C03 Justification Attachment.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5

36C250-23-AP-2227 Indianapolis VA Paratransit/Special Needs Transportation Service

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN

ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C250-23-AP-2227

1. Contracting Activity: Department of Veterans Affairs, VISN 10, Station 583, VA Indiana Healthcare System (VA IHS), Richard L. Roudebush VA Medical Center (VAMC) located at 1481 W. 10th Street, Indianapolis, IN 46202, submits to Network Contracting Office (NCO) 10, located at 8888 Keystone Crossing, Suite 1100, Indianapolis, IN 46240, a request for paratransit/special needs transportation services. Funding for this request has been provided through PR-IFCAP 583-23-4-826-0009.

2. Nature and/or Description of the Action Being Processed: Requesting approval of a sole source justification to award a new Indefinite Delivery, Indefinite Quantity (IDIQ), Firm Fixed Price (FFP) short-term contract for paratransit transportation services to Navarre Corporation (Navarre), a large business in North American Industry Classification System (NAICS) code 485991. This procurement is to provide continued paratransit/special needs transportation services to patients serviced by the Department of Veterans Affairs, Veterans Health Administration (VHA), VA IHS.

The contract is required to provide services immediately without interruption of services.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: VA IHS requires the services of a contractor who is capable of providing services without interruption, has a minimum of 25 wheelchair vans, personnel, equipment, and VetRide compatibility for eligible patients in the VA IHS geographical coverage area. Contractor shall provide paratransit/special needs transportation services as required by the Performance Work Statement (PWS) to VA IHS beneficiaries. Services consist of transportation of VA beneficiaries that are mobility challenged individuals in wheelchairs, aged and infirm persons, their attendants, and personal belongings between specific points in Indiana and surrounding states. Contractor shall provide all labor, materials, VetRide compatible software, a minimum of 25 vehicles, and equipment necessary to transport VA IHS beneficiaries by wheelchair van method.

Services are required for a six (6) month base period from 09/02/2023 – 02/29/2024 and include two (2), three (3) month options to extend through 8/31/2024, if required. The total estimated contract value is $5,049,798.93 with a contract ceiling of $6,627,859.07 for a total estimated quantity of 52,680.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Navarre is familiar with the medical center, needs of the patients being transported, has an established management approach, all necessary labor, minimum number of 25 vehicles, VetRide compatible software, and other required resources to perform services. Paratransit/special needs transportation services are critical to the medical center’s timely service in delivering patient care.

Contracted services are required, as the Government does not have a fleet of vehicles or trained staff to provide paratransit/special needs transportation services for such a large catchment area. Disrupting the transportation of Veterans who rely on transportation assistance will be detrimental to their health if they cannot be present for

36C250-23-AP-2227 Indianapolis VA Paratransit/Special Needs Transportation Service

Effective Date: 02/01/2022 Page 2 of 4 treatment. A break, stoppage, or delay in services to switch companies in the short-term will leave Veterans without a way to obtain transportation to their appointments, and in turn; will cause untimely treatment and harm if not provided.

Currently Navarre is the only contractor providing paratransit/special mode transportation services for VA IHS and its catchment area. Awarding a contract to other than the incumbent will result in additional start-up costs while another contactor becomes familiar with medical center processes and routes, which will increase the overall contract cost and cause a delay in services. The risks associated with awarding this contract to other than the incumbent is prohibitive. A delay in services is unacceptable.

Paratransit/special needs transportation services spans the state of Indiana, as well as any neighboring states that require transport of VA IHS patients. As the contractor is required to immediately perform without service interruption, possess a minimum of 25 vehicles, have VetRide compatible software, other required resources, and trained staff for the geographical coverage area, the number of immediately available contractors is limited. Navarre meets all requirements in the PWS and is immediately available to provide continued coverage for this short-term contract without interruption.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market research efforts included contracting officer’s personal knowledge of the types of services required and available firms who can immediately provide services without interruption. Also, searches were conducted in the SBA VetCert and SBA DSBS databases, GSA e-Library, FPDS.gov, SAM.gov. More in-depth details are found in the market research section of this document.

These efforts, based on the circumstances surrounding this procurement, did not yield another source that could meet the Governments requirements at a fair and reasonable cost without additional lead startup costs who were immediately available. IAW FAR 5.201, this action will be synopsized at award on www.SAM.gov Contracting Opportunities section of the website and the justification will be made publicly available.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: It is anticipated that the cost to the Government will be fair and reasonable. The contracting officer will use the price analysis techniques at FAR 13.106-3(a)(2) and any other price analysis techniques necessary to determine the prices 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: While market research found 207 results through a search of the VetCert database using NAICS code 485991, and the following results from SBA DSBS using NAICS code 485991 for Service Disabled Veteran Owned Small Business or Veteran Owned Small Business (SD/VOSB) concerns using key word searches Paratransit Transportation – 0; Special Mode Transportation – 0; Transportation – 28; and 485991 – 63, none were capable of immediately providing services as needed at a fair and reasonable cost for such a short period of time. A search was conducted in the GSA e-Library under the MAS Schedule 485 which had a total of seven (7) SD/VOSBs however none were immediately available for this request. While there was more than one (1) SD/VOSB firms identified, it was determined that none could satisfy the Government’s requirements, based on the current situation and circumstances, and at a fair and reasonable price which will provide the best value to the VA. Accordingly, the VA Rule of Two was not met.

