P03 JA - Home Oxygen Bridge - HCA Signed.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 1 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C255 21 AP 0908

1. Contracting Activity:

Network Contracting Office (NCO) 15, 3450 South 4th Street Trafficway, Leavenworth, KS 66048 Department of Veterans Affairs, VISN 15, VA Medical Centers:

In support of the following VA facilities:

Kansas City VA Medical Center, 4801 East Linwood Boulevard, Kansas City, MO 64128 2226 Harry S. Truman Memorial Veteran’s Hospital, 800 Hospital Drive, Columbia, MO 65201 5275 Eastern Kansas Health Care System (EKHCS):

o Colmery O’Neil VA Medical Center, 2200 Gage Blvd, Topeka, KS 66622 0001 o Dwight D. Eisenhower VA Medical Center, 4101 S. 4th St. Trafficway, Leavenworth, KS

66048 5014 Robert J. Doyle VA Medical Center, 5500 E. Kellogg Ave., Wichita, KS 67218 1607 St. Louis VA Healthcare System:

o Jefferson Barracks Division, 1 Jefferson Barracks Dr. St. Louis, MO 63125 4199 o John Cochran Division, 915 North Grand Blvd, St. Louis, MO 63106 1621

Marion VA Medical Center, 2401 West Main St., Marion, IL 62959 1188 John J. Pershing VA Medical Center, 1500 N. Westwood Blvd, Poplar Bluff, MO 63901 3318

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

Department of Veterans Affairs, VISN 15, VA Medical Centers have a requirement for a firm fixed price, indefinite delivery, indefinite quantity (IDIQ) contract to continue home oxygen services.

On March 16, 2015, contract VA255 15 D 0033 was competitively awarded to Home Care Equipment, a Veteran Owned Small Business (VOSB). The contract term was a base of one year with four one year option periods with an estimated value of $43,211,094. Term of contract VA255 15 D 0033 was March 16, 2015 through March 15, 2020. Due to the impact of the COVID 19 pandemic and the stress applied to the global healthcare system, supply chains for home oxygen equipment and consumables became questionable. After confirming with Home Care Equipment that sufficient quantities were in inventory to continue contracted services, in the best interest of Veteran care, Clause 52.217 8, Option to Extend Services was executed to continue services from March 16, 2020 through September 15, 2020. On September 15, 2020, task order 36C25520N0474 was issued for a period of performance of September 15, 2020 – March 31, 2021.

Development for a follow on to contract VA255 15 D 0033 began July 7, 2018. The estimated contract value was $64,232,545 which was based on existing and projected requirements. Following final pre solicitation review and authorization to release, solicitation 36C25518R0529 was published May 21, 2019 with a proposal due date of August 1, 2019. Following solicitation close, evaluations were conducted, and intended awardee identified. During preparation for the pre award Contract Review Board (CRB) documents, inconsistencies were identified between the solicitation

OFOC SOP Revision 11 Page 2 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021 requirements and VISN 15’s then current home oxygen needs which were continuously fluctuating due to the COVID 19 pandemic’s impact and demands on the VA healthcare system. The revisited Independent Government Cost Estimate (IGCE) for VISN 15’s home oxygen services were estimated at a 50% increase from the original IGCE. Upon consultation with RPOC Quality Assurance/Compliance Office, the mutual decision was to “reset” the new solicitation and move forward with a new procurement since the requirements had changed significantly. Following this determination, January 20, 2021, solicitation 36C25518R0529 was canceled. As noted above, home oxygen services under task order 36C25520N0474 are currently set to expire March 31, 2021.

The analysis has been completed and the procurement package for the long term contract has been received and is currently in the planning phase. However, to continue vital home oxygen services while the new procurement is developed, a short term (i.e. “bridge”) contract with an eighteen month period of performance is being solicited. The period of performance for the bridge will begin April 1, 2021 and continue through September 30, 2022, while a long term contract is established.

Total estimated value of the proposed contract is $24,846,309 for eighteen months.

3. Description of Supplies/Services Required to Meet the Agency’s Needs The Veterans Integrated Service Network (VISN) 15 Home Oxygen Program is a service that operates 24 hours per day, seven days a week and encompasses the delivery and setup of prescribed Home Medical Equipment (HME) for Department of Veterans Affairs (“VA”) patients. This service also includes Veteran/caregiver education on services, equipment, basic home safety review, establishing the schedule for ongoing deliveries, and preventive maintenance and inspections (PMI) for pick up and cleaning of equipment when services are discontinued.

