N16-21-54 36C256-21-AP-2823 SS JA PKG-Ormond CNH_SIGNED.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: 36C256-21-AP-2823

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:_36C256-21-AP-2823

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO 16) and

Southeast Louisiana VA Health Care System (SLVHCS) 2400 Canal Blvd., New Orleans, LA 70119.

The 1358 funding and payment process will be utilized.

2. Nature and/or Description of the Action Being Processed: This is a justification and approval for Other Than Full and Open Competition to establish a follow on Community Nursing Home to service veteran patients of the Veterans Healthcare System of SLVHCS that currently reside in St. Charles Parish near New Orleans, LA. will have a five-year ordering period that will be reviewed annually prior to new funding being applied at the discretion of the government.

3. Description of Supplies/Services :

This procurement is for Community Nursing Home (CNH) Services in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items. The IDC contract will have one (1) five (5) year ordering period beginning September 1, 2021 through August 31, 2026. The anticipated cost over the five year period is $4,955,970.00.

PL 88-450, PL 106-117 and 38 USC 1720 create the expectation that qualified veterans will receive Community Nursing Home (CNH) services in their community. The SLVHCS provides care to veterans whose primary residence is a nursing home; the Veterans Health Administration (VHA) has a policy that nursing home care may be provided in licensed nursing facilities at the Department of Veterans Affairs (VA) expense.

The VA Community Nursing Home (CNH) Program is designed to assist Veterans and their families in making the transition from an episode of hospital care, nursing home care, or domiciliary care to the community. The primary goal of the CNH Program is to maintain or restore the Veteran to the highest level of health and well-being attainable.

The CNH Program has two cornerstones: some level of patient choice in choosing a nursing home in close proximity to their home and family; and an approach to local oversight of CNHs consisting of annual reviews and monthly patient visits. Following this approach, the VAMC has established contracts in various areas throughout the VISN.

This facility needs to be located in a proximity to the veter Contractor is to provide nursing home care in accordance with the VHA Community Nursing Home Procedures specified in VHA Handbook 1143.2. The facility has to meet all state licensing requirements including the state requirement pertaining to level of medical liability insurance throughout the 5 year period of performance of September 1, 2021 through August 31, 2026.

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the C Unique Qualifications or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority):

The primary goal of the VAMC is to maintain or restore the Veterans to the highest-level well-being, while assisting Veterans and their families in making the transition from an episode nursing home care to the community, therefore changing facilities at this time is not in the best interest to the Veterans. The current vendor Community Care Center of Destrehan, LLC is the only source in St.

Charles Parish Louisiana at this time that can provide the service without causing current patients to be relocated to a different facility. Currently there are a minimum of (10) ten patients residing in the facility at any given time. The patients residing in the facility receive proper care and treatment from the facility and the facility is located near family and friends of the residents. Relocating the residents to a different facility outside the Destrehan, LA area would cause an undue burden on their families due to increased travel time and costs associated with traveling to a facility outside the Destrehan, LA area.

A search of VA website for Veteran population data shows that there are currently 4,000 veterans located in St. Charles Parish, LA as of May 15, 2021, which demonstrates a continual need for nursing home services to serve this population. In addition, a five-year contract would provide continual coverage for veterans but the Contracting Officer would evaluate through market research annually to determine if other facilities in the area are capable of providing services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This nursing home is in a rural area. There are currently 10+ Veterans that have long-term placement in this nursing home that would result in undue hardship if the contract is lost as Veterans would be farther away from family.

Sources Sought Synopsis: A Sources Sought synopsis (36C25621Q0886) was issued to www.beta.sam.gov Contracting Opportunities site on May 6, 2021requesting potential sources having the skills and capabilities necessary to provide the appropriate level of Community Nursing Home (CNH) care to the beneficiaries the Department of Veterans Affairs, Southeast Louisiana Veterans Healthcare System respond to the notice on or before May 18, 2021. No responses were received.

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

Other Actions: Searches of the Medicare Compare site will be conducted quarterly in order to determine if any new nursing home facilities enter the market place within the catchment area. An Open and Continuous solicitation for Louisiana is being formaulated with plans to issue in first quarter of FY 22. The CO will continue to monitor and reach out to potential sources as they become available. To date, efforts to identify sources in this rural area have been unsuccessful.

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

The anticipated value of the contracted services over the five year period is estimated at $4,955,970.00. The Medicaid rates that will be paid under the IDC are determined by law and regulation. The negotiated rates are required to be within the guidelines established in VHA Handbook 1143.2. This negotiated percentage to the State Medicaid Rate (SMA) rate is expected to remain constant throughout the life of the contract and is changed only when state Medicaid rates are adjusted and will be modified in accordance with the economic Price Adjustment clause when necessary. Any modification to the rate will be in accordance with the Medicaid Rate set by law. The prices offered will be determined fair and reasonable by the CO prior to award based upon the published rates and negotiated percentages.

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

Market Research Was Not Conducted:

Market research is dependent on the needs of the patients and resources of the VA Medical Center. It is customarily performed by the Social Worker and the CNH Review Team so that agreements are established to maximize patient care needed to fulfill this type of contract. Substantial efforts were made to identify the top-quality facilities in the geographical area by communicating with networking professionals. The program office personnel queried the Nursing Home Compare website to determine the availability of nursing homes in the subject area. It was determined that there were no other Nursing Homes in a geograph friends.

