FAR 13.5 Sole Source Justification-3 CO BC-6-PM-CO-BC-RPO.pdf

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C245-24-AP-0585

Effective Date: 02/01/2022 Page 1 of 6

DEPARTMENT OF VETERANS AFFAIRS

1. Contracting Activity: Department of Veterans Affairs, Network/Program Contracting Office 05, located at Martinsburg VA Medical Center (613), 510 Butler Avenue, Martinsburg, WV 25405, in support of VISN 05 VA Health Care System at Washington DC VA Medical Center (688), 50 Irving St.

NW, Washington, DC 20422. Purchase request (i.e., 2237) number, 688-24-2-028-0001.

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

The renovation of the SPS at Washington, DC is estimated to be complete in 6 to 9 months. A 6-month base, 1 6-month option, and 52.217-8(encase the Government needs a month or to more) is being used in the contract.

The items being leased are:

• Mobile Water Solutions Trailer Rental for the provision of hot water to pre-heat water entering sterilizers and/or to provide water softening and/or DI water. (Includes delivery and pick-up).

• Water Booster Pumps (in the event 70 psi dynamic water pressure is not available at the location of the units)

• DI Water and Softened Water Consumable Supplies, Water Testing, Water System Sanitization

• HEAT INDEX PACKAGE (HIP) - is an auxiliary unit that preconditions the onboard outside makeup air to address areas where the Heat Index (Dry Bulb Temp + Relative Humidity)

The estimated value of the proposed action is:

Base 01/01/2024 through 6/30/2024 $303,800.00 Option 1 07/01/2024 through 12/31/2024 $253,800.00 52.217-8 Option to Extend Services

01/01/2025 through 6/30/2025 $253,800.00

Total base and all options $811,400.00

Department of Veterans Affairs, VISN 05, VA Medical Center, Washington DC has an approved and funded project 688-14-003 to Renovate and Expand the Sterile Processing Service (SPS) to correct Functional Deficiencies at the Washington DC facility. The project began in September 2017 and is on-going. The renovation is occurring in the same footprint occupied by SPS. The SPS department must be operational and fully functional during construction. The reprocessing of reusable medical equipment (RME) moved to another location to allow required work in the existing space to be completed. The original plan involved coordination of multiple phases that called for joint occupancy of the sterile processing areas to allow work to proceed during early phases of the construction and rental of a temporary mobile reprocessing unit (trailer) for a period of approximately 6 months while the existing sterile processing area is renovated and reconfigured in succeeding phases of work. Chronic issues with work conditions in the SPS area that have been documented by the National Program Office for Sterilization (NPOS) coupled with the Office of Inspector General (OIG) findings during a site survey resulted in a decision to vacate the existing SPS immediately and remain vacated during the entire

Effective Date: 02/01/2022 Page 2 of 6 renovation project to preclude any of the identified issues in SPS being exacerbated by ongoing construction work, phasing, and joint occupancy of the existing space during construction. This decision extended the period during which mobile sterile processing trailers are required to approximately 12 months. The original award was made to Mobile Medical International Corporation (MMIC), a small business with a Limited source justification using urgent and compelling need. Since the first award, on May 16, 2017, options have been awarded and new sole-source contracts established. I am seeking to award to Mobile Medical International Corporation (MMIC) again.

VA245-17-F-0752 – Awarded 5/16/2017 – POP (Base plus options) 5/16/17 through 1/31/20.

36C24520F0289 – Awarded 1/24/20 - POP (Base plus options) 2/1/20 through 1/31/21.

36C24521F0206 – Awarded 1/29/21 POP (Base plus options) 2/1/21 through 1/31/22.

36C24522F0181 – Awarded 1/27/22 POP (Base plus options) 2/1/22 through 3/31/22.

36C24522F0274 – Awarded 4/1/22 POP (Base plus options) 4/1/22 through 12/31/22.

36C24523F0181- Awarded 12/21/2022 POP (Base plus options) 1/1/23 through 12/31/23.

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

The Mobile Medical International Corporation (MMIC) rentals are currently on site. Due to the critical nature of the requirement, it would not be expedient to replace the current units with the product of another company. In addition to the cost of MMIC dismantling and removing the existing equipment, there would be additional costs for a new vendor to deliver and install new SPS units.

MMIC is still offering old contract pricing on its quotes; furthermore, the lead time of a new companies’ units would take 6 months to be manufactured to meet our needs at Washington, D.C.

MMIC rentals, a small business, provides a mobile SPS rental which is equipped with Getinge sterile processing equipment. Getinge sterile processing equipment is what the hospital personnel are trained in this equipment.

