LSJ ARUP Interim Final signed.pdf

VHAPM Part 808.405-6 Limiting Sources Page 1 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C259-20-AP-4508 JOFOC Tracking Number: 2021-03-10T06:10:48

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 19, 6162 South Willow Drive, Suite 300, Greenwood Village, CO 80111

Organizational Activities: PURCHASE REQUEST (2237):

a. VA Montana Health Care System 436‐21-3-112-0202 1892 Williams St, Fort Harrison, MT 59636

b. Cheyenne VA Medical Center (VAMC), 442‐21-2-054-0013

2360 E Pershing Blvd, Cheyenne, WY 82001

c. VA Eastern Colorado Health Care System 554‐21-1-023-0074 1700 N Wheeling Street, Aurora, CO 80045

d. VA Western Colorado Health Care System 575‐21-2-035-0225

2121 North Ave, Grand Junction, CO 81501

e. Eastern Oklahoma VA Health Care System 623‐21-1-074-0023 1011 Honor Heights Dr., Muskogee, OK 74401

f. Oklahoma City VA Health Care System 635‐21-1-114-0008

921 NE 13th St, Oklahoma City, OK 73104

g. VA Salt Lake City Health Care System 660‐21-3-098-0007 500 Foothill Blvd, Salt Lake City, UT 84148

h. Sheridan VAMC, 1898 Fort Rd., Sheridan, WY 82801 666‐21-3-113-0050

2. Description of Action: This acquisition is conducted under the authority of the Multiple‐ Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). The proposed action is a request for approval for a sole source award to the incumbent contractor, ARUP Laboratories, for Off‐site Reference Laboratory Testing and Analysis Services. This will be a firm-fixed price FSS BPA (Blanket Purchase Agreement) against 36F79720D0079.

Order against: FSS Contract Number: 36F79720D0079

Name of Proposed Contractor: ARUP Laboratories

Street Address: 500 Chipeta Way

City, State, Zip: Salt Lake City, UT 84108

Phone: 801-583-2787

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3. Description of Supplies or Services:

The estimated cost of the proposed action is $1,952,700.00 for a one-year interim BPA.

This requirement is for Off‐Site Reference Laboratory and Analysis Testing Services which includes pickup and transport of specimens, analytical processing as defined in its laboratory manual, analysis, reporting of analytical results and interpretation for clinical and anatomical pathological specimens. The incumbent contractor, ARUP, will continue to provide a wide range of testing services in the specialized testing areas of hematology, chemistry, coagulation, microbiology, molecular, genetics, virology, clinical interpretation, cytology and anatomic pathology, oncology, and in specialized pathology support.

This urgent sole source BPA will serve as an interim contract with a performance period of April 1, 2021 through March 31, 2022 to continue services without interruption and maintain critical patient acre until a new, long-term BPA is awarded. The current BPA expires on March 31, 2021 with no extensions available, leaving insufficient time to properly solicit and award.

(4) IDENTIFY THE AUTHORITY AND SUPPORTING RATIONALE, AND IF APPLICABLE, A

DEMONSTRATION OF THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS TO PROVIDE THE

REQUIRED SUPPLY OR SERVICE.

An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays. This requirement has unique reasons in supporting urgent and compelling:

Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized;

With a required start date of April 1, 2021, there is only one vendor currently in the position to provide all the requirements of the SOW, and that is the incumbent, ARUP. Performance of this reference lab testing service is crucial to patient care and cannot be severed.

ARUP already has their testing catalog built into VA systems and the streamlined electronic ordering in place to allow maximum efficiency for VISN 19 facilities to place test orders and receive results and analysis. In addition, the proximity to the Salt Lake City VA Medical Center (SLCVAMC) allows for turnaround times unmatched by other vendors while maintaining satisfactory turnarounds times for all other VISN 19 facilities. Putting a new vendor in place would take a minimum of 4-6 months as each VISN 19 facility would have to build new testing menus for thousands of tests in their individual systems.