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

Ormond Nursing and Care Center of Destrehan, LLC has been providing consistent care to veterans in this geographical area for more than 10 years. It employs many local people who have known many of their residents and families for many years. It has been surveyed annually by the SLVHCS Survey team and whatever deficiencies that were noted have been corrected in a timely manner each year. The CNH Coordinators have retained the survey reports for this facility for the past several years.

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

See Section 6 above

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:

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 4 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

Should other sources for these types of services be needed in this facility, the VA will perform a search to try to locate such a contractor that can best fulfill the needs of our Veterans and their families.

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.

Stephen Picchi Date Contract Nursing Home Coord.

SLVHCS

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

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

Toni A. Clendenen Date Contracting Officer NCO 16/Heathcare Services Branch A

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 5 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Bennett Smith Date NCO16, Branch Chief Healthcare Services Branch A

c. Two Levels Above the Contracting Officer (Required over 750K but not exceeding $68 Milliom): I certify the justification meets requirements for other than full and open competition.

Aaron Villalpando Date NCO16, Director of Contracting

d. 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 approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Date

Terry L Spitzmiller Executive Director Regional Procurement Office Central (VHA)

8/24/2021

AARON

VILLALPANDO 178014

Digitally signed by AARON

VILLALPANDO 178014

Date: 2021.08.24 07:35:08 -05'00'

VHATVHSpitzT Typewritten Text 08/24/2021

Attachment 1, FAR Parts 8/13.5/14/41 Acquisition Plan

For Official Use Only/Source Selection Sensitive Acquisition Planning SOP Page 1 of 3 Revision: 11, Effective Date: 03/02/21

VA256-21-AP-2823 TITLE Nursing Home Services BACKGROUND INFORMATION: Southeast Louisiana VA Healthcare System has a requirement for nursing home services in the St. Charles Parish Catchment area. Nursing home facilities in the CNH program shall ensure that care meets the health needs and promotes the maximum well-being of VA patients. Nursing home care will be furnished to ensure the total medical, nursing, and psychosocial needs of VA beneficiaries. All nursing home facilities in VA's CNH program must have current Center for Medicare and Medicaid Services (CMS) certification (Medicare and/or Medicaid) and a State nursing home license.

1. DATE PREPARED: 08/12/2021 2. PREPARED BY: Toni A. Clendenen

3. DESCRIPTION OF REQUIREMENT: Community Nursing Home Services

4. PRODUCT OR SERVICE? Service 5.NAICS/FSC/PSC: 623110/Q402

6. REQUESTOR: Toni A. Clendenen 7. PHONE NO: 601-206-7051

8. PLANNED/ACTUAL DATE SUBMITTED:

12 August 2021

9. PLANNED AWARD DATE: 09/01/2021

10. ESTIMATED TOTAL COST: $4,955,970.00 11. ESTIMATED BASE PERIOD COST: $991,194.00

12. RISKS: The overall technical risk is high; it is vital that the contractor provides a standard of care required by VHA Directives. Risk is high that contractor may refuse to contract with the government due to new minimum wage requirement of $15 per hour for all federal contractors signed by President Biden 04/27/2021.

13. OTHER CONSIDERATIONS (Contract Administration, Buy American Laws, etc): Service Contract Act, Ordering Officer Delegation post award approval

14. COMPETITIVE?

YES NO

15. REASON FOR OTHER THAN FULL AND OPEN

COMPETITION: FAR 6.302-1, Only One Source Veteran Patients are authorized to select the facility they wish to live in. Currently there are 10 veterans residing and receiving care at this location. Removing those patients would put an undue burden on the veterans and their families. Currently there are no other contracted nursing home facilities in the Bella Vista, AR Catchment area.

16. POTENTIAL SOURCES: Ormond Nursing and Care Center,

17. DESCRIPTION OF MARKET RESEARCH EFFORTS CONDUCTED OR TO BE CONDUCTED

RFI was issued to FBO 05/06/21 and closed on 05/18/2021. No responses were received from industry. Program Office conducted research for the catchment area and found two possible vendors, however only one has a compare score > 3 that meets the standard and is registered in betaSAM.gov. Luling Nursing Care is not registered in SAM and does not have the >3 compare rating and would therefore not be a responsible source nor eligible for award.

VIP Query yielded 7 entities under PSC Q402, Nursing Care Facilities however, none listed were Community Nursing Homes. No certified VOSB vendors available in catchment area. No further market research was conducted.

Acquisition Planning SOP Page 2 of 3 Revision: 11, Effective Date: 03/02/21

18. *SMALL BUSINESS PROGRAMS

*VA must be cognizant of socioeconomic set-aside considerations, including the Veterans First Contracting Program/ 38 U.S.C. 8127’s “Rule of Two.”

*See “Procurement Request and Bundling Requirements” if applicable

Service-Disabled Veteran-Owned Business Set-aside

Veteran-Owned Business Set-aside

8(a) Set-Aside

HUBZone Set-Aside Small Business Set-Aside

Women- Owned Small Business Set Aside

19. PLANNED CONTRACT TYPE: Fixed Unit Price with Economic Price Adjustment IDC

20a. COMMERCIAL ITEM OR SERVICE?

