P03 FAR 6 JA IAW VAAR 819.7008 BC Signed.pdf

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 1 of 4 Revision: 03 Effective Date: 06/15/2024

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition

Acquisition Plan Action ID: 36C249-26-AP-1789

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

(TVHS) Medical Center, 1310 24th Avenue South, Nashville, TN, 37212 Network Contracting Office 9.

2237: 626-26-2-4192-0062.

2. Nature and/or Description of the Action Being Approved: This is a new firm fixed price open market sole source purchase order awarded to Service-Disabled Veteran Owned Small Business (SDVOSB), JohnsonDanforth, Inc. in accordance with VAAR 819.7008.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: On 10/01/2025, a 5-Year Blanket Purchase Agreement (BPA) 36C24925A0073 was awarded to JohnsonDanforth, Inc. as a result of a competitive Service-Disabled Veteran Owned Small Business (SDVOSB) set aside to provide full-service routine maintenance and inspections, ASME periodic testing and inspection, repairs and call back repair service of all traction, hydraulic, roped hydraulic elevators, dumbwaiters and wheelchair lifts for the Tennessee Valley Healthcare System (TVHS) Veterans Affairs Medical Center (VAMC). Due to the age of the existing equipment, replacement parts for elevators S1 and S2 have been discontinued. A refurbishment of both elevators which includes the installation of modern components has become necessary to ensure reliable service. The period of performance for this project is 180 days from the date of award and is estimated at $695,000.00.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by RFO 6.103-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR

819.7009 (DEVIATION) up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business; or ( ) 819.7009 Sole source awards to a certified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): There is an existing contract in place with JohnsonDanforth, Inc. (an SDVOSB) to perform various tasks including routine elevator maintenance services. Discontinuation of Original Equipment Manufacturer (OEM) parts for elevators S1 and S2 prevents continued maintenance without modernization. Awarding modernization to a different contractor would void warranty coverage on newly installed components, which constitutes a measurable risk to the Government even if the monetary value cannot be precisely quantified. To prevent the loss of warranty, the existing contract with JohnsonDanforth, Inc. could be modified to remove maintenance services for elevators S1 & S2 but these services have been obtained at a great value so this would also result in a monetary loss for the government and re-procurement costs. An additional complication of adding a second contractor would result in increased liability for the government in the event of a mechanical issue. It would present administrative challenges if both contractors placed blame on the other for the mechanical failure. That situation would cause such a burden, a third party would need to be brought in to provide https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 2 of 4

Effective Date: 06/15/2024 clarification which may result in additional expense to the government and legal action. Although the requirement could be competed, the government would not benefit and would be required to absorb some level of loss whether by forfeiting a warranty, assuming a greatly increased administrative burden, potential loss of equipment function during a dispute or losing the advantage of the existing value of the current contract in place. Elevator availability is mission-critical to patient transport, emergency response, and daily medical operations; any loss of continuity poses unacceptable risk.

Based on the facts surrounding this action, it would not be in the best interest to allow competition for this requirement without the introduction of risk and financial loss. The sited authority allows sole source awards to SDVOSBs based on 38 U.S.C. 8127(c) and the SDVOSB concern has been determined to be a responsible source with respect to performance. JohnsonDanforth, Inc. meets eligibility requirements in 819.7003 (DEVIATION) and the action is below the $5M threshold. Under VAAR 819.7008, a determination that only one SDVOSB/VOSB can meet the requirement is not required and has been supported in this justification and approval. In addition, a 2268 is not required for sole source acquisitions made to SDVOSB contractors.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies: No solicitation was publicized for this action due to only one source being capable of providing services without increased risk and/or loss to the government as outlined in section 5. The contracting officer’s determination to make a sole source award is a business decision wholly within the discretion of the contracting officer. This authority has been used judiciously and has been found to be in the best interest of the Government.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer reviewed recent pricing from System for Award Management at SAM.GOV, competitive BPA pricing under 36C24925A0073, and Federal Supply Schedule labor categories for comparable elevator modernization services. These data points support that the anticipated price aligns with current market conditions and is expected 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: A Small Business Search (SBS) conducted on the Small

Business Administration’s (SBA) website at https://search.certifications.sba.gov/ using NAICS code

238290 and with a filter set to identify only SDVOSB contractors returned 19 businesses that may be able to provide the services. However, selecting any contractor other than the incumbent would void warranty coverage for newly installed components.

A second SBS search conducted on the SBA’s website confirmed JohnsonDanforth, Inc. as still being certified as a SDVOSB for NAICS code 238290.

A search on the Ability One Procurement list was conducted using the location city of Nashville at https://www.abilityone.gov/procurement_list/ which showed the requirement as not being a provided service.

In reviewing market research results conducted for BPA 36C24925A0073 a search on GSA Advantage at https://gsaadvantage.gov using key words elevator on the service criteria search feature as well as sorting for SDVOSB businesses return 152 potential contractors. The results showed that many https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.acquisition.gov/far/part-5#FAR_Subpart_5_2 https://www.acquisition.gov/far/part-5#FAR_5_202 https://search.certifications.sba.gov/ https://www.abilityone.gov/procurement_list/ https://gsaadvantage.gov/

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 3 of 4

Effective Date: 06/15/2024

SDVOSB contractors offer some type of elevator services at a set hourly rate. However, it was not clear if all functions listed in the statement of work were covered under any SDVOSB contractor’s contract. Sources Sought Notice 36C24925Q0327 was posted on contract opportunities at https://sam.gov/content/home on June 13, 2025, through June 23, 2025, with only 1 response received from a SDVOSB GSA contract holder, Brave One Contract Agency, LLC. Brave One Contract Agency LLC. initially expressed interest but failed to submit a quote in response to the solicitation.

Based on the lack of participation from GSA contractors on this similar requirement a few months ago there is no reasonable expectation the market has changed considerably in that short of a time span. In total 9 quotes were received from contractors offering pricing in response to an open market request for quote.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None in accordance with 38 USC 8127(c).

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None, other than JohnsonDanforth, Inc. who is currently performing maintenance services under the existing contract.

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: Due to OEM warranty requirements and continuity-of-service considerations, no additional actions can be taken to increase competition for this specific requirement. Elevator maintenance and modernization services are routinely competed at the expiration of their contract or BPA period of performance to ensure fair opportunity.

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.

Alan M. Hickerson Date Maintenance/Operations Supervisor Tennessee Valley Healthcare System

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.

Scott Dickey Date Contracting Officer Network Contracting Office 9 https://sam.gov/content/home https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 4 of 4

Effective Date: 06/15/2024

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Roxie A. Keese Date Branch Chief, Facilities Support

Network Contracting Office 9