J and A - New Braunfels CBOC .doc

The requirement is for Community-Based Outpatient Services, which will be provided to veteran beneficiaries within the South Texas Veterans Healthcare System. Authorization: FAR 6.302-1. See attached justification.

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) New Braunfels, Texas, CBOC

Acquisition Plan Action ID: 36C257-22-AP-1876

1. Contracting Activity: The Department of Veterans Affairs, Network Contracting Office 17 (NCO 17) at 11495 Turner Road; El Paso, Texas; intends to enter into a sole source, short-term contract based on this Justification for Other than Full and Open Competition for the VA South Texas Healthcare System (STVHCS), New Braunfels, Texas. Funding for this action was verified by the end user’s fiscal department, and will become available via a FY22 VA Form 2237.

2. Nature and/or Description of the Action Being Processed: The STVHCS has an emergent need to continue to provide Community-Based Outpatient Clinic (CBOC) services to veteran beneficiaries in New Braunfels, Texas. The incumbent, CRAssociates, Inc., is a large business currently providing these services under contract 36C257-20-D-0097. This contract was awarded on 12 August 2020 and will expire, inclusive of the exercised FAR 52.217-8, on 28 February 2022. This contract currently provides primary care services to approximately 5,400 beneficiaries. CRAssociates, Inc. will continue to provide services for the STVHCS at the New Braunfels CBOC.

Due to a GAO protest received on 10 June 2021 (dismissed on 29 June 2021), extended pricing negotiations that delayed the award of the long-term contract and to avoid a disruption of services, a JOFOC is required. The protest and corrective action extended the Request for Proposals due date by approximately three months and in-turn the long-term contract award date. The long-term CBOC contract was awarded on 17 December 2021.

Furthermore, the contractor has expressed concerns with an approximate 75 day wait period for building permits, long supply chain lead times, and COVID issues affecting the availability of contractors and laborers for the build-out and start-up of the long-term CBOC. The contractor has guaranteed that they will meet the 1 June 2022 New Braunfels CBOC start date.

Due to the current short-term contract expiring on 28 February 2022, a three-month interim contract is required.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The requirement is for CBOC services supporting veteran beneficiaries of the STVHCS with a varying per member per month (PMPM) quantity throughout the period of performance. There is a continuing need for a sole-source contract as described within Section 2 of this document with the following financial/descriptive data:

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

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

The services required by this procurement are essential to the continued, direct patient care of approximately 5,400 veterans in New Braunfels, Texas. This is an emergent short-term requirement to continue the clinical services provided under the current contract, 36C257-20-D-0097.

Due to a GAO protest received on 10 June 2021 (dismissed on 29 June 2021), extended pricing negotiations that delayed the award of the long-term contract and to avoid a disruption of services, a JOFOC is required. The protest and corrective action extended the Request for Proposals due date by approximately three months and in-turn the contract award date. The long-term CBOC contract was awarded on 17 December 2021 with an effective date of 1 June 2022 thru 31 May 2023 (plus 9 OYs).

Due to an approximate 75-day wait period for building permits, long supply chain lead times, and COVID issues affecting the availability of contractors and laborers, the current contract expiring on 28 February 2022 and the newly awarded long-term contract starting on 1 June 2022, a three-month bridge contract is required.

The incumbent, CRAssociates, Inc., continues to provide services, and is the only source capable of providing continuity of services within the strict timeframe before the existing contract expires.

Due to the amount of time it would take to prepare and post a solicitation, evaluate proposals, build-out and start up a new facility and get the proper security clearances for employees required to perform on this type of contract, the incumbent is the only source that will satisfy the agency’s need.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The long-term contract, 36C257-22-D-0015, was awarded on 17 December 2021 with an effective date of 1 June 2022. There were two offers received for consideration of the long-term contract award.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The contractor’s proposed PMPM rate ($74.90) is deemed fair and reasonable in consideration of the short time frame between the end of the existing contract, 28 February 2022, and in relation to the CBOC facility leasing efforts the contractor will undergo to secure the extension of the leased space for this short-term requirement, salaries to keep credentialed employees, and costs to support COVID-19 protocols.

Additionally, when compared to similar sized CBOCs recenty awarded, the contractor’s proposed price for the interim contract is very similar.

Further, the proposed PMPM rate does not increase and is the same as last year’s rates. The PMPM rate is further justified as fair and reasonable because the U.S. Healthcare Inflation Rate for 2021 was at 1.78% (US Health Care Inflation Rate (ycharts.com)) versus proposed rate.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: There are multiple large and small businesses that can provide CBOC services to meet the VA’s requirement. However, CRAssociates, Inc., is the only source capable of providing continuity of services within the limited timeframe before contract expiration. Any change in contractor support at this time is not feasible as the process would require the new contractor to locate and build-out a new facility, recruit and hire staffing, undergo VA background checks, and complete credentialing, which is not realistic given the timeframe of current services expiring on 28 February 2022.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This requirement is for a follow-on, short-term contract to provide continuity of CBOC services to veteran beneficiaries for the period of 1 March 2022 through 31 May 2022. This short-term contract will allow for sufficient time, as required per the PWS, for the build-out and start-up of the new clinic.

This requirement is being procured by a sole source contract to the incumbent, CRAssociates, Inc., to allow uninterrupted primary care services.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Not applicable.

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 services required by this procurement are essential to the continued, direct patient care of approximately 5,400 veterans in New Braunfels, Texas. This is an emergent short-term requirement to continue the clinical services provided under the current contract, 36C257-20-D-0097.

Due to a GAO protest received on 10 June 2021 (dismissed on 29 June 2021), extended pricing negotiations that delayed the award of the long-term contract and to avoid a disruption of services, a JOFOC is required. The protest and corrective action extended the Request for Proposals due date by approximately three months and in-turn the contract award date. In order for the contractor to have sufficient time to set-up the new clinic a three-month interim contract is required.

The long-term contract, 36C257-22-D-0015, was awarded on 17 December 2021 with an effective date of 1 June 2022.

The incumbent, CRAssociates, Inc., continues to provide services, and is the only source capable of providing continuity of services within the strict timeframe before the existing contract expires.

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:

Authorization signatures are on the original document.

END OF DOCUMENT

OFOC SOP Revision 12

Original Date: 03/22/11

Revision 11 Date: 01/10/2022