YES NO

20b. If NO, could the requirement be changed to provide for commercial item or service?

YES NO

21. IF SERVICES, ARE INHERENTLY GOVERNMENTAL FUNCTIONS INVOLVED?

YES NO N/A

22a. SUITABLE FOR PERFORMANCE-

BASED?

YES NO N/A

22b. If performance-based unacceptable, provide explanation:

23a. OPTIONS:

YES NO

23b. If YES, number and type:

24a. GOVERNMENT PROPERTY TO BE

FURNISHED?

YES NO

24b. If YES, describe (attach additional sheets, if necessary):

25a. GOVERNMENT INFORMATION TO

BE PROVIDED?

YES NO

25b. If YES, describe: Contractor will be provided with patients PHI and PII.

26. ENVIRONMENTAL AND ENERGY CONSERVATION OBJECTIVES: N/A

27. SECURITY CONSIDERATIONS: The Contracting Officer will ensure that the Appendix A Checklist from VHA Handbook 6500.6 is completed by the appropriate officials and that, if it is determined that VA security policies are applicable, the appropriate contract language from Appendix C of the Handbook is incorporated into the RFP and resulting contract.

28. EVALUATION FACTORS: Past Performance and Price

29. MILESTONES: PLANNED DATE

a. Completion of acquisition package:

- Statement of Need/ Statement of Work/Statement of Objectives

- Specifications

- Data requirements

- Evaluation factors

- Quality Assurance Plan

05/03/2021

b. Acquisition plan approvals 08/19/2021

c. Solicitation reviews completed 08/20/2021

Acquisition Planning SOP Page 3 of 3 Revision: 11, Effective Date: 03/02/21

d. Issuance of solicitation 08/23/2021

e. Quotes Due 008/27/2021

f. Evaluation of Quotes 08/28/2021

g. Contract preparation, reviews, and clearances obtained: 08/29/2021

h. Contract Award 08/30/2021

i. Acquisition plan approvals 08/31/2021

SIGNATURES OF APPROVAL IAW - VHAPM Part 807.1 Acquisition Planning SOP Program Manager Name: Stephen A. Picchi

Signature:

Date:

Contracting Officer Name: Toni A. Clendenen

Signature:

Date:

Reviewer Name (Division Chief or Designee): David W. Miller Title: Division Chief Signature:

Date:

Stephen F Picchi 143653 Digitally signed by Stephen F Picchi 143653 Date: 2021.08.19 08:41:11 -05'00'

Toni A. Clendenen 297976 Digitally signed by Toni A. Clendenen 297976 Date: 2021.08.19 09:24:02 -05'00'

Bennett W.

Smith 934403

Digitally signed by Bennett W. Smith 934403 Date: 2021.08.19 10:30:34 -05'00'

David W. Miller 382161

Digitally signed by David W. Miller 382161 Date: 2021.08.19 11:00:00 -05'00'

Attachment 2: Market Research Report Template

VHAPM Part 810 Market Research SOP Page 1 of 14 Revision: 04, Effective Date: 06/18/20

Title of Program/Project/Requirement: CONTRACT NURSING HOME SERVICE

PART I –

I. Authority.

Market research is required in accordance with:

FAR 7.102, Acquisition Planning Policy FAR 7.103(u)(1) and (2), Agency-Head Responsibilities FAR 10.001, Market Research Policy and VAAR 810.001-70 (Class Deviation) VAAR 813.003-70(c), Policy (Class Deviation) FAR 19.202-2, Locating Small Business Sources and VAAR 819.202 (Class

Deviation)

II. Procurement Information.

A. Procurement History.

1. This is a new requirement for one award within a 60-mile radius of Southeast Louisiana Veteran Health Care Systems (SLVHCS), 2400 Canal St., New Orleans, LA 70119, one (1) in St. Charles parish. NACIS Code 623110 (Nursing Care Facilities) with a Small Business Size Standard of $30M. This type or similar requirement has been procured previously as follows:

a. Community Care Center of Covington, LLC dba Forest Manor Nursing Home, 01 March 2014 to 30 September 2018, Basic Order Agreement # VA256-14-A-0034, base plus four (4) option years. Estimated amount of award $730,000.00.

b. Northridge Care Center, LLC., 01 September 2015 to 30 August 2020, Basic Order Agreement #VA256-15-A-0076, base plus four (4) option years. Estimated amount of award $3,207,255.00.

2. This requirement was previously procured as Community Care Center of Destrehan, LLC dba Ormond Nursing and Care Center, 01 March 2016 to 28 February 2021, Basic Order Agreement # VA-256-15-A-0087, base plus four (4) years with a six (6) month extension to 31 August 2021. Estimated amount of award $3,441,573.30.

3. This is not a follow-on acquisition.

4. There have been no changes in the marketplace for nursing home services. All pricing is based on State Medicaid Rate and the VA percentages allowed over Medicaid Rates, which cannot exceed 18%.

5. Not a bundled requirement. The requirement will be a fixed price Indefinite Delivery Contract (IDC) with five (5) ordering periods, 12-months each.

