JA SOLE SOURCE.pdf

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format IAW VAAR 819.7008/9

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 1 of 4 Revision: 05 Effective Date: 12/15/2025

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition

Acquisition Plan Action ID: 36C257-26-AP-2362 | JOFOC # FY26 - NCO 17 - 1121

1. Contracting Activity: Regional Contracting Officer- West (RPO-W); Network

Contracting Office 17 (NCO 17); Department of Veterans Affairs, VISN 17, Audie L.

Murphy VA Hospital, 7400 Merton Minter, Attn: Sleep Service, San Antonio, TX

78229. PR: 671-26-3-039-0144

2. Nature and/or Description of the Action Being Approved: The Proposed action is for a firm-fixed price task order for WatchPat One Direct Sleep w/Service within the VA Medical facilities. The period of performance shall be a base year plus one

(1) 12-month option periods beginning May 15, 2026, until May 14, 2028. The requirement will be awarded to a Service-Disabled Veteran Owned Small Business (SDVOSB) on a sole source basis in accordance with 38 USC 8127 and VAAR 819.7007.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The requirement is for WatchPat One Direct Sleep w/Service located at San Antonio Veteran Affairs Medical Center (VAMC). WatchPAT One Direct Program and WatchPAT One Direct services. The WatchPAT is a device used to test Sleep Apnea and which is already being used at the South Texas VAMC. Patients are able to do this test from home and do not need to come into the facility in order to obtain this device which tests and monitors their actions during the time they sleep.

WatchPAT One Direct is a program where the device is sent directly to the patient’s home, a dedicated representative will work one-on-one with the patient on device setup as well as ongoing support, and once the sleep study is completed, the device will simply be thrown away. All information is transferred wirelessly and securely, at which point the Sleep Lab Team would retrieve the information and set up a medical care plan with the patient through either video or telephonic means. This “Direct to Patient” method completely avoids direct physical contact between the patients and hospital staff, assisting both in minimizing exposure to the COVID-19 Virus, the flu during flu season and other pathogens. Sleep study information is also received quicker because sleep staff will not have to wait for the patient to bring in the equipment. Additionally, there will also be no need for track non-expendable (accountable) equipment because once the sleep study is complete, the patient may simply throw the item away. The estimated total contract value is $876,000.00 (including Option periods). In addition, FAR Clause 52.217-8 will be included in the contract which allows the government to extend services without negotiating short extensions.

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4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by RFO 6.103-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR 819.7009 (DEVIATION)- up to $5,000,000. Check the specific VAAR clause used below:

( x ) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business; or ( ) 819.7009 Sole source awards to a certified 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): In accordance with 38 USC 8127, Veterans First Contracting Program, and VAAR 819.7007, Contracting may award contracts to SDVOSBs if the anticipated award price will not exceed $5 million, the SDVOSB is determined to be a responsible contractor and if the award can be made at a fair and reasonable price.

The anticipated awardee, VHSS, is a verified SDVOSB who has provided WatchPat One Direct for Sleep w/Service at San Antonio VA in previous years and has done so at a satisfactory level. Pricing has been deemed fair and reasonable based on previous procurement history. The intended awardee has the resources to meet the government’s needs.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by RFO 6.301 and, if not, which exemption under RFO 5.101(b)(1) applies:

SBA VetCert searched NAICS 334510 resulted in 421 SDVOSB and 446 VOSB.

Based upon NMR decision tree this requirement should be posted as unrestricted but because this is a sole source requirement it will be awarded to SDVOSB VHSS.

Customer submitted Over SAT JA that specifically states the only one vendor that can provide the items needed are SDVOSB VHSS, which these items are the only compatible items with the service that integrates with the VA network that’s already in place. The WatchPAT One device, which we currently use, seamlessly integrates our existing VA-approved electronic health record (EHR) and patient data management systems, Computerized Patient Record System (CPRS) and Somnoware, these platforms, ensure efficient data transfer, streamlined workflow, and secure storage of patient sleep study results. This integration is critical for maintaining continuity of care, timely provider review, and compliance with VA national standards for sleep diagnostics. Itamar Medical provided a signed “Authorized Distributor” document that states the following, “Veterans Healthcare Supply Solutions, Inc., located at 2615 Port Industrial Dr., Unit 405, Jacksonville, FL 32226, is the only authorized Service-Disabled Veterans Owned Small Business Distributor for Itamar products with regards to Itamar’s contract with the Department of Veterans Affairs.” IAW 38 USC 8127, Veterans First Contracting Program, and https://www.va.gov/oal/library/vaar/vaar819.asp#8197008 https://www.va.gov/oal/library/vaar/vaar819.asp#8197009 https://www.va.gov/oal/library/vaar/vaar819.asp#8197009 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-6#FAR_6_301 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5#FAR_5_101

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VAAR 819.7007, Contracting may award contracts to SDVOSBs if the anticipated award price will not exceed $5 million.

Furthermore, in accordance with RFO 5.301, the award notice for this action will be synopsized on the Contract Opportunities website (www.Sam.gov) and this justification will be made publicly available within 14 days of award.

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

Pricing has been deemed fair and reasonable based on previous procurement history and the Independent Government Cost Estimated. Further price analysis, to include a comparison to historical and published prices, will be conducted and subsequent negotiations will be held as necessary. Additionally, price discounts will be sought.

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

Statement of the Reasons Market Research Was Not Conducted: Based on market research it has been confirmed that there are not two or more SDVOSB, Veteran owned small business (VOSB), or other small business concerns capable of meeting the full requirement. Therefore, this action cannot be set-aside for SDVOSB, VOSB, or any other socioeconomic group. In addition, VA Subject Matter Experts regularly review industry trade publications and conduct internet research to stay current market conditions. Based on the market research efforts, the Government's technical experts have determined that only VHSS can meet all of the Governments requirements. As a result, the requirement will be awarded as a Sole source to a VHSS (SDVOSB).

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

None; IAW 38 USC 8127, Veterans First Contracting Program, and VAAR 819.7007, Contracting may award contracts to SDVOSBs if the anticipated award price will not exceed $5 million.

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

1. VHSS, SDVOSB

Only SDVOSB VHSS can provide the certified staff, and preventative maintenance needed for this contract action.

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 continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

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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.

Johnny Petteway Date Supervisory Management Analyst

STVHCS

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.

Tommy Haire Date Contracting Officer

NCO 17

b. One Level Above the Contracting Officer (Required over $350K but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

James C. Easley Or Acting on Behalf Date Branch Chief

NCO 17

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