JOFOC Holy Heights CNH_Redacted.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 5 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-20-AP-2338, Holly Heights Nursing Home, Inc. dba Holly Heights Nursing Care Center

1. Contracting Activity: Department of Veterans Affairs, Rocky Mountain Regional VA Medical Center, 1700 No Wheeling Street, Aurora, CO 80045. 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 Denver VA Medical Center (VAMC) to Holly Heights Nursing Home, Inc. dba Holly Heights Nursing CareCenter, located in Denver, CO. This will be a 5-year IDC (60 Months). The total estimated value of this contract is , and the estimated value of the 52.217-8 option, if exercised, would be . The period of performance will be 01 March 2021 through 28 February 2026.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for the establishment of an IDC utilizing procedures in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6. 303-2. This acquisition does not fall within FAR Part 8 Required Sources of Supplies and Services, therefore the procedures associated with limited sources justification will not be utilized.

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 36C25919P0369 expires on 28 Feburary 2021. Holly Heights Nursing Home, Inc.

dba Holly Heights Nursing Care Center, has met all requirements under VA policy/directive established by the Office of Geriatics and Extended Care. 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 .

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 5

Revision 02 Date: 08/04/2020

Competition is restricted on this procurement for the reason below:

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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 13 Veterans being treated and housed at the Holly Heights Nursing Home, Inc. dba Holly Heights Nursing Care Center facility under an existing Purchase Order contract. Holly Heights Nursing Home, Inc. dba Holly Heights Nursing Care Center nursing home facility meets VA standards for quality of care to provide care and treatment to Veterans. Holly Heights Nursing Home, Inc. dba Holly Heights Nursing Care Center nursing home facility has had a contract with the VA since 2006. They have consistently provided quality care 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 Holly Heights Nursing Home, Inc. dba Holly Heights Nursing Care Center facility.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: RFI 36C25920Q0543 was issued on 23 July 2020 and closed on 14 August 2020 with no responses received. No new CNH has expressed interest in doing business with the Government. A search of the Medicare Nursing Home Compare web found 88 Community Nursing Homes within 25 miles from the center of 80222 in the State of Colorado. Refining the search to just 5 miles from the center of the zip code of 80222, 14 Community Nursing Homes were found in the proximity to where the current CNH is located. The VA Vendor Information Page (VetBiz) was used to determine if potential offerors exist who would be able to provide the services required.

However, the site failed to produce any results for Denver, CO, 80222 zip code. 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 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.

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Revision 02 Date: 08/04/2020

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 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 88 Community Nursing Homes within 25 miles from the center of 80222 in the State of Colorado. Refining the search to just 5 miles from the center of the zip code of 80222, 14 Community Nursing Homes were found in the proximity to 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 Denver, CO. Results of the market research show there is no other CNH that expressed interest. CNH's are not competed.

Based on the CNH program requirements, the veterans preference is taken into consideration when selecting a CNH. The CNH selection is based on the Veteran needs, proximity to home/residence and family. he 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. 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 before a contract can be established.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The CNH is currently providing care for 13 Veterans in this facility who cannot be relocated due to continuity of care and medical complexity. This CNH is located near the families of the Veterans and relocation to the Veterans would cause undue stress to the Veterans and their families.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other CNH expressed interest in this acquisition. The current contractor, Holly Heights Nursing Home, Inc. dba Holly Heights Nursing Care Center, 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