P03 - 2020-0028 J n A Sweetwater Park Place_Redacted.pdf

OFOC SOP Revision 08 Page 1 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-20-AP-0235, CNH – Sweetwater GF Opco, LLC – Park Place

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO19), 6162 South Willow Drive, Greenwood Village, CO 80111. This action is funded by a 1358.

Therefore, there is no associated 2237.

2. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole source Firm-Fixed Price Indefinite Delivery Contract (IDC) for Community Nursing Home (CNH) Services for the Fort Harrison VA Medical Center (VAMC) to Sweetwater GF Opco, LLC - Park Place located in Great Falls, MT. The period of performance will be for a 5-year IDC (60 months). The period of performance will be from 01 December 2019 through 30 November 2024.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for the establishment of an IDC utilizing procedures in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. This acquisition does not fall within FAR Part 8 Required Sources of Supplies and Services therefore, the procedures associated with limited sources justification will not be utilized.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The CNH will provide all facilities and services to support short- and long-term care for VA patients. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. The current contract VA259-14-A-0113 expires on 30 November 2019. The current contract is also expected to be novated by 30 November 2019. Park Place Healthcare has met all requirements under VA Handbook 1143.2. Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Montana. This will be a 5-year IDC (60 months). The period of performance for the 5-year IDC will be from 01 December 2019 through 30 November 2024. The total estimated value of this contract is

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-1 (a)(2).

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

OFOC SOP Revision 08 Page 2 of 4

Revision 08 Date: 04/18/2018

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

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

Requires the Use of the Authority Cited Above (applicability of authority): Currently, there are 9 Veterans being treated and housed at the Park Place Healthcare facility under an existing BOA. The community nursing home facility meets VA exclusion review quality of care standards to provide treatment to Veterans. The community nursing home has had a contract with the VA since 2014.

They have consistently provided quality care to our Veterans. The VA patients at this facility cannot be moved without causing undue medical hardship. An attempt to move the patients would cause a disruption in continuity of care and stress on the patients and family members if relocated to a different facility, as well as possible non-compliance with VHA Handbook 1143.2. In accordance with FAR 6.302-1 this requirement for Community Nursing Homes Services will be sole sourced to the Park Place Healthcare.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The CNH Coordinator did not submit another CNH for this location to be considered. A search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 10 community nursing homes in Great Falls, MT where the current CNH is located. The VA’s Vendor Information Page (VetBiz) was used to determine if potential offerors exist who would be able to provide the services required. However, the site failed to produce any results for Great Falls, MT. The CNH program requires that any new CNHs that want to do business with the Government must pass a series of inspections. The CNH must pass a clinical inspection and life safety inspection. The CNH Program Coordinators meet with the CNH to understand the services that are offered. Once the CNH passes these inspections, then they can be considered for a contract. As part of the acquisition process a CNH must provide a current state license, insurance and a copy of the state inspection. These documents are provided to the CNH Program coordinator for review and evaluation. The CNH Coordinator will either provide a recommendation to contract or state that the CNH did not receive a recommendation to contract. This J&A will be posted on Contract Opportunities in beta.SAM.gov.

7. Determination by the Contracting Officer (CO) that the Anticipated Cost to the Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing the CNH contracts. The Medicaid rates are established by each state based on national average. The VA Geriatrics and Extended Care Office through the VHA PM and VA pulse publishes an annual maximum allowable percentage that are applied to each RUG IV category. The RUG IV category identify the different levels of treatment. The add-on percentages are added to the basic Medicaid rate then applied to each RUG IV category. The Medicaid rate and the VA’s add-on percentage make up the per diem rate paid for each patient. The line item structure will illustrate the different RUGIV category and the add-on percentage and the total per diem rate for each level of care. After conducting research on the current Medicaid and RUG IV rates, the CO has determined that the results are determined to be fair and reasonable when the add-on percentage agreed upon by both parties is at or under the maximum allowable percentage established by VA. The add-on percentages do not change through the life of the contract.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, a search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 10 community nursing homes in Great Falls, MT where the current CNH is located. The VA’s Vendor Information Page (VetBiz) was used to determine if potential offerors exist to provide

OFOC SOP Revision 08 Page 3 of 4

Revision 08 Date: 04/18/2018 additional competition. However, the site failed to produce any results for Great Falls, MT. Based on the CNH program requirements, the Veteran has a say in the selection of the facility based on patient needs and proximity of the CNH to patients’ home and family. The CNH Program attempts to inspect a sample of CNHs in a given area to provide the Veteran with several choices. However, the selection of the CNH is based in part on whether the CNH has the resources available to meet the Veteran’s needs. The CNH Program Coordinator is responsible for conducting market research and required inspections to increase the number of available and qualified CNHs that can pass the Government's inspections.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The facility averages 11 Veterans in this facility who cannot be relocated due to continuity of care and medical complexity. This CNH is located near the families of the Veterans. An attempt to move the patients would cause stress on the patients and family members if relocated to a different facility.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The CNH Coordinator did not submit another CNH for this location to be considered. The current contractor, Park Place Healthcare, has expressed an interest to continue providing CNH services to the VA and continue in providing care and services to the Veterans currently placed there.

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:

There is currently only one (1) facility capable of providing the specialty care and medical needs of the existing patients. Based on the CNH program requirements, the Veterans have a say in the selection of the facility based on patients’ needs and proximity of the CNH to patients’ homes and families. The CNH Program attempts to inspect a sample of CNHs in a given area to provide the Veterans with several choices. However, the selection of the CNH is based in part on whether the CNH has the resources available to meet each Veteran's needs. The CNH Program Coordinator is responsible for conducting market research and required inspections to increase the number of available and qualified CNHs that can pass the Government's inspections. The contracting office and CNH Program office will continue to canvas the market for new CNH entrants capable of meeting program requirements.

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.

Name: Date

CNH Program Coordinator Facility: Fort Harrison Healthcare System

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.

November 12, 2019

OFOC SOP Revision 08 Page 4 of 4

Revision 08 Date: 04/18/2018

Date Contracting Officer Branch Chief, Specialized 1, NCO-19

b. 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.

Contracting Officer Division Chief, NCO-19

c. 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.

Director of Contracting

Network Contracting Office 19

d. VHA RPO HCA REVIEW AND APPROVAL (over $700,000 to $13.5 million): 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.

Executive Director, RPO West Head of Contracting Activity (HCA)

11/20/2019