LSJ Redacted.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: 36C261-20-AP-4042

(1) Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 21, VA Las Vegas Southern Nevada Health Care System, PR 2237: 593-20-3-895-0005

(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 Pathology and Laboratory Service at the VA Southern Nevada Healthcare System (VASNHS), 6900 North Pecos Road, North Las Vegas Nevada 89086 has a requirement for COVID-19 cost-per-test (CPT) services.

The CPT services will be provided for veterans who are patients of VASNHS and shall be for the purpose of detecting and diagnosing COVID-19 cases.

Order against: FSS Contract Number: 36F79718D0374

Name of Proposed Contractor: Fulgent Therapeutics LLC, DUNS#044316312

Street Address: 4978 Santa Anita Ave Ste 205

City, State, Zip: Temple City, CA 91780

Phone: 626.349.0569

(3) Description of Supplies or Services:

The estimated value of the proposed action is $ 6,240,000.00. (Base POP $3,120,000.00+Option 52.217-8 Extend the term of the contract $3,120,000.00)

The emergence of the COVID-19 pandemic has made it necessary to conduct CPT testing for the virus. CPT testing is currently the gold standard to determine if a patient has an active case of COVID-19. While some patients are symptomatic, others are asymptomatic. Both symptomatic and asymptomatic patients can spread the virus, and a vaccine is not yet available to combat

COVID-19.

The COVID-19 Cost per test services would include a six (6) month period of performance, with an estimated 31,200 tests. We will also include an additional six (6) month option period with

VHAPM Part 808.405-6 Limiting Sources Page 2 of 5

Revision 02 Eff Date: 02/21/2020 an additional estimated 31,200 tests under 52.217-8 Option to Extend Services Clause, in case the testing services are still needed without any interruption in service.

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays: The requirement for providing COVID-19 cost per test services for the laboratory at the VA Southern Nevada Healthcare System in Las Vegas is necessary for providing support to the VA Health Care operations in support of COVID-19 pandemic.

FAR 8.405-6(a)(1)(B): 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;

FAR 8.405-6(a)(1)(C): 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.

FAR 8.405-6(b): Items peculiar to one manufacturer:

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

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.

(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: The Contracting Officer believes this is the best value due to the pricing evaluated while conducting market research.

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Revision 02 Eff Date: 02/21/2020

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

The Contracting Officer issued a sources sought on GSA eBuy on 5/22/20 with a close date on 5/26/20. There were (7) prospective vendors that held a schedule contract with the appropriate NAICS code for this requirement. There were only (2) vendors that responded to the sources sought with the COVID-19 PCR test on their FSS schedule contract. The vendor with the lowest pricing was “Fulgent Therapeutics LLC.”

The Contracting Officer also issued a sources sought on Beta Sam Contract Opportunities on 5/26/20 with a close date on 5/28/20. Responses were received from (5) vendors. Vendors were not able to meet the needs within the scope of the statement of work or provide competitive pricing.

In addition, the Contracting Officer also conducted a VIP search and found (9) SDVOSB/VOSB vendors in the database with the appropriate NAICS: 541380/PSC code Q301 for this requirement. A sources sought was sent directly to these vendors on 6/1/2020 with a response due date of 6/2/2020. No responses were received.

(7) Any Other Facts Supporting the Justification:

Due to the full opening of the Las Vegas facility, the volume of COVID-19 testing will be too large for the laboratory located at the VA Palo Alto facility.

(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:

The market for this type of testing is in its infancy stage for the development of these tests, and as vendors realign their testing modalities, opportunities will become more abundant to allow other vendors to enter the market and provide their services thus removing restrictions.