Justification Final_Redacted.pdf

Request for SDVOSB/VOSB Sole Source Justification Format >SAT

VHAPM Part 819.7007/7008 Page 1 of 5 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C256-22-AP-1245

1. Contracting Activity:

The contracting activity is the Department of Veterans Affairs, Veterans Integrated Services Network 16, Michael E. DeBakey VA Medical Center (MEDVAMC) located at 2002 Holcombe Boulevard in Houston, Texas 77030. The requisition number is 580-22-1-5161-0002.

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

Network Contracting Office 16 seeks approval under other than full and open competition to exercise an extension to Purchase Order number 3625622P0207 in accordance with Federal Acquisition Regulation (FAR) 52.217-8. Purchase Order number 3625622P0207 was a sole source firm fixed price Purchase Order awarded on November 12, 2021 in accordance with 41 U.S.C. § 1901 as implemented by FAR 13.106-1(b)(2) to Green Efficient, Inc., a Service-Disabled Veteran Owned Small Business (SDVOSB). Green Efficient, Inc. is registered in the Vendor Information Pages (VIP).

This justification supports a modification to Purchase Order number 3625622P0207 for an extension of the Purchase Order after completion of its base period and four exercised options periods which ends on January 31, 2022. The extension period is from February 1, 2022 through July 31, 2022.

FAR 52.217-8 was included in the original solicitation and in the resulting Purchase Order, however it was not evaluated at the time of award. This justification and approval supports the extension period by justifying the use of noncompetitive procurement procedures in accordance with FAR Subpart 6.3 and ensuring the extension will be exercisable at an amount reasonably determinable from the terms of the basic contract before exercising the unevaluated option.

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

The MEDVAMC requires continued elevator maintenance and repair services. Purchase Order number 3625622P0207 requires all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision and non-personal services necessary to perform elevator maintenance and repair services at the MEDVAMC campus located at 2002 Holcombe Boulevard in Houston, Texas 77030. It also provides 24-hour, seven days per week, emergency callback service, for prompt response to calls within two hours for emergency service and one hour for passenger entrapments.

The types of elevator equipment for maintenance and repairs under this Purchase Order is Otis, Matot, Montgomery, Dover, Thyssen-Krupp, Canton and Schindler. The extension includes re-roping on the first and fourth month of the option. The extension also includes per month for vandalism and damage at the fault of the Government.

The base period of performance was from November 12, 2021 through December 11, 2021. Option period one was from December 12, 2021 through January 11, 2022. Option periods two and three were two one-week option periods from January 12, 2022 through January 25, 2022. Option period four was a six-day option period from January 26, 2022 through January 31, 2022. The total value for

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Revision 03 Eff Date: 04/03/2020 the base period and all options was $253,909.16. The independent Government estimate for the extension is $605,486.00. This extension will not cause the contract to exceed the $5,000,000.00 limit on sole source contract awards under Veterans Affairs Acquisition Regulation (VAAR) 819.7007 and 38 USC § 8127(c).

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by VAAR 819.7007 and FAR 6.302-5 (Authorized or Required by Statute). Contracting Officers may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 up to $5,000,000. The specific VAAR clause is listed below:

(X) 819.7007 Sole source awards to a verified service-disabled 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):

VAAR 819.7007 permits sole source awards to SDVOSB entities based on 38 USC 8127(c) and GreenEfficient, Inc. has been determined to be a responsible source with respect to performance under the base and option periods of Purchase Order number 3625622P0207. Additionally, in accordance with VAAR 819.7003(b)(1)-(3), GreenEfficient, Inc. is an eligible SDVOSB, has certified they are small under North American Industry Classification System code 238290, and they are a verified SDVOSB within the VIP database, as confirmed by the Contracting Officer on January 21, 2022. GreenEfficient, Inc. provided a signed certification of VAAR 852.219-77 for the certificate of compliance of limitations on subcontracting for Purchase Order number 3625622P0207. The certification states GreenEfficient, Inc. will comply with the limitations on subcontracting where the contractor will not pay more than 50% of the amount paid by the Government to firms that are not Vendor Information Pages (VIP) listed SDVOSBs as set forth in

VAAR 852.219-10.

Pursuant to VAAR 819.7007 and 38 U.S.C. § 8127(c), a sole source award to a SDVOSB concern is authorized where the SDVOSB concern is determined to be a responsible source with respect to performance of the contract; the anticipated award will exceed the simplified acquisition threshold but will not exceed $5,000,000.00; and the contract award can be made at a fair and reasonable price that offers best value to the United States. GreenEfficient, Inc. is a verified SDVOSB by the Center for Veteran Enterprise (CVE) on the VIP, as confirmed by the Contracting Officer on January 21, 2022. GreenEfficient, Inc. (Data Universal Numbering System number 969026843) has performed satisfactorily on Purchase Order number 3625622P0207, as well as the previous elevator maintenance and repair contract, contract number VA256-16-C-0096, at the MEDVAMC.

