P03 JA - UPS - VASFHCS.COR.COR_CO_PA-BC.pdf

Effective Date: 12/30/2025 Page 1 of 3 Revision: 03 Acquisition ID#: 36C261-27-AP-0249

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C261-27-AP-0249 JOFOC Tracker #: FY27-NCO21 - 89

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Integrated Service Network (VISN) 21, Network Contracting Office (NCO) 21, on behalf of the VA San Fransisco Health

Care System (VASFHCS), the San Francisco VA Medical Center (SFVAMC). 2237: 662-27-1-028-0001

2. Description of Action: The proposed sole source task order against the DoD (Department of Defense) TRANSCOM (Transportation Command) (Indefinite Delivery Indefinite Quantity (IDIQ) Contract #HTC711-23-D-C025 (United Parcel Service (UPS)) is for a Firm-Fixed Price (FFP) task order, with a period of performance of 10/01/2026 – 09/30/2027, for shipping and package delivery services for San Francisco VA Medical Center, Pharmacy services located at 4150 Clement Street, San Francisco, CA 94121.

3. Description of Supplies or Services: The task order is for package pick-up at San Francisco VA Medical Center – Logistics. The vendor is to deliver and pick up packages every business day and deliver them to the addresses indicated on the package. OMB Memorandum M-17-29 directed the Federal Government to develop a Best-in-Class Mandatory solution for package delivery services. VA Directive 7179 mandates Federal Agencies to utilize the National IDIQ contracts (HTC711-23-D-C023, HTC711-23-D-C024, and HTC711-23-D-C025) awarded for Domestic Delivery Services for Small Package NGDS (Next Generation Delivery Service). The proposed requirement is for a task order in the not-to-exceed (NTE) amount of $625,000.00, which is based on anticipated amount of package pick-up and delivery services needed by the VA; however, only actual performed services will be invoiced.

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) 16.505(b)(2)(i):

( ) FAR 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

(X) FAR 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

( ) FAR 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

( ) FAR 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source”. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as

Effective Date: 12/30/2025 Page 2 of 3

Acquisition ID#: 36C261-27-AP-0249 the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business

(VOSB).

5. Rationale Supporting Use of Authority Cited Above: OMB Memorandum M-17-29 directs the CO to a Best-in-Class mandatory government-wide solution for small package delivery services, NGDS

GWAC. VA Directive #7179 directs COs to utilize NGDS GWAC for domestic delivery services. NGDS (Next Generation Delivery Service) is available through DoD (TRANSCOM) for Federal Civilian Agencies, and authorized entities.

United Parcel Service (UPS) provides a better guarantee on ground shipments throughout the US, guarantees shipments to arrive within five (5) business days, and currently has a more reliable tracking and efficient handling of packages over FedEx. FedEx has published shipping times which state that their ground service can take up to seven (7) days. Additionally, when comparing pricing for shipping heavyweight packages UPS shipping rates are lower than FedEx.

United Parcel Service (UPS) is the only vendor amongst the mandatory sources list (UPS, FedEx, and Polar Air Cargo), that can provide services at the level of quality required and at an acceptable cost to the Government. UPS is the best value for the required services based on the aforementioned specialized capabilities to fulfill the domestic small package delivery services for San Francisco Veterans Affairs Medical Center.

6. Efforts to Obtain Competition: Despite being directed to utilize NGDS GWAC as ordered by both the OMB Memorandum M-17-29 and VA Directive 7179 additional market research was conducted, details of which are in the market research section of this document.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: Based on the VA Directive 7179 which mandates Federal Agencies to utilize the National IDIQ contracts (HTC711-23-D-C023, HTC711-23-D-C024, and HTC711-23-D-C025) awarded for Domestic Delivery Services for Small Package NGDS (Next Generation Delivery Service), the VA must select a vendor from the three contract holders, UPS, FedEx, and Polar Air Cargo. The VA Rule of Two does not apply since this service requires a mandated source of supply.

Based on the rationale in paragraph 5, United Parcel Service (UPS) contract (HTC711-23-D-C025), is the only small package delivery provider that can provide the services amongst the three contract holders that can satisfy the government needs.

9. Other Facts: N/A

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Lucy Liu Date

Administrative Officer San Francisco VA Medical Center

LUCY LIU

Digitally signed by

LUCY LIU

Date: 2026.09.28 14:42:05 -07'00'

Effective Date: 12/30/2025 Page 3 of 3

Acquisition ID#: 36C261-27-AP-0249

11. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable: Under the DoD TRANSCOM Indefinite Delivery Indefinite Quantity (IDIQ) Contract #HTC711-23-D-C025 (UPS) for domestic delivery services, the current rates have been previously negotiated and determined to be fair and reasonable.

12. Contracting Officer's Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Durell Salaz Date Contracting Officer

13. Approvals in accordance with VHAPG Part 816.505 Indefinite Delivery Contracts: Ordering.

a. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Joleo Dianala Date

Branch Chief, Services Team II Network Contracting Office (NCO) 21

DURELL SALAZ Digitally signed by DURELL SALAZ Date: 2026.09.29 05:53:06 -07'00'