6. No Organizational Conflicts of Interest (COI) are anticipated. All evaluating service personnel and VA contracting personnel will be required to sign a COI form.

B. Procurement Background.

VHAPM Part 810 Market Research SOP Page 2 of 14 Revision: 04, Effective Date: 06/18/20

The Community Nursing Home (CNH) program is a key component of the Veterans Health Administration (VHA) continuum of care. The Contractor agrees to provide in accordance with the terms and conditions stated herein to the U. S. Department of Veterans Affairs, Southeastern Louisiana Veteran Health Care Systems, in New Orleans, LA at the prices specified in the cost schedule of this requirement. Nursing home facilities in the CNH program shall cooperate with VA staff in referral of appropriate veterans of care and accept veterans of which they have the capability/capacity to care. The term, “facilities”, shall include but not limited to rooms, wards, sections, eating areas, drinking fountains, entrances, and other like areas. VA shall have the right to inspect the CNH and all appurtenances by authorized VA representative(s) to ensure that acceptable standards are maintained and that the necessary care to maintain the well-being of the patient is rendered.

Name Title Office Telephone E-mail Address

Stephen Picchi COR Social Work

Services

1-800-935- 8387 ext 67233

Stephen.picchi@va.gov

Toni Clendenen

Contracting Officer NCO 16 601-206-

7051 Toni.clendenen@va.gov

Type of acquisition: Service Expected dollar value of requirement: $$4,955,977.00 Suggested NAICS code(s): 623110 (Nursing Care Facilities (Skilled Nursing

Facilities)) Time frame in which the market research was conducted: 12/09/20 to 0-

2/01/2021

III. Initial Requirements

Describe the Government’s requirement in terms of:

Functions to be performed: Nursing home facilities in the CNH program shall ensure that care meets the health needs and promotes the maximum well-being of VA patients.

Nursing home care will be furnished to ensure the total medical, nursing, and psychosocial needs of VA beneficiaries. All nursing home facilities in VA’s CNH program must have current Center for Medicare and Medicaid Services (CMS) certification (Medicare and/or Medicaid) and a State nursing home license. VA developed quality of care standards utilizing CMS inspection criteria that are followed by VA in its selection of nursing homes which includes exclusionary criteria on which the CNH is evaluated.

o Services or Performance required: VA often has a particular need for specialty care services in the CNH program. The VA requires CNHs to have bed capacity to ensure their ability to take referrals when requested. The CNH also must be able to accept VA referrals in a timely fashion (ideally within 24 hours of request). Provider visits will be available at the rate of one (1) visit per month. Laboratory, x-ray, and other special services will be available to VA patients as needed. In addition, the care provided will

VHAPM Part 810 Market Research SOP Page 3 of 14 Revision: 04, Effective Date: 06/18/20 include room, meals, nursing care, and other services or supplies commensurate with the VA-authorized level of care, without extra charge. Duly authorized representatives of VA will provide quality oversight visits to veterans placed to assure continuity of care and to assist in the veterans’ transition back into the community. These visits do not substitute nor relieve the CNH in any way of the responsibility for the daily care and medical treatment of the veteran. The per diem rate(s) established will include the cost of primary medical care, one (1) provider visit per month and needed consultation, drugs and routine supplies, laboratory, x-ray, and other special services authorized by VA, unless otherwise specifically excepted. Full attention shall be given to motivating and educating patients to achieve and maintain independence in the activities of daily living. Every effort shall be made to keep patients ambulatory and to achieve an optimal level of self-care.

o Essential physical characteristics: Periodic and random sampling will be conducted during the performance period of contract.

Describe schedule requirements, e.g., performance periods and/or delivery due dates. The performance period will be from 01 September 2021 (or from date of award) to 31 August 2026 with each period evaluated sixty (60) days prior to end of every twelve (12) month ordering period.

Discuss any cost effectiveness issues associated with the requirements.

Percentages above Medicaid rate will be negotiated to ensure it is within the allowable rates of established VA directives for lower and maximum rates.

IV. Participants in Market Research

NAME TITLE OFFIC

E

TELEPHON

E

E-MAIL ADDRESS MARKET

RESEARC

H ROLE

N/A Program Official

N/A N/A N/A N/A

Toni Clenden n

Contracting Officer (CO)

NCO 16 601-206-

Toni.Clendenen@va.go v

Researcher

N/A Contract Specialist

N/A N/A N/A N/A

Stephen Picchi

Contracting Officer’s Representativ e (COR)

NCO 16 1-800-935-

8387 x67233

Stephen.picchi@va.gov Researcher

N/A Small Business Liaison

N/A N/A N/A N/A

N/A Other N/A N/A N/A N/A

VHAPM Part 810 Market Research SOP Page 4 of 14 Revision: 04, Effective Date: 06/18/20

V. Market Research Techniques and Sources

A. Market Research Techniques Describe techniques and sources used during market research. The following table may help structure and summarize the techniques used in the market research effort.