For the 7 VISN 19 stations that do not use ARUP as their primary reference testing lab, the needs to use ARUP as a sole source still exists due to the need of a number of tests exclusive to ARUP (whether it be via test type or methodology) including:

a. Myelin Oligodendrocyte glycoprotein (MOG) antibodies

b. Adenosine deaminase testing in CSF, pleural fluid and pericardial fluid (for tuberculous diagnosis)

c. Cancer antigen-125 (CA-125) tumor marker in body fluids

d. Free (unbound) opiate testing in urine by mass spectrometry

• VISN 19 only tests for free opiate in urine samples in toxicology

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• LabCorp testing includes both free and bound opiates, therefore VISN 19 facilities can only send method validation and regulated 6-month sample correlations to ARUP for accurate method comparisons

e. Treponema pallidum

f. Hemoglobin variant (A1C) reflex testing

g. Quantitative copper testing on tissue samples

h. Quantitative iron testing on tissue samples

With COVID 19 continuing to take up time and resources at the facility level, in addition to the implementing of the Cerner system (replacing part of VISTA), it is in the best interest of The Government to not risk an interruption to these services and award this sole source BPA to ARUP.

In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

(If FAR 8.405-6(a)(2)iii before posting. Do not include specific proprietary data. Only mention the type of equipment, procedure, etc. to show that proprietary supplies or services are being procured.)

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing. Describe the equipment/function you have now and how the new item/service must coordinate, connect, or interface with the existing system.

(5) DESCRIBE WHY YOU BELIEVE THE ORDER REPRESENTS THE BEST VALUE CONSISTENT WITH FAR 8.404(d) TO AID THE CONTRACTING OFFICER IN MAKING THIS BEST VALUE DETERMINATION:

GSA has already determined the prices of ARUP services to be fair and reasonable and the CO has requested further possible discounts from the contractor and will document those accordingly if offered. Additionally, the CO compared the latest ARUP FSS price list with that of the current contract, VA259-15-A-0058 and the prices were identical. Due to the required start date of the requirement, comparison/analysis of other potential GSA schedule holders was not conducted as any new vendor would have to undergo the months long process of gaining authorized access to the VA’s electronic test reporting system. The time it would take to find and vet a new vendor would put patient care at risk. It is, therefore, the best value to the Government is to award to ARUP as a sole source BPA.

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(6) DESCRIBE THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE HOLDERS AND THE RESULTS

OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED:

Due to the sole source status of this requirement, market research was limited to obtaining a quote from the incumbent, ARUP, and verifying through responsibility checks their ability to receive an award.

The quote came in the form of ARUP’s current FSS reference lab testing price list. The Rule of Two was considered and a search was done in VetBiz using NAICS Code 621511, PSC code Q301, and the key words “Reference Lab”. The results yielded 5 SDVOSB/VOSB vendors, but none of them have an approved electronic interface or have their testing catalogs entered into the VISN 19 facility systems.

There is a new long-term requirement being planned and thorough market research will be conducted to maximize competition to the greatest extent practicable.

(7) ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

VISN 19 has historically used 3 separate BPAs to fill their reference lab testing needs. There are already BPAs in place with LabCorp and Quest covering the next 1-2 years. However, ARUP’s ability to handle tests the other contractors don’t, as well as the SLCVAMC’s inability to switch from ARUP right now, make it a necessity to award this sole source BPA to ARUP.

(8) A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE RESTRICTED CONSIDERATION BEFORE ANY SUBSEQUENT ACQUISITION

FOR THE SUPPLIES OR SERVICES IS MADE:

As there are no current plans to move all of reference lab testing in-house, this requirement will be a need of VISN 19 for the foreseeable future. The Contracting Officer will work closely with the program offices in an effort to identify possible solutions by which this sole source requirement may be competed to the greatest extent practicable in the future. This requirement became urgent once it was learned the current WSNC (Western States Network Consortium) BPA’s were put on hold indefinitely.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

SIGNATURE DATE

Anthony Horton Medical Technologist LAB

NAME TITLE SERVICE LINE/SECTION

SLCVAMC

FACILITY

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(10) APPROVALS IN ACCORDANCE WITH THE VHAPM Part 806.3 OFOC SOP:

a. CONTRACTING OFFICER’S CERTIFICATION (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

CONTRACTING OFFICER/DESIGNEE’S SIGNATURE DATE

Ian Boettcher – Contracting officer

NAME AND TITLE

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

SIGNATURE DATE

Danny O. Freeman Director of Contracting

NCO 19

c. VHA RPO HCA REVIEW AND APPROVAL (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Curtis M. Jordan Executive Director, Regional Procurement Office West DATE Head of Contracting Activity (HCA) https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx VHAV19FreemD Typewritten Text 03/23/2021