A search was conducted in the SBA DSBS database for all Small Business (SB) concerns using NAICS code 485991 and key words Paratransit/special needs transportation services and there were six (6) results. None were immediately capable of providing the required services in accordance with the PWS at a fair and reasonable price.

The SBA Rule of Two was not met.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There has been a change in the proposed long-term contract from a single award contract to a multiple award IDIQ contract with the use of ordering officers. This will require additional planning, documentation, and adjustment to aptly reflect the acquisition strategy change, competition, and allow time for the new contractors to implement services without the same additional costs such as lack of vehicles available, labor force, and knowledge of medical center policies and routes associated with a

Effective Date: 02/01/2022 Page 3 of 4 short-term contract. The incumbent already has the vehicles, labor force, and are familiar with the medical center policies and routes. Navarre was found capable of continuing services without interruption.

VA IHS will compete the proposed long-term requirement based on the results of extensive market research to determine the appropriate set-aside type as a multiple award IDIQ to provide additional competition and award to multiple companies to ensure that there is constant availability for transportation without delaying care to patients. It has been determined that utilizing multiple awards will provide more availability and choice to VA IHS when a veteran needs transportation to an appointment. As the number of rides have continued to increase since the COVID 19 pandemic, the limitations of a single award are not conducive nor in the best interest of the Government.

There is a current contract for services. Contract 36C25022D0056, a FFP IDIQ contract was awarded to Navarre Corporation on 07/28/2022 for period of 5-months and included FAR 52.217-8. FAR 52.217-8 was exercised for 6-months on 12/15/2022. After this extension it was found that the acquisition strategy for the proposed long-term contract needed to include multiple awards and ordering officers. Due to the re-evaluation of the acquisition strategy the proposed long-term contract would not be solicited, evaluated, or awarded by the expiration date of 06/30/2023 for the current contract. Navarre has a successful past performance history with VA Indiana Healthcare System (VA IHS) in providing paratransit transportation services and is familiar with its patients, locations, processes, and has an established fleet of vehicles and staffing.

Contract 36C25019D0056 was awarded on 08/03/2019 as an FFP, IDIQ contract. At the time this contract was awarded to Navarre Corporation was a VIP-verified SDVOSB concern, however, Navarre outgrew the NAICS size-standard. This long-term contract ended early due to the COVID-19 pandemic which caused an increase in the number of trips due to the mandated social distancing to protect the safety of the patients and drivers. As a result, the contract ceiling was reached and option year three (3) and four (4) were not exercised.

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

Navarre Corporation 7649 Gulf Boulevard Navarre, FL 32566

Sonya Johnson 850-218-9283 Sonya.Johnson@yahoo.com

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: For the long-term requirement, market research will be performed to ensure potential sources are identified to determine the appropriate type and degree of competition. The barrier associated with this procurement is having a company in the short-term be able to immediately provide services at a fair and reasonable price without passing along start-up costs for such a short time.

This barrier will be removed as the contracting officer will consider CICA and the VA Rule of Two requirements to ensure appropriate competition is achieved.

It is anticipated that this requirement will have a set-aside aspect. The procurement will be competed as a multiple award IDIQ requirement in advance of this short-term contract’s expiration to allow for any start-up time and continuity of services. Making multiple awards may reduce the possibility that the SDVOSB contractors will outgrow their SDVOSB status, or will outgrow it at a slower pace, and multiple awards will prevent putting all the risk on contractor to provide services. The Request for Proposals (RFP) is expected to be issued on or about 11/30/2023 (or sooner) with awards made by 04/01/2024.

12. Requirements Certification: I certify that the requirement, AP 36C250-23-AP-2227, for paratransit/special needs transportation services as outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs, VA Indiana Healthcare System 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.

Erich Orrick Patient Mobility Supervisor Richard L. Roudebush VA Medical Center

ERICH

ORRICK

Digitally signed by ERICH

ORRICK

Date: 2023.08.09 14:10:25 -04'00'

Effective Date: 02/01/2022 Page 4 of 4

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.

Sally L. Leitch Contracting Officer Network Contracting Office (NCO) 10 Services Team 3

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.

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 recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

Gerald F. Jacobs Acting Executive Director Regional Procurement Office-Central (VHA)

Toni Waggoner-Boykin Branch Chief, Services Team 3

Jason E. Lawson, Division Chief General and Healthcare Services

Marie L. Smith Director of Contracting

Sally L. Leitch 131687

Digitally signed by Sally L.

Leitch 131687 Date: 2023.08.09 14:20:41 -04'00'

Toni D. Waggoner- Boykin 393105

Digitally signed by Toni D.

Waggoner-Boykin 393105 Date: 2023.08.09 14:37:54 -04'00'

JASON

LAWSON

Digitally signed by JASON

LAWSON

Date: 2023.08.09 15:18:45 -04'00'

MARIE L.

SMITH 199285

Digitally signed by MARIE L.

SMITH 199285

Date: 2023.08.10 20:52:13 -04'00'

GERALD JACOBS

Digitally signed by GERALD

JACOBS

Date: 2023.08.16 10:44:42 -05'00'