P03 - FAR6 JA Over SAT signed by HCA.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 10 Page 1 of 4 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C242-20-AP-1703

1. Contracting Activity: Department of Veterans Affairs, VISN 02, New Jersey Healthcare System

(NJHCS) – East Orange Campus, 385 Tremont Ave, East Orange, NJ 07018 2237: 561-21-1-5100-0014

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

This is a request for the approval of a sole-source open-market contract for a full-service agreement on the Delta Controls enteliWEB Enterprise facility management software system platform currently in use at the NJHCS – East Orange Campus. This procurement shall be conducted in accordance with FAR Part 6.302-1. The purpose of this service agreement is to reduce service costs and improve equipment turn-around time and reliability. This will be a firm-fixed price purchase order. The anticipated period of performance is from 10/1/2020 – 9/30/2021 with the provision of four (4) option years. The annual cost is $319,500.84, and the total estimated cost is $1,649,440.56.

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

Delta Connects, Inc., a large business, is the exclusive authorized dealer to design, install, program and service the complete Delta Controls product line (i.e. enteliWEB Enterprise system) for the NJHCS - East Orange Campus. Delta Connects, Inc will provide a full service agreement to include:

authorized/trained technician (on-site three days per week - 8 hours each day), OEM parts, travel, labor, 24/7 telephone and remote diagnostic support, programming, diagnostic calibration, trending, updates to the hardware and software in place as required, preventative maintenance and as needed repairs.

The anticipated period of performance is from 10/1/2020 – 9/30/2021 with the provision of four (4) option years.

Base period, 10/1/2020 – 9/30/2021: $319,500.84 Option year one, 10/1/2021 – 9/30/2022: $324,612.36 Option year two, 10/1/2022 – 9/30/2023: $329,805.16 Option year three, 10/1/2023 – 9/30/2024: $335,080.56 Option year four, 10/1/2024 – 9/30/2025: $340,441.64

Total estimated cost: $1,649,440.56

OFOC SOP Revision 10 Page 2 of 4

Revision 10 Date: 09/10/2020

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Delta Connects, Inc., a large business, is the only company that can provide all the necessary OEM parts and perform all necessary repairs for the equipment described above due to patents and copyrights on the equipment. The prevents other possible contractors from accessing the diagnostic software, possessing necessary tooling and providing OEM parts to the Government. These maintenance services are considered “highly specialized” and thus there is only one responsible source. Replacement of this system would be a substantial duplication of cost to the government not expected to be recovered through competition and would cause unacceptable delays in fulfilling the East Orange Campuses needs.

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

A Notice of Intent, 36C24220Q0942, was posted to beta.SAM.gov from 7/21/2020 – 7/28/2020. An additional Notice of Intent, 36C24220Q1204, was posted to beta.SAM.gov from 9/10/2020 – 9/14/2020. These notices described the requiments of the anticipated contract and that Delta Connects, Inc. was the only vendor capable of performing services required. Both notices received zero responses. Delta Connects, Inc.is the only contractor identified that can provide for this requirement.

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

Reasonable:

The proposed pricing for this purchase order has been compared to the price of the previous procurement. This service was last procured as a consolidated facilities maintenance contract (GS- 21-F-0062V/VA243-16-F-1561) where ProSource, Inc., small business, managed the consolidated facilitates maintenance contract and then sub-contracted out all OEM requirements to the respective vendor. For this service, ProSource, Inc. charged a 15% fee to manage each part of the contract. The cost of this service for the last option year (10/1/2019 – 9/30/2020) was $279,489.72, which paid Delta Connects, Inc. $243,034.54 for service provided during the option year. Due to the end of the current contract, it was determined that several services, such as this, be removed from the consolidated facilities management contract. This will allow for cost savings, and more oversight of the contract by the VA. The IGCE provided anticipates the cost for the base year of the contract to be $319,500.84. However, with a 1.6% increase each year of the previous contract, the cost evaluated by the Contracting Officer would be $283,961.60 for the base year and $1,465,704.60 for

OFOC SOP Revision 10 Page 3 of 4

Revision 10 Date: 09/10/2020 total contract price. Price reasonableness shall be determined by evaluating the vendors labor rate, price lists, and by comparing cost increase from the previous contract.

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

• A search of VetBiz using NAICS code 811219 and keyword “enteliWeb” did not identify any SDVOSB or VOSB that could provide service to meet the requirements of this procurement.

• A search of SBA website using the NACIS code 811219 and keyword “enteliWeb” did not identify any vendors that could provide service to meet the requirements of this procurement.

• A search of GSA eLibrary using the keyword ““enteliWeb” did not identify any vendors that could provide service to meet the requirements of this procurement

• A Notice of Intent, 36C24220Q0942, was posted to beta.SAM.gov from 7/21/2020 – 7/28/2020. This received zero responses. Delta Connects, Inc.is the only contractor identified that can provide for this requirement.

• After a 2268 for a similar procurement at the Lyons VAMC was reviewed, it was determined that the NAICS and PSC code should be changed from J059 to J041. Therefore, additional market research was conducted as follows:

o A search of VetBiz using NAICS code 541513 and keyword “enteliWeb” did not identify any SDVOSB or VOSB that could provide service to meet the requirements of this procurement.

o A search of SBA website using the NACIS code 541513 and keyword “enteliWeb” did not identify any vendors that could provide service to meet the requirements of this procurement.

o A Notice of Intent, 36C24220Q1204, was posted to beta.SAM.gov from 9/10/2020 – 9/14/2020. This received zero responses. Delta Connects, Inc. continues to be the only contractor identified that can provide for this requirement.

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: None

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 situations involving complex equipment, it is difficult to remove barriers to competition because the OEM is the only qualified company capable to provide the repair and maintenance of its own specialized equipment. This is especially true where proprietary software, specific diagnostics tools, and specialized electronics are used to maintain the equipment in accordance with OEM specifications. The manufacturer has chosen to license its software and authorize Delta Connects, Inc., a local company, to provide service and to maintain their equipment. The only alternative would be to replace the existing equipment with another system. At this time, the NJHCS – East Orange Campus is satisfied with the quality and operation of the installed equipment, its maintenance and repair. NJHCS - East Orange Campus currently does not have the sufficient budget to replace the existing equipment thus the reason to have equipment properly maintained through the life of the contract. Considerations for new equipment will be made when the existing equipment reaches the end of its life cycle span.

OFOC SOP Revision 10 Page 4 of 4

Revision 10 Date: 09/10/2020

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.

TERRENCE WHITE

CHIEF OF OPERATIONS, FACILITIES MANAGEMENT SERVICE

NJHCS – EAST ORANGE CAMPUS

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.

JANINE CHILDS

CONTRACTING OFFICER, SERVICE TEAM I

RPO – EAST, NCO 02, BUFFALO, NY

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.

CHERYL BRIMMER

BRANCH CHIEF, SERVICES TEAM I

RPO – EAST, NCO2, BATH, NY

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.

JOSEPH MALETTA

EXECUTIVE DIRECTOR

REGIONAL PROCUREMENT OFFICE - EAST

http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx