JA - Sole Source SDVOSB_ CLE Mailroom FTE.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 5 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:__ 36C250-26-AP-4170_________

1. Contracting Activity: Department of Veterans Affairs, VISN 10, Louis Stokes VA Medical Center – Cleveland, Ohio.

Organizational Activity: Material Management Contracting Agency: Network Contracting Office (NCO 10) 2237 Number: 541-27-1-032-0002

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

The Department of Veterans Affairs intends to award a new firm-fixed-price Task Order for one (1) additional full-time equivalent (FTE) Mailroom Support Specialist to be provided by the contractor, Ricoh, in support of the Cleveland VA Medical Center Mailroom. This requirement is driven by a significant increase in workload associated with the transition to the Oracle/Cerner electronic health record system.

The contractor-provided FTE will be responsible for processing patient letters by retrieving files from designated drives, printing, operating and maintaining folding/inserting equipment, and performing routine management and basic troubleshooting of Ricoh printers and mailroom automation equipment. The FTE must be knowledgeable of existing Ricoh infrastructure, including associated hardware and software systems. The FTE must also complete required VA privacy training, sign a Confidentiality Certificate, and obtain a VA PIV Card.

This Task Order will be issued as a base year plus one 12-month option year, with a total estimated value of approximately $252,792.00. This action is a new award, not a modification to an existing contract. As this is a non-personal services requirement, the contractor shall provide all necessary supervision and oversight for the assigned FTE.

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

The Cleveland VA Medical Center requires one (1) full-time equivalent (FTE) Mailroom Support Specialist to manage increased mail processing workload resulting from the transition to the Oracle/Cerner electronic health record system. The contractor-provided FTE will be responsible for retrieving patient correspondence files from designated network drives, printing and preparing outgoing mail, and operating, monitoring, and performing basic break-fix support on Ricoh printing and mail-processing equipment. Duties include operation of mail folding/inserting machines, equipment servicing, and day-to-day oversight of printing and mailing workflows.

The FTE must possess knowledge of the current Ricoh hardware and software environment and must complete all VA privacy and security requirements, including confidentiality certification and issuance of a VA PIV Card. As this requirement is non-personal in nature, the contractor will provide management and supervision for the assigned

FTE.

The Government anticipates awarding a firm-fixed-price Task Order consisting of a 12-month base period and one (1) 12-month option period. The total estimated value for this acquisition, inclusive of the option year, is $252,792.00.

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 2 of 5

Effective Date: 12/15/2025

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):

This acquisition will be conducted in accordance with 38 U.S.C. 8127(c), which authorizes the Department of Veterans Affairs to award sole-source contracts to verified Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns when the contracting officer reasonably expects that the award can be made at a fair and reasonable price. The use of VAAR 819.7008 (DEVIATION) permits a noncompetitive sole-source award to a verified SDVOSB for actions not exceeding $5,000,000.

MicroTechnologies, LLC has been verified as an eligible SDVOSB in accordance with VAAR 819.7003 (DEVIATION) and is listed as certified in the SBA Small Business Search database. The contractor has been determined to be a responsible source capable of meeting all requirements of this acquisition.

A determination that only one SDVOSB can meet the requirement is not required under this statutory authority.

The authority itself permits a direct award to a responsible SDVOSB at a fair and reasonable price.

MicroTechnologies, LLC is an authorized distributor and supplier for Ricoh and possesses the required technical understanding of Ricoh’s proprietary mailroom, printing, and automation equipment currently in use at the Cleveland VA Medical Center. The requirement involves operation, basic troubleshooting, and ongoing support of specialized Ricoh hardware and software systems that integrate directly with the Medical Center’s existing mailroom infrastructure. Leveraging a contractor with authorized access, proper certifications, and established expertise ensures continuity of operations and avoids delays or performance risks associated with onboarding less familiar vendors.

Given the immediate operational demand caused by increased mail processing volume related to the Oracle/Cerner transition, and MicroTechnologies, LLC’s unique capability and established authorization to support Ricoh systems, use of the SDVOSB sole source authority under 38 U.S.C. 8127(c) and VAAR 819.7008 is justified.

