P03 FAR 13.5 Sole Source Justification - SAT-9.0M PRINT_Redacted.pdf

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

REVISION: 01

Acquisition ID#: 36C261-26-AP-0639

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C261-26-AP-0639 JOFOC Tracker 25: FY26-NCO 21-240

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Health Administration (VHA), Network Contracting Office (NCO) 21, on behalf of the Veterans Integrated Service Networks (VISN) 21, VA Palo Alto Healthcare System (VAPAHCS).

2237: 640-26-2-5040-0006.

2. Nature and/or Description of the Action Being Processed: This procurement is for Food Compost and Cardboard Recycle Compactors and Cart Washer in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

The nature of this action is to request approval to procure the Food Compost and Cardboard Recycle Compactors and Cart Washer as a sole source, open market action. This a new requirement that will be awarded under a firm-fixed-price contract. This procurement will be awarded to SAN-I-PAK PACIFIC, INC., (SaniPak) a small business, located at 23535 S Bird RD Tracy, CA 95304.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Engineering and Environmental Management Services (EMS) department at VAPAHCS is requesting Food Compost and Cardboard Recycle Compactors and Cart Washer.

The total cost of the equipment, including installation, delivery and freight is $558,707.88

The estimated delivery date of the equipment is June 2026. The Period of Performance is 01/01/2026 – 12/31/2026. The place where the equipment will be installed is currently under preparation and the estimated completion date is May 2026.

Description Qty 8'x30' Cart Wash 1 Special Length Load Platform 1 35 Cu. Yd Self-Contained Compactor w/Hopper

Single Stage Mounted Cart Dumper

20 Cu. Yd. Self-contained Compactor

Flared Guide Channels 2

7.2 HP Electric Steam Generator 1

Installation, Delivery and Freight 1

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Acquisition ID#: 36C261-26-AP-0639

Equipment price to Include 5 Year Quarterly Preventative Maintenance.

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):

SaniPak is the sole manufacturer and authorized supplier of the San-I-Pak autoclave sterilizer system, software and all replacement parts. SaniPak possesses the proprietary knowledge, specialized equipment, and unique technical expertise required to execute the work efficiently and in compliance with VA standards.

SaniPak is the only contractor that meets specific requirements, including SaniPak’s capacity to deliver in terms of time, resources, and quality of services. Engaging this contractor significantly reduces risks associated with construction delays, due to the tight time restraints working with other VA departments general contractor.

SaniPak is the only responsible source capable of meeting the VA’s specific project requirements.

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

Sources Sought Notice was posted on Contracting Opportunities (36C26126Q0070) from 10/02/2025 to 10/13/2025. Two responses were received from a small business vendor. VAPAHCS also provided a quote from SaniPak. Due to SaniPak’s existing familiarity with site-specific conditions, equipment layouts, and infrastructure integration, transitioning to a new contractor would require a complete redesign and re-coordination effort, resulting in substantial schedule delays and operational disruption.

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

Reasonable: IAW FAR 13.106-3(a)(2), the anticipated cost to the Government will be considered fair and reasonable by comparing the proposed pricing to the independent government cost estimate

(IGCE).

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

Acquisition ID#: 36C261-26-AP-0639

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

A comprehensive search was performed using the System for Award Management (SAM.gov), the General Services Administration (GSA) schedules, and the Federal Procurement Data System (FPDS).

The market research revealed that only SaniPak possesses the unique combination of experience, specialized technology, and expertise required to successfully complete the project. SaniPak is the sole manufacturer and authorized supplier of the San-I-Pak autoclave sterilizer system, software and all replacement parts.

Small Business Administration’s (SBA’s) Small Business Search (SBS) database was used to identify certified capable Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB). The database search utilizing NAICS code 333310 - Commercial and Service Industry Machinery Manufacturingyielded one (1) SDVOSB and VOSB matches and three (3) small businesses.

The Non-Manufacturer Rule (NMR) does not apply to this requirement. SaniPak., a small business, is the Original Equipment Manufacturer (OEM).

The Buy American Statute is applicable. Trade Agreement Act does not apply because of applicability of FAR 25.401(a)(5) exception. FAR 25.401(a)(5) states, Other acquisitions not using full and open competition, if authorized by subpart 6.2 or 6.3, when the limitation of competition would preclude use of the procedures of this subpart; or sole source acquisitions justified in accordance with 13.501(a).

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

The contractor, SaniPak, has the tools and systems required to deliver the necessary outcomes.

Switching to a different vendor would result in unacceptable delays, potential incompatibility issues, and significant ramp-up time to achieve the current level of performance. SaniPak is uniquely positioned to commence work immediately, ensuring that critical project milestones are met. Any delay caused by soliciting full and open competition would jeopardize project timelines and adversely impact mission-critical operations.

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

Baler & Compactor Hydraulic Service LLC and Hometown Sanitation LLC expressed interest, but SaniPak is the sole manufacturer and authorized supplier of the San-I-Pak autoclave sterilizer system, software and all replacement parts.

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: In future acquisitions, appropriate market research will be conducted to determine if sources capable of meeting the agency’s needs have become available in the marketplace.

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

Acquisition ID#: 36C261-26-AP-0639

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.

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.

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.