P03 HCA Signed NCO 4 36C244-24-AP-1660 Butler Clarion and Cranberry Sole Source Interim_Redacted.pdf

36C244-24-AP-1660

Effective Date: 02/01/2022 Page 2 of 4

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):

The incumbent contractor, Valor Healthcare, Incorporated, a large business, is the only firm with the capability to provide continuity of healthcare services within the required performance period. The Armstrong, Clarion, and Cranberry Township CBOCs are under the purview of the Parent BVAHCS and are operated by the incumbent contractor. The required services are highly specialized, and competitive procurement at this time would result in unacceptable delays that would disrupt patient care. NCO4 is in the process of recompeting this requirement and has received a procurement package from the program office for that effort. Recognizing that award to a new contractor may necessitate a period of approximately four to six months to identify a physical location, demonstrate compliance with Joint Commission, VA Office of Inspector General (OIG), and VA standards of care for veterans, and commence services, NCO4 intends to establish a six month interim contract with the incumbent to avoid disruption to patient care pending the build out of the long term (10 year) contract. The incumbent contractor has performed successfully and is the only source with the necessary systems and processes in place at this time pertinent to veteran eligibility, electronic patient records, diagnostic requests, invoicing, telemedicine, and other requirements to provide services in accordance with Joint Commission, OIG, and VA standards of care.

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

NCO4 synopsized this requirement as an Intent to Sole Source Presolicitation Notice to System for Award Management (SAM) Contract Opportunities (CO) on 02-02-2024, requesting that vendors respond by 02-08-2024. No vendors responded. Because the agency intends to maintain continuity of healthcare services at the current locations, only the incumbent contractor will be solicited for this interim contract. As indicated in paragraph 5 above, only the incumbent contractor has the necessary systems and processes in place to ensure continuity of healthcare services at the physical site in accordance with Joint Commission, OIG, and VA standards of care.

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

The incumbent large business contractor currently provides the required services to BVAHCS and meets the standards detailed in paragraph 5. The Government will determine fair and reasonable pricing by evaluating pricing for the interim services in relation to current contract pricing, Bureau of