VISN 15 home oxygen services include, but are not limited to, the following requirements:

(i) Services required 24 hours per day and seven days per week;

(ii) Delivery and setup of prescribed Home Medical Equipment (HME);

(iii) Veteran/caregiver education on services, equipment, basic home safety review, and establishing the schedule for ongoing deliveries;

(iv) Providing preventive maintenance and inspection (PMI) for equipment;

(v) Pick up and cleaning of equipment when services are discontinued;

(vi) Providing 24 hour emergency services with the ability to provide services at the VA beneficiary’s (“Veteran”) home within a maximum of six (6) hours upon receiving VA notification (most emergency services to be provided within 2 hours of notification);

(vii) Complying with standards and regulatory bodies governing home care and oxygen usage (e.g. American Respiratory Care Foundations for Respiratory Equipment Used in the Home; American Society for Testing Materials (ASTM) minimum standards specification for electrically powered home care portable ventilators; Association for the Advancement of Medical Instrumentation (AAMI); Joint Commission Standard for Home Care, current year standard);

(viii) Providing quarterly reports to the VA per contract (e.g. incident reports, infection control, customer service); and

(ix) Ability to provide three primary methods for oxygen therapy in the home:

(1) Compressed gas,

(2) Oxygen concentrators, and

OFOC SOP Revision 11 Page 3 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

(3) Liquid oxygen. The contract prices together with the Veteran’s physical condition, daily activities, and projected liter flow rate will be the determining factors in choosing the most economical delivery system in each case and will be determined by the prescribing VA practitioner.

As of January 2021, VISN 15 had approximately 5,600 beneficiaries on home oxygen and 90 on ventilators. The total number of patients fluctuates each month due to patients being added/removed from the program. Historical data indicates that the overall number of unique patients on home oxygen has increased 1.8% from January 2019 (5,500) to January 2021 (5,600).

Home Oxygen Patients (January 2019, 2020 & 2021) *

* Overall cost varies per patient due to individual healthcare needs; however, the IGCE developed for the new procurement ($91,527,698) is approximately 42% higher than the IGCE developed in 2018 (64,232,545) which mirrors a growth in requirements.

Historical data indicates that the overall number of unique patients on ventilators has increased 54% from January 2019 (57) to January 2021 (88).

Ventilator Patients (January 2019, 2020, &2021) *

* Overall cost varies per patient due to individual healthcare needs; however, the IGCE developed for the new procurement ($91,527,698) is approximately 42% higher than the IGCE developed in 2018 (64,232,545) which mirrors a growth in requirements.

Total estimated value of the proposed bridge contract is $24,846,309 for eighteen months.

OFOC SOP Revision 11 Page 4 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

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

(X) (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;

Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Based on an analysis of current market conditions, Home Care Equipment is the only vendor capable of immediately providing home oxygen services to VISN 15 patients without interruption. It would take a new contractor 90 – 120 days to transition into the contract taking into consideration VA Security Clearances, swapping out of patient equipment, along with maintaining the regular contracted work. In addition, should a different vendor be selected as a result of the following competitive acquisition, it would take another 90 120 days to transition out. This transitioning in and out of vendors and equipment would have a negative impact on the care of Veterans. Although additional vendors have been identified as potential sources, the current instability in the market would introduce an unacceptable degree of risk to patient care during any transition phase implemented during the COVID 19 pandemic. The instant procurement is a short term bridge to prevent a lapse in services. The successive contract is intended to be a competitive acquisition which will allow potential vendors to compete for the longer term contract. Continuing to contract services with Home Care Equipment will provide time for the market to normalize, VISN 15 to establish firm requirements based on a normalized market, and NCO 15 to continue to develop and proceed with a new acquisition with these firm requirements.

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

To promote and provide for full and open competition, the acquisition for the long term contract will be a competitively negotiated acquisition as outlined in FAR Part 15, Contracting by Negotiations.

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

The Contracting Officer will use a comparison to past competitive procurement history, VA255 15 D 0033 and a comparison to the Independently Developed Government Cost Estimate (IGCE) as a determination of fair and reasonable pricing for the bridge contract in accordance with FAR 15.404 1 (b)(2)(ii) and (v). Prices will remain fixed throughout the period of performance.

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

Market research has been performed (see attached Market Research Report). Based on an analysis of the market and market conditions, the determination is that Home Care Equipment is the only vendor that is able to continue to provide home oxygen services to VISN 15 patients without interruption, which is crucial from the health of our Veteran beneficiaries.