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:

The contracting officer has determined that a sole-source award to a verified Service-Disabled Veteran-Owned Small Business (SDVOSB) is appropriate under 38 U.S.C. 8127(c) and VAAR 819.7008 (DEVIATION). This authority permits a noncompetitive award to a responsible SDVOSB at a fair and reasonable price and does not require a determination that only one SDVOSB can satisfy the requirement.

Recent competitive history demonstrates that market capability for Ricoh mailroom equipment, support, and related FTE services is limited. When the base Ricoh equipment and the initial FTE were procured, the requirement was https://www.va.gov/oal/library/vaar/vaar819.asp#8197008 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

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 3 of 5

Effective Date: 12/15/2025 formally competed under the NASA SEWP program as Solicitation No. 337426. The solicitation was sent to 35 SEWP contract holders to maximize competition and closed on April 4, 2025. Despite broad dissemination, only one quote was received—from MicroTechnologies, LLC. SEWP competition procedures satisfy full and open competition requirements under FAR 5.202(a)(6) and FAR 6.102(d)(3).

Additionally, VA’s Office of Information and Technology awarded Task Order 36C10B26F0091, a Governmentwide Acquisition Contract (GWAC) action for Ricoh hardware and support, using SEWP competitive procedures. This solicitation also resulted in only one responsive quote, submitted by MicroTechnologies, LLC. This further demonstrates the limited number of authorized vendors capable of supplying or supporting Ricoh infrastructure required by VA facilities.

Since these competitions occurred within the last 18 months, they constitute current and valid market research under FAR 10.002(b)(1) and RFO Part 10, indicating that MicroTechnologies, LLC is consistently the only SDVOSB source with the necessary Ricoh authorization, capability, and experience to satisfy VA’s requirements.

A Sources Sought notice was not issued for this action because the statutory authority of 38 U.S.C. 8127(c) and the corresponding implementing regulation, FAR 6.302-5, permit a direct SDVOSB sole-source award. In accordance with FAR 5.202(a) and RFO 5.101(b)(1), public synopsis requirements do not apply when an exception to full and open competition is authorized by statute.

Use of this authority ensures continuity of operations and supports immediate workload increases driven by the Oracle/Cerner transition while maximizing opportunities for verified SDVOSBs in accordance with VA’s procurement priorities.

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

The Contracting Officer will determine the final price to be fair and reasonable in accordance with FAR 15.404-1(b).

Pricing for similar Ricoh equipment, support services, and mailroom personnel has previously been evaluated through multiple competitive actions under NASA SEWP. Solicitation No. 337426 and GWAC Task Order 36C10B26F0091 were competed among SEWP contract holders and produced only one responsive quote from MicroTechnologies, LLC.

These SEWP competitive actions represent full and open competition under FAR 5.202(a)(6) and FAR 6.102(d)(3), and the VA Technology Acquisition Center (TAC) determined the resulting pricing to be fair and reasonable.

NASA SEWP performs price reasonableness evaluations at the contract level, which means pricing submitted by contract holders is considered fair and reasonable for the base contract. However, in accordance with FAR 15.404-1(a)(1), the ordering Contracting Officer retains responsibility for determining price reasonableness at the Task Order level. The prior fair-and-reasonable determinations made by the awarding CO for the initial Cleveland Ricoh support contract further support the use of existing pricing as a benchmark for this action.

For the current requirement, the only anticipated cost driver is potential variance in Service Contract Act (SCA) Wage Determinations across the Cleveland, Dayton, and Indianapolis VA Medical Centers. The CO will evaluate the applicable SCA Wage Determinations for each location to determine whether any proposed price adjustments are justified based on locality wage differentials, in accordance with FAR 22.1002-2 and FAR 22.1006. Any increase requested by the contractor will be reviewed to ensure alignment with mandatory SCA labor rates and to confirm that any locality-based adjustment is reasonable and properly supported.

The CO will also compare the contractor’s proposed pricing to the Independent Government Cost Estimate (IGCE), historical pricing from the existing Task Order, and relevant VA awards for similar Ricoh support services. If necessary, VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 4 of 5

Effective Date: 12/15/2025 the CO may request additional supporting documentation from the contractor to validate labor rates and ensure compliance with FAR 15.403-3.

