P03 - JA - SOLE SOURCE SDVOSB OCAMS.pdf

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

Effective Date: 02/01/2022 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: 36C776-22-AP-1838

1. Contracting Activity: Department of Veterans Affairs, Program Contracting Activity Central, (PCAC).

The contracting activity for this requirement is the Department of Veterans Affairs, Veterans Health Administration (VHA), Program Contracting Activity Central (PCAC).

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

This justification is in support of a new, Firm-Fixed-Price (FFP) contract for VHA Capital Project Activations Costs for the VA Office of Office of Capital Asset Management Service (OCAMS) National Activation Office (NAO) Financial Support.

The Strategic Capital Investment Planning (SCIP) process is the basis for the Department of Veterans Affairs’ (VA) current and out-year capital budget requests. The SCIP process includes development of 10-Year action plans and budget year business cases to close performance gaps (space, utilization, facility condition, access, etc.) and enhance healthcare and delivery of services and benefits to the nation’s Veterans.

To better estimate all-in project costs and to provide documentation for budgetary requests required for project “activation” funding, a model for calculating these costs in advance of and during construction is necessary to plan and redistribute funding as project schedules change.

The model will be based on the Space and Equipment Planning Software (SEPS). Each Construction project and Major Lease are required to submit a SEPS plan during the SCIP submission. That SEPS plan will become the baseline for Furniture, Fixtures, and Equipment (FF&E) funding.

The scope of this contract includes providing the NAO with updates to activation estimates and historical activation costs, utilizing the SEPS plan submitted with the SCIP submission for each Major Construction Project and Major Lease, so that VHA can estimate activation funding.

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

Services performed under this contract include: providing ongoing support to develop reports, updating project changes to the estimate, and/or presentations as needed by project, VISN or VHA for the term of this contract, providing on-going support to OCAMS and VISNs in maintaining and updating the database data/information to support an effective activation funding process, which will help ensure the tool is being evaluated with current data and information. Also, providing an initial update to the previous estimates, historical activation funding executed per project, and providing information to VHA, providing a mid-year update to assist VHA in providing the most accurate data to VHA finance for funding requests; validating that the initial update is still accurate based on the midyear project changes. The estimates should provide all required documentation to respond to the Office of Management and Budget (OMB) and Congressional requests for information regarding activation costs.

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The Performance Work Statement (PWS) includes defined tasks listed below:

1. Project Management Plan (PMP) and Briefing

2. OCAMES – Activation Project Status Meeting/Monthly Meetings and Ongoing Support

3. Update the previous Activation Estimates

The period of performance for this contract is estimated to be September 30, 2022 through September 29, 2024, which includes a 12-month base period, and a 12-month option period.

The current estimated cost of this requirement, with options, is $613,892.00.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 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;

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

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 authority allows sole source awards to SDVOSB/VOSB based on 38 U.S.C. 8127(c) and that the SDVOSB concern has been determined to be a responsible source with respect to performance.

In accordance with VAAR 819.7007 the VA has the statutory authority to award sole source to a verified Service-Disabled Veteran-Owned Small Business (SDVOSB) using procedures other than competitive procedures given the following:

(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.

The implementing regulations at VAAR 819.7007 (b) & (c) state:

b) “The contracting officer's determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer. A determination that only one SDVOSB concern is available to meet the requirement is not required.”

c) “When conducting a SDVOSB sole source acquisition, the contracting officer shall ensure businesses are registered and verified as eligible in the VIP database prior to making an award.”

The proposed source for this acquisition is Craddock Group, LLC of 3033 Wilson Blvd, Ste. 700, Arlington, VA 22201-3868; a registered and verified SDVOSB by VA Center for Verification and Evaluation (CVE). It is anticipated that Craddock Group, LLC possesses the necessary personnel, requisite knowledge, and technical expertise, or the ability to obtain them, to provide the services required to complete this project within the established period of performance.

Considering the above, the VHA Activations Program Manager has reviewed Craddock Group capabilities statement and determined that Craddock Group, LLC can meet all the Government’s

Effective Date: 02/01/2022 Page 3 of 5 requirements, to include schedule requirements, and is considered a responsible SDVOSB. Based on history and experience the Contracting Officer anticipates the Government can negotiate a fair and reasonable price that offers the best value to the United States. If a fair and reasonable price cannot be agreed to, the award will not be made.

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

In accordance with the Class Deviation from VAAR 819.70079(b), Sole Source Awards to SDVOSB Concerns, the Contracting Officer’s determination whether to make a sole source award is a business decision. For the reasons stated herein, and specifically, in response to Paragraph 5, the undersigned Contracting Officer, has determined that Craddock Group, LLC is a qualified SDVOSB.

