J_A bulk oxygen_Redacted.pdf

VHAPM Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

VHAPM Part 813.106 Page 1 of 2 Original Date: 08/30/17 Revision 02 Eff Date: 03/31/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW FAR 13.106-1 For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID: 36C263-21-AP-4428

1. Contracting Activity: US Department of Veterans Affairs, NCO 23, 4801 Veterans Affairs, St. Cloud MN 56303-2099. Ordering Activity: US Department of Veterans Affairs, St Cloud VA HCS 4801 Veterans Drive, St. Cloud MN 56303-2099 and Minneapolis VA HCS, One Veterans Drive, Minneapolis MN 55417.

2237: 618-22-1-029-0001 AND 656-22-1-042-0001

This procurement is for medical-grade bulk liquid oxygen in accordance with FAR 13.501 (a) Simplified Procedures for Certain Commercial Items. PCAC has the current delivery orders out until 9-30-2021. A bulk liquid oxygen base year plus 4-option years was submitted into FORCE however since that procurement it will not be awarded by 10-1-2021. The Department of Veteran Affairs has determined the need for a sole source award to ensure the continued availability of medical-grade bulk liquid oxygen is in the best interest of the Government. The purpose of this justification is to request a sole source contract with Praxair who is the current tanks owner and manufacturers of the liquid bulk oxygen located at Saint Cloud and Minneapolis VA Medical Centers in VISN 23. The sole-source will be awarded as a fixed priced, indefinite-delivery requirement contract from 10-1-2021 to 3-31-2022 (6 months). This will allow time for the VISN 23 bulk Liquid Oxygen contract to be awarded.

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount:

Liquid Bulk Oxygen is a critical medical supply for the St. Cloud and Minneapolis VA Medical Centers.

Due to the VISN 23 Bulk Liquid Contract not being awarded by 10-1-2021, an emergency bridge contract/order is necessary to ensure a continuous supply of bulk liquid oxygen without interruption of the supply. The purpose of this contractual action is to maintain a continuous source of supply of medical-grade liquid bulk oxygen for the St. Cloud and Minneapolis VA Medical Centers. At each of the facilities, the bulk liquid tank is owned by Praxair Distribution, Inc and regulated by the FDA. Per Industry standard, only the company who manufactures the gas is allowed to re-fill the liquid bulk oxygen tank. This is due to Liquid Oxygen being a controlled substance regulated by the FDA. Any other product blended into the tank would cause cross contamination of the gas and therefore cannot be certified as medical grade. The requirement will be for Praxair Distribution, Inc. to rent the tanks to St. Cloud and Minneapolis Health Care Systems and deliver the liquid oxygen gas as needed.

The period of performance will be October 1, 2021 to March 31, 2022.

VHAPM Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

VHAPM Part 813.106 Page 2 of 2 Original Date: 08/30/17 Revision 02 Eff Date: 03/31/2020

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used:

The authority for the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented for restricting competition on this procurement via FAR 13.106-1(b)(1). At both facilities, the bulk liquid tank is owned by Praxair Distribution, Inc. Liquid Bulk Oxygen is critical for the VA Medical Centers for patient care as it is piped into the medical centers and used for medical treatment and life support. Any interruption in supply has the potential to interrupt all aspects of patient care to the Veterans receiving care at the St, Cloud and Minneapolis Health Care System.

The government was not provided adequate notice to allow them to issue a competitive solicitation for this critical supply since the 5-year Bulk Oxygen Contract will not be awarded by 10-1-2021. As stated, . The Government is currently in the process of issuing a competitive solicitation for long term contract for VISN 23 Bulk Liquid Oxygen.

4. Description of market research conducted and results or statement why it was not conducted:

Price reasonableness will be established based on a comparison of current Government bulk oxygen contracts. Market research does support a competitive marketplace for this type of product;

however, the urgent and compelling circumstances will not allow the Government to procure this product on a competitive basis. An emergency sole source bridge contract is required with the intention of competitively soliciting a new five-year long-term contract to be awarded on April 1, 2022.

Market Research confirms the commerciality of the product being requested. The requirement is a supply contract, and thus NAICS code 325120, Industrial Gas Manufacturing with a size standard of 1,000 employees will be used. The resulting contract will be an Indefinite Delivery contract vehicle;

this will allow requesting facilities the ability to place immediate orders which will result in no stoppage of supply. This will allow for the Government to competitively re-solicit for a five-year long-term contract to be awarded by 4-1-2022. Price reasonableness will be established based on a comparison of current Government and the IGCE. An emergency sole source bridge contract is required with the intention of competitively soliciting a new five-year long-term contract. Market research confirms the commerciality of the product being requested.

A VIP search using NAICS 325120 yielded 43 matches.

5. Contracting Officer's Certification: Purchase is approved in accordance with FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.