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

Due to the change in market conditions attributable to the COVID 19 pandemic, inventories have been stretched or, are now, questionable. Home Care Equipment currently has sufficient inventory to meet VISN 15’s need for home oxygen services. A sole source bridge contract is being sought for a performance period commencing on April 1, 2021 with an eighteen month period of performance.

OFOC SOP Revision 11 Page 5 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

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

The incumbent, Home Care Equipment, has expressed interest in the requirement.

10. 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:

This short term bridge contract is needed to provide coverage for VISN 15 while a new acquisition for a long term contract is established. A new acquisition package has been developed by the program office and has been submitted to NCO 15. To promote and provide for full and open competition, the acquisition for the long term contract will be a competitively negotiated acquisition as outlined in FAR Part 15, Contracting by Negotiations.

11. 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.

Stephen Roberts Date Prosthetic Manager, VISN 15

STEPHEN P.

ROBERTS

418781

Digitally signed by

STEPHEN P. ROBERTS

418781 Date: 2021.03.24 16:01:50 -05'00'

OFOC SOP Revision 11 Page 6 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

12. 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.

Hans Lorenzini Date Supervisory Contracting Officer, NCO 15

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.

Peggy S. Becker Date Chief, Division I, NCO 15

c. Two Levels Above the Contracting Officer (exceeding $750K):

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

Jane Oney Director of Contracting (Acting), NCO 15 Date

d. 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 approve for other than full and open competition.

Terry L. Spitzmiller Date Executive Director and Head of Contracting Activity Regional Procurement Office Central (VHA)

Hans U. Lorenzini 350122 Digitally signed by Hans U. Lorenzini 350122 Date: 2021.03.24 16:24:34 -05'00'

PEGGY BECKER Digitally signed by PEGGY BECKER Date: 2021.03.24 16:39:24 -05'00'

Jane A. Oney 338045 Digitally signed by Jane A. Oney 338045 Date: 2021.03.25 09:42:03 -04'00'

03/25/2021

TERRY L.

SPITZMILLER

394683

Digitally signed by TERRY

L. SPITZMILLER 394683

Date: 2021.03.25 17:27:06 -05'00'

Attachment 2: Market Research Report--36C25521R0074

VHAPM Part 810 Market Research SOP Page 1 of 13 Revision: 07, Effective Date: 03/10/21

Title of Program/Project/Requirement: VISN 15 Home Oxygen Delivery Services

PART I –

I. Authority.

Market research is required in accordance with:

FAR 7.102, Acquisition Planning Policy FAR 7.103(u)(1) and (2), Agency-Head Responsibilities FAR 10.001, Market Research Policy and VAAR 810.001-70 (Class Deviation) VAAR 813.003-70(c), Policy (Class Deviation) FAR 19.202-2, Locating Small Business Sources and VAAR 819.202 (Class

Deviation) FAR 25, Foreign Acquisition

II. Procurement Information.

A. Procurement History.

The Veterans Integrated Service Network (VISN) 15 Home Oxygen Program is a service that operates 24 hours per day, seven days a week and encompasses the delivery and setup of prescribed Home Medical Equipment (HME) for Department of Veterans Affairs (“VA”) patients. This service also includes Veteran/caregiver education on services, equipment, basic home safety review, establishing the schedule for ongoing deliveries, and preventive maintenance and inspections (PMI) for pick-up and cleaning of equipment when services are discontinued.

VISN 15 home oxygen services include, but are not limited to, the following requirements:

(i) Services required 24 hours per day and seven days per week;

(ii) Delivery and setup of prescribed Home Medical Equipment (HME);

(iii) Veteran/caregiver education on services, equipment, basic home safety review, and establishing the schedule for ongoing deliveries;

(iv) Providing preventive maintenance and inspection (PMI) for equipment;

(v) Pick-up and cleaning of equipment when services are discontinued;

(vi) Providing 24-hour emergency services with the ability to provide services at the VA beneficiary’s (“Veteran”) home within a maximum of six (6) hours upon receiving VA notification (most emergency services to be provided within 2 hours of notification);

(vii) Complying with standards and regulatory bodies governing home care and oxygen usage (e.g. American Respiratory Care Foundations for Respiratory Equipment Used in the Home; American Society for Testing

VHAPM Part 810 Market Research SOP Page 2 of 13 Revision: 07, Effective Date: 03/10/21

Materials (ASTM) minimum standards specification for electrically powered home care portable ventilators; Association for the Advancement of Medical Instrumentation (AAMI); Joint Commission Standard for Home Care, current year standard);

(viii) Providing quarterly reports to the VA per contract (e.g. incident reports, infection control, customer service); and

(ix) Ability to provide three primary methods for oxygen therapy in the home:

(1) Compressed gas, (2) Oxygen concentrators, and (3) Liquid oxygen.

