P03 FAR 13.5 Sole Source Justification - SAT-7.5M 26D0027 AUS Signed.pdf

Effective Date: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C263-26-AP-0747

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C263-26-AP-0747

1. Contracting Activity:

Department of Veterans Affairs, Network Contracting Office 23, in support of the Veterans Integrated Service Network 23 (VISN23).

2. Nature and/or Description of the Action Being Processed:

NCO 23 intends to award a short-term, 6-month bridge contract to a verified Service-Disabled Veteran-Owned Small Business (SDVOSB) for the continued provision and distribution of medical gases to multiple VA Medical Centers and outpatient sites within VISN 23.

This bridge is required to ensure uninterrupted delivery of medical gases while a competitive follow-on solicitation is finalized and awarded.

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

The estimated value of the proposed action is $688,498.48

The requirement includes:

• Bulk and cylinder oxygen (USP)

• Medical air (USP)

• Nitrogen (NF)

• Carbon dioxide (USP)

• Helium and specialty medical gases

• Cylinder leasing, exchange, filling, and distribution services

• Emergency and routine medical gas delivery across VISN 23 facilities

VISN 23 relies on continuous, uninterrupted access to medical gases for patient care and other clinical operations. This bridge contract provides critical continuity of supply while the new competitively awarded VISN-wide medical gas contract is completed.

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:

Effective Date: 11/15/24 Page 2 of 4

Acquisition ID#: 36C263-26-AP-0747

( ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

(X) 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 SDVOSB possesses unique qualifications that make them the only contractor capable of meeting VISN 23’s urgent and compelling need for uninterrupted medical gas services. The contractor currently maintains the entire VISN-wide cylinder inventory, DOT certifications, established delivery routes, facility access credentials, and emergency response capabilities. Their cylinders, regulators, and equipment are already integrated into VA operations, and any attempt to transition to a new vendor would require extensive removal, replacement, inspection, inventory reconciliation, and onboarding activities that cannot be completed before expiration of the current contract. Only the incumbent can provide immediate, zero-transition continuity of critically needed medical gas supplies, which is essential for veteran/patient care, and compliance with NFPA 99 and FDA/DOT requirements. For these reasons, the incumbent’s unique readiness and integration support the use of FAR 6.302-2 for this bridge action.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Market research indicates other potential suppliers; however, due to the urgency, transition risks, and timeline constraints, full and open competition cannot be conducted without jeopardizing VA operations. A full competitive solicitation is currently in progress for the long-term solution.

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

The anticipated cost has already been determined fair and reasonable as the incumbent has agreed to use current ordering period pricing for the duration of the bridge.

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

Market Research Was Not Conducted:

a. Conducted a query on SBA Veteran Small Business Certification (VetCert) using NAICS Code “325120”. The search listed 178 businesses certified as 8(a), 8(a) JV, HUBZone, WOSB, EDWOSB, VOSB, SDVOSB.

b. Conducted a search on the GSA eLibrary for Items: “Medical Gas” which garnered three (3) possible categorial results on the GSA website. The 3 results had no relevance to Medical Gas.

Effective Date: 11/15/24 Page 3 of 4

Acquisition ID#: 36C263-26-AP-0747

c. Conducted a search on Federal Procurement Database Systems (FPDS) using keywords: “NAICS Code:” 325120” DEPARTMENT_FULL_NAME: ”VETERANS AFFAIRS,DEPARTMENT OF” and produced 15,867 results showing contracts awarded by the Department of Veterans Affairs.

d. Conducted a search on the System for Award Management using UEID: “RSCDDXH8DFZ9”. The search displayed RAS Enterprises LLC with a valid SAM registration expiring on Jan 9, 2026.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

VISN23 cannot create a stockpile to extend competition time, making continuous replenishment time sensitive. A single missed delivery could halt procedures or put Veteran’s at risk. Therefore, competition delay would directly endanger patients.

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

RAS ENTERPRISES LLC

2512 25TH AVE STE 3

Gulfport, MS 39501

SAM UID: RSCDDXH8DFZ9

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:

NCO 23 is actively processing a competitive VISN23-wide solicitation for medical gas supplies. The intent will be a fully competed acquisition. The six month bridge will not be extended beyond what is necessary. This bridge is solely to maintain continuity during the competitive acquisition process.

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.

Steven R. Westhoff Date VISN 23 Acquisition Utilization Specialist

Effective Date: 11/15/24 Page 4 of 4

Acquisition ID#: 36C263-26-AP-0747

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.

Steve Ashby Date Contracting Officer

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Curt LaRose Date NCO23 / Branch Chief SST2 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx