JOFOC 36C259-20-AP-2555 Parkmoor Village CNH_Redacted.pdf

OFOC SOP Revision 10 Page 1 of 5 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-20-AP-2555,Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care, Denver Community Nursing Home (CNH), VA Eastern Colorado Health Care System (ECHCS)

1. Contracting Activity: Department of Veterans Affairs, 6162 S. Willow Drive, Suite 300, Greenwood Village, Colorado 80111, in support of the VA Eastern Colorado Health Care System (ECHCS). This action is funded by a 1358. Therefore there is no associated 2237. .

2. Nature and/or Description of the Action Being Processed: 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 VA Eastern Colorado Health Care System (ECHCS) to Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care located in Colorado Springs, CO (El Paso County). This will be a 5-year IDC (60 Months).The period of performance for this IDC will be 01 March 2021 – 28 February 2026.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The CNH will provide all facilities and services to support short and long-term care for Veterans. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. The current contract, 36C25919P0408, expires on 28 February 2021.

Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care has met all requirements under the VHA Notice 2019-22, Community Nursing Home Program (CNHP) and VHA Office of Community Care (OCC) Field Guidebook, Speciality Programs Section 1.2, Geriartic Extended Care (GEC). Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Colorado. This will be a 5-year IDC (60 months). The period of performance will be 01 March 2021 through 28 February 2026. The total estimated value of this contract is $12,671,858.07, and the estimated value of the 52.217-8 option (6 months), if exercised, would be $1,267,185.80.

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

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

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5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Currently, there are eighteen (18) Veterans being treated and housed at the Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care under an existing Purchase Order. Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care nursing home facility meets the VA rating on quality of care standards to provide treatment to Veterans. Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care nursing home facility has had a contract with the VA since 2014. They have consistently provided this specialty care in a quality manner to our Veterans. The Veterans at this facility cannot be moved without causing a disruption in the continuity of care and undue stress to both the Veteran and family. The relocating of Veterans is not in accordance with VA policy/directive established by the Office of Geriatics and Extended Care. In accordance with FAR 6.302-1 this requirement for community nursing homes Services will be sole sourced to the Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care facility. In addition, as stated in paragraph 6 below, no responses were received from any other potential offerors regarding the sources sought notice issued for this procurement.

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

A Sources Sought announcement (36C25920Q0543) was posted on 23 July 2020 and closed 14 August 2020 and received zero (0) responses for El Paso County, CO area. A search of the Medicare.gov, SBA Small Business Dynamic Search and Vendor Information Pages was conducted. A search was conducted using Medicare.gov nursing home compare website to find homes in the Colorado Springs, CO area. There are 18 Community Nursing Homes within 10 miles of the zip code of 80917 Colorado Springs, CO. While this shows there are 18 facilities within the same area code, these facilities have not been vetted through the VA process to establish them as viable options. A search of VetBiz using zip code 80917 and the NAICS code 623110, yielded no results. A search of the SBA Small Business Dynamic Search was conducted using the NAICS code 623110 and zip code 80917 and there were no results. The CNH program requires the any new CNH considered for a contract, the CNH Coordinator must review the Medicare compare score to determine if the CNH is above or below the required score to determine if a waive is required or not required before a contract can be considered. Any required waiver should be submitted with the procurement package. As a part of the acquisition process, a CNH must provide a current state license, insurance and a copy of the state inspection. These documents are provided to the CNH Program Coordinator for review and evaluation. The CNH Coordinator will either provide a recommendation to contract or state that the CNH did not receive a recommendation to contract. A redacted J&A will be posted on Contract Opportunities.

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

Reasonable: The Medicaid rates are used as the basis for pricing the CNH contracts. The Medicaid rates are established by each state based on national average. The VA Geriatrics and Extended Care Office through the VHA PM and VA pulse publishes an annual maximum allowable percentage that are applied to each RUGS IV category. The RUGS IV category identify the different levels of treatment. The add-on percentages are added to the basic Medicaid rate then applied to each RUGS IV category. The Medicaid rate and the VA add-on percentage make up the per diem rate paid for each Veteran. The line item structure will illustrate the different RUGS IV category and the add-on percentage and the total per diem rate for each level of care. After conducting research on the current Medicaid and RUGS IV rates, the CO has determined that the results are determined to be fair and reasonable when the add-on percentage agreed upon by both parties is at or under the

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Revision 10 Date: 09/10/2020 maximum allowable percentage established by VA. The add-on percentages do not change through the life of the contract.

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

Reasons Market Research Was Not Conducted: As described in Section 6 above, a search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 18 Community Nursing Homes within 10 miles of the zip code of 80917 Colorado Springs, CO where the current CNH is located. The CNH Coordinator would need to complete a clinical inspection and life safety inspection to determine if the services provided by these CNHs would meet the VA’s CNH Program requirements. A search of VetBiz using zip code 80917 and the NAICS code 623110, yielded no results. A search of the SBA Small Business Dynamic Search was conducted using the NAICS code 623110 and zip code 80917 and there were no results. A Sources Sought announcement (36C25920Q0543) was posted on 23 July 2020 and closed 14 August 2020 and received zero (0) responses for El Paso County, CO area.Typically, CNH's are not competed. Based on the CNH program requirements, the Veterans preference is taken into consideration when selecting a CNH based on the Veteran needs, proximity to home/residence and family. The CNH Program Coordinator at the Medical Center reviews the Medicare compare score of various CNH's in a given area to determine the feasibility to meet the Veterans needs. The CNH coordinator determines the number of CNH's that may be required in an area based on future needs.

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

CNH facility currently provides care to eighteen (18) Veterans, who cannot be relocated due to continuity of care and medical complexity. This CNH is located near the families of the Veterans. We would cause undue stress to the Veteran and family if we tried to relocate the Veteran.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other CNH expressed interest in this acquisition. The current contractor, Integrated Health Services at Colorado Springs, Inc, DBA Parkmoor Village Health Care has expressed an interest to continue providing CNH services to the VA and continue in providing care and services to the Veterans currently placed there.

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: There is currently only one (1) facility capable of providing the specialty care and medical needs of the existing Veterans. Based on the CNH program requirements, the Veterans preference is taken into consideration when selecting a CNH based on the Veteran needs, proximity to home/residence and family. The CNH Program usually attempts to inspect a sample of CNH's in a given area to provide the Veterans with several choices but there has been a hold on doing these in person inspections due to COVID and access restrictions. However, the selection of the CNH is determined on whether the CNH has the resources available to meet each Veteran's needs. The CNH Program Coordinator is responsible for conducting market research and required inspections to increase the number of available and qualified CNH's that can pass the Government's inspections. The contracting office and CNH Program office will continue to canvas the market for new CNH entrants capable of meeting program requirements.

https://www.medicare.gov/nursinghomecompare/search.html

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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.

Michelle Scoggin Date CNH Coordinator Rocky Mountain Regional 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.

David J. Medina Date Contracting Officer Branch Chief, NCO-19

b. NCO-19, Director of Contracting REVIEW AND APPROVAL (over $700,000 to $13.5 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve it for other than full and open competition.

Danny O. Freeman Date Director of Contracting Network Contracting Office 19 http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx VHAV19FreemD Typewritten Text 12/

VHAV19FreemD Typewritten Text 14/2020

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c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.

Curtis M. Jordan Date Executive Director, RPO West Head of Contracting Activity (HCA)