P03 JA 36C260-23-AP-1032 AS 05-25-2023.pdf

Part 806.3 Other Than Full and Open Competition (OFOC) Attachment 7: Request for Sole Source Justification Format >SAT

Rev: 13 Effective Date: 02/01/22 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:___36C260-23-AP-1032__________________________________

1. Contracting Activity: Department of Veterans Network Contracting Office 20 (NCO 20) Department of Veterans Affairs, VISN 20, Mann-Grandstaff Veterans Affairs Medical Center (MGVAMC) is requesting to implement a short-term sole source contract, not to exceed 12 months, with Libby Clinic. 2237: 668-23-3-160-0004

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

MGVAMC has a need for a new short-term sole source contract with Libby Clinic to continue the delivery of an Outpatient Clinical Services Site of Care (OCSSC) in Libby, Montana. The contract will be an indefinite delivery/indefinite quantity (IDIQ), fixed-price contract for the period June 1, 2023, through May 31, 2024.

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

The purpose of this procurement is to contract with the incumbent Contractor to provide primary care medical services to include comprehensive women s health services in a clinical environment that meets VA and The Joint Commission regulatory requirements to eligible Veterans in the Lincoln County, Montana, area. This will include space, staff, and supplies, in accordance with the performance work statement and for the VA to provide telehealth Mental Health, Clinical Pharmacy, Nutrition, and Social Work services to eligible Veterans.

Services will be provided to approximately 610 eligible Veterans at an estimated capitated rate of $65.00 for an estimated total of $475,800.00 from June 1, 2023, through May 31, 2024.

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

41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

( ) (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;

(X ) (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):

Rev: 13 Effective Date: 02/01/22 Page 2 of 4

The incumbent Contractor, Libby Clinic currently provides qualified and trained staff, clinic space, and supplies for the 603 enrolled Veterans at the Lincoln County VA Contract Clinic. The staff are credentialed by MGVAMC, have active PIV cards, and have completed background investigations through OPM.

Competing a new requirement to be awarded effective 6/1/2023 would not be a reasonable option, as it takes up to two months for unlicensed staff to come on board and be trained. It can take up to three to four months to on board licensed staff to include nurses and providers.

Conducting background investigations, fingerprinting, credentialing, and privileging multiple staff prior to 6/1/2023 is unrealistic for both a contractor and the VA.

Acquiring new clinic space and required supplies that meets all VA and other state, and federal regulatory requirements is unfeasible by 6/1/2023.

Due to these circumstances, only the incumbent Contractor can continue to provide primary care and comprehensive women s health care services under a short-term bridge contract and contains the unique qualifications/requirements to support the justification for awarding a sole source contract in accordance with 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5.

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

Originally, MGVAMC thought this contract was moving to VISN 19. Recently, it was determined this clinic would stay within VISN 20. Mann-Grandstaff VAMC has identified a need to place a bridge contract with the current incumbent while a long-term contract is competed, for primary care services for the rural Veterans that reside within Lincoln County, Montana and the surrounding catchment areas.

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

The established reimbursement methodology is a capitated rate which reimburses the contractor on a flat rate of per patient, per month regardless of the type of care provided. The capitated rate for this short-term contract will be compared with the current contracted rate of $65.00 that has previously been determined to be fair and reasonable under the expiring contract.

Additionally, the rate will be compared to the Bonner County VA Contract Clinic in Idaho as the scope and size of the requirements are similar.

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

Updated market research was conducted (attached) and there is not enough capacity in local community to provide timely access to care for the existing Veterans enrolled at the Lincoln County VA Contract Clinic.

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

The potential for Veterans medical needs to not be met timely are high resulting in lapse of care resulting in potential patient safety concerns. Under the expiring contract, the only contractual

Rev: 13 Effective Date: 02/01/22 Page 3 of 4 authority available to extend services is being used to extend services through May 31, 2023. The clause at FAR 52.217-8, Option to Extend Services, allows for services to continue up to an additional 180 calendar days. Awarding to a firm other than the incumbent would not allow sufficient time for the new contractor to find clinic space, obtain required medical supplies, and recruit and on-board staff.

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

Libby Clinic 211 E. 2nd St.

Libby, Montana 59923 406-293-8711

DUNS# 109958959

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:

A new long-term contract solicitation package will be submitted when it has been determined which VISN will be responsible for Lincoln County MT.

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.

Date

Evan Krasner, MD Chief Mann-Grandstaff VAMC

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.

Brian M. Corey Date Branch Chief, Health Care Resources Network Contracting Office 20 (NCO 20)

JOFOC: 2023-01-10T06:28:07

https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

Rev: 13 Effective Date: 02/01/22 Page 4 of 4

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

Date

Peggy L. Corcoran Chief, Division II Network Contracting Office 20 (NCO 20)