P03 - JA - OKC Train N Admin Spc TR_Signed.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 5

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C776-25-AP-1718 Contract ID: 36C77623C0023

1. Contracting Activity: Department of Veterans Affairs, VHA Program Contracting Activity Central (PCAC) ), 6100 Oak Tree Boulevard, Suite 490, Independence, OH 44131 on behalf of the Oklahoma City VA Medical Center (VAMC), Oklahoma City, OK.

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

The contracting activity plans to contract on a sole source basis via bi-lateral modification. This document sets forth the justification and approval as required by FAR 6.302. The contracting activity plans to award an out-of-scope, bi-lateral modification to existing firm-fixed price Contract 36C77623C0023 for Project 635-21-703 titled Electronic Health Records Management (EHRM) Training and Administration Space – Oklahoma City, OK in accordance with VAAR 819.7004,

819.7005 and 819.7007 as interpreted by GAO Decision RCG of North Carolina, B-419691 which states:

“There is nothing in section 8127 of the Veterans Benefits Act that requires a contracting officer to make award to an SDVOSB on a competitive basis, rather than on a sole-source basis, where the same objective (i.e., award to an SDVOSB) will be met in either instance…”

The original contract was competed among SDVOSBs and awarded in the amount of $2,965,000.00 to M.D. Par, LLC. The modification is estimated at about $392,396.00 based on an Independent Government Estimate provided by the Contracting Officer’s Representative.

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

The change is to add construction for a new telecommunications room at the VAMC in Oklahoma City, Oklahoma. Contract 36C77623C0023 supports the expansion of training and administrative functions at the Oklahoma City campus. The new telecommunications room provides critical infrastructure by enabling network and internet connectivity for the newly constructed training and administration space, ensuring operational readiness and support for VA staff.

The telecommunications room construction must comply with all local codes for utility connections and adhere to VA standards. Scope includes coordination with local utilities for all necessary service connections, including but not limited to electrical, HVAC and telecommunication systems. This coordination must be integrated with the ongoing work under the current contract. All applicable NFPA requirements and environmental documentation shall be developed and managed by the Prime Contractor.

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

( ) (1) Only One Responsible Source and No Other Supplies or Servces 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;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( X ) (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;

41 USC § 3304(a)(5), 38 U.S. Code § 8127 and VAAR 806.302-570 provides the express authority to use other than competitive procedures for sole source awards to verified veteran-owned small use other than competitive procedures for sole source awards to verified veteran-owned small businesses. COs may use the non-competitive (sole source) procedures authorized by VAAR

819.7007 or 819.7008 for actions not to exceed $5,000,000. As prescribed in VAAR 806.302-570(a), full and open competition need not be provided for when awarding a sole source contract to a verified SDVOSB in accordance with 819.7007, as authorized. Further, a determination that only one SDVOSB can meet the requirement is not required.

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

The scope of this contract requires the contractor to build infrastructure to support the new training and administrative space at the Oklahoma City VA Medical Center (VAMC).

This Justification and Approval (J&A) is for a modification to add construction of a new telecommunications room (TR), which will provide critical network connectivity for the newly constructed training and administrative areas.

The telecommunications room was originally included in a separate project; however, that project is no longer expected to be completed in time to support the operational readiness of the new training and administration space. Without the TR, the facility will lack the necessary infrastructure to provide reliable telecommunications and data services to the space, delaying its use and negatively impacting VA operations.

Project 635-21-703, under Contract 36C77623C0023, did not originally include the TR in its scope.

While the need for telecommunications support was understood, the responsibility for delivering the TR was assigned to another project. As that project has experienced delays, the only practical path forward is to incorporate the TR into the current contract to ensure timely activation of the training and administration space.

The new TR must comply with VA design standards and local utility codes, including coordination for power and telecom service connections. The existing Design-Build contractor is already mobilized and working within the same footprint, allowing for seamless integration with the current construction activities.

Effective Date: 02/01/22 Page 3 of 5

It is in the best interest of the Government to incorporate the telecommunications room scope into the current contract for the following reasons:

1. To prevent delays in activating the new training and administration space, which is dependent on telecommunications connectivity for full functionality.

