P03 - JA FAR Part 6_Targeted Mental Health_Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Procurement, Acquisition and Logistics (OPAL)

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

1. Identification of the agency and contracting activity:

This sole source justification under simplified procedures for certain commercial items is executed by the Strategic Acquisition Center- Frederick (SAC-F) on behalf of the Department of Veterans Affairs (VA) Office of Mental Health and Suicide Prevention

(OMHSP).

2. Nature and/or description of the action being approved.

This activity proposes to negotiate a non-competitive, sole source, firm-fixed-price award to USVETSERV, LLC., a Service-Disabled Veteran-Owned Small Business (SDVOSB) for the procurement of contractor support to design, develop, test, and validate a virtual, immersive environment that recreates triggering in vivo experiences for Veterans with post-traumatic stress disorder (PTSD).

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value):

The contractor shall design and deploy a virtual reality (VR) immersive environment that recreates triggering in vivo experiences for Veterans with mental health related diagnoses. The contractor shall prepare, and ship specified VR equipment to multiple VA medical facilities, provide UV-C Light infection control devices for management between patients, and provide set up support.

The estimated period of performance (PoP) is one 12-month base period and two 12-month option periods. The estimated total value of the proposed action, including options, is $4,885,609.00. The estimated dollar value of the base period on this acquisition is $2,962,513.00.

4. An identification of the statutory authority permitting other than full and open competition:

The statutory authority permitting other than full and open competition is 41 U.S.C.

§ 3304(a)(5) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302- 5 entitled, “Authorized or required by statute”. The applicable statute is Public Law 109- 461: “Veterans Benefits, Health Care, and Information Technology Act of 2006” specifically, the “Veterans First Contracting Program” outlined in 38 USC § 8127(c).

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority:

Given the relative novelty of medical extended reality, little has been done to develop content to address pain and suicidal ideation, specifically impacting Veterans with PTSD. These are cases of high priority to VA and Veterans that are not as clearly present in the broader healthcare community. For that reason, this content shall be tailored to this unique Veteran population and can only be completed by a contractor with sufficient design, development expertise, and bandwidth. The contractor shall also be able to include propriety sensors in the design and support the importation of the content onto a platform that does not violate VA privacy and security protocols. The proprietary data is wearable technology and head-mounted display integration that shall allow full-body tracking in applicable virtual environments.

Existing immersive platforms providing in vivo exposure therapy and other targeted mental health content, including mindfulness, cognitive behavioral therapy, and positive distraction are all on separate platforms, requiring multiple headsets to impact all areas.

The development of a platform that includes all content specific to PTS in one place would allow clinicians to customize PTS care to individual Veteran needs, increase sustained impact, enable meeting Veterans where they are, and increase access to in demand mental health therapies. Penumbra, Inc, USVETSERV, LLC’s manufacturer, has the unique capabilities of being able to build out this type of customized content in combination with other solution requirements of proprietary data/products and capabilities for remote and in-clinic utilization.

VAAR 819.7007 states explicitly, “A determination that only one SDVOSB can meet the requirement is not required,” and that using this authority, the following must be verified:

1) The anticipated award price of the contract (including options) shall not exceed $5 million;

2) The estimated value is $4,885,609.00 and does not exceed $5M.

3) The justification prepared pursuant to FAR 6.302-5(c)(2)(ii) shall be posted in accordance with FAR subpart 5.301(d);

4) The SDVOSB concern has been determined to be a responsible source with respect to performance;

5) USVETSERV, LLC is a registered and VIP-verified SDVOSB;

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

6) In the estimation of the Contracting Officer, contract award can be made at a fair and reasonable price that offers best value to the Government. Historical prices along with market research for similar service shall assist with making a fair and reasonable price determination, prior to award.

7) The Contracting Officer has determined that the use of this authority is in the best interest of the Government based upon the fact that USVETSERV, LLC is the sole authorized SDVOSB distributor for Penumbra, Inc and CleanBox Technologies that is technically qualified to develop the required content and provide UV-C disinfection. This unique capability is not prevalent throughout the commercial marketplace.

6. A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR 5.2 and, if not, which exception under 5.202 applies:

Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government’s requirements, and there is no competition anticipated for this acquisition.

A notice of the proposed action will be synopsized via the Government Point of Entry (GPE) in accordance with FAR Section 5.201, and the agency will make publicly available the justification required by 6.305(a) within 14 days after contract award. Any proposals that are received shall be evaluated.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

No award shall be made until the Contracting Officer determines the cost to the government to be fair and reasonable. This determination shall be based on a comparison of historical pricing, commercially available price lists, and an independent government cost estimate (IGCE).

8. A description of the market research conducted and the results:

Market research was conducted to identify potential sources to develop patient-centered, virtual, immersive environments specific to treating PTSD, tailer VR content, and provide UV-C disinfection. The Program Management Office held meetings and conducted online communications with contractors (MyndVR, AppliedVR, BehaVR, XR Health, Magic Horizons, Psylaris, InnateVR, Floreo, C2Care) to discuss capabilities, cost, and bandwidth. These contractors were determined capable of meeting some of the government’s requirements; however, none of these sources were able to provide all of the Government’s requirements.

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

Based on the information obtained from knowledgeable government and industry contacts, recent market research, online communication, interchange meetings, product literature, and source lists, the Government identified one potential source capable of meeting the needs of the requirement, USVETSERV, LLC., a SDVOSB.

USVETSERV, LLC has been determined to be a responsible source with respect to performance. The Federal Awardee Performance and Integrity Information System (FAPIIS) was reviewed on September 19, 2022 and FAPIIS shows no reports for USVETSERV, LLC that would indicate defective pricing, instances of contractor fault or recipient not-qualified, terminations for cause, default, or material failure to comply, or non-responsibility of the contractor.

9. Other Facts:

The Procuring Contracting Officer has determined that this proposed action meets all the requirements of 38 U.S.C. 8127(c). This acquisition is below the $5,000,000.00 threshold, USVETSERV, LLC is a responsible SDVOSB for performance of the services described herein, and the proposed contract can be awarded at a fair and reasonable price.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Company Name: USVETSERV, LLC (FJJXT471UM24) Address: 7 Stonemason CT, Simpsonville, South Carolina 29681-5264, Website: https://www.penumbrainc.com/

11. Actions to Increase Competition:

All future requirements will be handled on a case-by-case basis. Toward the expiration of this contract, consideration will be given as to whether the future acquisition should be competitive.