P03-JA for OFOC-VISN Eyeglasses 8-20-2021 signed.pdf

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

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C247-21-AP-5155

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 one month period. The anticipated performance period is September 1, 2021 through October 1, 2021.

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

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 judgement 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). Eyeglasses are not an emergent service and follow the administrative standard for assessment and procurement practices. 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:

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 one month period of performance for this contract is: 12566 patients. The Independent Government Estimate for the short-term bridge beginning September 1, 2021 – October 1, 2021 performance period is $649,032.67.

Facility Estimated Two Week Quantity 508 Atlanta 2334 509 Augusta 950

521 Birmingham 1800 534 Charleston 1884 544 Columbia 2200

557 Dublin 1266 619 Central Alabama 1466

679 Tuscaloosa 666

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. Check the specific VAAR clause used below:

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

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

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition

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 short-term contract is considered to be in the best interest of the Government in order to provide uninterrupted services, while finalizing the Pre-Award Phase of Solicitation 36C24721R0067 which is scheduled to be awarded on September 22, 2021.This will allow performance to be in place for the start of the October 1, 2021 contract performance period.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies:

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 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 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.This J&A will be published as required by FAR 5.2.

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 pricing under contract 36C24721D0035 .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:

OSDBU assisted with an RFI for Eyeglasses under NAICS Code 339115 that closed on April 30, 2020 resulting in responses from four (4) SDVOB business concerns: PDS Consultants, Inc., Superior Optical Labs, AB Martin Services Inc. and SAGICO VA USA, LLC. The VIP inquiry and historical market research conducted for the six (5) month SDVOSB contract 36C24721D0035 which expires on 09/01/2021 identified three interested vendors – Superior Optical Labs, Inc., PDS Consultants, Inc., and Corp Medical. Corp Medical.

1. 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.

In order to determine Superior Optical Labs, Inc.’s technical capability as well as their compliance 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 02/04/2024..

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

is listed as a small business under this requirement’s NAICS 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 officer’s knowledge of the market, more 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.

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., was contacted on August 18, 2021 to determine their interest in providing services through October 1, 2021 as the incumbent contractor under contract 36C24721D0035 which was issued as a Sole Source contract to support continuity of services. This acquisition will serve as another short-term bridge to allow award and phase-in services for the contract resulting from 36C24721R0067 anticipated to be awarded on September 22,2021.

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 has solicited a five year competitive SDVOSB contract which in the final presolicitation phase. A short-term bridge contract is the alternate solution to support phase in of direct patient services. The incumbent contractor has agreed to provide services to support the short-term bridge contract per an email confirmation on August 18, 2021.

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

VISN 7 Prosthetics Manager

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.

Date

Laurinda Millage Contracting Officer Network Contracting Office (NCO) 7

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

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

Date

Mitchell Thomas Division Chief, Specialized Teams Network Contracting Office (NCO) 7

08/18/2021

JOHN G.

RINEHART 190177

Digitally signed by JOHN G.

RINEHART 190177

Date: 2021.08.18 13:48:27 -05'00'

8/20/2021