C08 - Attachment 1 Sole Source Justification - Iron Mountain CLC_.pdf

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Z1DA--585-23-109 Renovate CLC Phase III Construction | Iron Mountain, MI
Solicitation number
36C77625R0086
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This Justification and Approval (J&A) document is for a sole source contract awarded to Industrial Maintenance Services, Inc. (IMS), a Service-Disabled Veteran-Owned Small Business (SDVOSB), by the Department of Veterans Affairs. The contract is for construction services to renovate the community living center at the Oscar G. Johnson VA Medical Center in Iron Mountain, Michigan. The project scope includes upgrading 10 patient rooms, renovating room 1165B, and upgrading handrails and corner guards in corridors and community gathering rooms, with work encompassing architectural, structural, fire protection, HVAC, plumbing, and electrical modifications.

The contract will be a firm-fixed-price award under $5 million, utilizing the VA's authority to make sole source awards to SDVOSBs. IMS was previously the lowest responsible offeror on a cancelled RFP for this work and has an extensive record of VA construction contracts. A notice of intent to sole source was posted to Sam.gov, and the Contracting Officer determined IMS to be a responsible contractor with fair and reasonable pricing based on their past performance ratings. The VA Program Contracting Activity Central (PCAC) intends to solicit future similar projects through competitive channels.

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36C776-25-AP-2436

Proj #585-23-109

Renovate CLC –

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB 1 Revision: 04 Iron Mountain CLC Renovation

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C776-25-AP-2436

Contracting Activity:

The contracting activity for this requirement is the Department of Veterans Affairs, Veterans Health Administration (VHA), Program Contracting Activity Central (PCAC).

Nature and/or Description of the Action Being Processed:

This justification is in support of a new, single award, firm-fixed-price (FFP) contract for construction services to upgrade the community living center patient rooms at the Oscar G.

Johnson VA Medical Center (VAMC) located in Iron Mountain, Michigan.

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

This project will upgrade 10 patient rooms, renovate room 1165B, and upgrade handrails and corner guards in several corridors and community gathering rooms. The work includes architectural, structural, fire protection, HVAC, plumbing, and electrical as required by the specifications and drawings

Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR 819.7009 (DEVIATION)- up to $5,000,000.

Check the specific VAAR clause used below:

819.7008 Sole source awards to a verified services 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 or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The authority stated in section 4 above allows for a sole source award to a SDVOSB based upon 38 U.S.C. 8127(c). Industrial Maintenance Services, Inc. (IMS) was selected to receive this award by the Contracting Officer. They were verified with the SBA as an SDVOSB and are highly qualified. This requirement is for construction services that were previously solicited under Request for Proposal (RFP) number 36C25225R0018, where IMS was the

36C776-25-AP-2436

Proj #585-23-109

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB 2 Revision: 04 Iron Mountain CLC Renovation lowest responsible offeror. However, the requirement was cancelled due to funding constraints.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies:

A determination that only one SDVOSB can meet the requirement is not required in accordance with VAAR 819.7008. No effort was made to solicit multiple sources as the circumstances surrounding the need date for award of the requirement didn’t allow for the time to do so. IMS, a highly qualified contractor, was immediately solicited upon receipt of the requirements. A notice of intent to sole source was posted to Sam.gov on 9/8/2025 and will remain open for 15 calendar days.

7. Description of efforts made to ensure that offers are solicited from as many potential sources as deemed practicable:

A determination that only one SDVOSB can meet the requirement is not required in accordance with VAAR 819.7008. The criteria for sole sources awards to verified service-disabled veteran-owned small businesses has been met for this requirement to include the following –

(a) The anticipated award price does not exceed $5 million;

(b) The requirement has been synopsized and the justification will be posted in accordance with FAR part 5;

(c) The SDVOSB has been determined to be a responsible contractor with respect to performance; and

(d) The contracting officer anticipates the award can be made at a fair and reasonable price.

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

IMS has been awarded many VA contracts indicating they have an extensive record of providing fair and reasonable prices to receive awards. Their ratings within the Contractor Performance Assessment Reporting System (CPARS) for cost control also provide a snapshot of fiscal responsibility as the majority of the ratings provided range from satisfactory to very good. The CO anticipates the prices received will be fair and reasonable.

9. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Minimal market research was conducted. The CO’s personal knowledge of the procuring this type of work was used to help identify IMS due to their extensive experience with hundreds of VA construction contracts. It is recommended that a sole source award be made to IMS as they are a verified SBA SDVOSB, the requirement is under $5M, they are responsible and qualified, and it is anticipated that an award can be made at a fair and reasonable price.

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