Check X

IF USED

SOURCES USED IN MARKET RESEARCH DETAILS OF

RESEARCH/COMMENTS

RESEARCH SOURCES

(INCLUDE REFERENCES TO

ATTACHMENTS TO REPORT)

(e.g., List of Journals and Literature Reviewed included as Attachment 4 to this report)

X Acquisition history reviewed See Page 1, Section II (A)(1), a-b of this report

X Other recent market research reviewed

Nursing Home Compare

X VA Vendor Information Pages (VIP) https://www.vip.vetbiz.va.gov/ (including any information supporting price reasonableness)

VIP. None listed

X Interviewed knowledgeable individuals in industry/Government

Use of personal knowledge as indicated in the Market Research

Participated/Attended Tradeshows and Industry Conferences

X Professional Journals, Catalog and/or Product Literature reviewed

GSA eLibrary

Participated in Small Business Vendor Outreach Sessions

B. Market Research Sources. In accordance with FAR part 10 and VAAR part 810, market research has been conducted for this acquisition. The following additional collaborative Contracting Officer-led techniques were used:

Insert X if Checked

VETERANS FIRST CONTRACTING PROGRAM

(VAAR subpart 819.70)

REFERENCES/SOURCES CHECKED

Details of Research/Comments

VHAPM Part 810 Market Research SOP Page 5 of 14 Revision: 04, Effective Date: 06/18/20

(IDENTIFYING VIP VERIFIED SDVOSBs/VOSBs)

(Include References to Report Attachments)

X VA Office of Small and Disadvantaged Business Utilization (OSDBU), Center for Verification and

Evaluation (CVE) Vendor Information Pages (VIP) Database found at https://www.vip.vetbiz.va.gov/

VIP

System for Award Management (SAM) search for entity records at:

https://www.sam.gov/SAM/pages/public/index.jsf

N/A

Check X if Part of Research

PRIORITY CONSIDERATION OF

VA EXISTING CONTRACTS

1. See VA PPM (2016-05)(Revised AUG 2019) - Implementation of the Veterans First Contracting Program (VIEWS 01368239) concerning consideration of existing VA contracts and VA strategic sourcing regarding supplies in FSC Groups 65 and 66.

None

X 2. Other VA Existing Contracts (non-mandatory but their potential availability, scope, contract type, etc., should be documented in the market research report)

See page 1, II(A)(1) of this report

Check X

Research

CONSIDERATION OF NON-VA EXISTING

CONTRACTS

Federal Strategic Sourcing Initiatives or OMB

Category Management contracts/sources

(Non-Mandatory except where OMB or Agency policy states otherwise)

1. Non-VA Contracts:

(Includes NASA-SEWP and BPAs under FSS Strategic Sourcing Initiative (FSSI) non-mandatory Federal Supply Schedules (other than for FSC Group 65 and 66) (FAR 8.004(a)(1) and VAAR 808.004-70).

N/A

2. Non-mandatory Federal Supply Schedules (non VA) (See FAR 8.004(a)(1) and VAAR

GSA eLibrary

VHAPM Part 810 Market Research SOP Page 6 of 14 Revision: 04, Effective Date: 06/18/20

808.004-70, Use of non-mandatory sources by VA (Class Deviation).

Use of Other Sources X Commercial sources (includes educational and non-profit institutions) in the open market. This is permissible IAW FAR 8.004 and VAAR 808.004-70.

Nursing Home Compare

Check X

Research

Sources for services to consider, as applicable and as required

Details of Research/Comments (Include References to Report Attachments)

MARKET RESEARCH FOR SERVICES

1. Services that are on the Procurement List maintained by the Committee for Purchase from People who are Blind or Severely Disabled (AbilityOne) (See FAR subpart 8.7) See VAAR 808.002, Priorities for use of mandatory Government sources, paragraph (a)(2) pertaining to Services.

2. Services: Federal Prison Industries (See FAR subpart 8.6) http://www.unicor.gov/ (Except if two or more SDVOSB or VOSB are identified, see

VAAR 808.603)

3. Also see--VA Federal Supply Schedules (FSS) in FSC Group 62I.

4. And see--mandatory sources reviewed, if applicable, for:

4a. Public Utility Services (see FAR part 41);

4b. Printing & Related Supplies (see FAR subpart 8.8);

4c. Leased Motor Vehicles (see FAR subpart 8.11);

4c. Helium (see FAR subpart 8.5)

N/A

5. Services: Commercial sources (includes educational and non-profit institutions) in the open market.

VETERANS FIRST CONTRACTING PROGRAM

(VAAR subpart 819.70)—REFERENCES/SOURCES

CHECKED

X Sources Sought Notices: Requests for Information (RFI) https://beta.sam.gov/

36C25621Q0886 Closed 5/18/21

VHAPM Part 810 Market Research SOP Page 7 of 14 Revision: 04, Effective Date: 06/18/20

No responses to notice received.

entity records at: https://www.sam.gov

OTHER REFERENCES/SOURCES CHECKED

(Other ways to conduct or confirm market research)

X Sources Sought Notices: Requests for Information (RFI) https://beta.sam.gov/

36C25621Q0886 Closed 5/18/21 No responses to notice received.

X Pre-solicitation and/or Pre-Proposal Conferences

Existing intra-/inter-agency contract vehicles, e.g.

