Justification and Approval Document 36C25922C0048_1.docx

Request for SDVOSB/VOSB Sole Source Justification Format >SAT

GENERAL INFORMATION

SOLICITATION NUMBER*

BASE NOTICE TYPE

Network Contracting Office

NCO 19

6162 South Willow Drive, Suite 300 Greenwood Village CO 80111

POINT OF CONTACT*

Contract Specialist Heather Clemons heather.clemons@va.gov 303-712-5772

AWARD INFORMATION

MODIFICATION NUMBER

LINE ITEM NUMBER

AWARDEE ADDRESS LINE 1*

AWARDEE ADDRESS LINE 2*

AWARDEE ADDRESS LINE 4*

ADDITIONAL INFORMATION

AGENCY’S URL

URL DESCRIPTION

AGENCY CONTACT’S EMAIL ADDRESS

EMAIL DESCRIPTION

Justification and Approval Notice Justification and Approval Notice

DESCRIPTION

Justification and Approval Notice

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-21-AP-4899 RPOW Tracker # 2022-01-24T11:17:42

1. Contracting Activity: Department of Veterans Affairs, Network Contract Office 19, Services 4 Contracting team (6162 South Willow Drive, Suite 300 Greenwood Village, Colorado 801111) on behalf of Engineering Department, Grand Junction VA Medical Center (2121 North Ave, Grand Junction, CO 81501).

2237: Assurance of Funds email received on January 11, 2022 from Bradley McCollam, Capital Asset Manager, Grand Junction VA Medical Center.

2. Nature and/or Description of the Action Being Approved: This is a request for a new sole sourced, firm – fixed price award to a Service-Disabled Veteran Owned Small Businesses (SDVOSB).

The CO’s determination whether to make a sole source award is a business decision wholly within the discretion of the CO. A determination that only one SDVOSB concern is available to meet the requirement is not required.

The proposed business SGJV, LLC is a SDVOSB company.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This procurement is for the rental of two mobile boilers, to include maintenance, services, inspection, testing per EPA, BEI, and VA standards, and the rental of one control room trailer. These mobile boilers and control room will serve as the boiler plant for the duration of design and construction of the permanent boiler plant. Mobile boilers are currently on site and functional, to remove them would endanger the facility’s ability to provide steam to the Main Hospital. Steam is required to maintain operational status of the hospital functions including surgeries, sterilization, cooking, and heating. The current boilers are 11 years past their operational life space and must be replaced. Temporary boilers are the only means to maintain hospital operations during the boiler replacement project. The mobile boilers fill a Veteran’s Health Administration (VHA) requirement to maintain N+1 on boiler capacity to reduce the risk of ever being without steam. There is no way to maintain steam production the current plant during the boiler replacement project. These mobile boilers and control trailer are needed until the completion and startup of the newly renovated permanent boiler plant.

The estimated period of performance is for the Base year with one (1) optional year. The total cost estimate for the full two years of the contract is $1,583,250.00.

FAR 52.217-8, Option to Extend Services for not longer than six (6) months will be included in the contract. If exercised, the estimated cost for a six (6) month extension will be approximately $394,500.00.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified 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 is a sole source acquisition in accordance with 819.7007. In accordance with VAAR 819.7007, sole source awards to Service-Disabled Veteran Owned Small Businesses (SDVOSB), the Contracting Officer (CO) may award contracts to SDVOSB concerns on a sole source basis provided:

· The anticipated award price of the contract, including options, will not exceed $5 million

· The requirement is synopsized in accordance with FAR part 5

· The SDVOSB concern has been determined to be a responsible contractor with respect to performance

· Award can be made at a fair and reasonable price

The CO’s determination whether to make a sole source award is a business decision wholly within the discretion of the CO. A determination that only one SDVOSB concern is available to meet the requirement is not required.

The proposed vendor SGJV, LLC is authorized and vetted by the manufacturer of the boilers to perform maintenance on the boilers.

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 subpart 5.2 and, if not, which exception under 5.202 applies:

The contracting officer’s determination to make a sole source award is a business decision wholly within the discretion of the contracting officer. To ensure that opportunities are available to the broadest number of verified SDVOSBs, this authority is to be used judiciously and only when in the best interest of the Government.

The market research, which included issuing a sources-sought (36C25922Q0081) on Contract Opportunities via betasam.gov resulted in one (1) Veteran Owned Small Business (VOSB) expressing interest in the acquisition and that they can provide the requested items via the Open Market, however, are not vetted and approved by the boiler manufacturer to provide maintenance on the boilers.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The final contract price will be fair and reasonable by a comparison of historical pricing for similar services. Market research to compare the prices offered to the price paid during contract (36C25921N0078) shows that the price being paid by the government is fair and reasonable for this procurement in accordance with FAR 13.106-3(a) and FAR 13.5.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The Contract Specialist searched eCAT, Mandatory Strategic Contract List contract, and SAC contracts but no contractor was found that could fulfill the requirement.

A search of GSA, VetBiz (VIP) and SBA Dynamic Small Business Search yielded zero contractor’s that could fulfill the requirement.

SGJV has met the eligibility criteria outlined in VAAR 819.7003, they are verified in VIP and the action is below the $5M threshold.

Market Research also included an examination of the acquisition history of this service at this hospital and other VA hospitals. The Grand Junction VA Western Colorado Health Care System (WCHCS) went through the competitive process in April 2020 to award the current contract. The boilers now on station are owned by the manufacturer and thus there are limited firms who could provide the maintenance and repair on equipment not owned by the VA.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None. In accordance with authority under 38 USC 8127(c), Small business concerns owned and controlled by veterans: contracting goals and preferences, (c) Sole Source Contracts for Contracts Above Simplified Acquisition Threshold. - For purposes of meeting the goals under subsection (a), and in accordance with this section, a contracting officer of the Department may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if - (1) such concern is determined to be a responsible source with respect to performance of such contract opportunity; (2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and (3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

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

T&T Technologies, Inc, who is not vetted nor approved by the boiler manufacturer to perform maintenance on their boilers.

The proposed vendor SGJV LLC is authorized and vetted by the manufacturer of the boilers to perform maintenance on the boilers.

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: This requirement is being conducted as a SDVOSB sole source with a base plus one (1) optional year. This requirement is to support the installation of the new boiler plant for Grand Junction VA medical center. The new boiler plant is to be completed in an estimated 530 days.

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.

Assistant Chief Engineer VA Western Colorado Health Care System

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.

Contracting Officer NCO 19, Services 4

b. VHA NCO 19 DOC 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 for other than full and open competition.

Albert Williams Date Director of Contracting

NCO 19

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 for other than full and open competition.

Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) VHAPM Part 819.7007/7008 Page 7 of 7 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020