P03 - JA for OFOC - VISN 7 EYEGLASSES -3-13-2020-1500 KW - HCA Signed.pdf

VHAPM Part 819.7007/7008 Sole Source Awards to a Verified Service-Disabled Veteran-Owned Small Business/Veteran-owned Small Business

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

VHAPM Part 819.7007/7008 Page 1 of 7 Original Date: 08/30/2017 Revision 02 Eff Date: 10/24/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C247-20-AP-1872

1. Contracting Activity:

Department of Veterans Affairs, Southeast Network Veterans Integrated Services Network (VISN) 7, 1670 Clairmont Rd.

Atlanta, GA. 30030

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

Network Contracting Office (NCO) 7 intends to award a sole source contract to Superior Optical Labs, Inc., a Service-Disabled Veteran Owned Small Business (SDVOSB), registered in the Vendor Information Pages (VIP) for Prescription Eyeglasses and Optician Services. This requirement is for the manufacturing and delivery of both dress and safety prescription eyeglasses to include fitting services provided by a licensed optician. Contractor shall offer both dress and safety frames, as well as single vision, bifocal, trifocal, and progressive lenses. The proposed sole source contract is for a two (2) month period. The anticipated performance period is March 14, 2020 through May 13, 2020.

3. Description of Supplies/Services Re

The Department of Veterans Affairs (VA) has an ongoing program to provide prescription eyeglasses (both dress and safety) to eligible veterans. The provision of corrective eyeglasses is required for eligible veterans to meet their optic and low vision medical needs. The VA eye clinic prescribes corrective lenses based upon a medical exam. The clinical judgment and assessment are used to determine medical necessity in conjunction with VHA Directive 2008-070 (Prescribing Hearing Aids and Eyeglasses) and 39 CFR 17.149 (Sensory-Neural Aids). The Contractor shall provide all labor and materials necessary to provide prescription eyeglasses and in house (onsite at VA facilities) optician fitting services.

At this time, all ordering is done by the Prosthetic and Sensory Aids Service (PSAS) Central Processing Section. However, each VISN 7 site reserves the authority to develop individual ordering and payment processes during the contract term.

The Contractor is to provide prescription eyeglasses including fitting services by a licensed optician according to contract specification for beneficiaries of the following sites of care and their entire catchment areas, including their respective Community Based Outpatient Clinics (CBOCs), within the Veterans Integrated Service Network (VISN) 7 VA Health Care Network:

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

VHAPM Part 819.7007/7008 Page 2 of 7 Original Date: 08/30/2017 Revision 02 Eff Date: 10/24/2018

Atlanta VAMC (508) 1670 Clairmont Rd Decatur GA 30033

Augusta VAMC (509) 1 Freedom Way Augusta GA 30904

Birmingham VAMC (521) 700 South 19th St Suite 500, 950 N 22nd St Birmingham AL 35233

Charleston VAMC (534) 109 Bee St Charleston SC 29493

Columbia VAMC (544) 6439 Garners Ferry Rd

Columbia SC 29209

Dublin VAMC (557) Carl Vinson VA Medical Center 1826 Veterans Blvd Dublin GA 31021

Central Alabama VA Health Care System (619) 215 Perry Hill Rd Montgomery AL 36109

Central Alabama VA Health Care System (619) West Campus 2400 Hospital Rd Tuskegee AL 36083

Tuscaloosa VAMC (679) 3701 Loop Rd East Tuscaloosa AL 35404

VA anticipates the award of a single, firm-fixed-price, IDIQ contract resulting from this solicitation. The number of patients covered by this contract is expected to increase/decrease among VISN 7 patients and dependent upon beneficiaries added or removed throughout the contract term. The volumes or amounts of prescription eyeglass orders shown below are estimates only. These estimates are based on historical data (quantities of eyeglasses ordered for Veteran patients in the VISN 7 Medical Center Optical Clinics during the last fiscal year and includes optician services. The estimated quantities for the two-month period of performance for this contract is: 25133. The Independent Government Estimate for the two-month performance period is $1,652,320.84.