A Sources Sought Request for Information (RFI) # 36C77622Q0181 was posted to Contract

Opportunities (Sam.gov) on February 24, 2022 as a SDVOSB set-aside. The publication stated, while not an official solicitation, that any responsible SDVOSB who believed could meet the requirements defined in the scope of work should submit a capability statement to the government point of contact. In response to the RFI, there were three (3) SDVOSB responses.

A review of the responses received has been detailed in the Market Research Report and only one contractor, Craddock Group, demonstrated experience and understanding in all the following areas, as requested within the RFI:

a. Strategic capital investment planning and budgeting, specifically within project “activation” funding for a healthcare facility

b. Space and Equipment Planning

c. Knowledge and experience in OMB budget requirements

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

Reasonable:

Based on the authorities cited in this justification, a sole source award under the Veterans Benefits Act of 2006 to Craddock Group, LLC is proposed pending negotiation of a fair and reasonable price for the work performed. A fair and reasonable price is anticipated. In 2020, the requirement was awarded to Craddock Group, LLC. via a competitive solicitation. Including Craddock Group, there was only one other quote submitted. The quote was lower than the IGCE and the lowest offer received. It is expected that negotiation for the direct award will result in a price which compares favorably or even lower than the independent government cost estimate through the proposed sole-source award. The Contracting Officer may need to conduct additional analysis before making a fair and reasonable price determination.

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

Market Research Was Not Conducted:

Market research techniques used to identify potential sources for this requirement included:

(1) Querying the Vendor Information Pages (VIP) at https://www.vip.vetbiz.gov; and

(2) Publishing a Sources Sought Request for Information intent to award sole source notice to Contract Opportunities (Sam.gov).

Effective Date: 02/01/2022 Page 4 of 5

Based on the market research conducted, there is not a reasonable expectation that offers will be received from two or more eligible SDVOSB and an award can be made at a fair and reasonable price. The market research conducted demonstrated that there was only one capable SDVOSB (Craddock Group) that demonstrated having knowledge and experience for the services necessary.

The others did not demonstrate having experience and an understanding of all the following capabilities or qualifications to include: Strategic Capital Investment Planning and budgeting, specifically within project “activation” funding for a healthcare facility, Space and Equipment Planning (SEPS), and Knowledge and experience in OMB budget requirements.

Through the aforementioned efforts other potential sources were identified; however, (as outlined above) Craddock Group, LLC is capable of meeting all of the Government’s technical requirements and is in the best interest of the Government.

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

It is recommended that a sole source award be made to Craddock Group, LLC a SDVOSB under authority provided by 38 U.S.C. 8127(c) and implemented under VAAR 819.7007. Craddock Group, LLC meets all requirements of this statute and it is in the best interest of the Government. Craddock has the best experience of the available SDVOSBs as their employees have provided us this service under the predecessor effort and they are the developers of the tool we are having assessed.

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

Ongoing market research will be conducted for vendors whose capabilities fall within similar scope.

The expectation is to build more competition in the marketplace and ultimately create a savings to the Government. Part of this effort is to better estimate all-in project costs (e.g., furniture, equipment, information technology, staffing. etc.) and to provide documentation for budgetary requests required for project “activation” funding, a model for calculating these costs in advance of and during construction is necessary to plan and redistribute funding as project schedules change.

Part of this effort is to better estimate project costs, and to provide documentation for budgetary requests required for project “activation” funding, making a model necessary to plan and redistribute funding as project schedules change. These efforts are necessary to ensure the proper implementation of the Space and Equipment Planning Software (SEPS), and to support an efficient activation funding processg. The process of annually collecting data and preparing and updating the activation estimates will be an ongoing requirement for the NAO. It is anticipated that PCAC will compete these future efforts.

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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.

Rita Mercier Date Activations Program Manager Office of Capital Asset Management

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.

Kathleen Klotzbach Date Contracting Officer

PCAC

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.

Jeffrey Donato Date Supervisory Contract Specialist

Facility

Kathleen D.

Klotzbach 325427

Digitally signed by Kathleen D. Klotzbach 325427 Date: 2022.06.02 13:57:41 -04'00'

RITA L. MERCIER

241692

Digitally signed by RITA L.

MERCIER 241692

Date: 2022.06.02 16:21:38 -04'00'

Jeffrey J. Donato 1577479

Digitally signed by Jeffrey J.

Donato 1577479 Date: 2022.06.03 07:10:27 -04'00'