The contract prices together with the Veteran’s physical condition, daily activities, and projected liter flow rate will be the determining factors in choosing the most economical delivery system in each case and will be determined by the prescribing VA practitioner.

March 16, 2015, contract VA255-15-D-0033 awarded to Home Care Equipment, a Veteran-Owned Small Business (VOSB). Contract term was a base of one year with four one-year option periods with an estimated value of $43,211,094. Term of contract VA255-15-D-033 was March 16, 2015 through March 15, 2020. Due to the impact of the COVID-19 pandemic and the stress applied to the global healthcare system, supply chains for home oxygen equipment and consumables became questionable. Therefore, after confirming with Home Care Equipment that sufficient quantities were in inventory to continue contracted services, in the best interest of Veteran care, Clause 52.217-8, Option to Extend Services was executed to continue services from March 16, 2020 through September 15, 2020.

Development for a follow on to contract VA255-15-D-0033 began July 7, 2018.

The estimated contract value was $64,232,545 which was based on existing and projected requirements. Following final pre-solicitation review and authorization to release, solicitation 36C25518R0529 was published May 21, 2019 with a proposal due date of August 1, 2019. Following solicitation close, evaluations were conducted, and awardee identified. During preparation for the pre-award Contract Review Board (CRB), inconsistencies were identified between the solicitation requirements and VISN 15’s then-current home oxygen needs which were continuously fluctuating due to the COVID-19 pandemic’s impact and demands on the VA healthcare system. The revisited Independent Government Cost Estimate (IGCE) for VISN 15’s home oxygen services were estimated at a 50% increase from the original IGCE. Upon consultation with RPOC Quality Assurance/Compliance Office, the mutual decision was to “reset” the new solicitation and move forward with a new procurement since the requirements had changed significantly. Following this determination, January 20, 2021, solicitation 36C25518R0529 was canceled To avoid any lapse in home oxygen services during Network Contracting Office (NCO) and VISN 15’s analysis of current and projected future requirements for home oxygen services, Clause 52.217-8, Option to Extend Services of contract VA255-15-D-033 was executed for six months (see above paragraph) and task order 36C25520N0474 issued to continue services through March 31, 2021.

VHAPM Part 810 Market Research SOP Page 3 of 13

This is not a bundled (FAR 2.101) requirement and there are no Organizational Conflicts of Interest.

B. Procurement Background.

Name Title Office Telephone E-mail Address

Stephen Roberts

VISN 15

Prosthetic Manager

VISN 15 816-701-

Stephen.Roberts@va.gov

Type of acquisition: service Expected dollar value of requirement: $24M (18 months) Suggested NAICS : 621610 (Home Health Care Services) $16.5 Million Suggested Product Service Code (PSC): Q201 (General Health Care

Services) Time frame for Market Research: January 2021 – present.

III. Initial Requirements

The acquisition is to provide home oxygen services to Veteran beneficiaries serviced by VISN 15. VISN 15 does not have the organic resources to provide these services;

therefore, a contract is being sought to continue home oxygen services which includes both equipment (with consumables) and labor. As of January 2021, VISN 15 had approximately 5,600 beneficiaries on home oxygen and 90 on ventilators. The total number of patients fluctuates each month due to patients being added/removed from the program. Historical data indicates that the overall number of unique patients on home oxygen has increased 1.8% from January 2019 (5,500) to January 2021 (5,600).

Home Oxygen Patients (January 2019, 2020 & 2021) *

VHAPM Part 810 Market Research SOP Page 4 of 13 Revision: 07, Effective Date: 03/10/21

* Overall cost varies per patient due to individual healthcare needs; however, the IGCE developed for the new procurement ($91,527,698) is approximately 42% higher than the IGCE developed in 2018 (64,232,545) which mirrors a growth in requirements.

Historical data indicates that the overall number of unique patients on ventilators has increased 54% from January 2019 (57) to January 2021 (88).

Ventilator Patients (January 2019, 2020 & 2021) *

* Overall cost varies per patient due to individual healthcare needs; however, the IGCE developed for the new procurement ($91,527,698) is approximately 42% higher than the IGCE developed in 2018 (64,232,545) which mirrors a growth in requirements.

All services shall be performed in the veteran's place of residence. The area of service shall be all patients serviced by VISN 15, including counties within the VISN 15 catchment area as well as any additional counties identified as a requirement. The equipment needs of the individual patient are subject to change as determined by the prescribing physician. Contractor(s) shall have a facility or resources physically located in the geographic area in which they shall provide service. Non-territory requests shall be required from time to time and the Contractor shall accept these "non-territory" Veterans at that Contractor’s awarded price.

This will be an 18 month bridge contact.

IV. Participants in Market Research

Describe the involvement of the individual Acquisition Team members and any other participants in the market research effort.

NAME TITLE OFFICE TELEPHONE E-MAIL ADDRESS MARKET

RESEARCH

ROLE

VHAPM Part 810 Market Research SOP Page 5 of 13 Revision: 07, Effective Date: 03/10/21

Stephen Roberts

Program Official

VISN 15

Prosthetic

813-701-stephen.roberts@va.gov Initial

Hans Lorenzini

Contracting Officer (CO)

NCO 15 913-946-

Hans.lorenzini@va.gov concur

Sue Miller

Contract Specialist

NCO 15 913-946-

susan.miller99@va.gov conduct

Stephen Roberts

Contracting Officer’s Representative

(COR)

VISN 15

Prosthetic

813-701-stephen.roberts@va.gov Initial

V. Market Research Techniques and Sources

A. Market Research Techniques

Check X

IF USED

SOURCES USED IN MARKET RESEARCH DETAILS OF

RESEARCH/COMMENTS

X Acquisition history reviewed The services being requested are currently being performed by Home Care Equipment under contract number VA255-15- D-0033. The services requested were awarded to the current vendor on March 16, 2015 as a base plus four (4) for a total value of $43,211,094.00.

Home Care Equipment is a veteran-owned small business (VOSB). The current contract/order

(VA255-15-D-0033

36C25520N0474) expires on March 31, 2021.

X Other recent market research reviewed

Solicitation for the re-compete of the 2015 contract that was subsequently cancelled in January 2021.

X VA Vendor Information Pages (VIP) https://www.vip.vetbiz.va.gov/ (including any information supporting price reasonableness)

88 results found under suggested NAICS 621610

Interviewed knowledgeable individuals in industry/Government N/A

VHAPM Part 810 Market Research SOP Page 6 of 13 Revision: 07, Effective Date: 03/10/21

Participated/Attended Tradeshows and Industry Conferences

N/A

Professional Journals, Catalog and/or Product Literature reviewed

Participated in Small Business Vendor Outreach Sessions N/A

B. Market Research Sources.

Check X if Part of Research

Sources for services to consider, as applicable and as required

Details of Research/Comments (Include References to Report Attachments)

MARKET RESEARCH FOR SERVICES

1. Services that are on the Procurement List maintained by the Committee for Purchase from People who are Blind or Severely Disabled (AbilityOne) (See FAR subpart 8.7) See VAAR 808.002, Priorities for use of mandatory Government sources, paragraph (a)(2) pertaining to Services.

2. Services: Federal Prison Industries (See FAR subpart 8.6) http://www.unicor.gov/ (Except if two or more SDVOSB or VOSB are identified, see

VAAR 808.603)

3. Also see--VA Federal Supply Schedules (FSS) in FSC Group 62I.

4. And see--mandatory sources reviewed, if applicable, for:

4a. Public Utility Services (see FAR part 41);

4b. Printing & Related Supplies (see FAR subpart 8.8);

4c. Leased Motor Vehicles (see FAR subpart 8.11);

4c. Helium (see FAR subpart 8.5)

N/A

5. Services: Commercial sources (includes educational and non-profit institutions) in the open market.

VHAPM Part 810 Market Research SOP Page 7 of 13

VETERANS FIRST CONTRACTING PROGRAM

(VAAR subpart 819.70)—REFERENCES/SOURCES

CHECKED

X Sources Sought Notices: Requests for Information (RFI) https://beta.sam.gov/

Due to the ongoing COVID-19 pandemic and stress on the supply chain for home oxygen equipment/services, there is not sufficient time to publish a Sources Sought notice for this bridge contract and assess capability of an interested party’s performance base on current market conditions

System for Award Management (SAM) search for entity records at: https://www.sam.gov

OTHER REFERENCES/SOURCES CHECKED

(Other ways to conduct or confirm market research)

Sources Sought Notices: Requests for Information (RFI) https://beta.sam.gov/

Pre-solicitation and/or Pre-Proposal Conferences N/A

Existing intra-/inter-agency contract vehicles, e.g.