Facility Estimated Two Month Quantity 508 Atlanta 4667

509 Augusta 1900 521 Birmingham 3600 534 Charleston 3767

544 Columbia 4400 557 Dublin 2533

619 Central Alabama 2933 679 Tuscaloosa 1333

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

41 USC §3304(a)(5), as implemented by FAR 6.302-5 (Authorized or Required by Statute) allows for procedures other than full and open competition. Specifically, 38 U.S. Code § 8127(c) allows the award of sole source contracts to SDVOSBs and VOSBs, under the circumstances noted below in Paragraph 5. COs may use these procedures for acquisitions via other than competitive procedures (sole source) up to $5,000,000. Check the specific VAAR clause used below:

(x) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business;

( ) 819.7008 Sole source awards to a verified veteran-owned small business

5.

Requires the Use of the Authority Cited Above (applicability of authority):

Pursuant to 38 U.S.C. § 8127(c) a sole source award to a SDVOSB concern is authorized where the SDVOSB concern is determined to be a responsible source with respect to performance of the contract; the anticipated award will exceed the simplified acquisition threshold but will not exceed $5,000,000; and the contract award can be made at a fair and reasonable price that offers best value to the United States. Superior Optical Labs, Inc. is a verified SDVOSB on the Vendor Information Pages (VIP). Superior Optical Labs, Inc. has performed satisfactorily on contracts for similar supplies and services to other Veteran Integrated Service Networks. Superior Optical Labs, Inc.

currently provides eyeglasses and fitting services to VISN 6, VISN 7, and historically provided eyeglasses and fitting services to VISN 8 for 14 years. Superior Optical Labs, Inc. also has an overflow contract for VISN 20, and is an outsource partner for VISN 10. A new award was issued by VISN 2 Upstate with a performance effective date of October 1, 2019. A short-term contract is considered to be in the best interest of the Government in order to provide uninterrupted services, while pursuing a long-term contract solution with a proposed award date of May 1, 2020 to allow performance to be in place for the May 15, 2020 performance period.

The consolidation of this requirement to place a five-year performance period Indefinite Delivery Indefinite Quantity Contract has been hindered on several fronts. All eight (8) sites under this scope expressed that a manual approach would be required to identify exactly which CLIN was ordered and at what rate. Also, during this period the prosthetics product service line has undergone a transition making identification of key personnel and retrieval of adequate documentation cumbersome.

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

Market research has been conducted via inquiry into the VIP system on March 10, 2020 to meet the Rule of 2 by validating the capability of two or more SDVOSB to include the incumbent contractor (Superior Optical Labs.). The market research included as an attachment to this J&A provides the VIP search and analysis of each of the 13 vendors identified under the NAICS and keyword search.

The VIP profile for each vendor is included in the market research. The capability research identified that three (3) of the thirteen vendors appear to be primarily engaged in the industry with

VHAPM Part 819.7007/7008 Page 4 of 7

Revision 02 Eff Date: 10/24/2018 specific identification of the capabilities matching our scope of work for VISN 7 eyeglass service.

Given the results of market research conducted, there are a sufficient number of potential offerors capable of carrying out the requirements of the contract, as is also discussed below in paragraph 8.

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

The Contracting Officer will determine fair and reasonableness of the proposed prices through a comparison of the current contract pricing under contract 36C24719D0038, The historical pricing under Blanket Purchase Agreement VA247-16-A-0029 can be used for comparison, as well as the Independent Government Estimate (IGE), and market research in accordance with FAR 13.106-3(a) (2)(i)(ii)(v)(vi).

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

The following market research was conducted to identify potential sources to fulfill the requirement for VISN 7:

1. A search was conducted in the Vendor Information Pages (VIP) for SDVOSBs registered under NAICS Code 339115 on March 10, 2020 which identified 13 verified SDVOSBs. Paragraph 6 above and the market research report dated March 11, 2020 indicate that of the 13 vendors identified, three (3) listed capabilities in the Vendor Information Portal (VIP) that specifically listed that the vendor is engaged in the business line consistent with the scope of work for VISN 7 eyeglasses. Capability statements from Superior Optical and PDS Consultants were provided in response to a market research inquiry. The review of each of these vendors demonstrate that they are currently providing this scope of work at multiple VISN locations with acceptable performance. 38

2. The VIP inquiry and historical market research conducted for the current six (6) month SDVOSB contract 36C24719D0038 which expires on 03/14/ Superior Optical Labs, Inc., PDS Consultants, Inc., and Corp Medical. Corp statement response identified an approach to performance of the scope of work that raised questions as to the extent of work that would be performed by the prime SDVOSB vendor.

