NCO21-FY23-36 JOFOC 36C261-22-AP-5839 Bldg 348 Menlo Park - HCA Approved - Copy.pdf

Rev: 13 Effective Date: 02/01/22 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-22-AP-5839

1. Contracting Activity: Department of Veterans Affairs, Veterans Integrated Services Network (VISN)

21, NCO 21, on behalf of Veterans Affairs Palo Alto Health Care System (VAPAHCS), Menlo Park Division, 795 Willow Road; Menlo Park, CA 94025.

Purchase Request: 640-23-1-5275-0001 JOFOC Tracker #: 2022-10-28T08:52:40

2. Nature and/or Description of the Action Being Processed: VISN 21 VAPAHCS has a need for construction service support to complete Building 348, the approximately 15,000 gross square feet, single story administration space has been newly renovated to support the Extended Care/Hospice for 15 licensed beds. This newly renovated building does not meet the requirements of providing end of life care for veterans and their families. An addition construction contract is needed to deliver a fully functional facility.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The proposed action is to award a new firm fixed price construction contract to correct the deficiencies left in the design of the previous renovation, comply with new space requirements, and provide all necessary components for better care of veterans at building 348. This project requires the installation of a ceiling mounted lift system, CCTV video surveillance, single phase load center, CenTrak patient elopement system, door access control system, and other tasks to meet the need of the facility.

Most of the new systems required to be installed are low voltage. The Independent Government Estimate is $1,053,251.00. The period of performance is 163 days after Notice to Proceed.

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

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or

( ) 819.7008 Sole source awards to a verified veteran-owned small business.

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): 38 U.S.C. 8127(c) sole source contracts for contracts above the simplified acquisition threshold. For purposes of meeting the goals under subsection (a), and in accordance with this section, a Contracting Officer may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if: (1) such concern is determined to be a responsible source with respect to performance of such contract opportunity; (2) the anticipated award price of the contract will

Effective Date: 02/01/22 Page 2 of 4 exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and (3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

Accordingly, (1) Strategic Industry, Inc. is a verified SDVOSB and is a responsible concern who has completed previous projects with the VA and specializes on electrical and low voltage trades; (2) this acquisition will not exceed $5,000,000; and (3) the contract award can be made at a fair and reasonable price based on a comparison to the Independent Government Estimate in accordance with FAR 15.404-1(b)(2)(v).

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This requirement was solicited to the VISN 21 Multiple Award Construction Contract (MACC) group 2, as a design-build requirement, one response was received for Phase I of the solicitation, but the contractor declined to provide a Phase II proposal. Research has been conducted which found similar requirements returned low interest from SDVOSBs. This action will be publicized in accordance with FAR 5.2.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The contracting officer will compare the proposed pricing to the Independent Government Estimate per FAR Sub Part 15.404-1 (b)(2)(v) to ensure that the price is determined to be fair and reasonable before the award is made.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Originally this requirement was received as a design-build project. Several SDVOSB were identified through a VIP search under NAICS 236220. Additionally, a sources sought was sent to all VISN 21 MACC group 2 contract holders, five responses were received from contractors who have the capability and capacity to perform the work. An RFP was sent to all VISN 21 MACC group 2 contract holders. One proposal was received for Phase I of the solicitation from Hawk Contracting Group. The proposal was evaluated and deemed acceptable. A Phase II proposal was requested form Hawk, but at this point they informed us that they would not be providing a Phase II proposal for this requirement. Similar projects have been advertised on SAM and to our MACC Group 2 contractors and we have not received viable responses. We also approached our MACC Group 1 contractors and all declined to participate in the acquisition except Strategic Industry. Strategic Industry has been awarded similar projects and has the expertise to successfully complete this project. Based on this information it was determined that Strategic Industry is the only contractor who can perform the contract.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None. A sole source award to a verified service-disabled veteran-owned small business is authorized under VAAR 819.7007.

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

Strategic Industry, Inc.

1440 Draper ST, Suite C Kingsburg, CA 93631-1945 559-419-9481 jmiller@strategicindustry.us mailto:jmiller@strategicindustry.us

Effective Date: 02/01/22 Page 3 of 4

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 VA Palo Alto Healthcare System is revising their requirements to ensure they have clear description of the Scopes of Work and are requesting feedback form our MACC holder to improve acquisition packages. Additionally, a meeting with all MACC holders has been conducted, emphasizing the need for participation on our acquisition as a factor when determining the need to exercise future options on their IDIQ contracts. Finally, Contracting Officers have been instructed to post sources sought notices to SAM to try to increase competition.

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.

Ryan Ngo Date Supervisory General Engineer

Office of Facility Planning and Development (720)

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.

Jose Hernandez Date Contracting Officer

NCO 21

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 Network Contracting Office 21 (NCO 21) https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

Effective Date: 02/01/22 Page 4 of 4

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 approve for other than full and open competition.

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