FAR 8.4_Limited Sources Justification Exceeding SAT - CF edits 7.13.2021.pdf

United States Department of Agriculture Limited Sources Justification for an Order/BPA Exceeding the Simplified Acquisition Threshold

Federal Supply Schedules/Multiple Award Schedule Program

FAR 8.405

1. Identification of the agency and the contracting activity.

United States Department of Agriculture (USDA), Rural Development (RD) Procurement Management Office (PMO), 1400 Independence Ave., SW, Washington, DC 20250.

2. Nature and/or description of the action being approved.

a. Acquisition purpose and objective: The USDA-RD proposes to issue a firm fixed price sole source Federal Supply Schedule (FSS) order for services with Falcon Capital Advisors, LLC using the authority in FAR 8.405-6(a)(1)(A). RD’s objective is to establish and stand up a contract for assistance in the development of planning, policies, procedures, outreach, technical assistance, and training of the Emergency Rural Health Care Grants no later than July 30, 2021.

Option years are not included. The period of performance is one-year from July 30, 2021 through July 29, 2022.

b. Project Background: The American Rescue Plan Act of 2021 includes additional new funding for rural hospitals and health care providers for COVID-19 relief. The COVID-19 health care response will provide additional resources for vaccines, treatment, personal protective equipment (PPE), testing, contact tracing, and workforce development. The law provides $500 million to the Department of Agriculture to establish an emergency pilot program to award grants to Community Facilities (CF) eligible entities, including certain rural hospitals, based on needs related to the COVID-19 pandemic. Awardees may use the grant to broaden access to COVID-19 vaccines, health care services, and food assistance through food banks and food distribution facilities as well as support projects targeting the long-term sustainability of rural health care.

The grant funds will be administered in accordance with a Notice of Funding Availability (NOFA). The statute requires that the pilot program be established within 150 days, or no later than August 8, 2021. USDA anticipates publishing a NOFA in the Federal Register no later than August 8, 2021.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project Title: U.S. Department of Agriculture Rural Housing Service Community Facilities (USDA RHS/CF) Emergency Rural Health Care Grants under the American Rescue Plan.

b. Project Description: The purpose of this requirement is to establish a contract to assist RHS/CF’s requirement to provide assistance in the development of planning, policies, procedures, outreach, technical assistance, and training of the Emergency Rural Health Care Grants prior to the August 8, 2021 release of the NOFA notice.

c. Total Estimated dollar value and performance/delivery period: The total estimated cost is $1,704,549.00. The contractor must begin phone and email inquiries once the NOFA notice is published no later than August 8, 2021. The contractor needs to have employees onboarded, with USDA laptops, and computer access prior to the August 8, 2021 publishing of the NOFA notice. The period of performance is anticipated from July 30, 2021 through July 29, 2022.

4. The authority and supporting rationale.

The following circumstance justifies limiting the source under FAR 8.405-6:

FAR 8.405-6(a)(1)(i)(A) – An urgent and compelling need exists and following the procedures would result in unacceptable delays.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

RHS/CF must be able to begin processing phone calls and emails regarding inquiries concerning the NOFA notice release no later than August 8, 2021. RHS/CF does not have the personnel required to handle the anticipated number of phone calls and emails. Planning, policy, and procedure development must begin immediately to process and track the Emergency Rural Health Care Grants.

Falcon Capital Advisors, LLC has employees with USDA laptops and computer access on another USDA-RD contract, which is ending soon. USDA-RD laptop and computer access routinely takes 30 to 60 days and in many instances more than 60 days for onboarding, clearance, and receiving a USDA- RD laptop and LincPass badge. Sole sourcing this requirement to Falcon Capital will eliminate this delay. Falcon Capital Advisors, LLC has worked on a USDA-RD project with many of the same application processing and reporting requirements. In order for the Emergency Rural Health Care Grants program to be successful in providing critical resources and aide, a contractor with USDA laptops and computer access is needed to process inquiries immediately and expeditiously develop policies and procedures to properly handle applications. There is a short time-frame to establish an emergency pilot program to award grants to CF eligible entities due to congressional mandate for this program.

6. Description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Market research was conducted in accordance with FAR Part 10, as follows:

GSA e-Library was researched under NAICS 541611. Based on this research there were 1,217 small businesses. Although there seems to be a significant number of vendors that could possibly provide support for this requirement, Falcon Capital Advisors, LLC is uniquely capable of providing immediate support due to having employees with USDA laptops and computer access.

7. Any other facts supporting the justification.

The requirement for these services became known on May 18, 2021. RHS/CF requires immediate assistance to have a contractor in place and capable of performing by July 2021. Responses to grant inquires will be delayed and application processing will be slow with no policy and processes in place to properly handle the applications. There is a real potential COVID-19 relief funding for hospitals, health care providers, and local communities will be delayed when it is greatly needed. In 2020 alone, 20 hospitals closed and as many as 453 rural hospitals are considered highly vulnerable for closure. It is estimated that rural hospitals lost an estimated 70 percent of their income in 2020 due to delayed and deferred care caused by the pandemic. According to a post-COVID-19 report published by the Brookings Institute, small rural areas are in dire need of federal funds to fill budget gaps. This RHS/CF program provides critical funding to support rural communities’ post-pandemic health care, ecomonic, and social needs. The public confidence in USDA-RD’s capability to provide this emergency funding relief will be negatively impacted as a result of any application processing delays. Providing fair opportunity would result in unacceptable delays. This process requires time to develop a requirement based on substantial market research, solicit proposals, evaluate the proposals, and create the award document before a contractor could initiate the service. It is estimated it would take a minimum of three months for the procurement process. There is another 30 to 60 days for the issuance of USDA laptops and computer access.

8. Statement of actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

Due to the urgent nature of this requirement, an FSS order is needed immediately to establish an emergency pilot program to award grants to CF eligible entities. If the Government determines there will be a need to continue this requirement past the 12-month period of performance, USDA-RD will research establishing a competitive Blanket Purchase Agreement (BPA) or contract for future requirements of this nature.

9. Determination by the ordering activity Contracting Officer (CO) that the order represents the best value consistent with FAR 8.404(d).

Pricing was deemed fair and reasonable at the time of award of the General Services Agency (GSA) contract. Labor rates will be verified against other schedule holders who perform similar services.

USDA-RD will request furher discounts from GSA pricing.

Certifications & Approval

☒ The information provided for this justification has been reviewed and certified accurate and complete by Jamie Davenport, Program/Technical Personnel.

Contracting Officer (not exceeding $750,000). I have reviewed this justification and certify it to be accurate and complete to the best of my knowledge and belief.

☐ Approved.

☒ Reviewed and forwarding to the Procuring Activity Advocate (MASCO or Delegate).

Craig Ziegemeier Contracting Officer

Additional Reviews & Approvals

Signatures are required at each threshold up to the total estimated dollar value of the acquisition

Advocate for competition for the procuring activity (MASCO or Delegate approved by HCA for USDA) (if over $750,000, but not exceeding $15 million). I have reviewed this justification and certify it to be accurate and complete to the best of my knowledge and belief.

☒ Approved.

☐ Reviewed and forwarding to the Head of the Procuring Activity/HCA.

Lori Lloyd Mission Area Advocate for Competition