P03 - JandA - 36C77623C0041 P00004.pdf

Department of MEMORANDUM

Veterans Affairs

Date: 10 April 2026

From: Contracting Officers Representative

Subj: Contract: 36C77623C0041 EHRM Infrastructure Upgrades, VA Finger Lakes Healthcare System

Canandaigua, Justification and Approval – Out-of-Scope Modification – Other Than Full and Open Competition (FAR 6.302)

Thru: Contracting Officer

To: Contract File

1. Contracting Activity:

U.S. Department of Veterans Affairs, Veterans Health Administration (VHA), Program Contracting Activity Central (PCAC), 6100 Oak Tree Boulevard, Suite 490, Independence, OH 44131.

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

The contracting activity plans to award an out-of-scope bi-lateral modification to existing firm-fixed price contract number 36C77623C0041for the subject contract in accordance with VAAR 819.7004, 819.7005 and 819.7008 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 award was competed among VHA Program Contracting Activity Central (PCAC) SDVOSBs and awarded in the original amount of $2,466,284.00 to AE Works LTS.

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

The change is necessary to align the design scope, fiber routing, and submission plan with updated VA direction, review comments, and the revised Scope of Work for EHRM infrastructure upgrades and the new data center. It adds additional buildings and ensures only in-scope buildings are included, clarifies reuse of existing fiber and pathways, removes previously proposed splice design and extra submittals, and adjusts effort and fee so the contract reflects the actual work required to deliver complete bid documents within the established construction funding limit.

This change is driven by the need to incorporate new buildings and fiber routes into the campus-wide design while confirming that existing infrastructure can support significant increases in fiber strands and cabling to the new data center. Additional surveys, subsurface utility engineering, and verification of VA-provided drawings are required so the design can safely reuse existing conduits and fiber where assumed, maintain compliance with VA standards, and stay within the defined construction cost cap.

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

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 businesses. COs may use the non-competitive (sole source) procedures authorized by VAAR 819.7008 or 819.7009 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 819.7008, 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):

AE Works LTS, as the original contract awardee, possesses unique qualifications that make them singularly suited for this additional scope of work. They have developed the current design documents and are fully familiar with the requirements, site-specific conditions, and infrastructure constraints of the VA campus. Their ongoing involvement ensures continuity and integration of new scope elements, including updated fiber routes and new buildings—into the existing design.

AE Works, is a SDVOSB which possesses technical knowledge and resources to incorporate this change to this project without affecting the A/E services already done. Since the progress of this project will reach 100% completion soon, it is in the best interest of the Government to incorporate the design of the new data center now, to avoid duplication of effort that will increase the total cost of the project.

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

The overall project would face increased costs due to duplicating baseline acquisition for another contract, as well as unnecessary rework and additional design needed to incorporate new buildings and fiber routes. This would significantly increase the overall cost of this effort to the government and would increase the overall amount of time the facility is under construction due to both remobilization and re-work.

Modifying the existing A&E contract at this time mitigates significant cost risk that would come with procuring the additional data center work under a second, separate contract down the line.

Additionally, and in accordance with VAAR 819.7008(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 CB Design Group 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 Contracting Officer (CO) that the Anticipated Cost to the

Government will be Fair and Reasonable:

The government will issue an RFP to the existing design contractor for the change after developing the SOW and the IGE. The contractor will be required to submit cost or pricing data with their proposal.

When received the proposal will be evaluated by the COR and the proposal and its data will be the subject of rigorous cost analysis. The governments prenegotiation position will be based on costs proposed by the A&E at the time of the competitive project award, technical analysis of the proposal itself and other historical data. The contractor will be required to certify its cost or pricing data prior to modification award. The overall contract will also, of course, comply with the 6% A&E Fee limitation.

Also, in accordance with FAR 15.406, FAR 15.403-5, and FAR 52.243-1;(Alt III) a price reasonableness determination will be made before modification award based on historical data, cost and/or price analysis, and negotiation.

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 contract. The final market research documents were signed on 5 November 2022, indicating that an adequate number of SDVOSB concerns had been obtained to comply with the rule of two.

Conducting additional market research at this stage would not be beneficial because we are simply adding work to an active design contract, rather than initiating a new procurement. The current contractor is already familiar with the project requirements, site conditions, and design parameters, and involving a new vendor at this juncture would require duplicative efforts— including onboarding, baseline acquisition, and review of existing design resulting in project delays and increased costs to the government. Furthermore, issuing a new competition or undertaking further market research could disrupt the project schedule and continuity, whereas modifying the existing contract for the added work leverages established efficiencies and maintains design consistency.

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:

N/A

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 project timing and coordination issues which had previously resulted in issuing a statement of work that, while actionable, resulted in greater costs and increased schedule risk to the government. 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.

Eric Multer Healthcare Engineer VA Finger Lakes Healthcare System

13. Approvals in accordance with FAR 6.304

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

ERIC

MULTER

Digitally signed by

ERIC MULTER

Date: 2026.04.10 08:22:13 -04'00'

NAME AND TITLE (Type or print)

Christopher Yong, Contracting Officer, PCAC

SIGNATURE DATE SIGNED

b. 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.

NAME AND TITLE (Type or print)

Grace Kelly, Acting Supervisory Contracting Officer, PCAC

SIGNATURE DATE SIGNED

CHRISTOPHER YONG Digitally signed by CHRISTOPHER YONG Date: 2026.04.10 08:38:40 -04'00'