Based on prior competitive price history, established SEWP labor rates, the VA TAC’s fair-and-reasonable determination for related Ricoh support contracts, and forthcoming analysis of locality-based SCA Wage Determinations, the Contracting Officer anticipates that the final negotiated price for this Task Order will be 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 conducted in accordance with FAR Part 10, VAAR Part 810, and VHAPG Part 810.001. The Government reviewed recent procurement history for Ricoh mailroom equipment, support services, and associated FTE requirements to assess current market capability. This included analysis of NASA SEWP Solicitation No. 337426 and GWAC Task Order 36C10B26F0091, both of which were competed among multiple SEWP contract holders and resulted in only one responsive quote from MicroTechnologies, LLC. These competitive outcomes indicate limited industry availability of contractors authorized to supply or support Ricoh infrastructure within VA environments.

The Government also reviewed the Small Business Administration’s Small Business Search (SBS) database to verify the SDVOSB eligibility of MicroTechnologies, LLC, confirming they meet all requirements under VAAR 819.7003 (DEVIATION). Market research verified that MicroTechnologies, LLC is currently a certified SDVOSB and an authorized Ricoh distributor capable of supplying the specialized support required for this follow-on Task Order.

This aligns with RFO 19.101(a)(2)(i), which designates SBA as the certifying authority for SDVOSB and VOSB status.

Market research further identified that the original pricing associated with the CLV Ricoh support requirement and the TAC award under Task Order 36C10B26F0091 were previously determined to be fair and reasonable. This information provides a valid basis for price comparison under FAR 15.404-1(b)(2). Additionally, the Government reviewed applicable Service Contract Act (SCA) Wage Determinations for Cleveland, Dayton, and Indianapolis VA Medical Centers to assess potential locality-based labor cost impacts.

Overall, market research demonstrates that MicroTechnologies, LLC remains the only known SDVOSB with verified Ricoh authorization and the technical capability to provide qualified personnel who can support the existing Ricoh infrastructure without disruption. Market conditions, recent competition results, vendor capability, and SDVOSB eligibility collectively support the use of the SDVOSB sole-source authority under 38 U.S.C. 8127(c).

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

None. This action is being pursued under the statutory authority of 38 U.S.C. 8127(c), which permits a sole-source award to a verified Service-Disabled Veteran-Owned Small Business (SDVOSB) when the contracting officer reasonably expects the award can be made at a fair and reasonable price. No additional facts are necessary to support the use of this authority.

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

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Effective Date: 12/15/2025

No additional sources expressed written interest in this acquisition. Market research and recent competitive SEWP actions (Solicitation No. 337426 and Task Order 36C10B26F0091) indicate that MicroTechnologies, LLC was the only vendor to submit a responsive quote for similar Ricoh equipment and support services. No other SDVOSB vendors submitted written inquiries or responses for this requirement.

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:

At this time, no barriers to competition have been identified that can be reasonably removed by the Government. The requirement for Ricoh-specific mailroom support services is directly tied to proprietary Ricoh hardware, software, and workflow configurations already implemented at the Cleveland VA Medical Center. Only authorized Ricoh distributors and service providers are capable of supplying qualified personnel with the technical knowledge necessary to operate, troubleshoot, and support the integrated Ricoh mailroom infrastructure without disruption.

For future acquisitions, the agency will continue to assess market capability and monitor the availability of additional SDVOSB vendors that may obtain authorization from Ricoh or develop the capability to support VA’s Ricoh-based systems. Should additional qualified and certified SDVOSB vendors enter the market, the agency will consider competing subsequent requirements in accordance with VAAR subpart 819.70 (as implemented through DEVIATION clauses) and the VA’s Veterans First Contracting Program.

At this time, however, the agency cannot take action to further remove barriers to competition due to the proprietary nature of Ricoh systems and the requirement for vendor authorization and technical familiarity. Based on current operational needs and market conditions, a sole-source award under 38 U.S.C. 8127(c) remains the most appropriate method to ensure uninterrupted support.

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.

Mr. Jose Serrano Date Chief, Material Management Louis Stokes VA Medical Center

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.

Josh Kovar Date Contracting Officer NCO 10 Kettering https://dvagov.sharepoint.com/sites/vhapromanual/SitePages/VHAPM-Part-806.3.aspx