JA - Lex-Leestown CPS Redacted.pdf

VHAPG Part 806.3 OFOC Page 1 of 6 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C77624R0128

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C776-25-AP-1265

1. Contracting Activity:

The contracting activity for this requirement is the Department of Veterans Affairs, Veterans Health Administration (VHA) Program Contracting Activity Central (PCAC).

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

This justification is in support of a new, single award, Firm-Fixed-Price (FFP) contract for an Architectural-Engineering (AE) firm to provide Solicitation Support Services (SSS) with optional Construction Period Services (CPS) for project 596-22-700 EHRM Infrastructure Upgrades construction, Lexington VA Health Care System – Franklin R. Sousley (Leestown) Campus. CPS includes pre-construction meeting, bi-monthly site visits that will span the construction period of performance of 700 calendar days, responses to RFIs, review and approval of contractor’s Shop Drawings, Product Data, and Samples. The AE shall also furnish a final, and updated set of drawings to be used for the construction of said project.

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

Contract number 36C77622C0061 was awarded to Spur Design, LLC. (Spur), on May 31, 2022, by Program Contracting Activity Central (PCAC) in the amount of $1,355,191.80. The design was completed in June of 2023. The construction procurement package was submitted to PCAC in March of 2025, with the final construction documents from Spur Design, LLC. (Spur). SSS and CPS was originally accounted for in the award to Spur; however, the Government did not exercise the options for SSS and CPServices due to funding issues related to the construction project. The design contract was subsequently closed out.

The period of performance for the SSS is 120 calendar days from award of this contract. This Period of performance for CPS will match the period of performance for construction of 700 calendar days from notice of award. The anticipated award date for SSS is June 2024. The estimated cost of the SSS and CPS is .

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

For this action, 38 U.S.C. 8127(c), known as the Veterans First Contracting Program, provides the authority to directly contract with an SDVOSB or a VOSB. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority):

This requirement is for Architect-Engineering services associated with the design, construction, and alteration of real property, so commercial business practices were not considered, and the commercial marketplace was not surveyed.

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The proposed source for this acquisition is Spur Design, LLC., a registered and verified small business, located at 312 SW 25th Street, Oklahoma City, OK 73109. Spur is technically qualified for this project as they are the designer of record for this current EHRM requirement. A review of the Contractor Performance Assessment Reporting System (CPARS) has confirmed Spur’s successful past performance on VA design projects. The VA’s technical experts have determined that Spur is the most qualified to perform the required services as they possess all institutional knowledge regarding this project.

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

A VetCert query indicated there are 5 verified SDVOSBs under NAICS 541330 within the state of Kentucky, that could potentially submit on this project. On May 8, 2025, a Notice of Intent to Sole Source to an SDVOSB was posted to SAM.gov. A corrected Notice of Intent to Sole Source was posted on June 3, 2025 correcting the statutory authority permitting Other than Full and Open Competition.

This Justification and Approval (J&A) document will be posted within 14 days after award in accordance with FAR Subpart 6.305. The award synopsis will be posted to GPE in accordance with FAR Subpart 5.301(a)(1).

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

Previously on a similar project at the Tampa VA in FY 2023, feedback was provided as to why AEs were not interested in taking over a previous firm’s design during the SSS and CPS stage. AEs identified the following concerns:

The amount of CPS effort is highly dependent on two factors out of our control: the quality of documents produced, and the quality of the contractor involved in the project.

Who would be responsible for the engineering portion of the CPS? Would we need to bring on consultants to review the various MEP shop drawings and RFIs? I think engineers would be even less interested since they would be engineering the project again if any questions arise.

The scope says minor updates to the drawings and specifications may be required. I get very nervous about what that may require. Document quality, software requirements (I would only consider it if done in Revit) and liability responsibility for the design are all concerns with editing another architect’s design.

No knowledge of the design process and priorities in the decision-making process.

Without knowing all of the specifics, the pricing would most likely be at least two times higher than the normal cost of CPS for this project.

The market price for the AE’s rates for SSS and CPS will be compared with their rates from the design portion of this project, from the IGCE, and from rates that have been used in previous design projects at the Lexington-Leestown site. A fair and reasonable determination will be made by the Contracting Officer before award will be made.

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Acquisition ID#: 36C77624R0128

PCAC has experience with sole sourcing SSS and CPS in support of Minor construction projects.

Below is an overview of past scenarios where PCAC was required to obtain SSS and/or CPS from an AE where the services were not part of the original design contract. In some cases, there was a sole source to the same AE of record and in other instances to a new AE. The comparisons can be found below.

1. Project # 675-901 Expand Emergency Department Minor, Lake Nona VAMC: The original design task order for this project was awarded by Network Contracting Office (NCO) 8 on September 9, 2020, in the amount of $208,920.95 to RDC/John Poe Architects. This task order did not include CPS, as it stated these would be procured through a separate task order. In 2022, PCAC was sent the requirement to procure the construction portion of the project and during the procurement review it was discovered the CPS was not part of the project. Since RDC/John Poe Architects was a verified SDVOSB and the original design firm, it was determined to sole source this project to them in accordance with VAAR 819.7007. The estimate provided was in the amount of for a performance period of 270 calendar days, to include attendance at the pre-construction meeting, monthly site visits, responses to Requests for Information (RFIs) and submittals, review of change orders, inspections and testing, work acceptance and providing As-Built drawings. This sole source contract was awarded to the original design firm. The award amount of $83,120.23 was less than the IGCE amount of .

