P03 - 808.405-6 Limiting Sources - 11.17.20.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C770-20-AP-1057

Contracting Activity: Department of Veterans Affairs, Network Contracting Office 15, CMOP.

Description of Action: This is an individual limited sources justification to support the procurement of the following item

Order against: FSS Contract Number: V797D- 30040______

Name of Proposed Contractor: Sharps Compliance, Inc.

Street Address: 9220 Kirby Dr., Suite 500

City, State, Zip: Houston, TX. 77054

Phone: 713-660-3547

(3) Description of Supplies or Services:

Item No.

Or Stock No. Description Quantity Unit

17040-250 Mail-back Envelopes 720 CS Case of 250

17040-250 Mail-back Envelopes 20 CS Shipment to Puerto Rico

Estimated Performance Period: One base year with four (4) one-year option periods Estimated Quantity: 185,000 envelopes per year Estimated Quantity including options: 925,000 envelopes

VHAPM Part 808.405-6 Limiting Sources Page 2 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Based on market research and a Request for Information that was posted on Contract Opportunities, the TakeAway™ Patient Medication Mail-back envelopes, manufactured by Sharps Compliance, Inc. of Texas, is the only Mail-back envelope product that meets all of the requirements of the DEA final rule regarding mail based disposal of controlled substances are mandatory by law and VHA regulations.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures.

The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value:

Per FAR PART 8.404(d), the anticipated price is considered fair and reasonable, as Sharps Compliance, Inc. will continue to honor the established Federal Supply Schedule pricing that is established under V797D- 30040.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. Request for Information/Sources Sought announcement #36C77020Q0257, was posted on 02/06/2020, using the North American Classification System (NAICS) code 339113 (750 employees). This Sources Sought Notice was part of market research and was used to make appropriate acquisition decisions including whether the procurement warrants a set-aside for Service-Disabled Veteran Owned Small Businesses (SDVOSB), Veteran Owned Small Businesses (VOSB), or Small Business (SB). The announcement closed on 02/26/2020.

VHAPM Part 808.405-6 Limiting Sources Page 3 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

The following five vendors expressed in writing an interest in the acquisition. Based on the information submitted, four were not able to meet the minimum requirements or mandatory requirements.

Reliable Pharmaceutical Returns, LLC. (SDB) United Drug Supply (WOSB Sterisyn Inc. (SDB) AO3 Solutions (SDVOSB) Sharps Compliance Inc. (SB): Only Sharps Compliance Inc. was able to meet all requirements.

Due to the time that has passed, a second Request for Information/Sources Sought announcement #36C77020Q0730 was posted on 09/14/2020, using NAICS code 339113. The announcement closed on 09/23/2020 and no responses were received.

This procurement requires that all regulations of the DEA final rule and VHA are met. Only one Contractor was able to meet the criteria mandatory to be selected for award. Since there is only one qualified Contractor, this procurement becomes a Sole Source FSS BPA against an existing NAC Contract (V797D-30040) to Sharps Compliance Inc – the Small Business manufacturer of the Mail-back envelopes.

Any Other Facts Supporting the Justification: N/A.

A Statement of the Actions: If any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: Given the requirement it is not possible to compete due to requirements.

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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Name: ___________________________________ __________________ Justin Simon Date Hines CMOP

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Justin M Simon 422058

Digitally signed by Justin M Simon 422058 Date: 2020.10.29 11:39:04 -05'00'

VHAPM Part 808.405-6 Limiting Sources Page 4 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

Prepared by:

Name: ________________________________ __________________

Kelly L. Mann Date Contract Specialist

Approved by:

Name: ________________________________ __________________

Josie Linaweaver Date Contracting Officer

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

Jeffrey Crysler Date Supervisory Contract Specialist, CMOP Team 1

James Justus Date Director, CMOP Acquisition, NCO15 CMOP Division

Scott Fiscus Date Director of Contracting

SCOTT R FISCUS 381888 Digitally signed by SCOTT R FISCUS 381888 Date: 2020.10.29 10:05:11 -05'00'

JOSIE M

LINAWEAVER 639764

Digitally signed by JOSIE M

LINAWEAVER 639764

Date: 2020.10.29 12:01:34 -05'00'

KELLY L. MANN

1369839

Digitally signed by KELLY

L. MANN 1369839

Date: 2020.10.29 12:14:58 -05'00'

Jeffrey S. Crysler 1104355 Digitally signed by Jeffrey S. Crysler 1104355 Date: 2020.10.29 13:40:16 -05'00'

James D. Justus 1030208 Digitally signed by James D. Justus 1030208 Date: 2020.10.29 13:48:44 -05'00'

VHAPM Part 808.405-6 Limiting Sources Page 5 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

c. VHA RPO HCA Review and Approval (over $700,000 to $68 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 restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Terry L. Spitzmiller Date Executive Director Regional Procurement Office Central (VHA)

10/29/2020

TERRY L.

SPITZMILLER

394683

Digitally signed by TERRY

L. SPITZMILLER 394683

Date: 2020.10.29 16:21:22 -05'00'