P03 EMER FAR13.5 SSJ - 36C249-24-AP-4249 Fuel Tank__Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

REVISION: 00

Acquisition ID#:

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN

ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:

1. Contracting Activity: Department of Veterans Affairs, VISN 09, Tennessee Valley HealthCare System

Medical Center. NCO 09 Contracting.

2237 number:

2. Nature and/or Description of the Action Being Processed: This procurement is for emergency repair and inspection to three diesel fuel tanks for the Nashville VAMC boilers in accordance with FAR

13.501. This action will be awarded as a firm-fixed-price new contract under FAR 13 purchase order.

3. Description of Services Required to Meet the Agency’s Needs: TVHS Nashville VAMC has a requirement for emergency inspection and repair for (3) three diesel fuel storage tanks for the facilities boilers. This includes all refurbishments to meet EBA safety and compliance, ensuring the integrity of the fuel tanks. Due to the age and corrosion of the current fuel storage tanks, repairs are emergent in nature to be compliant with EPA standards.

Total Estimated Value: $310,500.00 Period of Performance: 09/13/2024 – 12/12/2024

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) 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): Three of the Nashville VAMC diesel fuel storage tanks that feed the boilers are not in compliance with the EBA safety requirements due to age and corrosion. Immediate repairs/refurbishment are required to prevent fuel leakage that would lead to ground contamination and patient/employee safety hazards which could preclude impairment of the healthcare delivery capabilities and mission performance. This

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Acquisition ID#:

procurement requires inspection of all (3) three diesel fuel storage tanks and repair/refurbishment to include re-coating the tanks in order to be in compliance with the EBA safety requirements. Due to the age and corrosion of the current fuel storage tanks, along with the need for a quick turn around to prevent adverse impact to veteran care, thus repairs are emergent in nature and are required to be compliant with EBA standards.

The extensive and unique knowledge of the facility by this contractor allows for an expedited timeframe for repairs in addition to their unique qualifications/expertise to perform the highly specialized services in the local area. These repairs are necessary for facility integrity ensuring patient/employee safety and ensuring repairs completed for the fuel storage tanks are up to EBA standards and compliance within a short turnaround timeframe to prevent delay in necessary medical services of the facility.

Due to the urgent nature for this highly specialized services along with the unique knowledge of the facility Dunbar Mechanical Contractors LLC is the only source in the local area able to quickly perform these services and potentially preventing adverse impact to veteran care.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The TVHS Nashville VAMC has an urgent and compelling need for immediate repair to three fuel tanks for their boiler plants to meet EBA standards to prevent compromising patient care. No futher competition for this acquisition will be facilititated.

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

This is a urgent and compelling need for immediate repair to the TVHS Nashville boiler fuel tanks that could compromise patient care by not meeting EBA standards. Due to the unique service needs for the fuel tank repairs there is a limitation of comparisons within the Veterans Health Administration (VHA). However, FPDS shows utilizing search parameters with NAICS code 237120 and key words “fuel tank repair” (395) three-hundred ninety five results identified (3) three Government contracts for similar contracts where the current procurement is below cost range of $332,135.00 and $639,547.00 at $310,500.00.

Results from USA Spending utilizing search parameters of NAICS code 237120 and key words “diesel fuel tank repair” provided a total of 13 awards for similar type search results with a wide range of contract value of $2,950.00 to $9,581,529.00. However, this contract does shows to be between the value of two contracts valued at $579,980.00 and $237,470.00.

https://files.usaspending.gov/generated downloads/PrimeAwardSummariesAndSubawards 2024- 09-15 H15M20S10997059.zip

Based on market research for a comparison of similar services on FPDS and USA Government Spending Awards to the IGCE the price has been determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: This is an emergency request in support of EBA safety to ensure the integrity of three fuel tanks for the Nashville VAMC boilers. Immediate repairs are

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Acquisition ID#:

required to prevent fuel leakage that would lead to ground contamination and patient/employee safety hazards.

The VetCert search did provide (611) potential SDVOSB, however as FPDS confirmed there is a limited number of vendors within the immediate with knowledge of the existing equipment within the area capable of providing the required services.

FPDS search showed Dunbar Mechanical Contractors, LLC to be the only vendor in the local area able to provide the required services within EBA standards.

Dunbar Mechanical Contractors, LLC per CPARS reports and customer knowledge has an excellent past performance and job oversight with proven work to be fast and efficient. Vendor has historically proven to be compliant with OSHA and Joint Commission Standards for EBA safety requirements. Any delay in this purchase will have a negative impact on patient care. Due to the urgent circumstances of the contract action, the VA Rule of Two cannot be met.

Therefore, recommend based the market research services for this requirement will be acquired as a sole source contract to SDVOSB, Dunbar Mechanical Contractors, LLC, IAW FAR 13.501(a), only one source reasonably available due to urgent need.

Further market research was not conducted due to the urgent and compelling need of the procurement and availability of a known SDVOSB vender with extensive and unique knowledge of the facility. This vendor’s knowledge allows for an expedited timeframe for repairs. These repairs are necessary for facility integrity to bring fuel storage tanks up to EbA standards and compliance and potentially preventing adverse impact to veteran care.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The fuel tanks feed directly to the boilers for the TVHS facility which directly affects patient care/safetly. This is an immediate need for repairs to meet the EBA safety standards and prevent ground contamination.

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

Dunbar Mechanical Contractors, LLC

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:

No futher action is to be taken to foster competition for future service acquisitions as this requirement is urgent in nature requiring immediate action ensuring patient safety.

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.