Interagency Contract Directory (ICD) at:

https://www.contractdirectory.gov/contractdirectory

System for Award Management (SAM) search for entity records at:

https://www.sam.gov/SAM/pages/public/index.jsf

X SBA Dynamic Small Business Database at:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

13 profiles matching NAICS 621610 with

VHAPM Part 810 Market Research SOP Page 8 of 13 Revision: 07, Effective Date: 03/10/21 keywords “Home Oxygen”.

X Department of Labor (DoL) Service Contract Labor Standards (Service Contract Act (SCA)) and Wage Rate Requirements (Davis-Bacon Act (DBA)) wage determination information online at:

http://www.wdol.gov/ (SERVICES ONLY)

Counties of Jackson, Boone, Shawnee, Leavenworth, Sedgwick, St. Louis City, Williamson, and Butler

VI. Identify Product/Services and Sources Able to Meet the Requirement Identify or describe:

o Home Oxygen Services o Home Care Equipment, Inc., 1135 Lester Street., Poplar Bluff, MO 63901

POC’s: Robert Mathews / Mike Fiehtner Contact person email: bobm@homecareinc.net / mikef@homecare.net Contact person telephone: (573)686-3720 Contact person fax: (573)686-2929 o Home Care Equipment, Inc. is a Veteran-Owned Small Business (VOSB) and is the incumbent contractor performing the service satisfactorily or better.

o Efforts to locate additional sources were not made as it has been determined that a transition in and out of contractors in an 18 month period would be detrimental to veteran care. This is a temporary bridge contract to bridge the gap between the previous contract and the new competitive acquisition.

Business Category Name of Potential Source(s)/Other POC

Information VIP verified Service-Disabled, Veteran- Owned (SDVOSB)

VIP verified Veteran-Owned Small Business (VOSB)

Home Care Equipment, Inc.

Woman-Owned Small Business (WOSB) Economically Disadvantaged Woman- Owned Small Business (EDWOSB)

HUBZone Small Business Section 8(a) small business Small/disadvantaged business (SDB) Small business Large Business

VII. Description of the Commercial Marketplace and Prevalent Business Practices

VHAPM Part 810 Market Research SOP Page 9 of 13 Revision: 07, Effective Date: 03/10/21

The commercial marketplace for home oxygen services has encountered instability due to the COVID-19 pandemic adding stress to supply chains and healthcare service providers. Inventories have been stretched or, are now, or questionable.

The requirement is available commercially. The terms and conditions, payment, delivery, acceptance, and warranties are no different than in the commercial industry.

Contract financing is not applicable.

VIII. Pricing and Market Issues

The market price is $24,846,309 for an eighteen (18)-month bridge contract. This pricing was received from the independent government cost estimate that was developed by using the expiring contract’s pricing and making adjustments for increased quantities.

The commercial marketplace for home oxygen services has encountered instability due to the COVID-19 pandemic adding stress to supply chains and health care service providers. Inventories have been stretched or, are now, questionable. The incumbent contractor has on-hand the necessary inventories and established supply chains necessary for contract performance.

IX. Other Considerations

This is a request for a VOSB sole-source firm-fixed price bridge contract to Home Care Equipment, Inc. Home Care Equipment, Inc. currently provides the required services to the VISN 15 Medical Centers under IDIQ contract VA255-15-D-0033 order 36C25520N0474 which will expire March 31, 2021.

X. Market Analysis Summary

Based on an analysis of current market conditions, Home Care Equipment is the only vendor capable of immediately providing home oxygen services to VISN 15 patients without interruption. Although additional vendors have been identified as potential sources, the current instability in the market would introduce an unacceptable degree of risk to patient care during any transition phase implemented during the COVID-19 pandemic. Continuing to contract services with Home Care Equipment will allow the market to normalize, VISN 15 to establish firm requirements based on a normalized market, and NCO 15 to continue to develop and proceed with a new acquisition with these firm requirements.

XI. DETERMINATION:

Based on current market conditions, the determination is that Home Care Equipment is the only vendor that is able to continue to provide home oxygen services to VISN

VHAPM Part 810 Market Research SOP Page 10 of 13 Revision: 07, Effective Date: 03/10/21

15 patients without interruption. A sole source bridge contract is being sought for a performance period commencing on April 1, 2021 and will not exceed eighteen (18) months.

Name: ___________________________________ Date: __________________ Stephen Roberts Program Manager/Project Manager/COR

STEPHEN P.

ROBERTS 418781

Digitally signed by STEPHEN P.

