Justification.pdf

VHAPG Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

Revision: 01 Effective Date: 11/15/2024 Page 1 of 3 Acquisition ID# 36C248-25-AP-4892

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: 36C248-25-AP-4892

1. Contracting Activity: Department of Veterans Affairs, VISN 8, Network Contracting

Office (NCO) 08, located in San Juan, Puerto Rico in support of station 672, VA Caribbean Healthcare System (VACHS) located at 10 Casia St. San Juan, Puerto Rico 00921. The applicabled purchase request is:

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount: The purpose of this modification is to revise the quantity for line items under contract 36C24824D0105, Bread Delivery for the VA Caribbean Healthcare System, and which is currently held by Pan Pepin, Inc., to meet the Government’s ongoing need for an adequate supply of bread. This adjustment is necessary to ensure uninterrupted nutritional support and meal preparation at VA facilities, which rely on the consistent availability of fresh bread to provide quality care to veteran patients.

The quantities will be adjusted as follows:

a. Base Period: The quantities for Line Item 0002 are hereby increased from 2,395 to 3595 units.

b. Options 1 through 4: the quantities for all line items are increased/decreased as follows:

i. Items 1001, 2001, 3001, and 4001 are increased from 15,942 to 17,098 units.

ii. Items 1002, 2002, 3002, and 4002 are increased from 2,395 to 8,736

iii. Items 1003, 2003, 3003, and 4003 are decreased from 1,046 to 218

iv. Items 1004, 2004, 3004, and 4004 are increased from 200 to 1,482

v. Items 1005, 2005, 3005, and 4005 are decreased from 50 to 0 units.

vi. Items 1006, 2006, 3006, and 4006 are increased from 200 to 1,482

Effective Date: 11/15/2024 Page 2 of 3 Acquisition ID# 36C248-25-AP-4892

This modification is considered out of scope due to several critical and unforeseen factors that were not anticipated during the original contract award. As such, this justification is provided to publicly support issuing a contract modification rather than initiating a new solicitation.

a. Implementation of VHA Directive 1171, Swallowing (Oropharyngeal Dysphagia) and Feeding Disorders was amended in November 7, 2024, after the contract was awarded. The projected quantities for bread were estimated prior to this directive being amended. Medical nutrition therapy and dietary recommendations for veterans diagnosed with dysphagia to solids have significantly changed, requiring diverse bread types based on unique dysphagia classifications. This new requirement, driven by individualized patient needs, was not anticipated in the original contract scope.

b. Activation of Hospital Incident Command System (HICS) and Unexpected Increase in Resident Population. In January 2025, the Hospital Incident Command System (HICS) was activated due to unforeseen circumstances, leading to an unexpected influx of 25 additional veterans to our Community Living Center.

c. Opening of a New Facility/Domiciliary. The new domiciliary facility opened on

July 22, 2024, and reached maximum capacity by April 2025, significantly increasing the resident population beyond initial projections. Original bread quantity estimates were based on historical inpatient data and did not consider the dietary needs of the new residents or the facility. Most domiciliary residents are placed on a regular diet by default, complying with VA Healthy Diet Guidelines (VHA Directive 1439), which emphasizes a daily fiber goal of 25- 30 grams, achievable through high-fiber bread. This dietary requirement was not included in the initial contract scope.

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used: Pan Pepin, Inc. is the incumbent contractor and has been consistent with timely deliveries of bread products that conform to the existing nutritional and dietary standards. Pan Pepin’s performance under this contract has been rated exceptional. Moreover, given the unique delivery environment in Puerto Rico and Pan Pepin's status as the incumbent supplier, it is crucial to maintain continuity of service. Transitioning to a new supplier would disrupt the timely and consistent delivery of bread, which is essential for feeding the veteran patient population properly. Ensuring uninterrupted delivery is particularly critical during the hurricane season, as any disruption could significantly impact the facility's ability to provide proper nutrition to veterans.

Effective Date: 11/15/2024 Page 3 of 3 Acquisition ID# 36C248-25-AP-4892

4. Description of market research conducted and results or statement why it was not conducted: Market research was conducted on July 02, 2024, through GSA, National Acquisition Center (NAC), and Supply Chain Master Catalog (SCMC) databases, as well as Strategic Acquisition Center (SAC) contracts to see if there are any known contract vehicles already in place but there were no results found for fresh-baked bread deliveries serving San Juan, Puerto Rico. The Federal Procurement Data Strategy (FPDS) identified two potential suppliers: Pan Pepin, Inc. (Pan Pepin) and Holsum Bakeries. At the time of competition, Pan Pepin's unit prices were significantly below those of the other interested vendor, Holsum. This competitive pricing advantage was a key factor in the original award decision. Pan Pepin’s pricing advantage is highlighted by substantial percentage differences for most items, which resulted in significant cost savings compared to Holsum. Pan Pepin was awarded contract 36C24824D0105 on September 06, 2024.

5. Contracting Officer's Certification: Purchase 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.