Interagency Contract Directory (ICD) at:

https://www.contractdirectory.gov/contractdirectory entity records at:

https://www.sam.gov/SAM/pages/public/index.jsf

X SBA Dynamic Small Business Database at:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

SBA Dynamic Small Business Database

X Department of Labor (DoL) Service Contract Labor Standards (Service Contract Act (SCA)) and Wage Rate Requirements (Davis-Bacon Act (DBA)) wage determination information online at:

http://www.wdol.gov/ (SERVICES ONLY)

E98 Wage Determination 1973- 0121 Rev 50 dated 12/21/2020

VI. Identify Product/Services and Sources Able to Meet the Requirement

Identify or describe:

o Product/Service, include any brand name product information o Product/Service characteristics and/or capabilities o Company information (e.g., name, POCs, address, telephone number, e-mail address, website) o Company characteristics, past performance, and business size category o If sole source, describe efforts to locate additional sources

Business Category Name of Potential Source(s)/Other POC

Information

VHAPM Part 810 Market Research SOP Page 8 of 14 Revision: 04, Effective Date: 06/18/20

VIP verified Service-Disabled, Veteran- Owned (SDVOSB)

Twenty-sev (27) SDVOSBs were noted but capabilities did not indicate they could meet the requirement and were not in the catchment area.

VIP verified Veteran-Owned Small Business (VOSB)

0 VOSBs were noted in the catchment area

Woman-Owned Small Business (WOSB) No sources found Economically Disadvantaged Woman- Owned Small Business (EDWOSB)

No sources found

HUBZone Small Business No sources found Section 8(a) small business No sources found Small/disadvantaged business (SDB) No sources found Small business No sources found

Large Business

Nursing Home Service, NACIS Code 623110, Size Std $30M. The vendors below can provide total medical, nursing, and psychosocial needs for VA beneficiaries. Care includes room, meals, nursing care, and other services or supplies to commensurate with VA authorized level of care. Contractors possess current Medicaid service certification and State license and ratings ranging from above average to average.

1. Good Samaritan Rehabilitation and Nursing Ctr, 4021 Cadillac Street, New Orleans, LA 70122; POC -Connie Kurz, ckurz@dbainvestments.com;

504-246-7900.

2. Broadway Nursing and Rehabilitation Ctr(the), 7534 Hwy 1, Lockport, LA 70374; POC -Blake Lipari, blipari@thebroadwayelderliving.org;

985-532-1011.

3. Heritage Manor of Slidell, 106 Medical Center Dr, Slidell, LA 70461;

POC – Ames Bankston, abankston@asimgt.com; 985-643- 0307.

VII. Description of the Commercial Marketplace and Prevalent Business Practices

VHAPM Part 810 Market Research SOP Page 9 of 14 Revision: 04, Effective Date: 06/18/20

Describe the marketplace: The Government’s needs can be met because this type service is customarily available in the commercial marketplace.

Identify availability of commercial or non-developmental items that satisfy requirements (value or shortcomings of each) and sub-components: Nursing Home Compare (attachment 4) revealed sixty-seven (67) sources that could possibly provide this service in the requested catchment areas.

Identify standard/customary terms and conditions and industry business practices that differ from the standard Government practices (include information on payment, freight delivery, acceptance, and warranties) : Sufficient for use in this acquisition and do not require any tailoring to be consistent with industry’s commercial practices.

Discuss if contract financing is applicable. If so, ensure compliance with FAR 32.202-3, Conducting Market Research About Financing Terms: Not Applicable

Discuss any regulations unique to the requirement, if known: Executive Order 13658 Minimum Wage and Executive Order 1307, Paid Sick Leave, must be paid to employees performing work on or in connection with Veterans in their facility.

Specifically, those employees governed by the Fair Labor Standard Act and/or the Service Contract Act.

VIII. Pricing and Market Issues

Identify price sources (e.g., market price, catalog, GSA, etc.), price ranges, and price variations: Current pricing cannot be more or less than the current Medicaid Rate and the VA percentage allowed over Medicaid Rate, which is 18%. The price that will be negotiated will be an all-inclusive price for the services rendered. Due to these rates being in line with what has already been approved by VA Manual M-5 and under Medicare, it is determined to be reasonable. These prices also received are in concurrence with Social Work Services whose budget is affected.

Describe market trends for product or service, e.g., technical, business, and pricing:

The existence of nursing home care largely exists due to the growing need to care for the aging population. Inpatient nursing and rehabilitation services are provided for people with chronic illnesses and disabilities. When googled, nursing care facilities in the US Industry market size averaged $137BN and approximately 33,037 facilities that employ at least 1.7 million employees. There will not be any market issues in locating nursing homes to meet the Government’s needs.

IX. Other Considerations

Identify other considerations gathered from market research, e.g., opportunities for small business participation: When a search was conducted in the Small Business Dynamics (SBA) database, there were no small businesses to meet the Government’s needs for the requested catchment areas.

Discuss qualifying factors, including such issues as past performance, references, product testing or evaluation, customer satisfaction, warranties, and quality problems: The following evaluation factors will be used: Factor 1: Price – Prices mandated by the State Medicaid Office, percentage above Medicaid cannot exceed 18%; Factor 2: Past Performance – Medicare Star Rating and

VHAPM Part 810 Market Research SOP Page 10 of 14 Revision: 04, Effective Date: 06/18/20 previous Government contracts; Factor 3: Technical Capability – VA Nursing Home Inspection Team Eval Report, Number of beds and location (proximity to area of need); Factor 4: Socioeconomic Status (i.e., SDVOSB, VOSB), preference will be given.