2. Project # 673-100 Specialty Treatment Expansion Minor, Tampa VAMC: Contract VA248- 17-C-0107 for the Specialty Treatment Expansion (Minor) Design was awarded to TTV Architects Inc. (TTV), on June 30, 2017, by NCO 8 in the amount of $392,198.00. Solicitation support services and CPS was originally accounted for in this award. This contract was terminated because the money expired before the construction design was completed. In 2023, PCAC was sent the requirement to procure the construction portion of the project as well as SSS and CPS. A sole source award for the SSS and CPS was made to TTV on August 10, 2023, in the amount of $573,352.44. The award amount was more than the IGCE amount of .

3. Project # 438-440 Construct New Laboratory Addition Minor, Sioux Falls VAMC: NCO 23 awarded the design contract for this project on September 29, 2017, in the amount of $803,587.71, to Anderson Engineering. The design contract did not contain CPS. The construction procurement was sent to PCAC in March of 2019. As part of the procurement request, PCAC was tasked with procuring the CPS with Anderson Engineering. The IGCE was in the amount of to include SSS and CPS. In accordance with VAAR 819.7007, this project was sole sourced to Anderson Engineering. The award was made on May 1, 2019, in the amount of $121,720.63, to include both SSS and CPS. This sole source contract was awarded to the original design firm. The award amount of $121,720.63 was less than the IGCE amount of .

4. Project # 662-626 Renovate and Expand Locked Psychiatric Intensive Care Unit for Patient Privacy (PICU) Minor, San Francisco VAMC: NCO 21 awarded the design contract for this project to Polytech Associates, Inc. (Polytech). The design was completed in 2018, however additional changes were requested by the VA of Polytech in June of 2019. The site determined not to move forward with CPS through Polytech and requested that PCAC procure these services through one of the existing NCO 21 AE IDIQs. Only one of the thirteen IDIQ holders responded to the solicitation request. The IGCE for this project was

, which was in line with the CPS pricing from Polytech’s original contract. The scope

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Acquisition ID#: 36C77624R0128 included construction document familiarization of the AE with all the current documents from the original designer, SSS, and CPS to include attendance at the pre-construction conference, review of submittals and RFIs, 40 site visits, review of change orders, commissioning of the HVAC systems and record drawings. The task order was awarded to MA Architects on August 27, 2019, in the amount of $528,577. This contract was awarded to the only design firm willing to take on the previous design firm’s liabilities. The award amount of $528,577 was greater than the IGCE amount of .

5. Project # 438-460 Construct New SPS Minor, Sioux Falls VAMC: The original design for this project was awarded by NCO 23 against one of their existing AE IDIQs to Four Front Design.

The task order did not include SSS or CPS. The design was completed in September of 2020 and the requirements for the construction procurement were sent to PCAC in the Spring of 2021. The site requested that PCAC go out and compete the requirements against the existing NCO 23 AE IDIQs, instead of continuing with the original designer of record. The IGCE provided by the site was in the amount of . The scope of work included the AE reviewing the 100% drawings and specifications prior to the construction solicitation phase and to issue any supplemental drawings, addendums, revised sheets and specifications to resolve issues uncovered in the plan review phase. The anticipated period of performance for the plan review service is 30 calendar days. The scope also included SSS (performance period 90 calendar days) and CPS, that consisted of shop drawing review, answering contractor RFIs, providing change order documents, construction observation site visits (at least 11), record drawings, revit model generation, and a red-line set of construction documents. The POP for the CPS is scheduled to be 400 calendar days. The total period of performance was 520 calendar days.

The AE that selected after evaluations was Anderson Engineering of Minnesota. After several months of negotiations, a task order was awarded to Anderson Engineering on September 2, 2021, in the amount of $326,692. This contract award amount of $326,692 was less than the IGCE amount of However, the final value of the award became which was greater than the IGCE amount of as outlined below.

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Based on the information above, when pricing is received from the original AE of record, it will be more in line with the IGCE. When another AE takes on the responsibilities of the previous design firm of record, pricing tends to be much greater than the IGCE. The concerns of taking over a previous firm’s design during the SSS and CPS stage would account for this price increase.

Furthermore, utilizing the past pricing received from the AE that was part of the original design, the CO expects the COR's estimate to be in-line with Spur's pricing and ultimately 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 techniques used to identify potential sources for this (EHRM) requirement include contacting knowledgeable individuals in Government and Industry regarding market capabilities to meet requirements, querying the Veteran Small Business Certification (VetCert) at Veteran Small Business Certification (sba.gov), review and comparrision of historical data, and posting a Notice of Intent to Sole Source.

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

It is recommended that a sole source award be made to Spur Design, LLC., a Service Disabled Veteran Owned Small Business (SDVOSB) concern that has completed the design portion of this requirement. A sole source award to Spur is in the government’s best interest to successfully complete the SSS and CPS for this requirement as they possess all institutional knowledge regarding this project.

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

The following AE firm expressed interest in this project:

Patriot Group Construction LLC 1004 W. Hurd Road Monroe, Michigan 48162 Unique Entity ID: D1YELENXFND7

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 Lexington VA Health Care System – Franklin R. Sousley (Leestown) Campus and VHA PCAC will compete future projects on the open market using the procedures established in FAR Subpart 36.6 for AE procurements.

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,