HCA SIgned NCO 5 FAR 13 5 Justification-P-C-BC-2_Redacted.pdf

Acquisition Plan Action ID: 36C245-25-AP-2631 SPS Sterile Processing Trailer (SPS)

Rentals Washington, DC

Effective Date: 11/15/24 Page 1 of 7

REVISION: 01

Acquisition ID#: 36C245-25-AP-2631

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C245-25-AP-2631

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, 688-25-1-028-0002.

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

This procurement is for leasing of equipment in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

These open market equipment lease and water treatment services are a part of a federal supply schedule order that is on a limited source justification under contract GS-30F-0026Y to Mobile Medical International Corporation (small business). The contracting officer is using his authority granted under FAR 8.402(f) for administrative convenience contracting officer may add items not on the Federal Supply Schedule.

This will be a new firm fixed price task order contract using FAR Part 8 and FAR Part 13.5.

The repair and replace of the Sterile Processing System (SPS) water supply pipes at Washington, DC is estimated to be complete in 12 to 18 months. A 6-month base, four 6-month options, and 52.217- 8 is being used in the contract.

Department of Veterans Affairs, VISN 05, VA Medical Center, Washington DC has an approved and funded project 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

Effective Date: 11/15/24 Page 2 of 7

Acquisition ID#: 36C245-25-AP-2631 during the entire 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 to 18 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.

The Government on February 18, 2025, has issued an indefinite delivery indefinite quantity contract (IDIQ) for the repair and replace of water lines at Washington, DC VAMC. This contract will repair and replace the old Critical Water Systems at the hospital.

The Government on September 2, 2024, has issued an indefinite delivery indefinite quantity contract (IDIQ) for the Washington DC VA Medical Center Critical Water sampling and Testing (AAMI ST108) to ensure proper water quality for the hospital under the Association for the Advancement of Medical Instrumentation (AAMI ST108) water for the processing of medical devices

The ongoing water testing issues and deterioration of water pipes will not allow the Government to move back into the renovated Sterile Processing Services (SPS) Unit at the Washington, DC VAMC;

accordingly, the Government must keep renting the mobile trailers until the systems are functioning with in tolerances allowed by standards. The rental units will allow the hospital to function normally.

I am seeking to award to Mobile Medical International Corporation (MMIC) again.

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.

The estimated value of the proposed action is:

Base period 07/01/2025 through 12/31/2025 $261,599.28 Op on 1 01/01/2026 through 06/30/2026 $261,833.28 Op on 2 07/01/2026 through 12/31/2026 $261,833.28 Op on 3 01/01/2027 through 06/30/2027 $261,833.28 Op on 4 07/01/2027 through 12/31/2027 $261,833.28 Es mated total $1,308,932.40

Effective Date: 11/15/24 Page 3 of 7

Acquisition ID#: 36C245-25-AP-2631

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

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

MMIC has been the current contractor since 2017 as the renovation project progressed (see below).

A bridge contract with MMIC would be needed while the new contractor would have their equipment manufactured to the Government�s specification which would be about 6 months. The removal of the current trailers and equipment would take at least 3 months. The removal process would involve specialized equipment to remove the trailer from their current location and the Government�s property. The setup and testing of the new trailers and equipment would be between 1 and 2 months it is recommended the contract be awarded to MMIC, a small business, under their GSA schedule contract.

Only one source exists for this procurement because awarding for a new trailers and equipment would cause serious risks to veterans, their families, and staff health and safety at the hospital.

Using any other contractor would cause serious damage to the Government there would in delay in treatment of patients and extra costs and delays incurred to bring in a new rental unit and equipment for the Government to use for a maximum of 36 months.

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)- There is no charge for the HIP it was a onetime charge for the unit. The charge was obligated and paid in the contract.

Effective Date: 11/15/24 Page 4 of 7

Acquisition ID#: 36C245-25-AP-2631

The following awards have been made to MMIC for the support of the SPS at Washington, DC

VAMC:

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 12/21/22 POP (Base plus options) 1/1/23 through 12/31/23.

36C24524F0158-Awarded 12/28/23 POP (Base Plus options) 1/1/24 through 6/30/2025.

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

Sources Sought (SS) 36245Q0251 was placed on SAM.gov and GSA (RFQ1740620) on January 22, 2025, to find if there were any other companies that could provide the current services of SPS lease at Washington, DC VAMC.

The SAM.gov SS had seven companies that responded with interest in the inquiry:

- Advanced Mobile Solutions, LLC

- BHPE LLC's

- Jordan Sea Company

- Kastel Enterprises -Mobile Medical International, Corp

- Office Design Solutions

- Zone B Solutions

The GSA SS had one company respond:

-Mobile Medical International, Corp

The program had information from STERIS Corporation (Large) that could be considered. STERIS Corporation has a GSA contract # GS30F022GA for lease of SPS Trailers.

On February 22, 2025, NCO 5 contracting held a meeting a meeting with the Washington DC Program to discuss which why to proceed with the procurement. The final decision was to continue with the lease with MMIC because the SPS pipes should be repaired with 18 months and that there was no way to remove the current trailers and equipment and bring the new procurement items into service without shutting down the SPS processing in Washington DC for a minimum of 3 to 4 months.

Effective Date: 11/15/24 Page 5 of 7

Acquisition ID#: 36C245-25-AP-2631

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

There are no competitive quotations to rely on to find the price reasonable. Since there is only one source the contracting officer is using the IGCE, Comparison of the proposed price with prices found reasonable on previous purchases, and market research of historical rates with other VA Hospitals, that we will pay are fair and reasonable.

8. 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, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Market research was conducted by reviewing past procurements (VA245-17-F-0752, 36C24520F0289, 36C24521F0206, 36C24522F0181, 36C24522F0274, 36C24523F0181, and 36C245240158), searching Veteran Small Business Certification (VetCert), FPDS-NG, SBA-Dynamic, Adds UP, NAC, ECMS, GSA Advantage, and the internet.

A search on the Veteran Small Business Certification (VetCert) on the SBA website showed that there were 82 vendors under the NAICS code 336212Amended. Further research did not find any VOSB or SDVOSB companies that could provide the lease of trailers and equipment that will meet the hospital�s requirement.

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 SDVOSBs, VOSBs, 8(a), HUBZone or other socioeconomic categories that provide mobile SPS units there are many that have the same NAICS 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 previous market research efforts and based on personal knowledge and consultation with government experts no other companies can meet the constraints. 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 offers 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

Effective Date: 11/15/24 Page 6 of 7

Acquisition ID#: 36C245-25-AP-2631 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 This would result 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 36 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 SDVOSBs, VOSBs, 8(a), HUBZone or other socioeconomic that can provide mobile SPS units; however, there are many that have the same NIACS codes, but none offer the SPS Rentals and equipment within the Government�s timeline.

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 in 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 repair and replace of the SPS at Washington, DC is estimated to be complete in 12 to 18 months. A 6-month base, four 6-month options, and 52.217-8 is being used in the contract and this clause will give the Government needed flexibility to exercise by a month or to more as the upgrades finish.

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

There were 7 companies that responded to a sources sought on SAM.gov please see section 6.

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:

No action is being planned to overcome the barriers for competition for this requirement. This requirement is for 36 months a base period of 6 months and five option periods of six months. The projects to get the main SPS in the hospital up and functioning according to proper standards are in their final months. The extra options are being procured if more complications arise and time is needed to complete the projects.

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Acquisition ID#: 36C245-25-AP-2631

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.

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.

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.

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.