and in the best interest of the Government.

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

Market research included database searches in the Electronic Contract Management System (eCMS), GSA eLibrary, Dynamic Small Business Search (DSBS), the Veteran Small Business Certification (VetCert) database, AbilityOne, and the System for Award Management (SAM). This research did not identify two or more VetCert-listed SDVOSBs or VOSBs capable of performing the requirement with the specific State-issued licenses needed for this effort.

, a certified SDVOSB, was the only vendor identified that possesses the required State licensing and demonstrated capability. currently provides similar services at the Fayetteville VA station and has the capacity to begin performance immediately in accordance with the Statement of Work.

Based on these findings, there is no reasonable expectation of receiving fair and reasonable quotations from two or more SDVOSB/VOSB firms; therefore, a sole-source award to is appropriate under 38 U.S.C. §8127(d).

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

The Contracting Officer will ensure the proposed price is fair and reasonable by conducting a price analysis consistent with FAR 13.106-3(a). This will include reviewing historical pricing for similar VA requirements, comparing the offeror’s proposed labor rates and material costs against established independent Government estimates, and evaluating any available commercial market data. If necessary, additional information such as a breakdown of cost elements or supporting documentation will be requested to substantiate the proposed price.

These steps will verify that the sole-source award represents a fair and reasonable price to the Government.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Source selection was based on SDVOSB vendors who possessed the equipment, qualifications, licensing, experience to provide, install, and maintain a high pressure boiler.

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

Imminent winter temperatures increase risk of steam outage N+1 redundancy is not available due to condensate system failure Lack of redundancy would require load shedding Steam system failure would directly impact patient care and life safety

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Immediate response is required to prevent service interruption

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

None.

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: VHSO intends to remove barriers to competition for future acquisitions by addressing the underlying cause of the requirement. The temporary rental boiler is needed only because the existing campus steam condensate system has failed and is undergoing replacement. The VA is already executing a separate, fully competitive construction project to replace the defective condensate return system using full and open competition under standard VA construction procedures. Once this permanent system is installed and operational, the need for a temporary rental boiler will be eliminated, thereby removing the conditions that limit competition for this requirement. No additional long-term restrictions are anticipated, and future boiler-plant-related requirements are expected to be acquired using competitive procedures consistent with market research and the Veterans First Contracting Program.

12. Requirements Certification: I certify that the requirement described in this justification is a bona fide need of the Department of Veterans Affairs and that the supporting facts and rationale are complete and accurate to the best of my knowledge.

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

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

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.