2. To avoid the cost and logistical complications of procuring and managing a separate contract to deliver a critical infrastructure component already integrated with the current scope of work.

3. To mitigate rising construction costs due to inflation, labor rate increases, and supply chain disruptions.

4. To maintain schedule continuity and ensure effective coordination of utility services and systems across interconnected spaces.

6. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as

Deemed Practicable:

Modifying the existing construction contract at this time mitigates significant cost risk that would arise from procuring the design and construction of the new telecommunications room under a separate, future contract. Incorporating this work into the current contract ensures continuity, avoids duplication of effort, and reduces the potential for schedule delays and cost escalation.

Additionally, and in accordance with VAAR 819.7007(b), Sole Source Awards to a Verified Service- Disabled Veteran-Owned Small Business, the Contracting Officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the Contracting Officer. For the reasons stated herein, and specifically in reference to Paragraph 9, the undersigned Contracting Officer, has determined that Patrtiot Construction, Inc is a qualified SDVOSB. The Justification and Approval (J&A) document will be posted within 14 days after award in accordance with FAR Subpart

6.305 and the award synopsis will be posted to Contract Opportunities in accordance with FAR Subpart 5.301(a)(2).

7. Determination by the CO that the Anticipated Cost to the Government Will be Fair and

Reasonable:

The government will issue an RFP to the existing contractor for the change after developing the Statement of Work and the Independent Government Estimate.

The Contracing Officer will use negotiation and price analysis techniques prescribed at FAR 15.404-1 to determine price reasonableness. The government’s prenegotiation position will be based on costs proposed by the contractor at the time of the competitive project award, technical analysis of the proposal itself and other historical data.

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

Market Research Was Not Conducted:

Market research was conducted prior to award of the original contract. The final market research documents were signed on November 8, 2022 indicating that an adequate number of SDVOSB concerns had been obtained to comply with the rule of two.

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Market research was not conducted for the proposed modification due to the risk of significant delays to the current contract, which would in turn delay Veterans’ access to the newly constructed training and administrative space. Additionally, pursuing a separate procurement for the telecommunications room could result in increased project costs and coordination challenges. Given these circumstances, conducting further market research and soliciting from other sources is impracticable.

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

GAO Decision RCG of North Carolina, B-419691 states:

“There is nothing in section 8127 of the Veterans Benefits Act that requires a contracting officer to make award to an SDVOSB on a competitive basis, rather than on a sole-source basis, where the same objective (i.e., award to an SDVOSB) will be met in either instance…”

The decision references VAAR 819.7004, 819.7005 and 819.7007 which provide the VA with independent authority to award contracts using other than full and open competition (including set-aside procurements and sole-source awards) in certain circumstances.

Specifically:

(a) A contracting officer may award contracts to SDVOSB concerns on a sole source basis provided:

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

(2) The requirement is synopsized in accordance with FAR part 5;

(3) The SDVOSB concern has been determined to be a responsible contractor with respect to performance; and

(4) Award can be made at a fair and reasonable price.

Assuming that the Contracting Officer can make a determination that the price ultimately negotiated with the contractor is fair and reasonable, there is no barrier to awarding this work to the incumbent on a sole source basis since the incumbent is a responsible SDVOSB, and the change will be synopsized in accordance with FAR part 5, and the requirement is less than $5M.

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

The incumbent, M.D. PAR, LLC, is a qualified SDVOSB who has expressed interest in the acquisition.

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:

This J&A represents an effort by the VA to mitigate increased costs and schedule risk from competitively sourcing the proposed change. The base award was competitively awarded to a SDVOSB, and the work that is the subject of this modification will also be awarded to an SDVOSB.

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.

Rev: 13 Effective Date: 02/01/22 Page 5 of 5

Andre Stutts Date Chief of Projects Oklahoma City 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.

Carlton Moreland Date Contracting Officer Program Contracting Activity Central

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

Darrin Knapp Supervisor/Division Chief Program Contracting Activity Central

Andre Stutts

7/2/2025

CARLTON MORELAND Digitally signed by CARLTON MORELAND Date: 2025.07.02 18:29:56 -04'00'