JA 36C259-21-AP-0215 Aviva at Fitzsimons HCA APPROVED_Redacted.pdf

OFOC SOP Revision 10 Page 1 of 4 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-21-AP-0215 MSV Fitzsimons, LLC dba: Aviva at Fitzsimons Community Nursing Home

RPOW JOFOC Tracker #: 2021-01-15T08:09:16

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO 19), 6162 South Willow Drive, Greenwood Village, CO 80111. This action is funded by a 1358. Therefore, there is no associated 2237.

Organizational Activity:

Department of Veterans Affairs, Eastern Colorado VA Health Care System, Rocky Mountain Regional VA Medical Center, 1700 N Wheeling St, Aurora, CO, 80045.

2. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole-source Firm-Fixed Price Indefinite Delivery Contract (IDC) for community nursing home (CNH) services for the Eastern Colorado VA Health Care System (ECHCS) located in Aurora, CO to MSV Fitzsimons, LLC dba: Aviva at Fitzsimons. This will be a 5-year IDC (60 months).

The period of performance will be 01 April 2021 through 31 March 2026.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The CNH will provide all facilities and services to support short- and long-term care for Veterans. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. The current contract is a BPA (36C25920A0040) that was awarded as an emergency contract to provide support to ECHCS in their efforts to combat COVID-19. The proximity of the CNH to the ECHCS medical center was ideal for the transfer of patients as they stabilized but required additional medical care due to COVID-19. The BPA expires 19 April 2021. The continued use of this facility due to its location and high rated services makes this a highly coveted facility ideal for the Government to establish an on-going contract with. All rooms in the facility are private with private facilities attached to every room. MSV Fitzsimons, LLC dba: Aviva at Fitzsimons has met all requirements under VA policy/direction established by the Office of Geriatrics and Extended Care. They are licensed under the State of Colorado and are also a 5-Star facility on the Medicare.gov website. This will be a 5-year IDC (60 months). The period of performance will be 01 April 2021 to 31 March 2026.

The total estimated value of this contract is (if exercised the estimated amount for 52.217-8 Option to Extend Services (6 months) is .

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

OFOC SOP Revision 10 Page 2 of 4

Revision 10 Date: 09/10/2020 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 existing BPA has been serving on average 12 Veterans a month since its inception in April 2020. MSV Fitzsimons, LLC dba:

Aviva at Fitzsimons meets VA standards for quality of care to provide care and treatment to Veterans. The facility has a 5-Star overall rating on the Medicare.gov website. Aviva at Fitzsimons is rated 5-Stars for Quality of Resident Care and 4-Stars for Health Inspection and Staffing. This high rating and the location of the facility near the medical center makes this an ideal choice to establish a long-term contract with them. The rising Veteran population in the metro-Denver area requires more CNH services to provide adequate care to them. This facility would allow Veterans to be located close to home and medical services and reduce transportation costs to the VA. In accordance with FAR 6.302-1, this requirement for community nursing home services will be sole sourced to Aviva at Fitzsimons. In addition, as stated in paragraph 6 below, no responses were received from any potential offerors regarding the sources sought notice issued for this procurement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: No new CNHs have expressed interest in doing business with the Government.

A search of the Medicare Nursing Home Compare website (https://www.medicare.gov/nursinghomecompare/search.html) resulted in six facilities with a 4 or 5-Star rating within 5 miles of zip code 80045. Of these six facilities two have current contracts with the VA, Aviva at Fitzsimons and Summit Rehabilitation & Care Community. The others have not been vetted through the VA process as viable candidates for contracts. The VA Vendor Information Page (VetBiz) was used to determine if potential offerors exist who would be able to provide the services required. However, the site failed to produce any results for Denver, CO. The Office of Community Care (OCC) Field Guidebook states that Community Nursing Homes are required to meet a minimum set of standards to participate in VHA’s CNH Program. The threshold standards are solely based on Medicare Nursing Home Compare Scores and state that a CNH is eligible without waiver if they score at 3-5 Overall Stars. Anything below a 3-Star rating would require a waiver. As part of the acquisition process, a CNH must provide a current state license, insurance and a copy of the state inspection. These documents are provided to the CNH Program coordinator for review and evaluation. The CNH Coordinator will either provide a recommendation to contract or state that the CNH did not receive a recommendation to contract. A redacted J&A will be posted to Contract Opportunities.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The per diem rates being used for the current BPA were negotiated as MSV Fitzsimons, LLC dba: Aviva at Fitzsimons does not accept Medicaid. The rates include all services provided for Veterans as well as housing. The Contracting Officer will use the current rates to negotiate new per diem rates for this procurement. The Contracting Officer for this action will review the pricing offered and will use historical pricing and current market pricing to develop the Government’s position and negotiate a fair and reasonable price for each daily per diem rate.

OFOC SOP Revision 10 Page 3 of 4

Revision 10 Date: 09/10/2020

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. A sources sought (36C25921Q0104) was posted to Contract Opportunities on December 1, 2020 and closed on December 18, 2020. There was only one response received to this posting from a staffing agency inquiring if the posting was related to placing nurses in nursing homes. This response was not relevant to the procurement. A search of Medicare.gov site for the zip code 80045 (where Aviva at Fitzsimons is located) yielded 32 nursing homes within a 10-mile radius of the zip code. A search for only 4-5 Star facilities within the zip code for a 5-mile radius yielded six results. While this shows that there are six facilities within the same area, one already has an established VA contract and the others have not been vetted through the VA process to establish them as viable options. A search of VetBiz using zip code 80045 and NAICS code 623110 yielded no results. A search of the SBA Small Business Dynamic Search was conducted using the zip code 80045 and NAICS 623110 yielded Aviva at Fitzsimons as its only result.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: While other CNH’s have been identified in the area of the proposed CNHs, they have not been vetted by the CNH Coordinators to determine if they have the required services or thresholds. Based on the CNH program requirements, the Veterans preference is taken into consideration when selecting a CNH based on the Veterans’ needs, proximity to home/residence and family. The CNH Program Coordinator is responsible for conducting market research and identifying CNH’s that meet the required thresholds to increase the number of available and qualified CNH’s to provide service to the growing Veteran population in Colorado. MSV Fitzsimons, LLC dba: Aviva at Fitzsimons is a highly coveted facility due to its location and high rated services. This facility has been supporting the care of 12 Veterans on average a month utilizing BPA 36C25920A0040 since April 2021. The number of Veterans that has been receiving care at Aviva at Fitzsimons due to COVID-19 has ranged from two Veterans a month to 26 Veterans a month.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other Community Nursing Homes have expressed interest in this acquisition. The CNH Coordinators are responsible for identifying and approaching CNH’s that meet the required thresholds to determine if they are interested in providing service to the Government. MSV Fitzsimons, LLC dba: Aviva at Fitzsimons has expressed an interest to provide service to the VA as a long-term IDC contract when the current BPA that was established as an emergency expires.

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: There is currently only one (1) facility capable of providing the specialty care and medical needs of Veterans that has been vetted through the CNH Program thresholds. Based on the CNH program requirements the Veterans preference is taken into consideration when selecting a CNH based on the Veteran needs, proximity to home/residence and family. The CNH Program attempts to vet a sample of CNH’s in a given area to provide the Veterans with several choices. However, the selection of the CNH is determined on whether the CNH has the resources available to meet each Veteran’s needs. The CNH Program Coordinator is responsible for conducting market research and required vetting to increase the number of available and qualifies CNH’s to place Veterans. The Contracting Office and CNH Program office will continue to canvas the market for new CNH entrants capable of meeting program requirements.