P03 - JA - VISN 16 Extension - Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:

1. Contracting Activity:

Department of Veterans Affairs, Program Contracting Activity Central (PCAC), 6100 Oak Tree Blvd, Suite 490, Independence, OH 44131.

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

The Department of Veterans Affairs, Veterans Integrated Service Network (VISN) 16 has an urgent requirement for medical gases, to include cylinder fills and cylinder rentals. VISN 16 is currently purchasing these medical gases on contract No. 36C77620D0017, with RAS Enterprises, LLC. This contract is currently set to expire on August 29, 2025.

PCAC is currently in the process of soliciting the follow-on, long-term contract to 36C77620D0017, Solicitation No. 36C77625Q0250, with an anticipated solicitation posting date of . This requirement was previously solicited under Solicitation Nos. 36C77625Q0028 and 36C77625Q0229, which were posted to Contract Opportunities on March 11th, 2025 and June 6th, 2025. However, due to multiple unexpected delays which included two solicitation protests to GAO and one advanced pre-filing notice to the COFC, an award could not be made. It is anticipated that the PCAC will need approximately six additional months , award and transition to the follow-on contract.

3.

PCAC intends to award a modification to the existing Contract, Contract No. 36C77620D0017 with RAS Enterprises, LLC, to extend the period of performance, as well as the ordering period, for a period of six months, from August 29th, 2025 through February 28th, 2026.

The IGCE for this six-month extension was determined by assessing current market conditions, current contract rates, and historical usage rates on this contract, and other contracts for the same or similar supplies.

The Independent Government Cost (IGCE) for this modification is

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

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

5.

the Use of the Authority Cited Above (applicability of authority):

RAS Enterprises LLC is the current contractor providing medical gases under Contract No.

36C77620D0017 to VISN 16. They are the only contractor within VISN 16 that currently has medical gas cylinders in all facilities across VISN 16. No other contractor could meet the needs of the requirement quicker or as seamlessly as RAS Enterprises, LLC; notwithstanding the length of time required to transition all medical gas cylinders and to complete inventories of all medical gas cylinders located throughout VISN 16. It typically takes between 2-4 months to inventory and transition all medical gas cylinders in a VISN to a new contractor. This process includes auditing all medical gas cylinders on-hand and turning these cylinders back to the contractor. Depending on many variables, to include, who the incumbent contractor is, if subcontractors were used and if the contractor owns the cylinders. This process may include the physical turning in of all medical gas cylinders in a facility and receiving all new cylinders from the new contractor.

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

PCAC intends to execute a modification to the existing Contract No. 36C77620D0017, as RAS Enterprises, LLC, is currently considered to have the unique capabilities to continue to satisfy agency requirements without serious disruptions and/or interruptions.

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

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

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

Medical gases are considered a critical supply for all VA hospitals and clinics as these products provide life-sustaining gases to VA patients to treat a variety of respiratory conditions, i.e., asthma, chronic obstructive pulmonary disease (COPD), pneumonia, etc. Additionally, the uniqueness of supplying medical gases to several locations across VISN 16 requires an initial phase-in and phase-out period (transition period), which can take several months to complete, as reconciliation between the government and contractor, of both Government Furnished Equipment (GFE) and contracted cylinder rentals, takes place during the transition period. For this reason, transitioning VISN 16 to a new medical gas contractor would be unattainable in such a short period of time.

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

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:

The re-procurement for medical gases in support of VISN 16 is currently being reviewed to determine the most appropriate acquisition approach to enhance competition on future solicitations.

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.

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

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.