JA for Hawaii Home Oxygen Extension Sole Source Justification Part 6_Redacted.pdf

OFOC SOP Revision 10 Page 1 of 3 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: 36C261-21-AP-1512 Contract/Modification Number: VA261-17-D-0005, MOD P00015

1. Contracting Activity: Department of Veterans Affairs, VISN 21, Network Contracting Office 21, on behalf of the VA Pacific Islands Health Care System (VAPIHCS).

2. Nature and/or Description of the Action Being Processed: This Justification and Approval (J&A) is to support an out of scope contract modification to extend the term for the contract. The period of performance for the contract is December 1, 2016 to January 31, 2021. In order to continue services a modification is needed to extend the contract by five (5) months to June 30, 2021. This modification will also add a five (5) month option period with a period of performance of July 1, 2021 to November 30, 2021. The total contract period of performance is December 1, 2016 to November 30, 2021.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The requirement is to provide home oxygen services for Veteran beneficiaries within the VAPIHCS service territory. The contractor shall provide all required supplies, materials, labor, supervision, transportation, patient education, safety management, and infection control. The service supports the Prosthetic and Sensory Aid Service (PSAS). The current contract expires January 31, 2021, and services need to be extended by five (5) months while the long-term VISN-wide Home Oxygen procurement action is completed. The additional 5-month option is added in the event additional delays in award of the long-term contract occur beyond June 30, 2021.

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): Home oxygen services are currently being provided by Apria Healthcare. Competing a bridge contract extension could potentially cause severe delays in delivering service. At this time, Apria Healthcare, LLC, a large business, is the only firm capable of providing the necessary supplies and services described in Section 3 in a timely manner, without the Veterans Health Administration experiencing unacceptable or severe delays in fulfilling its requirements.

OFOC SOP Revision 10 Page 2 of 3

Revision 10 Date: 09/10/2020

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The VA has made efforts to competitively solicit a VISN-wide solicitation in accordance with FAR Part 15, and award of the requirement resulted in a Government Accountability Office (GAO) protest and other delays. This modification is needed to extend the existing home oxygen contract while the long-term procurement action is completed.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer has determined that the price for this out of scope modification is fair and reasonable. The Contractor will utilize the same prices for all CLINs stated in the current contract. These rates have already been determined fair and reasonable prior to the contract award. Additionally, the contract prices for Home Oxygen Concentrators were compared to pricing available on the internet. The current contract prices remain fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was not conducted for this immediate action because participants and customary practices of the Home Oxygen market are known due to ongoing long-term Home Oxygen procurement. The long-term procurement remains in the solicitation phase. The solicitation was issued on November 18, 2015. Since the solicitation was issued several Large and Small Business have expressed interest in providing Home Oxygen services to the Government. While there are several Contractors in the Home Oxygen market, there is only one source capable of continuing these services without experiencing unacceptable or severe delay while the long-term procurement is completed.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This is contemplated to be an out-of-scope contract modification to extend the term of the contract for five (5) months to provide the needed supplies and services to VA patient beneficiaries, for the duration of time that the VA needs to award the long-term procurement action. This modification is necessary due to GAO protests and other delays effecting the award of the long-term procurement action.

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

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 has made efforts to competitively solicit a VISN-wide solicitation in accordance with FAR Part 15.

This modification is needed to extend the existing home oxygen contract while the VA completes the long-term procurement action.

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.

OFOC SOP Revision 10 Page 3 of 3

Revision 10 Date: 09/10/2020

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.

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

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 recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.