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

Effective Date: 02/01/2022 Page 3 of 6

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

Due to time constraints and the additional costs of removing the existing trailers and installing new trailers, with a 6-month lead time for another trailer, it is recommended the contract be awarded to MMIC, a small business, under their GSA schedule contract. Only one source exists for this procurement and following the ordering procedures would result in unacceptable delays that would cause serious risks to veterans, their families, and staff health and safety at the hospital.

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

No other Action was taken to seek out another vendor to seek another vendor. There are only two vendors Mobile Medical International Corporation (MMIC) and Steris on GSA that offer this type of service. Mobile Medical International Corporation (MMIC) is the current vendor which offer the equipment our staff currently use at the hospital. Steris uses their trailers and equipment which is different than what the staff use now. It takes a six-month lead time for new rental units and equipment to be installed; accordingly, the staff would need to be trained on the new equipment.

Using any other contractor would cause serious damage to the Government there would in delay in treatment of patients and extra costs incurred to bring in a new rental unit and equipment for the Government to use for a maximum of 18 months.

Only One Responsible Source exists and following the ordering procedures would result in unacceptable delays that would cause serious risks to veterans, their families, and staff health and safety at the hospital. There are no Veteran Owned Small Businesses that provide mobile SPS units there are many that have the same NIACS codes, but none offer the SPS Rentals and equipment.

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

Based on the IGCE, prior purchases, historical rates with other VA Hospitals, the schedule rates that we will pay are fair and reasonable. The sole source is based on availability, ability to meet procurement timelines, availability during the performance period necessary, and the type of equipment utilized to minimize development of new staff competencies.

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

Market Research Was Not Conducted:

Market research was conducted by reviewing past procurements (VA245-17-F-0752, 36C24520F0289, 36C24521F0206, 36C24522F0181, 36C24522F0274, and 36C24523F0181), searching Veteran Small Business Certification (VetCert), FPDS-NG, SBA-Dynamic, Adds UP, NAC, ECMS, GSA Advantage, and the internet.

Effective Date: 02/01/2022 Page 4 of 6

Market research has been conducted on GSA Schedule and Open Market and we have found five companies that provide Mobile SPS rentals: Three, Odulair, LLC, Mod Build, LLC, and Steelco-USA Inc are in the open market. Mod Build, LLC is not registered in SAM.gov. Two, Steris and MMIC hold GSA contracts. The average lead-time for a rental unit to be delivered is 6 months. All units are custom builds, reflecting the equipment needs of the hospital or facility using them. Both short-term and long-term leasing options are available. There are no Veteran Owned Small Businesses that provide mobile SPS units there are many that have the same NIACS codes, but none offer the SPS Rentals and equipment. Steris, a large business, provides a mobile SPS rental which is equipped with Steris sterile processing equipment and MMIC, a small business, provides a mobile SPS rental which is equipped with Getinge sterile processing equipment. Getinge sterile processing equipment is what the hospital personnel are trained in this equipment. Both are on GSA Schedule. GSA has determined prices to be fair and reasonable and has determined MMIC to be a responsible contractor. Based on historical rates with other VA Hospitals, the schedule rates that we will pay are fair and reasonable. The sole source is based on availability, ability to meet procurement timelines, availability during the performance period necessary, and the type of equipment utilized to minimize development of new staff competencies.

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

The MMIC rentals are currently on site. There is only one source for the requirement, it would not be expedient to replace the current units with the product of another company. In addition to the cost of MMIC dismantling and removing the existing equipment, there would be additional costs for a new vendor to deliver and install new SPS units. MMIC is still offering old contract pricing on its quotes; furthermore, the lead time of a new companies’ units would take 6 months to be manufactured to meet our needs at Washington, D.C. There have been multiple contracts were written for the last 7 years while the renovation is being completed. A new contract for the rental trailers was put in place as the renovation was delayed. The renovation of the SPS at Washington, DC is estimated to be complete in 6 to 9 months. A 6-month base, 1 6-month option, and 52.217- 8(encase the Government needs a month or to more) is being used in the contract.

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

No other companies expressed interest for the acquisition.

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:

The Contracting Officer will monitor market conditions for changes to overcome barriers to competition.

Effective Date: 02/01/2022 Page 5 of 6

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.

Lonnell Roberts Chief, Maintenance and Operations Washington, DC VISN 05 NCO 05 Date

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.

Joseph J. Krupa, Contracting Officer Martinsburg VISN 05 NCO 05

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.

Philip G. Duba, Branch Chief Martinsburg VISN 05 NCO 05 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

Effective Date: 02/01/2022 Page 6 of 6

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

Joseph P. Maletta VHA Head of Contracting Activity (HCA) Executive Director, Regional Procurement Office – East (RPO-E)