FAR 6 JA OVER SAT Ridgecrest CNH.pdf

This is a Justification and Approval (J&A) document for Other Than Full and Open Competition (>SAT) under Acquisition Plan Action ID 36C262-26-AP-3074.

The Department of Veterans Affairs seeks to establish a follow-on sole-source contract with Ridgecrest Community Healthcare, LLC dba Ridgecrest Post Acute for Community Nursing Home (CNH) Services in Phoenix, Arizona. The contract is valued at $9,000,000.00 over a 20-month period (July 1, 2026 through February 29, 2028), structured as a Firm Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) agreement with Economic Price Adjustment (EPA) provisions. The ordering periods include Period 1 (July 1, 2026 to June 30, 2027) at $5,400,000.00 and Period 2 (July 1, 2027 to February 29, 2028) at $3,600,000.00. Services include room, meals, standard nursing care, physician visits, lab work, and x-rays for Veterans in the Phoenix area. The procurement utilizes Acquisition of Commercial Products and Commercial Services under Revolutionary FAR Overhaul (RFO) 12.201-1 with Simplified Procedures.

Justification for sole-source award rests on the contractor's unique qualifications under 41 U.S.C. § 1901. Ridgecrest Community Healthcare, LLC is the only known facility capable of providing integrated behavioral health and skilled nursing services in a locked Institution for Mental Disease (IMD) setting within the region. The facility currently serves 44 Veterans with complex psychiatric needs and is CMS-certified with a 4-star quality rating. Market research confirmed limited alternative qualified providers; searches of the SBA Small Business database, Medicare.gov, and SAM.gov identified no other providers capable of delivering both behavioral health and skilled nursing services. Relocating Veterans would cause undue burden, disrupt treatment continuity, incur substantial transportation costs, and risk hospitalizations due to care transition delays. The VA reserves the right to conduct ongoing market research to identify additional potential sources for future acquisitions. Pricing will be determined using VACO Medicare Benchmark Rates with a negotiated discount percentage, adjusted annually in accordance with Economic Price Adjustment clause provisions.