JA - Modification to HCMC Lab Contract.pdf

OFOC SOP Revision 09 Page 1 of 4 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C263-20-AP-2760

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 23, 316 Robert St.

N., St. Paul, MN 55101, Attention: Charles Morin, Contract Specialist

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

Modification to contract 36C26318D0022 to add COVID-19 tests to support all sites within VISN 23.

Contract 36C26318D0022 is a, IDIQ, Base plus Two-year contract for lab services between the Minneapolis VA Healthcare System and Hennepin County Healthcare System. Contract 36C26318D0022 ends on 12/31/2020.

By this modification, 9,333 COVID-19 tests will be added to this contact. The contract overall maximum capacity will be increased from $985,000 to $1,700,000. The estimated usage of the contract shall be increased by $699,975.00

By this modification the following sites will be added to this contract:

Fargo VA Health Care System; Fargo, ND;

VA Black Hills Health Care System, Hot Springs, SD;

VA Black Hills Health Care System, Fort Meade, SD;

VA Nebraska-Western Iowa Health Care System, Omaha, NE;

St. Cloud VA Healthcare System, St. Cloud, MN;

Sioux Falls VA Health Care System, Sioux Falls, SD;

Iowa City VA Health Care System, Iowa City, IA;

VA Central Iowa Health Care System, Des Moines, IA

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Department of Veterans Affairs, VISN 23 has an urgent requirement to increase its capacity of COVID-19 tests. The VA’s internal capability to provide these tests are currently operating at maximum capacity; the sole use of internal VA testing capabilities would cause significant delays in COVID-19 testing results for patients at VISN 23 Healthcare Facilities.

This modification will add and estimated 9,333 tests at a cost of $75.00 per test, for a total estimated modification cost of $699,975.00. The rate of $75.00 per test was derived from the current rate charged by Hennepin County Healthcare System on this contract for this test.

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4. Statutory Authority Permitting Other than Full and Open Competition: Under the authority of 41 USC §3304(a)(1), as implemented by FAR 6.302-1, Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2.

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 Department of Veterans Affairs, VISN 23 is currently seeking to increase its capacity to provide rapid COVID-19 tests for its patients. While there are many testing providers, the VA does not have the time to compete this requirement among the various providers. Additionally, the VA is looking to reduce risk of overly depending on one testing lab by spreading its required tests out to multiple qualified testing contractors and while continuing to use internal testing capabilities. Furthermore, while the VA is sole sourcing this particular requirement, the VA’s overall plan is to get multiple contracts in place using the quickest means possible

Hennepin County Healthcare System is wholly owned by Hennepin County Government in Minnesota. They are currently providing COVID-19 testing services to the Minneapolis VA Hospital on contract 36C26318D0022. By this modification, the Hennepin County Healthcare System would agree to accept tests from all sites within VISN 23 and to increase the capacity of the current contract by 9,333 tests.

Given the urgent need for these testing services, Hennepin County Healthcare System is uniquely qualified because they are amongst the very few testing labs that are currently providing successful COVID-19 tests to VISN 23 healthcare facilities. Additionally, the geographic location between the Minneapolis VA Hospital and Hennepin County Healthcare System is such, that tests can be rapidly processed, usually in under 24 hours. This is significant because the Minneapolis VA Hospital serves the largest patient population amongst all the healthcare facilities within VISN 23.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This proposed action will be a modification to a current contract. These services will also be solicited from the Mayo Clinic in Rochester MN. It is anticipated that the VISN will utilize the entire available capacity of both facilities for the remainder of the fiscal year.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The undersigned Contracting Officer will determine fair and reasonable pricing through a Fair and Reasonable Price Determination. Additionally, the pricing for these tests have been previously negotiated. This modification will utilize the current pricing structure on this contract.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market Research was conducted during the pre-award phase of contract 36C26318D0022. The contracting officer is aware of the state of the marketplace during this national emergency. HCMC is one of only two facilities capable of performing a large enough volume of tests to fulfill the VISN-wide need for COVID-19 tests at this time. The other facility being the Mayo Clinic, which the VA currently has a COVID-19 lab testing contract with. It is

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Revision 09 Date: 04/17/2020 the expectation that the VA will purchase all the excess capacity of both providers. Furthermore, it should be noted that this is contract will support all of VISN 23, all sites will be able to order off this contract. While each facility within the VISN has its own testing capabilities, this contract will support sites that experience an increase in demand for COVID-19 tests that are beyond their capacity to support.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: COVID-19 tests are a critical need to the VA. The importance of the VA having multiple testing sources at the ready cannot be overstated.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Hennepin County Healthcare System.

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: A long-term contract for these services is currently in the concept development / pre-award phase. It is expected the VA will purchase all available capacity in the geographic area comprising VISN 23.

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.

Jill Johnson Date Health Systems Specialist

VISN 23

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.

Charles A. Hurry Date Contracting Officer – Branch Chief NCO 23, Healthcare Team One

Johnson, Jill Digitally signed by Johnson, Jill Date: 2020.04.15 15:07:15 -05'00' 4-15-2020

15 April 2020

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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.

Scott J. Petrin Date Division Chief

NCO 23