Other Than Full and Open Competition (OFOC).pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 09 Page 1 of 5 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C242-20-AP-1479

1. Contracting Activity:

Department of Veterans Affairs, VISN 02, Northport VA Medical Center Network Contracting Office 2, James J. Peters VA Medical Center, 130 W. Kingsbridge Rd., Bronx NY 10468-3904. Purchase Request Number 632-20-3-6050-0144.

2. Nature and/or Description of the Action Being Processed:

This is an emergency sole-source justification for temporary contract janitorial services, to supplement the Northport VAMC’s housekeeping staff, provided for day and evening periods in response to the COVID-19 emergency. This procurement was awarded on 04/08/2020 for 120 days period of performance with one option for an additional 120 days.

The Contracting Officer determined that because of the present danger for these urgently needed janitorial services in response to the COVID-19 which could compromise facility operation and the safety of our VA patients, visitors, and staff, it was necessary to make this emergency award and complete the formal sole source approval post-award. As the urgency of this requirement was communicated to the Contracting Officer by the Program Office Pauline King: Environmental Care Specialist for an immediate start date of April 8, 2020 the Contracting Officer determined it necessary to make this award quickly.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

In response to the COVID-19 pandemic, Northport VAMC had an urgent requirement to provide additional janitorial staff comprised of (sixteen janitorial staff and one supervisor) to supplement the Medical Center’s EMS staff to provide day and evening coverage. The housekeeping staff are required to wear Personal Protective Equipment (PPE) which is being supplied by Ninety-Five South, Inc. PPE is defined as (masks, gloves, isolation gowns etc.). Such items are disposable and are disposed of as directed by the on-site POC. As requested, staffing coverage is flexible for any given timeframe based on the immediate needs of the Northport VAMC. While the Medical Center typically would limit contractor personnel assignment to administrative and common areas thereby confining them to patient treatment areas, in this case should such a need arise, VAMC Northport will provide N95 masks. Daily by 7:00 a.m., contractor personnel will be provided a list of the rooms to be cleaned for the day. This list may be amended to include additional rooms to be cleaned at varying times of the workday depending on the hospital’s need which understandably can vary. The Contractor supervisor shall be on site during the hours of 10:00 a.m. to 6:30 p.m. overlapping both day and evening shifts and will be required to be on call for all other times. This requirement is for 120 days with one option for an additional 120 days; for an aggregate total of 240 days.

OFOC SOP Revision 09 Page 2 of 5

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;

(X) (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 ( ) (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):

Northport VAMC had an urgent need for additional janitorial staff. As described in part 3, this was to supplement the existing EMS staff during the COVID-19 pandemic. The proposed responsible contractor and (awardee) is a verified Service-Disabled, Veteran-Owned Small Business firm that has an existing labor pool in the New York City metropolitan area that was able to quickly mobilize staff for this urgent requirement, as well as to provide replacement staff as needed. This additional flexibility was key to fulfilling the need of the Medical Center and beneficial to the Government in meeting the need. Northport VAMC operations needed to continue in response to the COVID-19 national emergency, while the existing housekeeping staff were unable to keep up with increased demands for janitorial services. This is further documented in the contract briefcase.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Market research was conducted to include a search at the Small Business Administration (SBA) Dynamic Small Business website using NAICS 561720 and the Veterans Information Page (VIP) website using same NAICS. Per the VHA Procurement Manual, when not providing for full and open competition, the CO shall solicit offers from as many potential sources as is practicable under the circumstances. The CO contacted many vendors, but only Ninety-Five South, Inc was willing and able to provide 17 contractor employees in a short amount of time.

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

Reasonable:

Awarded contract value is $1,250,931.84 ($632,553.60 for base period of 120 days; and $632,553.60 for additional 120-day option). The contractor’s price was compared to the Independent Government Cost Estimate (IGCE), which was primarily based on Service Contract Act Wage Determination # 2015-4157. New York Counties of Nassau Suffolk prevailing wage and benefits rates for janitorial services. Ninety Five South, Inc. offered the following pricing for their services on this contract. For the Janitorial/custodial staff employees $38.46 and for the supervisor $43.55. Further, the steps taken to ensure that this was a fair & reasonable price to the Government the Contracting Officer conducted market research for similar services in GSA eLibrary and was able to locate the following contracts:

OFOC SOP Revision 09 Page 3 of 5

GSA

Contract

Company Name SIN Janitor Hourly Rate

Supervisor (Janitor Leads & Supervisors)

GS-21F-0009V Action Facilities Management, Inc

811-002 $28.80 $43.39

GS-10F-0186R Erica Lane Enterprises, Inc.

