J and A OFA Strategic Planning Support Executed.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Construction & Facilities Management Washington DC 20001

Justification and Approval (J&A) for Other than Full and Open Competition 6.302-5 Authorized by Statute

1. Contracting Activity:

AE &Construction Contracting Policy Service, Department of Veterans Affairs (VA), Washington, DC 20001.

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

This Justification for Other than Full an Open Competition seeks approval to proceed with a sole source for services with Elk Consortium, LLC. The services provided will support the strategic development of construction projects utilizing alternative delivery methods for the Office of Construction and Facilities Management (CFM), Office of Facilities Acquisition (OFA).

CFM is responsible for planning, designing, constructing, and leasing facilities for the Veterans Health Administration (VHA), the Veterans Benefit Administration (VBA), and the National Cemetery Administration (NCA). VA CFM requires contractor support to achieve the aggressive undertaking of executing their backlog of developed construction projects. This backlog has accumulated in part due to the VAs existing project development process. The contractor shall support the development of a project prioritization strategy and provide facilitation between project stakeholders, including Veterans Health Administration (VHA), CFM, and industry partners to determine project requirements, budget constraints, and innovative solutions to meet the requirements of the Agency. The strategy developed shall be utilized both to assist in the execution of the existing backlog, as well as inform further innovation in the VA standard project development process

3. Description of Services Required to Meet the Agency’s Needs:

The requirement provides OFA support for Strategic Development of projects utilizing Alternative Delivery Methods. This requires identification of opportunities for alternative construction delivery methods considering project risks, market need, budget constraints, and potential solutions. The contractor shall provide Owner’s Representative support to implement strategy throughout the project delivery process on the use of alternative delivery methods that are new to the VA. This includes providing input on project strategy, risk management, projects progress monitoring utilizing innovative techniques on their effectiveness, identifying inefficiencies, stakeholders’ communication, and areas for improvement as they relate to the use of alternative delivery method.

Washington DC 20001

The total cost is estimated at $4,938,727.90. This includes a 12-month base period along with three, twelve-month option periods. The breakdown is as follows:

Base Period $1,183,840.00 Option One $1,235,118.28 Option Two $1,274,038.75 Option Three $1,245,730.87

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

41 U.S.C. 3304(a)(5), VAAR 806.302-570 Noncompetitive procedures for certified Veteran-owned small businesses as authorized by 38 U.S.C. 8127(c)

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

38 U.S.C 8127(c) permits a Contracting Officer (CO) to award a contract to a verified SDVOSB using other than competition if:

1) Such concerns are determined to be a responsible source with respect to performance of such contract opportunity;

2) The anticipated threshold (as defined in section 134 of title 41), but will not exceed $5,000,000; and

3) In the estimation of the Contracting Officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

The proposed action meets all three of the requirements of 38 U.S.C. 8127(c). First, ELK, has been certified by the Small Business Administration (SBA) as a Service- Disabled Veteran Small Business concern (SDVOSB) as of 9/24/2024. Second, the anticipated threshold will not exceed $5,000,000.00, and finally it is the estimation of the CO that an award can be made at a fair and reasonable price.

Elk is uniquely qualified for this requirement as they have performed extensive work across VISN 17 (36C2572D0054), executing dozens of task orders, which provided them with the opportunity to develop a significant familiarity with the VA project development and design processes. The most recent Contractor Performance Assessment Reports (CPAR) for 36C2572D0054 rated ELK Very Good in the areas of Quality, Schedule, Management, and Regulatory Compliance.

Washington DC 20001

ELK has also performed / published Master Plans (36C25723N0128) for four of the seven VISN 17 market areas for the South Texas, El Paso, Amarillo, and West Texas Health Care Systems. This work will shape Service Delivery Planning for Veteran healthcare for most of the state of Texas for the next 5 to 10 years. The CPARS for this work were rated from Exceptional to Very Good.

This experience make ELK well versed in coordinating and analyzing VA stakeholder requirements, facilitating discussions, and developing governance checks and metrics to guide implementation and ensure a smooth transition for implementing new processes/procedures/programs.

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

In accordance with VAAR 819.7008(b), the determination to make a sole source award to an SDVOSB is a business decision wholly within the discretion of the Contracting Officer; therefore, the requirement to ensure that offers are solicited from as many potential sources as practical is not applicable to this procurement. In addition, 819.7008(c) further authorizes the Contracting Officer to make the award without first determining that only one SDVOSB source can meet the requirement.

It is in the best interest of the Government to make an award to ELK using the authority stated in section 4 above because ELK has verified and successful experience in coordinating and analyzing VA stakeholder requirements, facilitating discussions, and developing governance checks and metrics to guide implementation and ensure a smooth transition for new processes/procedures/programs. According to CPARS, they have performed these services from an Exceptional to Very Good level.

