JA 36C259-21-AP-4175 Signed Redacted.pdf

PM Part 813.5 SAP for Certain Commercial Items Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-21-AP-4175 Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitation Community Nursing Home

RPOW JOFOC Tracker #: 2021-08-18T11:49:55

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (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, VISN 19, VA Salt Lake City Health Care System, 500 Foothill Drive, UT 84148

2. Nature and/or Description of the Action Being Processed: This procurement was established for a sole source Firm-Fixed Price Indefinite Delivery Contract (IDC) for community nursing home (CNH) services for the VA Salt Lake City Health Care System to Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitation, located in Roy, UT. This was an emergency contract to continue services for six (6) Veterans who are currently residing and receiving services at this facility. The period of performance for this acquisition is 1 August 2021 to 30 November 2021.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Community Nursing Home provides all facilities and services to support short and long-term care for Veterans. These services include rehabilitation, nursing and clinical in accordance with the performance work statement. Contract 36C25919D0065 expired on 31 July 2021. The expiration was brought to attention on 9 August 2021 in an email addressed to Network Contracting Office (NCO) 19 leadership by the VA Salt Lake City Health Care System Community Nursing Home Coordinator. It was noted that the necessary documents to extend out the expired contract were provided timely but FAR 52.217-8 Option to Extend the Term of the Contract was not fully executed in time. The NCO 19 Director of Contracting provided permission to establish an emergency contract the same day to ensure that services provided did not lapse for the six (6) Veterans residing there. The long term contract that is currently in process to be awarded is not expected to be awarded until 1 October 2021.

This contract allows sufficient time for proper reviews to be conducted for the new long-term award.

Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitation has met all requirements under VA policy/directive established by the Office of Geriatrics and Extended Care. Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Utah. The total estimated value of this emergency requirement is and the estimated value of the 52.217-8 Option to Extend Services, if exercised, would be

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:

( ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( X ) Unusual and Compelling Urgency

PM Part 813.5 SAP for Certain Commercial Items Original Date: 08/30/17 Revision 03 Date: 02/11/2021

( ) 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): There are six (6) Veterans being treated and housed at the Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitation facility. It was imperative that services continue for these Veterans at this facility.

They could not be moved to another facility until the new long-term contract is awarded. Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitiation has met VA standards for quality of care to provide care and treatment to Veterans. They have consistently provided quality care to our Veterans and provide specialized ventilator services not provided by most other community nursing homes. This requirement for community nursing home services has been sole-sourced to Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitation.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This was an emergency procurement for the continuation of nursing home services for the six (6) Veterans currently receiving treatment and housing from Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitation. The anticipated long-term follow-on contract to be awarded has completed the necessary market research to ensure all possible sources have been solicited.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing Community Nursing Home contracts. The Medicaid rates are established by each state based on the national average. The VA Geriatrics and Extended Care Office through the VHA PM and VA Pulse publishes an annual maximum allowable percentage that are applied to each Resource Utilization Groups IV category.

The RUGS IV category identify the different levels of treatment. The add-on percentages are added to the basic Medicaid rate then applied to each RUGS IV category. The Medicaid rate and the VA add-on percentage make up the per diem rate paid for each Veteran. The line item structure will illustrate the different RUGS IV category, the add-on percentage and the total per diem rate for each level of care. The add-on percentages do not change through the life of the contract. When contract 36C25918D0065 was awarded, the CO determined the rates to be fair and reasonable where the add-on percentages were agreed upon by both parties and were at or under the maximum allowable percentages established by the VA. The rates established under contract 36C25918D0065 are the established rates for the emergency contract.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: New market research was not conducted for this emergency requirement. The market research that was conducted for the new long-term contract is less than 12 months old and has been conducted as appropriate for that contract.

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

(6) Veterans receiving care and treatment at this facility currently. These Veterans could not be relocated due to continuity of care and medical complexity. Beaver Valley Hospital DBA: Heritage Park Healthcare and Rehabilitation is located near the families of the Veterans. Relocation of the Veterans would have caused undue stress to the Veterans and their families on such short notice.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other community nursing homes have expressed interest in providing services in this area. The current