P03 36C244-26-AP-3569 Arm Cla Bridge v3 mem_Redacted.pdf

36C244-26-AP-3569 | Bridge Butler: Armstrong and Clarion Ctys

Effective Date: 12/30/2025 Page 1 of 4 Revision: 02 Acquisition ID#:

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-3569

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’s):

529-26-4-204-0673 (Armstrong Cty) and 529-26-4-204-0674 (Clarion Cty).

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 Armstrong County (Kittaning, PA) and Clarion County (Monroe Township, PA) 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 the 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 twelve-month period.

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

The Armstrong and Clarion Counties CBOCs currently provide 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 08-31-2027. A determination for Option FAR 52.217-8 is included in the contract briefcase.

NCO4 estimates total cost for this procurement is This is comprised of the following estimates per clinic as follows.

Armstrong County CBOC:

Clarion County CBOC:

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

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

Acquisition ID#:

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 Armstrong and Clarion Ctys CBOCs are under the purview of the Parent BVAHS and are 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 a twelve month 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 (36C24426Q0822) 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) 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 item 5 above, only Valor Helathcare 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:

Effective Date: 12/30/2025 Page 3 of 4

Acquisition ID#:

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). 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 terms “Armstrong” and “Clarion”. 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.

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.

Nicole Thompson, BSN, RN Date CBOC Program Manager Butler VA Healthcare System