P03-JA Sole Source SDC Conveyor Redesign.pdf

VHAPG Part 806.3 OFOC Page 1 of 3 Revision: 01 Effective Date: 04/01/23

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C79123P0002

1. Contracting Activity: Department of Veterans Affairs, Commodities and Services

Acquisition Service (CSAS) in support of the Hines VA Service Distribution Center. This action is in response to IPR F36C797-23-000111.

2. Nature and/or Description of the Action Being Processed: The proposed action is for a sole source, firm-fixed-price contract set aside to an SDVOSB. This contract will be governed by FAR parts 12 and 13.

3. Description of Supplies/Services Required to Meet the Agency's Needs: This requirement is for the redesign and installation of conveyors on production line two for the VA Service and Distribution Center Positive Airway Pressure (PAP) program, 1st Avenue, One Block N. of 22nd Street, Building 37, Hines, IL 60141.

The sole source SDVOSB, NGA3 Services, will complete the assembly line set-up of the national mass distribution system for PAP equipment which serves all 140+ clinics. The SDC will send 6,000 - 10,000 packages a day, and this redesign will maximize the program's efficiency. This distribution system includes current parts purchased and installed by NGA3 Services. NGA3 Services will provide a custom installation that will match the existing electrical, air, and production system that feed the polybag machines.

Total Value of items and installation services required from NGA3 is $494,500.00.

4. Statutory Authority Permitting Other than Full and Open Competition: This sole source effort is less than $7M and will use the simplified acquisition procedures under FAR part 13;

It is exempted from the competition requirements and exemption authorities of FAR part 6.

FAR 13.501(a)(1): “Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6.”

VAAR 806.302-570 Noncompetitive procedures for verified Veteran-owned small businesses: “(a) Sole source awards made to a verified SDVOSB or VOSB. Full and open competition need not be provided for when awarding a sole source contract under paragraph

(b) or (c) of this section, to a verified SDVOSB or VOSB in accordance with 819.7007 or 819.7008, respectively, as authorized.”

NGA3 Services is VIP verified by the SBA and has a certification expiration date of September 1, 2024.

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

VHAPG Part 806.3 OFOC Page 2 of 3

Effective Date: 04/01/23 section IV above, this requirement is not subject to the competition or specific exemption authorities in FAR part 6. However, when using those authorities cited above, it does state that a justification in writing be completed in accordance with part 6. While FAR 6.302-1- Only one responsible source is not required, this effort does align with that exception. NGA3 Services installed the current assembly line system, and the current requirement is for the vendor to repurpose and reconfigure their previous work so that it meets the new requirements of the VA. Accordingly, NGA3 Services is the only firm capable of providing the services described in Section III above without the Veteran's Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A synopsis of this action will be posted 5 business days before the award date in accordance with FAR 5.203(a)(1). According to VAAR 806.302- 570, this procurement need not be solicited to any other sources beyond the SDVOSB identified in this justification.

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

Reasonable: A comparison of previous and current awards was reviewed for this requirement:

• Department of Veterans Affairs 36C79723P0002 | $670,364.00 | NAICS: 333923 | Bags for CPAP Program awarded to NGA3 Services LLC | 10/31/2022

• Department of Veterans Affairs 36C79722P0002 | $396,500.00 | NAICS: 333923 |

Conveyor System installation awarded to NGA3 Services LLC | 01/26/2022

• Department of Veterans Affairs 36C79720P0015 | $417,706.00 | NAICS: 333923 | Poly Bagger machines awarded to NGA3 Services LLC | 01/26/2022

The price difference is mainly attributed to slightly differing specifications of work required, the best basis for price fair and reasonable is using previous awarded contracts and comparing the cost of services per unit.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: NGA3

Services installed the current assembly line system, and the current requirement is for the vendor to repurpose and reconfigure their previous work so that it meets the new requirements of the VA. The statement of work for this requirement details this effort.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None.

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

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Effective Date: 04/01/23 services required: This requirement is suitable for the use of the authority given in FAR 13.501(a)(1) and VAAR 806.302-570 and as such has been set aside to the SDVOSB who is the best source to redesign their previous assembly line installation given the repurposed equipment and bagger is the company’s proprietary offering. If a complete overhaul of the facility is required, one that would exceed the thresholds given in the regulations above, then the contracting office views that as an opportunity to solicit from a greater number of sources given the broader scope of work.

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.

Name Date Title Facility

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.

Chris Binkley Date Contracting Officer

CSAS

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.

Andrea Lay Date Division Chief, Team C

CSAS

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