Describe consideration of green (sustainable products and services https://sftool.gov/greenprocurement and http://www.gsa.gov/portal/content/105365. Include discussion of energy efficiency standards of market products, if applicable: Not applicable.

Market Analysis Summary

Provide market research conclusions and recommendations: Contract Officer posted Sources Sought Notice to https://www.beta.sam.gov on 05/06/2021 with a closing date of 05/18/2021. Database searches revealed the following results: Vendor Information Page (VIP) revealed twenty-seven (27) sources but were not in the requested catchment area or could not provide the services; SBA revealed zero (0) sources; GSA eLibrary revealed zero (0) sources; and, Nursing Home Compare revealed sixty-seven (67) sources that could possibly meet the Government’s requirement in the desired catchment areas.

Document the decision and rationale to satisfy the agency’s need with a commercial item/service, if market research so warrants: Since there were not two or more SDVOSB/VOSBs in accordance with VA Rule of Two to meet the eligibility requirements in 38 USC 8127(e) and VAAR subpart 819.7003, it is in the Government’s best interest to solicit Competitive Open Market (Unrestricted) in order to provide nursing home service to Veterans in the catchment areas of St. Charles Parish.

Provide supporting documents, as appropriate with a commercial item/service:

Nursing Home Compare, GSA eLibrary, VIP, SBA Dynamic Small Business Database.

XI. DETERMINATION: There were not two or more SDVOSB/VOSBs to meet the VA Rule of Two nor were there two or more small businesses. It is recommended to sole source this requirement to Ormand Nursing and Care Center to meet the Government’s needs.

[NOTE: The Contracting Officer makes the final determination concerning all set-aside decisions and compliance with the VA Rule of Two. The program/project management office’s market research report will help inform the contracting officer’s own research and determination of set-aside requirements.]

VHAPM Part 810 Market Research SOP Page 11 of 14 Revision: 04, Effective Date: 06/18/20

Name: _ _______________________ Date: __________________ Program Manager/Project Manager/COR

PART II –

I. Contracting Officer Responsibilities:

I. Background. The codes identified below will be used when advertising this requirement, if applicable.

Title: Ormand Community Nursing Home Services, Destr han, St. Charles Parish, LA Sole Source acquisition. Follow on contract upon expiration of BOA VA256-15-

Product or Service Code: Q402 (https://www.acquisition.gov/?q=PSC_Manual)

North American Industry Classification System (NAICS): 623110, Nursing Care Facilities, Size Standard $30 million (http://www.census.gov/eos/www/naics/)

Estimated Contract Value (including options): $4,955,970.00

Procurement History.

This is a follow procurement that replaces Basic Ordering Agreement (BOA) VA256-15-A-0087 with Community Care Center of Destrahan, LLC Dba Ormand Nursing and Care Center. Ormand’s size status is Other Than Small Business.

SLVAHCS requires services in this rural area and no other contractor is available to provide these services. No change in market place has been discovered and there are 10+ veterans residing in the facility.

This is not a bundled requirement.

No organizational conflicts of interests have been identified.

II. Market Research

1. Techniques Used in Conducting Market Research:

Guidance: VHA Services Sources Sought Notice was posted to the Federal Business Opportunity (FBO) site on 05/06/2021. No other entities responded to the notice as of the closing date of 05/18/2021. Program Office conducted a search of Nursing Home Compare and noted no other facilities in Destr han, St. Charles Parish, LA with capability to provide services. In addition, there are 10+ veterans residing at this facility.

No further research was conducted.

Stephen F Picchi 143653

Digitally signed by Stephen F Picchi 143653 Date: 2021.08.23 07:27:49 -05'00'

VHAPM Part 810 Market Research SOP Page 12 of 14 Revision: 04, Effective Date: 06/18/20

2. Results of Market Research:

Guidance: See above research conducted by the program office re: VOSB sources of these services. 67 vendors were located on the VIP, however, none are in the required catchment area and are unable to provide these services.

III. Consideration of Small Business Opportunities

Guidance: All acquisitions for supplies and services with an anticipated value above the micro-purchase up to and including the simplified acquisition threshold (SAT); these thresholds (see FAR 2.1-1 definitions) are reserved exclusively for small businesses and shall be set aside (FAR 19.502-2(a)). If the anticipated acquisition value exceeds the SAT, the requirement must be set aside for Small Businesses if (1) there is a reasonable expectation of receipt of offers from two or more responsible Small Businesses, and (2) award will be made at a fair market price (FAR 19.502-2(b)).

The VA’s contracting order of priority is set forth in VAAR 819.7004: Contracting officers shall consider, in the following order of priority, contracting preferences that ensure contracts will be awarded—

- To SDVOSBs

- To VOSB, including but not limited to SDVOSBs,

- To small business concerns using the priorities and preferences in 819.203-

70 and VAAR subpart 819.70—

Note: The Small Business Jobs Act of 2010 created parity among small business socioeconomic contracting programs. As a result of this amendment to the Small Business Act, there is no order of precedence among the 8(a), HUBZone, SDVOSB or WOSB programs in FAR (see 819.203).

