P03 36C244-26-AP-3566 Cranberry Bridge V2_Redacted.pdf

36C244-26-AP-3566 | Bridge Butler: Cranberry Twp

Effective Date: 12/30/2025 Page 1 of 4 Revision: 02 Acquisition ID#: 36C244-26-AP-3566

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 12.201-1 SIMPLIFIED PROCEDURES, IMPLEMENTED IN

ACCORDANCE WITH FAR 12.102, INCLUDING CONTENT ADDRESSED BY FAR 6.104-1

Acquisition Plan Action ID: 36C244-26-AP-3566

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 04, located at

1010 Delafield Road, Pittsburgh, PA 15215-1802, in support of VISN 04, Butler VA Healthcare System (BVAHS), 325 New Castle Road, Butler, PA 16001-1138, Purchase Requests (VA2237):

529-26-4-204-0675 (Cranberry Twp).

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

This is a sole source request to maintain continuity of healthcare services at the BVAHS (Administrative Parent) CBOCs at Cranberry Township (Butler County) pending competitive procurement of a long-term (10-year) contract for these services. The current contract expires 08- 31-2026 and was awarded to serve as a bridge between current CBOC operations and award of the new procurement. At present, the long term contract is being reviewed and vetted (Acquisition Plan 36C244-25-AP-1653). This short term procurement is being conducted in accordance with (IAW) FAR 12.102(b) and must obtain approval of the justification as described in FAR 6.104 IAW the authority vested by 41 U.S.C. 1901. The Government anticipates award of a new firm fixed priced indefinite delivery indefinite quantity contract to include a two-year period.

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

The Cranberry Twp CBOC currently provides healthcare services to veterans under the authority of 38 U.S.C. 8153. The clinic provides a continuum of critical primary care services including prevention, diagnosis, treatment, and appropriate referral and follow-up services. Those patients that require specialty or follow-up care may be referred to the clinic's administrative parent facility: BVAHS. The clinic provides coordinated care that is accessible, patient-centered, and consistent with VA standards as defined in VHA Directive 2006-041. BVAHS requires a short-term interim contract to provide continuity of healthcare services pending competitive procurement of a 10-year contract for the professional medical staff, diagnostic testing, referral arrangements, and associated services currently provided by Valor. The period of performance for this service is 09-01-2026 to 08-31-2028.

A determination for Option FAR 52.217-8 is included in the contract briefcase.

A two-year period is required for the Cranberry Township CBOC due to emergent facility leasing issues. NCO4 was informed 05-11-2026 (Onsite meeting at Cranberry CBOC) that Valor Healthcare was being pressed by their lessor for an immediate response to a five-term lease arrangement. The Contractor’s lessor had to extend leasing arrangement due to terminal health issues and valuation requirements for the transfer of the lessor’s estate. Without a long-term lease, the CBOC operations would lose office space by December 2026. NCO4 conducted review/analysis of this issue with Valor Healthcare, BVAHS Executive Leadership Team (ELT), VA Health Care Procurement Policy Office (HCPPO), and Office of General Counsel (OGC). Neither HCPPO nor OGC could provide past precedent or further advice regarding the situation. BVAHS ELT determined that operations and continued primary care services at the current facility must continue due to the following:

Effective Date: 12/30/2025 Page 2 of 4

Acquisition ID#: 36C244-26-AP-3566

BVAHS could not absorb the current CBOC service load in their current system if the CBOC was prematurely closed.

New lease and simultaneous build out of a new facility would be too expensive and impose undue risk on the CBOC primary care service mission.

NCO4 estimates total cost for this procurement is

4. Statutory Authority Permitting Restricted Competition:

FAR 12.201 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 12.201 is 41 U.S.C. § 1901 and is implemented by FAR 12.102 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 Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The incumbent contractor, Valor Healthcare, Incorporated, a large business, is the only firm capable to provide continuity of healthcare services within the required performance period. The Cranberry Twp CBOC is under the purview of the Parent BVAHS and is operated by the incumbent contractor. The required services are highly specialized, and competitive procurement at this time would result in unacceptable delays that would disrupt patient care. NCO4 is in the process of recompeting this requirement and has received a procurement package from the program office for that effort. Recognizing that award to a new contractor may necessitate a period of approximately four to six months to identify a physical location, demonstrate compliance with Joint Commission, VA Office of Inspector General (OIG), and VA standards of care for veterans, and commence services, NCO4 intends to establish an interim contract with the incumbent to avoid disruption to patient care pending the build out of the long term (10-year) contract. The incumbent contractor has performed successfully and is the only source with the necessary systems and processes in place at this time pertinent to veteran eligibility, electronic patient records, diagnostic requests, invoicing, telemedicine, and other requirements to provide services in accordance with Joint Commission, OIG, and VA standards of care.

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

NCO4 synopsized this requirement as an Intent to Sole Source Presolicitation Notice (36C24426Q0828) to System for Award Management (SAM) Contract Opportunities (CO) on 07-22- 2026, requesting that vendors respond by 07-27-2025. Three Vendors that responded: (1)

(2) ; and (3)

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Acquisition ID#: 36C244-26-AP-3566

All Vendor noted an interest in competing for the 10-Year Competitive procurement. None of the vendor responses indicated that they had the capability to assume the current ongoing CBOC operation by 09-01-2026. As the agency intends to maintain continuity of healthcare services at the current locations, only the incumbent contractor will be solicited for this interim contract. As indicated in paragraph 5 above, only Valor Healthcare has the necessary systems and processes in place to ensure continuity of healthcare services at the physical site in accordance with Joint Commission, OIG, and VA standards of care.

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

The incumbent large business contractor currently provides the required services to BVAHS and meets the standards detailed in item 5. The Government will determine fair and reasonable pricing by evaluating pricing for the interim services in relation to current contract pricing, Bureau of Labor Statistics Consumer Price Index for Outpatient Hospital Services in the US, and the Independent Government Cost Estimate (IGCE) prepared for the 10-Year CBOC requirement. See also item 3 above. Any additional requirement for meeting the subcontracting requirements mandated by FAR 52.219-9 would occur with additional costs and time lags that BVAHS’s mission cannot afford (See also Determination in Contract File).

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Intent to Sole Source was posted to SAM CO (See Item 6).

NCO4 searched using the Small Business Administration’s Search Engine using the filters NAICS Code: 621498; location Pennsylvania; and search term “Cranberry”. The search yielded no results (07-29-2026).

Comprehensive Market Research Report is included in the Contract File.

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

None.

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

See Item 6.

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 agency is preparing to compete this requirement as a long-term contract (36C244-25-AP-1653).

This interim sole source procurement ensures continuity of services until the long term contract is awarded. The current procurement method for the long term contract will be competitive. See also Item 6.