P03 36C257-25-AP-4401-FY25-1303 JOFOC Addendum NCO17 Medical Courier Bridge HCA Approved.docx
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- R602--STX Medical Courier Bridge 52. 217-8
- Solicitation number
- 36C25725C0027
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This document is an Justification for Other Than Full and Open Competition (JOFOC) Addendum for medical courier services at the South Texas Veterans Health Care System (STVHCS). The document details a bridge contract extension for DalyWorks, LLC, an SDVOSB, to continue providing 24/7 medical courier services for laboratory specimen and reagent transportation. The contract will run from September 1, 2025, through February 28, 2026, with the contract value increasing from $464,612.16 to $929,224.32.
The extension is necessitated by ongoing procurement challenges, including multiple GAO protests that have disrupted the normal contract award process. The initial follow-on contract was first awarded to Caduceus Medical Logistics LLC, then to Acute Response Inc, but both awards were subsequently protested and terminated. DalyWorks, as the incumbent contractor, is being sole-sourced to ensure continuous medical courier services critical to veteran patient care while the procurement process is being revised and re-evaluated.
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ADDENDUM
JOFOC Log Number:
FY25-NCO 17-859
STVHCS Medical Courier Bridge 13 August 2025
Prepared By: Robyn Nussbaum Contracting Officer
NCO 17
36C25725C0027
Effective Date: 02/01/2022
ADDENDUM – JOFOC FY24-NCO 17-859
DESCRIPTION OF THE PROGRAM: NTX - Referral Lab Testing
ROBYN NUSSBAUM
Digitally signed by ROBYN NUSSBAUM Date: 2025.08.13 14:49:08 -05'00'
Robyn J. Nussbaum Contracting Officer NCO 17 Approval / Disapproval
MICHAEL TUSINGER
Digitally signed by MICHAEL TUSINGER Date: 2025.08.14 07:35:27 -05'00'
Michael J. Tusinger Branch Chief
NCO 17
MARK LAYMAN
Mark A. Layman
Digitally signed by MARK LAYMAN Date: 2025.08.14 13:15:23 -05'00'
Director of Contracting NCO 17
CURTIS JORDAN
Curtis M. Jordan
Digitally signed by CURTIS JORDAN Date: 2025.08.17 16:51:08 -06'00'
Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)
Summary of Changes:
The South Texas Veterans Affairs Health Care System (STVHCS), Pathology & Laboratory Medical Services is seeking to modify JOFOC FY25-NCO17-859 to exercise the Option to Extend Services in accordance with FAR 52.217-8 on the current medical courier contract. The period of performance will be from September 1, 2025 through February 28, 2026.
The use of the clause at FAR 52.217-8 will increase the value of the requirement from $464,612.16 to $929,224.32, an increase of $464,612.16.
PAGE 1, Section 2 REVISED FROM:
The South Texas Veterans Health Care System (STVHCS) has an emergent need for a continued medical courier services contract for the STVHCS P&LMS Laboratory. The Government shall not exercise any supervision or control over the service providers providing the services described herein. The contractor will provide all necessary labor, transportation, equipment, material, and supplies for twenty-four (24) hours a day, seven (7) days a week pickup and delivery of routine and emergency reagents, blood and/or blood products, lab products and specimens to locations outlined in the Schedule of Delivery for the STVHCS.
The expiring contract was awarded to DalyWorks, LLC (DalyWorks), who is an SDVOSB as a sole source bridge contract. The contract number is 36C25724C0074, the period of performance began on 9/1/2024, and ends on 2/28/2025. The total award amount was $422,687.40.
The follow-on requirement has since been procured as an SDVOSB set-aside and was awarded to Caduceus Medical Logistics LLC (Caduceus). Shortly after the new contract was awarded, three of the unsuccessful vendors filed GAO protests and a stay on the new award was invoked. Corrective action was taken, and the contract awarded to Caduceus was terminated and all proposals were re-evaluated.
A new award was made to Acute Response Inc (Acute Response); however, this award was protested again by two of the unsuccessful vendors. Corrective action is again to be taken by terminating the award to Acute Response and re-evaluating proposals.
As medical courier services are vital to the STVHCS, a sole source bridge contract must be awarded without delay to DalyWorks, the incumbent contractor.
REVISED TO:
The South Texas Veterans Health Care System (STVHCS) has an emergent need for a continued medical courier services contract for the STVHCS P&LMS Laboratory. The Government shall not exercise any supervision or control over the service providers providing the services described herein. The contractor will provide all necessary labor, transportation, equipment, material, and supplies for twenty-four (24) hours a day, seven (7) days a week pickup and delivery of routine and emergency reagents, blood and/or blood products, lab products and specimens to locations outlined in the Schedule of Delivery for the STVHCS.
The expired contract was awarded to DalyWorks, LLC (DalyWorks), who is an SDVOSB as a sole source bridge contract. The contract number is 36C25724C0074, the period of performance began on 9/1/2024, and ended on 2/28/2025. The total award amount was $422,687.40.
The follow-on requirement has been procured as an SDVOSB set-aside and initially awarded to Caduceus Medical Logistics LLC (Caduceus). Shortly after the new contract was awarded, three of the unsuccessful vendors filed GAO protests and a stay on the award was invoked. Corrective action was taken, and the contract awarded to Caduceus was terminated and all proposals were re-evaluated.
A new award was made to Acute Response Inc (Acute Response); however, this award was protested again by two of the unsuccessful vendors. Corrective action has again been taken by terminating the award to Acute Response.
The use of the clause at 52.217-8 on the current bridge contract, which expires on August 31, 2025, is needed as the source selection is under protest and the requirements documents are undergoing revision as a result of the findings. This will allow time for corrective action to be taken, award to be made, and to resolve any potential protests.
The use of the six month extension will add Line Items 2001 - 2020 for 6 months to include all necessary labor, transportation, equipment, material, and supplies for twenty-four (24) hours a day, seven (7) days a week pickup and delivery of routine and emergent reagents, block and/or blood products, lab products, and specimens to locations outlined in the Schedule of Delivery for the STVHCS. This inclusion will also increase the value of the requirement from $464,612.16 to $929,224.32, an increase of $464,612.16.
Page 1 - 2, Section 3 REVISED FROM:
A sole source bridge contract to DalyWorks is required for the continuation of courier services for the STVHCS. They are the only vendor that is familiar with the current routes and have all approvals and training needed to perform courier services while corrective action is being conducted on the long term action. No other vendor would be able to provide services by March 1, 2025.
The period of performance will be from March 1, 2025 through June 30, 2025. It is also the intent to include one (1) three (3) - month option should it take longer than anticipated to perform the corrective action, which could extend the bridge contract to August 31, 2025.
REVISED TO:
A sole source bridge contract to DalyWorks is required for the continuation of courier services for the STVHCS. They are the only vendor that is familiar with the current routes and have all approvals and training needed to perform courier services while corrective action is being conducted on the long-term action. No other vendor would be able to provide services by September 1, 2025.
The period of performance will be from September 1, 2025, through February 28, 2026.
Page 2, Section 5 REVISED FROM:
As stated in Section 3 above, DalyWorks is the only vendor that is familiar with the current routes and have all approvals and training needed to perform courier services while corrective action is being taken on the long term action. No other vendor would be able to provide services by March 1, 2025. A delay in award will have negative consequences to Veteran patient care.
REVISED TO:
As stated in Section 3 above, DalyWorks is the only vendor that is familiar with the current routes and have all approvals and training needed to perform courier services while corrective action is being taken on the long-term action. No other vendor would be able to provide services by September 1, 2025. A delay in award will have negative consequences for Veteran patient care.
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