ROBERTS 418781

Date: 2021.03.24 10:11:36 -05'00'

VHAPM Part 810 Market Research SOP Page 11 of 13

PART II –

I. Contracting Officer Responsibilities:

The incumbent, Home Care Equipment, is a veteran-owned, small business (VOSB);

therefore, a VA Form 2268 is not required.

I. Background. The codes identified below will be used when advertising this requirement, if applicable

Title _VISN 15 Supplemental Home Oxygen Contracted Services – Bridge

The Veterans Integrated Service Network (VISN) 15 Home Oxygen Program is a service that operates 24 hours per day, seven days a week and encompasses the delivery and setup of prescribed Home Medical Equipment (HME) for Department of Veterans Affairs (“VA”) patients. This service also includes Veteran/caregiver education on services, equipment, basic home safety review, establishing the schedule for ongoing deliveries, and preventive maintenance and inspections (PMI) for pick-up and cleaning of equipment when services are discontinued. VISN 15 does not have the resources necessary to provide these services; therefore, a contract is being established.

Product or Service Code: Q201 (General Health Care Services)

North American Industry Classification System (NAICS): 621610 (Home Health Care Services) $16.5 Million

Estimated Contract Value: $24,846,309.00

II. Market Research

1. Techniques Used in Conducting Market Research:

Efforts to locate additional sources were not made as it has been determined that a transition in and out of contractors in an 18 month period would be detrimental to veteran care. This is a temporary bridge contract to bridge the gap between the previous contract and the new competitive acquisition.

2. Results of Market Research:

Limited market research was conducted to verify that Home Oxygen care continues to be a commercial service and that the incumbent contractor continues to carry its VOSB status in System for Award Management and VIP. There were 13 vendors in the SBAs Dynamic Small Business Database searching for NAICS 621610 and the words “Home

VHAPM Part 810 Market Research SOP Page 12 of 13 Revision: 07, Effective Date: 03/10/21

Oxygen”. Home Care Equipment, Inc. is registered in SAM and VIP as a Veteran Owned Small Business entity.

III. Consideration of Small Business Opportunities

Based on above Market Research and procurement history Home Care Equipment , Inc. a VOSB is capable of performing the requirement. A sole-source bridge contract will be established.

Name: _______________________________ Date: __________________ Hans Lorenzini, Contracting Officer

IV. Conclusions and Recommendations

A. Query of the Vendor Information Pages (VIP) Database at https://www.vip.vetbiz.va.gov/ resulted in:

A search on VIP using NAICS 621610 and keywords “Home Oxygen” resulted in 88 possible vendors.

VOSB – Home Care Equipment, Inc. has the technical capability and is the incumbent contractor.

B. Query of the SBA Dynamic Small Business Search (DSBS) tool at http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm), resulted in:

A search on DSBS using NAICS 621610 and keywords “Home Oxygen” resulted in 13 possible vendors.

VOSB – Home Care Equipment, Inc. has the technical capability and is the incumbent contractor.

C. For acquisitions above the SAT, describe considerations for a set-aside or sole source award under the following small business program set-asides:

A VOSB sole source will be utilized

D. When a total small business set-aside seems appropriate, describe why a set-aside is not appropriate for:

A VOSB sole-source will be utilized.

IV. PROPOSED PROCUREMENT METHOD

Hans U. Lorenzini 350122 Digitally signed by Hans U. Lorenzini 350122 Date: 2021.03.24 10:17:57 -05'00'

VHAPM Part 810 Market Research SOP Page 13 of 13 Revision: 07, Effective Date: 03/10/21

Based on an analysis of current market conditions, Home Care Equipment is the only vendor capable of immediately providing home oxygen services to VISN 15 patients without interruption. Although additional vendors have been identified as potential sources, the current instability in the market would introduce an unacceptable degree of risk to patient care during any transition phase implemented during the COVID-19 pandemic. Continuing to contract services with Home Care Equipment, Inc., A VOSB, will allow the market to normalize, VISN 15 to establish firm requirements based on a normalized market, and NCO 15 to continue to develop and proceed with a new acquisition with these firm requirements.

The Contracting Officer’s determination, therefore, is to award a sole-source indefinite-delivery, indefinite quantity (IDIQ) contract to Home Care Equipment utilizing authority FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. The term of the contract will be for a period of eighteen months.

