JnA CNH MT AP-0303 Holy Rosary_Redacted.pdf

Original Date: 08/30/17 Revision 01 Eff Date: 04/23/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW FAR 13.106-1

For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID: 36C259-20-AP-0303, CNH – Holy Rosary Healthcare Foundation, Inc.

DBA Holy Rosary Extended Care Unit

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO19), 6162 South Willow Drive, Greenwood Village, CO 80111. This action is funded by a 1358.

Therefore, there is no associated 2237.

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount: This procurement is for the establishment of a sole source Firm-Fixed Price Indefinite Delivery Contract (IDC) for Community Nursing Home (CNH) Services for the Fort Harrison VA Medical Center

(VAMC). The Holy Rosary Healthcare Foundation, Inc. is located in Miles City, MT. The period of performance will be for a 5-year IDC (60 months). The period of performance will be from 01 January 2020 through 31 December 2024. The total estimated value of this contract is $125,000.00.

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used: Currently, there are 2 Veterans being treated and housed at the

Holy Rosary Healthcare Foundation, Inc. facility under an existing purchase order. The community nursing home facility meets VA exclusion review quality of care standards to provide treatment to

Veterans. The community nursing home has had a contract with the VA since 2014. They have consistently provided quality care to our Veterans. The VA patients at this facility cannot be moved without causing undue medical hardship. An attempt to move the patients would cause a disruption in continuity of care and stress on the patients and family members if relocated to a different facility, as well as possible non-compliance with VHA Handbook 1143.2. In accordance with FAR 6.302-1 this requirement for Community Nursing Homes Services will be sole sourced to the Holy Rosary

Healthcare Foundation, Inc. Furthermore, the CNH Coordinator did not submit another CNH for this location to be considered.

4. Description of market research conducted and results or statement why it was not conducted:

A sources sought was posted on Federal Business Opportunities (FBO) on October 28, 2019 and closed on November 5, 2019; and no responses were received. A search of the Medicare Nursing

Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 1 community nursing home in Miles City, MT where the current CNH is located. The VA’s Vendor Information Page (VetBiz) was used to determine if potential offerors exist to provide additional competition. However, the site failed to produce any results for Miles City, MT. Based on the CNH program requirements, the Veterans have a say in the selection of the facility based on patient needs and proximity of the CNH to patients’ home and family. The CNH Program attempts to inspect a sample of CNHs in a given area to provide the Veteran with several choices. However, the selection of the CNH is based in part on whether the CNH has the resources available to meet the Veteran’s needs. The CNH Program Coordinator is responsible for conducting market research and required inspections to increase the number of available and qualified CNHs that can pass the Government's inspections.

5. Contracting Officer's Certification: A firm-fixed price IDC is approved in accordance with

FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. The Medicaid rates are used as the basis for pricing for CNH contracts. The https://www.acquisition.gov/?q=/browse/far/13 https://www.medicare.gov/nursinghomecompare/search.html https://acquisition.gov/far/current/html/Subpart%2013_1.html#wp1125466

Original Date: 08/30/17 Revision 01 Eff Date: 04/23/2018

Medicaid rates are established by each state based on national average. The VA Geriatrics and

Extended Care Office of the VA publish annual maximum allowable add-on percentages against the RUG IV case mix. These add-on percentages are then added to the Medicaid rate to make up the per diem rate for each level of care. The line item structure will illustrate the different RUGIV levels of care and the agreed upon add-on percentage and the total per diem rate for each level of care. Based on the agreement between the CNH and the Contracting Officer, prices for per-diem rates are determined to be fair and reasonable when the add-on percentage agreed upon by both parties is at or under the maximum allowable percentage established by VA. The add-on percentages do not change through the life of the contract. These maximum add-on percentages can be found in the Veterans Health Administration Procurement Manual Community Nursing Home SOP (Attachment 17).

Joshua Gallegos Date

Contracting Officer

Network Contracting Office 19