3. A search was conducted in CPARS.GOV/PPIRS to identify performance history of Superior Optical and PDS Consultants. This search identified 30 positive reports for PDS Consultants Inc.

and nine (9) positive reports for Superior Optical. The largest dollar values were to PDS Consultants, Inc., and both held contracts with the VA for prescription eyeglasses.

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Revision 02 Eff Date: 10/24/2018

In order to determine Superior Optical Labs, Inc.

with the Buy America Act and the Limitations on Subcontracting, the following market research tasks were conducted:

1. In a query of Vendor Information Pages (VIP), Superior Optical Lab, Inc. was listed as a verified Service-Disabled Veteran Owned Small Business with a verification expiration date of 04/10/2021.

2. In a review of the System for Award Management (SAM) website, Superior Optical Labs, Inc.

is listed as a small busine CS Code 339115 (Ophthalmic Goods Manufacturing) with Size Standard 1000 employees. In addition, Superior Optical Labs, Inc. has confirmed that they manufacture all their eyeglasses.

3. Based upon the detailed capability statement and review of current CPAR reports we determine that Superior Optical is responsible and capable to provide Eyeglasses and Fitting Services to VISN 7. Below are the findings:

a. Superior Optical manufactures all of its eyeglasses. Superior Optical is a small business concern for the applicable NAICS code size standard (1000 employees).

b. Furthermore, Superior Optical will deliver only domestic end products in compliance with the Buy American Act FAR 52.225-1(d) and Superior Optical will comply with the applicable Limitations on Subcontracting.

c. Finally, Superior Optical is our current provider and technically capable of meeting the requirement. Superior Optical confirmed that they have resources to immediately provide eyeglasses to all VISN 7 Medical Centers. If awarded, this contract will serve as a bridge to prevent a lapse in service and the occurrence of backlog prescriptions and customer delays.

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

Based on market research performed during the planning stage for this solicitation for Prescription Eyeglasses and Optician Services, the Contracting Officer has determined that multiple awards shall not be used to acquire this supply in indefinite quantities. The requirements of FAR 16.504(c)

(1) (ii) (A) &(B) were considered in making this decision, and the rationale is as follows:

Paragraph (B)(2) provides that the contracting officer must not use the multiple award approach if- Based on the contracting o re favorable terms and conditions, including pricing, will be provided if a single award is made. Furthermore, Paragraph (B)(3) is applicable as the burden of administration of multiple contracts outweighs the expected benefits of making multiple awards.

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

VHAPM Part 819.7007/7008 Page 6 of 7 Original Date: 08/30/2017 Revision 02 Eff Date: 10/24/2018

Prescription Eyeglasses and Optician Services require a high level of oversight to ensure all contract requirements are being met. The VISN 7 Optical staff and Prosthetics and Sensory Aid Service (PSAS) staff are in daily contact with the Contractor and monitor areas such as staff licensing, timeliness of eyeglasses shipping and delivery, compliance with ANSI quality standards, and customer satisfaction survey processing, in addition to working with the contractor to place orders throughout the day when a Veteran is seen by the VA optical shops. Considering the scope of the requirement, the required level of oversight and time in order to effectively manage the Prescription Eyeglasses program, it would not be in the best interest of the Government to award multiple contracts.

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

Superior Optical Labs, Inc., PDS Consultants Inc., and Corp Medical in response to the solicitation and subsequent award of our current contract 36C24719D0038.

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:

VISN 7 NCO is currently pursuing a one-year competitive SDVOSB contract, due to be advertised and awarded within two (2) months or 60 days and will continue to monitor the market to ensure that set aside decisions meet regulatory requirements.

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

VISN 7 Prosthetics Manager

12. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Maurice Ross Date Contracting Officer Network Contracting Office (NCO) 7

03/13/2020

3/13/2020

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b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.

Prudence Howard Date Director of Contracting Network Contracting Office (NCO) 7

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 P. Maletta Date Executive Director, RPO East

Head of Contracting Activity (HCA)

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