NCO21-FY23-176 JOFOC 36C261-23-AP-0476 JOC IDC SFVAMC - HCA Approved.pdf

VHAPG Part 806.3 OFOC Page 1 of 4 Revision: 01 Effective Date: 04/01/23

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-23-AP-0476 2023-03-22T12:43:59

1. Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West

(RPOW), Network Contracting Office (NCO 21), on behalf of San Francisco VA Health Care System (SFVAMC).

2. Nature and/or Description of the Action Being Processed: San Francisco VA Health Care System requests the Network Contracting Office establish a new firm fixed-price Job Order Contract (JOC) construction services contract for small, non-complex construction service requirements. Specifically, the resulting JOC will be a single-award Indefinite Delivery Indefinite Quantity (IDIQ) contract. Resulting task orders will be funded with individual purchase requests.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: SFVAMC needs an efficient means to obtain and initiate non-recurring maintenance and repair needs for its aging facility located in San Francisco, California. The resulting IDIQ contract will be a single-award contract to supplement other available contract vehicles to provide construction services with a maximum value of $4,950,000.00 for the period of one year from execution.

The JOC requested will enable quick-turn task orders for non-complex construction services utilizing a commercial unit price book as a basis for negotiation. Task orders will have a maximum value of $500,000.00 each.

4. Statutory Authority Permitting Other than Full and Open Competition:

( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

(X) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the

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

This action is proposed pursuant to the authority set forth in VAAR 819.7008 Sole Source awards to verified service-disabled veteran-owned small business (SDVOSB). The suggested sole source company, Strategic Industries, Inc. (Strategic), is a verified service-disabled veteran-owned small business. The requirement is less than $5,000,000.00.

Strategic is a responsible contractor with respect to performance and can obtain the necessary

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Effective Date: 04/01/23 bonding required for construction services. The Contracting Officer has determined the contract and its resulting task orders will be made at a fair and reasonable price utilizing a commercial unit price book. In addition, the Contracting Officer has reviewed the history of sole source awards made pursuant to this authority and has determined the prospective contractor has not previously received an award on a similar non-competitive basis.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The Contracting Officer consulted with other Government representatives to identify three (3) potential SDVOSB construction contractors that have experience providing construction services at the SFVAMC facility in San Francisco, CA.

The Contracting Officer contacted all three SDVOSB companies to inquire of their interest in establishing a JOC for SFVAMC; Strategic was the only company that responded indicating an interest. The two other companies were not interested and did not respond to the opportunity for a telephone conference. Strategic, on the other hand, responded immediately of its interest and indicated through its personnel previous experience with a JOC for another federal agency.

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

Reasonable: By its prescription, a JOC will utilize a commercial unit price book (RS Means) to establish prices for given construction service requirements. As a commercial unit price book, the Contracting Officer has determined RS Means or some other comparable construction price book is sufficient to ensure prices negotiated for resulting task orders will be fair and reasonable. Prior to the execution of any task order, the Contracting Officer will determine that the price negotiated is fair and reasonable considering the rates established in the unit price book, the contractor’s coefficient, and the level of effort required for the work required. In addition, other measures may be required of the contractor to demonstrate reasonableness, including providing three subcontractor quotes for comparison for any items not specifically identified on the unit price book as is customary for similar contracts.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The Contracting Officer consulted with various Government representatives with expert knowledge about the unique needs for SFVAMC and the available SDVOSB construction contractors that have experience in San Francisco. The Contracting Officer reviewed and verified the socio-economic status of the recommended sources and sent individual invites to each for the opportunity to participate.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The main hospital for SFVAMC is located on the western-most edge of San Francisco, CA. It is not located near public transportation and is therefore somewhat difficult to reach outside of a personal vehicle, making it more challenging in the current labor market for skilled laborers, which is presently experiencing labor shortages. The facility has an immediate need for a multitude of relatively low-dollar, repetitive, non-complex construction services.

Establishing a single-award IDIQ contract vehicle will increase the efficiency in terms of ordering execution to enable quick-turn task orders in response to immediate needs. The existence of a single contract vehicle will enable efficiency for the sole awardee making it more economically viable as a result where individual low-dollar requirements are not generating sufficient interest with present contract holders. The Contracting Officer anticipates these factors will enable the Government to meet the needs of the healthcare

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Effective Date: 04/01/23 system to mitigate against the existing conditions that have discouraged industry engagement thus far.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Strategic Industry, Inc., Unique Entity ID NM6KLD3BTZY9.

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: The period of performance for the resulting contract will be for one year to enable the Government to assess the effectiveness of the contract vehicle. If the Government determines it is successful in enabling efficient execution of small-dollar, non-complex construction service, then the Government will seek to establish a long-term contract on a competitive basis. In the meantime, the establishment of a one-year contract on an expedited basis using the sole source authority authorized by statute will address the facility’s short-term needs for construction services.

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.

Date

Douglas G. Van Cleave, Jr.

Deputy Chief of Engineering Services, SFVAMC

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

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

Felicia A. DeMita Date Contracting Officer, NCO 21

VHAPG Part 806.3 OFOC Page 4 of 4

Effective Date: 04/01/23

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.

Brooke C. Robison Date Director of Contracting, NCO 21

c. 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 recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

Curtis M. Jordan Executive Director, Regional Procurement West Date Head of Contracting Activity (HCA)

VHAMACRobisB Typewritten Text

29 MAR 2023