FAR 17.207(f) requires that a Contracting Officer, before exercising an option, make a written determination that the exercise of the option is in accordance with the terms of the option and the requirements of FAR 17.207 and FAR Part 6. FAR 17.207(f) further states that to meet the requirements of FAR Part 6, regarding full and open competition, the option must have been evaluated as part of the initial competition and be exercisable at an amount specified in or reasonably determinable from the terms of the basic contract.

The option to extend the contract under FAR 52.217-8 was included in the solicitation but not evaluated as part of the initial competition. This document justifies the use of noncompetitive procurement procedures in accordance with 38 U.S. Code § 8127(c), as implemented by VAAR

819.7007 and FAR 6.302-5 prior to exercising the unevaluated option. The Contracting Officer will

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Revision 03 Eff Date: 04/03/2020 prepare a written determination to exercise the extension and include it in the contract file prior to executing the modification. The Contracting Officer will obtain pricing from GreenEfficient, Inc. for a specific dollar amount at the exact same rate from the terms of the basic contract. The Contracting Officer obtained an independent Government cost estimate for services on the six-month extension period under FAR 52.217-8. The quote will be evaluated prior to execution of the modification to determine the pricing fair and reasonable in accordance with FAR 13.106-3(a)(2)(vi), comparison to an independent Government estimate.

In late September 2021, Network Contracting Office 16 awarded a five-year contract for elevator preventative maintenance and emergency repair services from a competitive, total SDVOSB set-aside solicitation issued under full and open competition after the exclusion of sources. In early October 2021, our office received notification of a protest filed with the Government Accountability Office (GAO). As a result, performance under the awarded contract has been suspended during the pendency of the GAO protest which can take up to 100 days. Purchase Order number 36C25622P0207 was awarded on November 12, 2021 to provide elevator maintenance and repair services during the remaining GAO protest period. In early January 2022, a notice of withdrawal of the GAO protest was received with a notice of filing to the Court of Federal Claims (COFC). The FAR 52.217-8 extension of services will allow continued elevator maintenance and repair services for the duration of the COFC action.

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:

Prior to award of Purchase Order number 36C25622P0207 for short term elevator maintenance and repair services, a long-term contract was competed as a total SDVOSB set-aside to the open market.

After resolution of the current COFC action, services will continue under the long-term contract or as instructed from the decision.

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

Reasonable:

Prior to award of Purchase Order number 36C25622P0207, the Contracting Officer determined the price quoted by GreenEfficient, Inc. was fair and reasonable by comparing the quoted price to the independent Government estimate in accordance with FAR 13.106-3(a)(2)(vi), comparison to an independent Government estimate The Contracting Officer will obtain pricing from GreenEfficient, Inc. for a specific dollar amount anticipated to be at the exact same rate from the terms of the basic contract. The quote will be evaluated prior to execution of the modification to determine the pricing fair and reasonable in accordance with FAR 13.106-3(a)(2)(vi). The Contracting Officer will not execute the modification without a determination of fair and reasonable pricing.

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

Market Research Was Not Conducted:

Prior to award of Purchase Order number 36C25622P0207, numerous elevators were out of service and required immediate repairs. The Contracting Officer reviewed the acquisition history and the ability of GreenEfficient, Inc. to provide immediate services. GreenEfficient, Inc. had prior approved personal identification verification cards, approved fingerprints, approved business associate agreement, background checks, training and certifications to immediately provide service. Obtaining those approvals were estimated from 30 to 60 days. Due to delays with onboarding new personnel, VHAPM Part 819.7007/7008 Page 4 of 5

Revision 03 Eff Date: 04/03/2020 no follow-on market research regarding availability of sources was conducted since GreenEfficient, Inc. meets the eligibility criteria outlined in VAAR 819.7003.

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

None. Pursuant to 38 U.S.C. § 8127(c), a sole source award to a SDVOSB concern is authorized where the SDVOSB concern is determined to be a responsible source with respect to performance of the contract; the anticipated award will exceed the simplified acquisition threshold but will not exceed $5,000,000.00; and the contract award can be made at a fair and reasonable price that offers best value to the United States. GreenEfficient, Inc. is a verified SDVOSB by the CVE on the VIP.

GreenEfficient, Inc. (Data Universal Numbering System number 969026843) has performed satisfactorily under the current contract, as well as the previous contract as the incumbent.

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

Prior to award of Purchase Order number 36C25622P0207, GreenEfficient, Inc. stated they were available to immediately provide service.

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 sole source extension is a temporary measure to sustain continuous elevator operations at the MEDVAMC for the additional time necessary to complete the suspension of services on the long-term elevator maintenance and repair contract. It is anticipated future contractual actions will remain competitive.