811-002 $36.25 $ 38.82

GS-21F-038GA New Horizon Industries, Inc.

561210FAC (new SIN under MAS Consolidated

$25.13 $ 29.23

The Contracting Officer noted that the pricing offered for these services ranged from $25.13 to $36.25 for Janitorial Staff and $29.23 to $43.39 for Janitorial Leads and Supervisors. The total hourly wage for the subject requirement at the Northport VAMC was $38.46 for cleaners and $43.55 for the supervisor and were deemed in line with the above cited GSA contracts’ rates.

The Contracting Officer reviewed the breakdown cost and noticed the Payroll Taxes and Insurance (PT&I) of 22% and 29% for a supervisor and janitor respectively. Normally, payroll taxes are already covered in the wage rate and the government would only pay for the employee portion, but in this case the contractor states that the payroll taxes and insurance are paid to the employee, which means that the employee portion of the payroll taxes and insurance are deducted from the employees’ paychecks.

In review of the breakdown of the rate offered by Ninety-Five South, it is evident that we are priced a high PT&I of 22% for Janitorial Leads and Supervisors and 29% for Janitor. This rate was accepted in consideration of the turbulent market conditions as a result of the COVID-19 pandemic, as was anticipated that the Contractor’s prices included cost factors that are based on extraordinary circumstances in times like this. Higher degree of cleaning measures has been implemented in the facilities as a result of COVID-19. There is also a need for more frequent cleaning and upkeep which could result in increased wear and excessive use of sinks faucets and cleaning devices and materials.

This rate was found acceptable due to the urgent need of the requirement. The Northport VAMC needed this service immediately and Ninety Five South, Inc. was the only company willing and able to meet the short timetable. With this higher rate included in the pricing, we are still within the range of what would have been received from the GSA contracts from small businesses as mentioned above.

Another consideration in agreeing to higher than normal ancillary costs, was that the contractor is responsible for the health and welfare of his/her personnel while working in the epicenter of a pandemic. The contractor and their personnel face high demand for personal protective equipment, where sources are limited, thus driving prices higher. The contractor faces high risk in protecting staffing personnel and could face insurance cost risks, as a result.

The GSA rates, along with the rates quoted and accepted are generally a good indication of price reasonableness. When evaluating information available at that time, extraordinary cost factors, as well as the high prevailing labor rate where the work is performed, the contractor’s price was given

OFOC SOP Revision 09 Page 4 of 5

Revision 09 Date: 04/17/2020 extra consideration due to market conditions. Their pricing fell within a normative range and was not reflective of excessive costs, despite these additional risk factors. While on the higher end, due to the market conditions and the emergent need for this requirement, the Contracting Officer determined that Ninety-Five South, Inc.’s price was considered fair and reasonable.

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

Market Research Was Not Conducted:

Market research was conducted to include a search at the Small Business Administration (SBA) Dynamic Small Business website using NAICS 561720 and the Veterans Information Page (VIP) website using same NAICS. The Contracting Officer contacted many vendors, but only Ninety-Five South, Inc. was willing and able to provide 17 contractor employees in a short amount of time as documented in the contract file briefcase P02.

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

No other information available.

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

None other than Ninety Five South, Inc

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 Government’s need for this type of requirement will be closely monitored as the national emergency response is mitigated. Should the option on this requirement be exercised after the base period of 120 days, the Government will have enough time afterwards to conduct market research to determine potential sources for the possibility of a follow-on requirement.

OFOC SOP Revision 09 Page 5 of 5

Revision 09 Date: 04/17/2020

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.

Pauline King Date Environmental Care Specialist

Northport Medical Center

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.

_____________________________ 05/14/2020_______________ Safa Shleiwet Date Contracting Officer VA Network Contracting Office 2

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

Anthony Murray Date

NCO 2 Branch Chief, Services Team 3 Stratton VA Medical Center

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 $68 million) or approve ($700K to $68 million) for other than full and open competition.

Joseph P. Maletta Date VHA Head of Contracting Activity (HCA) http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx