P03. FInal Approved Sole Source Justification OVER_SAT_DOCX1_COMPLETE 1_Redacted 02.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: GREX: DNE06495-001, eCMS: 36C263-19-AP-5250

1. Contracting Activity: The Department of Veterans Affairs, VISN 23, Nebraska Western Iowa Health

Care System (NWIHCS) seeks to procure a lease of 30k-SF of Community Living Center space at 11111 S 84th St, Papillion, NE 68046. Approval is requested to negotiate a new lease with CHI Health Midlands without full and open competition due to their unique qualification in meeting this complex requirement.

2. Nature and/or Description of the Action Being Processed: Approval to procure a new lease with the only responsible source for a Community Living Center (CLC) located in Papillion, NE without competition, pursuant to GSAR 570.4. This is a new lease requirement which will equip Nebraska Western Iowa Health Care System to transition Veterans to the most appropriate level of care in a more timely manner, improving the efficiency and availability of inpatient acute care beds at the NWIHCS. The required lease space must be within 500 feet of the following medical services, in order to allow the VA the ability to separately contract for the CLC inpatient medical needs:

a. Dialysis Center

b. Emergency Room

c. Respiratory Care

d. Radiology

e. Physical and Occupational Therapies

3. Description of Supplies/Services Required to Meet the Agency’s Needs VISN – 23 Nebraska, North

West Iowa Veterans Hospital submitted on September 23, 2019 a Director’s Memorandum for space for 26,000 NUSF to yield approximately 30,000 RSF of CLC space. To satisfy the VHA’s mission requirements, the facility must be within the delineated area as set forth in the attached document, This requirement is to lease 28,000 NUSF of CLC space located in the Omaha, NE metro area, for a 20 year term, 10 years firm, with 90 day termination rights after the firm term). The estimated annual cost of the lease $1,555,800.00 (900,000.00 unserviced rent). The estimate is based on market research and the estimated cost per SF (24 hour) for CLC space of $51.86/SF. A total contract value of $30,933,000.00.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 U.S.C. 3304(a)(1): Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): GSAM 570-402 allows for sole source negotiations IAW FAR 6.3. Alegent Creighton Health DBA CHI Health Midlands Hospital is the only responsible source due to the highly specialized co-located medical services required. The required lease space must be within 500 feet of the following medical services, in order to provide for the CLC inpatient medical needs:

a. Dialysis Center

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Revision 08 Date: 04/18/2018

b. Emergency Room

c. Respiratory Care

d. Radiology

e. Physical and Occupational Therapies

VHA placed a sources sought conforming to GSAM 570.106 on the Federal Business Opportunities website (fedbizopps.gov) and 4 responses were received (6 locations). Only one response received adhered to the minimum requirements listed in the sources sought advertisement, Alegent Creighton Health DBA CHI Health Midlands. The CO responded to each of the other submitted responses but no further information was provided indicating the submitted locations could meet the minimum requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: In accordance with GSAR 570-402 and FAR 6.302-1, the Contracting Officer placed a sources sought notice on the Federal Business Opportunities website, 36C26320R0036 on January 31, 2020. Only one response received met the criteria outlined in the posted advertisement.

The notice:

a. Described the requirements in terms of type and quantity of space.

b. Delineated area to be considered.

c. Medical services to be co-located (within 500 feet of lease space).

d. Instructions on how to submit evidence and a contact person for such submittal.

On April 13, 2020, the NWIHCS partners conducted a market survey and found only one acceptable location (Alegent Creighton Health DBA CHI Health Midlands) that might meet the agency’s needs within the delineated area and conforming to the requirements of the posted advertisement. The CO also searched GSA properties, but did not find any available space meeting the government’s requirements.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: In accordance with Federal Acquisition Regulation (FAR) 6.303-2(b)(7), the CO determines by certifying this document that the anticipated cost to the Government of $30,933,000.00 is fair and reasonable. Recent market surveys conducted by the CO in Omaha, NE show an average rental rate for this specialized community living center to be in the $45 - $55/SF (fully serviced) range. This average, along with a third party market rental analysis will be used to assist the CO in determining reasonableness.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: Market research was conducted by searching a widely used commercial real estate multiple listing service, LoopNet, with multiple spaces found reasonably near the area of consideration. Additionally the General Services Administration was contacted revealing no GSA-leases or GSA-owned space available in the delineated area. Lastly a sources sought was posted asking all interested parties to respond with properties that met or could be made to meet the requirements for property listed in the sources sought posted to FBO in accordance with FAR Part 10. The Class Deviation – Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision (Class Deviation – Veterans First Contracting Program (VFCP 2016), VHAPM Part 810.001, and PPM 2016-05 , the VIP database for Service-Disabled Veteran owned small businesses and Veteran-owned small businesses was searched and no properties were found meeting the requirements as outlined in the sources sought.

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Revision 08 Date: 04/18/2018

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

1. – Property (1) did not meet/could not be made to meet the minimum requirements listed in sources sought.

2. – Properties (3) did not meet/could not be made to meet the minimum requirements listed in sources sought.

3. – Property (1) did not meet/could not be made to meet the minimum requirements listed in sources sought.

4. CHI Midland Health – Property (1) did meet the requirements listed in the sources sought.

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:

1. – Property did not meet/could not be made to meet the minimum requirements listed in sources sought.

2. – Properties did not meet/could not be made to meet the minimum requirements listed in sources sought.

3. – Property did not meet/could not be made to meet the minimum requirements listed in sources sought.

4. Alegent Chreighton Health DBA CHI Midland Health – Property did meet the requirements listed in the sources sought.

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:

Consistent with the Competition in Contracting Act, full and open competition will be undertaken in future requirements as opportunities are available.

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.

Robert Volz

Date

Chief of Engineering Nebraska Western Iowa Health Care System (NWIHCS)

Robert D. Volz 1362447

Digitally signed by Robert D.

Volz 1362447 Date: 2020.04.20 12:00:18 -05'00'

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Revision 08 Date: 04/18/2018

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.

Melissa S. Johnson Date Lease Contracting Officer

Network 23 Contracting Office (NCO-23)

b. 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.

Daryl A. Berg Date Director of Contracting

Network 23 Contracting Office (NCO-23)

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.

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

Melissa S.

Johnson 346773

Digitally signed by Melissa S. Johnson 346773 Date: 2020.04.20 12:05:04 -05'00'

For

4/21/2020

04/23/2020

BENEDICT A.

SEITZ 253829

Digitally signed by

BENEDICT A. SEITZ

253829 Date: 2020.04.21 13:12:34 -05'00'

TERRY L.

SPITZMILLER

394683

Digitally signed by TERRY

L. SPITZMILLER 394683

Date: 2020.04.23 15:26:41 -05'00'