The Contracting Officer’s Representative participated in industry conferences seeking vendors for the ability to support the Office of Facilities Acquisition Strategic Development of projects utilizing Alternative Delivery Methods. None of the vendors demonstrated capabilities to perform the work while not presenting a conflict of interest. Elk is not pursing nor currently working any AE projects with VA.

A notice of the proposed action was synopsized on June 7, 2024, via the Government Point of Entry (GPE) in accordance with the FAR Section 5.201 and did not receive any feedback. The agency will make publicly available the justification required by 6.305(a) within 14 days after the contract award.

Washington DC 20001

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

The Contracting Officer will conduct a price analysis by comparing prices with the government estimate in accordance with Far 15.404-1(b)(2)(v). The Request For Proposal (RFP) includes a CLIN structure that mirrors the Independent Government Cost Estimate (IGCE). The IGCE was developed by using historical pricing via the GSA Contractor-Awarded Labor Category (CALC) tool. Each labor category (LCAT) used the average rate. The escalation rate of 3.8% was applied for each LCAT in the option years. The escalation rates are in accordance with the Consumer Price Index (CPI). The RFP will ask that the offer include a breakdown of the hours and labor categories utilized for each CLIN. Depending on the CO’s analysis of the proposed price, the CO can negotiate the proposed price.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Contacted knowledgeable individuals in the industry to identify qualified source.

Additionally, the Contracting Officer’s Representative participated in and attended industry conferences such as the Society of American Military Engineers (SAME) to identify sources capable of performing the work described herein.

Contractor Performance Assessment Reporting System (CPARS) was queried demonstrating ELK’s, capability to successfully perform the Strategic Planning services.

ELK is an SBA certified (VETCert) SDVOSB as of 9/94/2024.

ELK is registered in the System for Award Management System (SAM) as a small business under the applicable North American Industry Classification System (NAICS) code. As Such, ELK is determined to be a responsible source with respect to performance of this opportunity.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

The FAR allows restrictive provisions or conditions to the extent necessary to satisfy the needs of the agency or as authorized be law (FAR Subsection 11.002(a)(1)(ii)).

The Government has the discretion to reasonably restrict competition as long as that requirement is needed to meet the agency’s minimum need. 38 U.S.C 8127(c) permits a Contracting Officer (CO) to award a contract to a verified SDVOSB using other than competition if the concern is determined to be a responsible source with respect to performance, the total value does not exceed $5,000,000.00, and in the estimation of the CO the award can be made at a fair and reasonable price. This requirement meets all of the criteria.

Washington DC 20001

The support needed for this requirement includes advisor support for the VA as an Owner of facilities construction projects. ELK’s experience as an A-E, and the fact that they have stepped away from doing A-E work, gives them a unique perspective on the VA project delivery process. Coupled with their extensive experience serving in strategic capital delivery roles, including for the Air Force and local governments, ELK's unique qualifications as an SDVOSB valued A-E consultant to the VA (see section 5 above) with current experience of delivering design and construction administration services to improve Veteran healthcare, the Owner’s experience operating in the design and construction arena for the federal government.

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

None. No one provided feedback on the notice of proposed action published on June 7, 2024.

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 VA will continue to conduct market research for CFM Acquisition Strategic Development of projects utilizing Alternative Delivery Methods requirement and will consider competing similar future requirements. This is not a follow-on requirement.

As this new requirement will evolve, VA will gain knowledge that will enhance the abilities to understand where any future requirements may be competed.

Washington DC 20001

12. Certifications / Signatures:

Technical and 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.

Ray Savoy Date Contracting Officer Representative Office of Facilities Acquisition

Contracting Officer Certification:

I certify that this justification is accurate to the best of my knowledge and belief.

Kevin Armillotti Date Contracting Officer AE & Construction Contracting Policy Service

Competition Advocate Approval:

In my role as Competition Advocate for the procuring activity, based on the forgoing justification, I hereby approve this Sole Source Justification, on an other-than-full- and-open competition basis pursuant to the statutory authority cited in paragraph 4 above, subject to availability of funds, and provided that the items herein described have otherwise been authorized for acquisition.

Zebulon Fox, DBA Date Competition Advocate Head of the Contracting Activity Office of Construction and Facilities Management

KEVIN ARMILLOTTI

Digitally signed by KEVIN

ARMILLOTTI

Date: 2024.09.24 13:28:44 -04'00'

ZEBULON FOX Digitally signed by ZEBULON FOX Date: 2024.09.24 20:47:27 -04'00'