JA - FAR 13.5 - Sole Source Justification - Over SAT - 36C257-22-AP-3228 - Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items JOFOC Tracker #: 2022-04-28-T07:57:31 Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C257-22-AP-3228

1. Agency: Department of Veterans Affairs (VA)

Contracting Activity: Network Contracting Office 17 (NCO-17) 5441 Babcock Rd., Ste. 302 San Antonio, TX 78240

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

This procurement is for the acquisition of home oxygen services in accordance with FAR 13.5, Simplified Procedures for Certain Commercial Items, and FAR 13.501, Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

The proposed contract action is for a firm-fixed price indefinite-delivery indefinite quantity (IDIQ) bridge contract placed as a sole source with incumbent contractor Rotech Healthcare Inc. The proposed IDIQ bridge contract will have a base period of performance of six months and have an option period of performance with an additional six months.

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

The VA Prosthetic & Sensory Aids Service (PSAS) is required to provide Home Respiratory Care as part of the “Home Respiratory Care Program” for eligible veterans. This requirement is for providing home oxygen services to the Veteran beneficiaries of the El Paso VA Health Care System (ELPVAHCS), Amarillo VA Health Care System (AMAVAHCS), and West Texas VA Health Care System (WTXVAHCS). Contractor shall provide home oxygen services, inclusive of government furnished property, to the residences of eligible veterans in accordance with the Statement of Work. Services include delivery, set-up, and resupply of oxygen as needed to meet Veteran patient needs. Services also include delivery, repair and pick up of equipment, resupply of expendable supplies (nasal cannulas, hoses, etc.) and medical grade oxygen. Routine checks from Certified Respiratory Therapists are also included with the services. Equipment includes, but is not limited to compressors, portable oxygen machines, tanks, racks and liquid oxygen systems.

Base Period of Performance: 5/1/2022 through 10/31/2022 Estimated Value (including option): NTE $REDACTED

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

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items JOFOC Tracker #: 2022-04-28-T07:57:31

Effective Date: 02/01/2022 Page 2 of 4

( ) 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):

The services required by this procurement are essential to the continuity of direct patient care. A home oxygen services contract is critical to the VA and its patients. Home Oxygen Services cannot stop without gravely affecting the health of current and future Home Respiratory Care Veteran patients. Awarding a short-term contract to another company at this time would severely delay patient care, as no other contractor would be able to immediately perform services without transitioning all VA-owned equipment, as well as having to learn all patient routes and schedules.

This is especially critical due to the current COVID-19 equipment shortage and travel limitations.

Therefore, Rotech Healthcare Inc. must continue to provide these services to allow adequate time for the new-long term contract to be re-solicitation and awarded. Rotech Healthcare Inc. has successfully provided home oxygen services to an estimated 3,500 veterans.

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

The six-month bridge contract will be performed concurrently with the resoliciting of the long-term requirement. It is anticipated that the new long-term contract will be set-aside as a Service-Disabled Veteran-Owned Small Business (SDVOSB) set-aside.

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

The Contracting Officer has determined that the anticipated proposed prices will be fair and reasonable. A comparison of the proposed prices to those paid under IDIQ VA258-16-D-0143 will be made to determine price fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

A search of the mandatory source for procurements of services, Ability One, identified that they do not offer home oxygen services at this time. Market research revealed that the services requirement can be set-aside for a SDVOSB; however, due to the immediate urgent and compelling need, the proposed acquisition will be procured from incumbent contractor Rotech Healthcare Inc.

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

Indefinite Delivery-Indefinite Quantity (IDIQ) contract VA258-16-D-0143 is set to expire on April 30, 2022. No further extensions are available.

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items JOFOC Tracker #: 2022-04-28-T07:57:31

Effective Date: 02/01/2022 Page 3 of 4

The anticipated award under previous solicitation 36C25719R0007 was protested through December 2021. There is an insufficient amount of time to re-solicit and award the requirement prior to the expiration of the current IDIQ contract.

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

Rotech Healthcare Inc.

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 government will make additional market research efforts prior to the re-solicitation of the long-term requirement to see if there have been any changes in the marketplace for home oxygen services.

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.

//SIGNED// 2022.05.10

REDACTED Date:

VISN 17 Prosthetics Program Manager

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items JOFOC Tracker #: 2022-04-28-T07:57:31

Effective Date: 02/01/2022 Page 4 of 4

b. One Level Above the Contracting Officer: I certify the justification meets the requirements for other than full and open competition.

Branch Chief, Laboratory Support Team

Director of Contracting: I certify the justification meets the requirements for other than full and open competition.

//SIGNED// 2022.05.11

Director of Contracting Network Contracting Office 17

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

//SIGNED// 2022.05.12

Executive Director, Regional Procurement Office – West Head of Contracting Activity (HCA)