38 U.S.C. 8127 (i) Priority for Contracting Preferences. Provides that preferences for awarding contracts to small business concerns shall be applied in the following order of priority: (1) SDVSOBs, followed by (2) VOSBs, including SDVOSBs, then (3) 8(a) and HUBZone firms and (4) any other small business. The order of priority was established in 2006 by Public Law 109-461, as per the policy in the Small Business Act at that time. Since then, as a result of legislative amendments to the Small Business Act, the FAR has been amended to create a woman-owned small business set-aside and to provide parity among the various small business socio-economic programs. Therefore, VA has adopted the current parity policy in FAR 19.203 for procurements involving other than SDVOSBs/VOSBs.

Based on above Market Research, identify each Small Business (including its eligibility for specific socioeconomic category status) capable of performing or providing the requirement. Discuss and explain the potential for Small Business participation in this acquisition.

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No Small Business entities were located within the catchment area of St. Charles Parish, LA.

Name: _______________________________ Date: __________________ Contracting Officer

IV. Conclusions and Recommendations

A. Query of the Vendor Information Pages (VIP) Database at https://www.vip.vetbiz.va.gov/ resulted in:

Total of 67 small business concerns in each of the individual socio-economic group in NAICS 623110:

SDVOSB - 27

VOSB - 0

Identify the number and types of small businesses contacted. None

Identify which, if any of the small business has the necessary technical capability. None

B. Query of the SBA Dynamic Small Business Search (DSBS) tool at http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm), resulted in:

Total of ______ small business concerns in each of the individual socio-economic group:

SDVOSB

VOSB

Woman-Owned Small Business (WOSB) 8(a) HUBZone

SB

Identify the number and types of small businesses contacted. None

Identify which, if any of the small business has the necessary technical capability. None

C. For acquisitions above the SAT, describe considerations for a set-aside or

Toni A. Clendenen 297976

Digitally signed by Toni A.

Clendenen 297976 Date: 2021.08.23 07:43:39 -05'00'

VHAPM Part 810 Market Research SOP Page 14 of 14 Revision: 04, Effective Date: 06/18/20 sole source award under the following small business program set-asides:

SDVOSB

VOSB

WOSB

8(a) HUBZone

Identify the number and types of small businesses contacted. None

Identify which, if any of the small business has the necessary technical capability. None

D. When a total small business set-aside seems appropriate, describe why a set-aside is not appropriate for:

Service-Disabled, Veteran-Owned Small Business (SDVOSB) Veteran-Owned Small Business (VOSB) or

WOSB

8(a) HUBZone

No other sources were contemplated as there are 10+ veterans who currently reside at the facility. Sole Source is authorized due to need for continuity of care for residents of the CNH.

IV. PROPOSED PROCUREMENT METHOD

Based on the market research conducted, no two or more VIP verified and capable SDVOSBs or VOSBs were identified and appeared capable of performing the requirement. In addition, no small business in any of the other targeted socio-economic groups appeared to qualify for a set-aside or sole source procurement. Therefore, it is anticipated that only one source (large business) will be solicited for this requirement using the authority of FAR 6.302-1 procedures. This market research information is not more than 12 months old.

Name: ________________________________ Date: __________________ Contracting Officer

Toni A. Clendenen 297976

Digitally signed by Toni A.

Clendenen 297976 Date: 2021.08.23 07:46:44 -05'00'

Attachment 5 IGCE for CNH Services Source Selection Sensitive Information/For Official Use Only

Memorandum Date: 05/03/2021

From: COR, Stephen Picchi, Contract Nursing Home Program SLVHCS New Orleans

Subj: Independent Government Cost Estimate FY21

To: Contracting Office, Toni Clendenen

An estimate of costs for the Ormond Contract Nursing Home is contained below:

Expiring Exisiting Contract Vehicle

Contract Vehicle# Expiration Annual Cost 5.5-Year Cost

Description of Care (RUG) Current Medicaid Rate Plus % Per Diem Rate VA Reduced Physical Function, Behavior, & Cognitive (Includes VA Basic)

188.51 16% $218.67

Clinically Complex 188.51 18% $258.03 Special Care Low 218.67 20% $262.40 Special Care High 218.67 40% $306.14 Extensive Services 218.67 110% $459.21 Rehabilitation 218.67 50% $328.01 Rehabilitation + Extensive Services 218.67 120% $481.07

VA HIV/ +AIDS 218.67 TBD TBD

New Requirement(s) Estimated Annual Cost* 5-Year Cost**

IDIQ $991,194.00 $4,955,970.00

*Estimated cost derived from VA nursing home expenditures at CNH in the vicinity of the new nursing home, also considering veteran population in the area. A current daily Medicaid rate of, $188.51, plus 16%, equals, $218.67 and an anticipated average of ten (10) Veterans per day, for 365 days.

We anticipate a similar usage for this facility under the newly requested contract. To that end, we are requesting that this document serve as the Independent Government Cost Estimate to serve as part of the procurement package to secure a five-year follow-on contract with this facility.

5/4/2021

X Stephen Picchi

Signed by: Stephen F Picchi 143653 Source Selection Sensitive Information/For Official Use Only

Community Nursing Home SOP

Original Date: 05/02/2016 Page 1 of 1