C41 - Redacted JNA - Ft Collins.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 5 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-20-AP-5146, CNH Fort Collins Health Care Center, Fort Collins, CO

RPOW JOFOC Tracker: 2021-01-21T09:18:49

1. Contracting Activity: Department of Veterans Affairs, 6162 S. Willow Drive, Suite 300, Greenwood Village, Colorado 80111, in support of the Cheyenne VA Medical Center.

2. Organizational Activity: Cheyenne VA Medical Center, 2360 East Persing Blvd, Cheyenne, WY 82001. This action is funded by a 1358. Therefore, there is no associated 2237.

3. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole source Firm-Fixed Price Indefinite Delivery Contract (IDC) for Community Nursing Home (CNH) Services for the Cheyenne VA Medical Center in Cheyenne, WY with SSC Fort Collins Lemay Avenue Operating Company LLC dba Fort Collins Health Care Center located in Fort Collins, CO. This will be an Indefinite Quantity Contract. The period of performance for this IDC will be a 1-year base period with 4 (12-month) option years for a total of 60 months. The period of performance for this IDC will be 01 April 2021 - 31 March 2022 for the base year with options until 31 March 2026.

4. Description of Supplies/Services : The CNH will provide all facilities and services to support short and long-term care for Veterans. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. The current contract, VA259-16-G-0052, expires on 31 March 2021. Fort Collins Health Care Center has met all requirements under the VHA Notice 2019-22, Community Nursing Home Program (CNHP) and VHA Office of Community Care (OCC) Field Guidebook, Specialty Programs Section 1.2, Geriatric Extended Care (GEC).

Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Colorado. This will be a 1-year base with 4-option years IDC (60 Months). The period of performance for this IDC will be 01 April 2021 - 31 March 2022 for the base year with options until 31 March 2026. The total estimated value of this contract is

, and the estimated value of the 52.217-8 option (6 months), if exercised, would be .

5. 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:

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 5 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

( 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

6. Demonstration that the C Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Currently, there are 3 Veterans being treated and housed at the Fort Collins Health Care Center under an existing IDC VA259-16-G-0052. Fort Collins Health Care Center facility meets VA standards for quality of care to provide care and treatment to Veterans. Fort Collins Health Care Center facility has had a contract with the VA since 2016. They have consistently provided quality care to our Veterans. The Veterans at this facility cannot be moved without causing a disruption in the continuity of care and undue stress to both the Veterans and family. The relocating of Veterans is not in accordance with VA policy/directive established by the Office of Geriatrics and Extended Care. In accordance with FAR 13.5, this requirement for community nursing homes services will be a sole source IDC to SSC Fort Collins Lemay Avenue Operating Company LLC dba Fort Collins Health Care Center. In addition, as stated in paragraph 6 below, no responses were received from any potential offerors regarding the sources sought notice issued for this procurement.

7. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A Sources Sought Notice, 36C25921Q0027, was issued on 18 October 2020 and closed 28 October 2020. The notice requested basic contractor information from qualified sources to gain knowledge of potential qualified sources and their size classification (HUBZone, 8(a), small, small disadvantage, service-disabled Veteran owned small business, veteran owned small business or large business) relative to NAICS 623110 Nursing Care Facilities (Skilled Nursing Facilities) ($30 Million size standard). Zero responses were received for the Sources Sought Notice. A search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 7 community nursing home with 10 miles of Fort Collins, CO where the current CNH is located. The VA Vendor Information Page (VetBiz) was used to determine if potential offerors exist who would be able to provide the services required. However, the site failed to produce any results for Fort Collins, CO. The CNH program requires the any new CNH considered for a contract, the CNH Coordinator must review the Medicare compare score to determine if the CNH is above or below the required score to determine if a waiver is required or not required before a contract can be considered. Any required waiver should be submitted with the procurement package. As a part of the acquisition process, a CNH must provide a current state license, insurance and a copy of the state inspection. These documents are provided to the CNH Program Coordinator for review and evaluation. The CNH Coordinator will either provide a recommendation to contract or state that the CNH did

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 5 Original Date: 08/30/17 Revision 02 Date: 08/04/2020 not receive a recommendation to contract. A redacted J&A will be posted on Contract Opportunities.

8. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing the CNH contracts. The Medicaid rates are established by each state based on national average. The VA Geriatrics and Extended Care Office through the Veterans Health Administration Procurement Manual (VHAPM) and VA pulse publishes an annual maximum allowable percentage that are applied to each Resource Utilization Groups IV (RUGS IV) category. The RUGS IV categories identify the different levels of treatment. The add-on percentages are added to the basic Medicaid rate then applied to each RUGS IV category. The Medicaid rate and the VA add-on percentage make up the per diem rate paid for each Veteran. The line item structure will illustrate the different RUGS IV categories, the add-on percentages, and the total per diem rate for each level of care. After conducting market research on the current Medicaid and RUGS IV rates, the CO has determined that the results are determined to be fair and reasonable when the add-on percentage agreed upon by both parties is at or under the maximum allowable percentage established by VA. The add-on percentages do not change through the life of the contract.

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

Reasons Market Research Was Not Conducted: As described in Section 6 above, a search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 7 Community Nursing Home within 10 miles of the zip code of 80524 Fort Collins, CO where the current CNH is located. The CNH Coordinator reviewed the Medicare compare score and determined a waiver was required. A Medicare star waiver has been approved for the base period of the contract (12 months). A search of VetBiz using zip code 80524 and the NAICS code 623110, yielded no results. A search of the SBA Small Business Dynamic Search was conducted using the NAICS code 623110 and zip code 80524 and there was 1 result, the current contractor. A Sources Sought announcement (36C25921Q0027) was posted on 16 October 2020 and closed 28 October 2020. No responses were received to the sources sought. Typically, CNH's are not competed. Based on the CNH program requirements, the Veterans preference is taken into consideration when selecting a CNH based on the Veteran needs, proximity to home/residence and family. The CNH Program Coordinator at the Medical Center reviews the Medicare compare score of various CNH's in a given area to determine the feasibility to meet the needs. The CNH coordinator determines the number of CNH's that may be required in an area based on future needs.

10. Any Other Facts Supporting the Use of Other than Full and Open Competition: The CNH is currently providing care for three Veterans in this facility who cannot be relocated due to continuity of care and medical complexity. This CNH is located near the families of the Veterans and moving them would cause undue stress to the Veterans and their family if the government tried to relocate the Veterans to a new nursing home.

11. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other CNH expressed interest in this acquisition. The current contractor, Fort Collins Health Care

PM Part 813.5 SAP for Certain Commercial Items Page 5 of 5 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): 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 approve ($700K to $7 million (or $13.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.