Name: _______________________________ Date: __________________ Hans Lorenzini, Contracting Officer

Hans U. Lorenzini 350122 Digitally signed by Hans U. Lorenzini 350122 Date: 2021.03.24 10:18:42 -05'00'

Item # Description/Part Number* Qty Price Extended Amount

N/A -$ -$ N/A -$ -$ N/A -$ -$ N/A -$ -$ N/A -$ -$ N/A -$ -$ N/A -$ -$ SUBTOTAL (Products) -$

Estimated Amount 18 months

16,564,206.71$ 24,846,310.06$ 17,392,417.04$ 18,262,037.90$ 19,175,139.79$ 20,133,896.78$

SUBTOTAL (Services) 91,527,698.22$

91,527,698.22$

Engineering Estimates

Services

INDEPENDENT GOVERNMENT COST ESTIMATE (IGCE)

*Check block(s) below that describe the basis for the IGCE:

Past Contract Pricing GSA Federal Supply Schedule Published Prices Government Wide Acquisition Contract (GWAC) Published

Option Year 1 Option Year 2 Option Year 3

Brief Description of Service* Base Year

Period of Performance

TOTAL IGCE

Products (including software, licenses)

Optin Year 4

Informal Vendor Quotes Prior Bills of Material Prior Monthly Vouchers Catalog Pricing Other (Please Explain ):

CO

L

KC

LV

N

M

AR

PB

ST

L

TO

P

W I

VI

SN

To ta l

In cr ea se

Pr ev io us

IG

CE

$1 ,5

,5

.7

$1 ,9

,2

.2

$6

,4

.1

$1 ,1

,8

.6

$8

,3

.6

$2 ,9

,9

.4

$6

,9

.3

$8

,0

.6

$1 0, 9, 8.

.8 8%

,4

,3

.8

$1 ,7

,4

.4

$2 ,2

,9

.7

$7

,4

.8

$1 ,2

,5

.0

$1 ,0

,8

.0

$3 ,3

,9

.6

$7

,0

.2

$9

,5

.8

$1 2, 0, 8.

.3 0%

,5

,7

.8

$2 ,3

,0

.0

$2 ,3

,0

.1

$8

,3

.2

$1 ,5

,1

.2

$1 ,2

,4

.4

$3 ,9

,9

.1

$9

,2

.1

$1 ,1

,0

.7

$1 4, 6, 7.

9.

,0

,9

.7

$2 ,3

,8

.8

$2 ,5

,4

.4

$8

,4

.3

$1 ,7

,4

.8

$1 ,4

,5

.2

$4 ,3

,1

.7

$1 ,2

,3

.1

$1 ,3

,1

.3

$1 5, 5, 4.

,6

,4

.0

Ba se

$2 ,4

,7

.3

$2 ,6

,9

.3

$8

,8

.0

$1 ,7

,6

.2

$1 ,5

,4

.4

$4 ,5

,2

.2

$1 ,2

,9

.5

$1 ,3

,2

.4

$1 6, 4, 6.

,2

,6

.6

O pt io n

$2 ,5

,5

.6

$2 ,8

,9

.6

$9

,4

.8

$1 ,8

,9

.9

$1 ,6

,1

.4

$4 ,7

,2

.0

$1 ,3

,5

.4

$1 ,4

,6

.0

$1 7, 2, 7.

,8

,9

.4

O pt io n

$2 ,7

,3

.7

$2 ,9

,7

.0

$9

,1

.9

$1 ,9

,8

.6

$1 ,6

,5

.6

$5 ,0

,5

.9

$1 ,4

,3

.1

$1 ,5

,4

.8

$1 8, 2, 7.

,4

,7

.4

O pt io n

$2 ,8

,6

.6

$3 ,1

,5

.8

$1 ,0

,3

.5

$2 ,0

,3

.8

$1 ,7

,0

.5

$5 ,2

,9

.9

$1 ,4

,4

.7

$1 ,5

,8

.7

$1 9, 5, 9.

,1

,6

.4

O pt io n

$2 ,9

,7

.4

$3 ,2

,8

.4

$1 ,0

,8

.5

$2 ,1

,8

.1

$1 ,8

,7

.4

$5 ,5

,8

.4

$1 ,5

,0

.0

$1 ,6

,9

.2

$2 0, 3, 6.

To ta l

$1 5, 1, 3.

$1 7, 0, 0.

$5 ,7

,1

.1

$1 1, 0, 0.

$9 ,9

,4

.8

$2 9, 4, 7.

$8 ,2

,6

.0

$8 ,8

,3

.5

$9 1, 7, 8.

Ex pe nd itu re s

.8 8%

.3 0%

9.

Un iq ue

Pa tie nt s

2.

1.

W or k Ac tio ns

8.

1.

5% in cr ea se pe r ye ar