Justification and Approval For Other Than Full and Open Competition.pdf

VHAPG Part 806.3 OFOC Page 1 of 5 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C261-26-AP-1164

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-26-AP-1164 JOCOF Tracker: FY26 - NCO 21 - 871

1. Contracting Activity: Department of Veterans Affairs (VA), Regional Procurement

Office West (RPOW), Network Contracting Office 21 (NCO 21), on behalf of VA Sierra Pacific Network (VISN 21), VA Palo Alto Health Care System (VAPAHCS).

2237: 640-26-3-5051-0062

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

This action is for the award of a new firm-fixed-price (FFP) service contract with a one (1) base year and four (4) one-year option periods for Copper-Silver Ionization System maintenance, monitoring, and compliance testing services.

The Government intends to award this requirement on a sole source basis to Liquitech, Inc. (OEM), 421 EISENHOWER LN, S. LOMBARD, IL 60148-5706.

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

A Service contract is required to provide Copper-Silver Ionization water treatment and system maintenance at VAPAHCS. The service includes monitoring of existing Liquitech, Inc., control panels located in five buildings. Contractor will recalibrate the equipment, re-build flow cells, conduct Copper-Silver Ionization bi-monthly testing, maintain the flow cells, perform lab testing, monitor alarms and operating status. The service is critical for all buildings of the healthcare facility within patient services.

The estimated value of the proposed action, base year plus four option years is $998,039.10, as follows:

Base Year: June 1, 2026 – May 31, 2027, $199,607.82 Option Year 1: June 1, 2027 – May 31, 2028, $199,607.82 Option Year 2: June 1, 2028 – May 31, 2029, $199,607.82 Option Year 3: June 1, 2029 – May 31, 2030, $199,607.82 Option Year 4: June 1, 2030 – May 31, 2031, $199,607.82

The Government will include the option to extend the effective period of performance utilizing RFO 52.217-8, Option to Extend Services under this contract for a period not to exceed six (6) months.

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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

RFO 6.103-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by RFO 6.103-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by RFO 6.103-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by RFO 6.103-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by RFO 6.103-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by RFO 6.103-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by RFO 6.103-7;

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

OEM, Liquitech, Inc., has provided a proprietary letter stating they are the only authorized provider for service and maintenance to ensure the system works properly.

VAPAHCS has installed a unique and a highly specialized, multimillion-dollar equipment manufactured by Liquitech, Inc., for a chemical free way of killing bacteria and Legionella from domestic hot water, which is required for in-patient areas at five buildings. The technology is unique and satisfies VA directives for domestic hot water for in-patient use. As the OEM of the equipment, only Liquitech, Inc., has access to operate this highly specialized equipment. This contract is required to be awarded to Liquitech, Inc, as the only available source to provide the service.

Liquitech past performance on this requirement has been excellent.

It is in the best interest of the government to award the contract as sole sourced to Liquitech, Inc.

This service can only be provided by the OEM, Liquitech, Inc., who has proprietary access to the equipment to provide chemical free way of providing bacteria-free and legionella-free water for patients. Accordingly, Liquitech, Inc., is the only firm capable of providing the supplies and services described in Section III above without the Veteran's Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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Acquisition ID#: 36C261-26-AP-1164

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies):

A Notice of Intent (NOI), 36C26126Q0301, to Sole Source to LiquiTech, Inc. was posted to System of Award Management (SAM.gov) for this procurement on December 30, 2025. There were no responses to the NOI.

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

Fair and Reasonable:

The Contracting Officer will review and determine if the anticipated price is fair and reasonable. FAR Part 12 Open Market Award Decision Documentation Form shall detail how the Government will determine that the anticipated cost is fair and reasonable. The basis of price reasonableness will be determined based on comparison of previous awards, FAR 12.201-1 and evaluation of the Independent Government Cost Estimate (IGCE).

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

Statement of the Reasons Market Research Was Not Conducted:

Limited market research was conducted due to the proprietary letter provided by the OEM. Small Business Search (SBS) was checked under NAICS 221310, Water Supply and Irrigation Systems. Since the OEM is the authorized provider of this service, this was the most appropriate NAICS. Two Service-Disabled Veteran- Owned Small Business (SDVOSB) were identified under NAICS 221310 utilizing the Small Business Search (SBS) website. There is not a reasonable expectation that two or more qualified SDVOSB will submit an offer at a fair and reasonable price based on the OEM proprietary letter.

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

There are no other facts supporting the use of Other than Full and Open Competition.

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

LIQUITECH, INC.

421 EISENHOWER LN S

LOMBARD, IL 60148-5706

Only the OEM, LIQUITECH, INC., has expressed interest. No other companies are authorized to provide service and maintenance per the proprietary letter.

https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5

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Acquisition ID#: 36C261-26-AP-1164

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:

The Government will continue to assess the marketplace for potential alternative solutions or system replacements that may increase competition in the future.

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.

Markus Schacht Compliance Officer

VAPAHCS

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13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Cynthia E. Diezel Contracting Officer Network Contracting Office 21

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Nicholas Kluch Director of Contracting Network Contracting Office 21

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 $90 million) or approve ($900K to $90 million) for other than full and open competition.

Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) https://dvagov.sharepoint.com/sites/vhapromanual/SitePages/VHAPM-Part-806.3.aspx